Why New Relic Stock Rose Today
Shares of New Relic (NYSE: NEWR) jumped on Friday after the cloud software company reported its fiscal fourth-quarter results. New Relic beat analyst estimates across the board, and it provided guidance calling for double-digit growth in the first quarter. The stock was up about 11.4% at 2:30 p.m. EDT.
New Relic reported fourth-quarter revenue of $159.7 million, up 21% year over year and about $6 million higher than the average analyst estimate. Annual recurring revenue reached $636 million at the end of the quarter, and the company recorded a dollar-based net expansion rate of 116%. The net expansion rate is down from 131% in the prior-year period, which could indicate that existing customers are pulling back.
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