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- SaaS Q3 reports continue comments on 7 companies 📈
SaaS Q3 reports continue comments on 7 companies 📈
Q3 earnings: Sumo Logic, GitLab, Sprinklr, SentinelOne, Zuora, HashiCorp, and C3.AI
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Today we bring you comments on Q3 earnings reports from Sumo Logic, GitLab, Sprinklr, SentinelOne, Zuora, HashiCorp, and C3.AI.
Sumo Logic reported a 27% year-over-year revenue growth and beat the market expectations of $74.2 million
The company reported a net loss of $4.4 million, or $0.04 per share – beating S&P Capital IQ Consensus estimates by $0.11 per share.
Sumo Logic provided an upbeat guidance for the fourth quarter of fiscal 2023, expecting total revenue between $77.0 million and $78.0 million and a non-GAAP operating margin of (14)% to (13)
Sumo Logic recently published its third-quarter earnings for the 2023 fiscal year. which demonstrates that the company is on track to achieve efficient growth and profitability in the near future. Revenue increased by 27% year-over-year to $79 million, beating the market expectations of $74.2 million. Net loss for the quarter was reported at $4.4 million, or $0.04 per share – beating S&P Capital IQ Consensus estimates by $0.11 per share.
The company also provided upbeat guidance for the fourth quarter of fiscal 2023. Sumo Logic expects total revenue between $77.0 million and $78.0 million, representing 15% to 16% growth year-over-year and a non-GAAP operating margin of (14)% to (13). Non-GAAP net loss per share is expected to be in the range of $0.09 to $0.08 on approximately 120.5 million weighted average shares outstanding – beating the market expectations of a non-GAAP net loss per share of $0.17 for q4.
This quarter also marked several important events for Sumo Logic, including the recognition as a Visionary in the 2022 Gartner Magic Quadrant for Cloud Infrastructure and Platform Monitoring, the announcement of enhancements to unlock greater insights and usability for the developer experience, a new app for AWS Cost Explorer to help customers manage AWS performance and cloud costs, and appointment of Timothy Youngblood to its Board of Directors.
GitLab Inc. reported strong financial results for its third quarter of the fiscal year 2023, surpassing market expectations and providing positive guidance for the fourth quarter. Revenue for the period ended October 31st soared 69.2% year-over-year to $113 million, compared to the S&P Capital IQ consensus of $106.08 million. On a non-GAAP basis, GitLab reported a net loss of ($0.10) per share, beating the consensus estimate of ($0.15).
Key Takeaways:
Revenue for the period ended October 31st soared 69.2% year-over-year to $113 million, compared to the S&P Capital IQ consensus of $106.08 million.
Customers with more than $5,000 of ARR increased to 6,469, up 59% from Q3 of the fiscal year 2022.
Dollar-Based Net Retention Rate above 130% in Q3 of the fiscal year 2023.
Guidance for the fourth quarter anticipates non-GAAP net loss ranging from ($0.15) to ($0.14) per share on revenue between $119 - $120 million, above the S&P Capital IQ consensus of $0.17 loss per share on revenue of $119.33 million.
GitLab continues to show impressive growth and positive momentum across its customer base, revenue, and dollar-based net retention rate.
With strong guidance for the fourth quarter, investors are optimistic about GitLab's future performance.
The company's strong performance was driven by continued growth in its customer base and revenue, with customers with more than $5,000 of ARR increasing to 6,469 (up 59% from Q3 of the fiscal year 2022) and customers with more than $100,000 of ARR increasing to 638 (up 49% from Q3 of the fiscal year 2022). The strong growth was also reflected in the Dollar-Based Net Retention Rate, which exceeded 130% in Q3 of the fiscal year 2023.
Looking ahead to the fourth quarter, GitLab anticipates non-GAAP net loss ranging from ($0.15) to ($0.14) per share on revenue between $119 - $120 million. This is above the S&P Capital IQ consensus of $0.17 loss per share on revenue of $119.33 million.
Sprinklr, a leading enterprise software company, reported strong third-quarter results that beat market expectations on Tuesday. The company reported a non-GAAP net income of $0.02 per share compared to the S&P Capital IQ consensus estimates of a loss of $0.01 per share. Total revenue grew 23.8% year-over-year, coming in at $157.3 million compared to the estimated $156.05 million. Subscription revenue also experienced significant growth, increasing 27% over the same period last year to $139.9 million.
In addition, Sprinklr guided for the fourth quarter of 2021. The company expects subscription revenue between $145.5 million and $146.5 million, total revenue between $162.3 million and $163.3 million, non-GAAP operating income between $6 million and $7 million, and non-GAAP net income per share between $0.01 and $0.02, assuming 264 million weighted average shares outstanding. For the full fiscal year ending January 31, 2023, Sprinklr expects subscription revenue between $545.8 million and $546.8 million, total revenue between $615.2 million and $616.2 million, non-GAAP operating loss between $1.3 million and $2.3 million, and non-GAAP net loss per share between $0.04 and $0.05, assuming 260 million weighted average shares outstanding.
The quarter's results were driven by a number of key events for Sprinklr including the acquisition of Falon Technologies in August, which expanded the company’s portfolio with AI-driven solutions. Sprinklr also recently announced the launch of its new Employee Experience platform, which enables companies to create a more engaging and productive workplace for their employees.
SentinelOne, Inc. (NYSE: S) released its third quarter fiscal year 2023 financial results on December 6th, revealing impressive growth across all metrics. Total revenue increased 106% year-over-year to $115.3 million, higher than the S&P Capital IQ consensus of $111 million. Annualized recurring revenue (ARR) also grew 106% to $487.4 million as of October 31st, 2022, with the total customer count increasing by 55%.
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SentinelOne CEO Tomer Weingarten cited the company's Singularity platform as a key factor in its success. "We have made tremendous progress in the past quarter, and we are confident that our Singularity platform will continue to drive strong growth for us going forward," said Weingarten.
The dollar-based net revenue retention rate was 134%. Gross margin remained steady at 64%, while non-GAAP gross margin grew from 67% to 71%. Operating margins also improved significantly, with GAAP operating margin increasing from (120)% to (90)%, and non-GAAP operating margin rising from (69)% to (43)%. Cash, cash equivalents, and investments were $1.2 billion as of October 31, 2022.
Looking ahead to the fourth quarter and full fiscal year 2023, ending January 31st, 2023, SentinelOne provided upbeat guidance. The company projected revenue of $125 million in Q4 FY2023, slightly above the S&P Capital IQ consensus of $124.54 million. Non-GAAP operating margins were expected to be (39)%, while full FY2023 guidance looked for non-GAAP operating margins of (51)-(50), signaling confidence in the company's strategic direction.
Zuora reported a solid third quarter, beating analyst estimates for the period. However, due to the macroeconomic conditions, management took steps to cut its workforce and adjust guidance for the fourth quarter and fiscal year 2023. Despite this, the company expects subscription revenue growth of 11-14% in fiscal 2024
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Zuora (NYSE: ZUO) reported its third-quarter financial results on Thursday, with the company surpassing analyst estimates for the period and providing guidance for the fourth quarter. The digital subscription billing software company delivered a non-GAAP net loss of $0.02 per share, beating the S&P Capital IQ Consensus by $0.04. Total revenue rose 13.3% year over year to $101.1 million compared to the expected $100.21 million, while subscription revenue was also ahead of expectations and grew 21%.
In response to the changing macroeconomic environment, management made the difficult decision to reduce its workforce by 11%, in order to align expenses with near-term growth profile and improve profitability in the near-term. The company also provided guidance for Q4 of ($0.07)-($0.06) earnings per share excluding non-recurring items, which is lower than the S&P Capital IQ Consensus of ($0.04). Fourth quarter revenues are expected to be in range of $99.5-101.5 million, versus the consensus estimate of $103.12 million.
For fiscal year 2023, the company guided earnings per share of ($0.16)-($0.15) excluding non-recurring items, in line with the S&P Capital IQ Consensus of ($0.16). Revenue expectations are below consensus at $392.5-394.5 million versus the estimated $394.77 million. The company also provided outlook on subscription revenue growth for 2024, predicting an increase of 11-14%.
HashiCorp Inc. reported its third-quarter earnings, with total revenues of $125.34 million, beating estimates of $111.14 million. This is a 52.4% year/year increase from the same period last year, which saw $81.54 million in revenue. Non-GAAP operating loss was $60 million, beating the estimated $71 million loss.
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The quarter also included several key events that have helped boost the company's performance. HashiConf Global saw over ten thousand attendees take part in person and virtually, with numerous product announcements made at the event. Among the announcements were enhanced functionality for HCP Vault on Azure, including continuous validation for infrastructure configurations, no-code provisioning, and native Open Policy Agent support. Additionally, HashiCorp has deepened its integrations with partners such as Cockroach Labs, Dynatrace, F5, ForgeRock, New Relic, Snyk, and more. The company also announced a collaboration with Intel to accelerate cloud migration with HashiCorp Terraform and Intel Xeon-based platforms.
Looking ahead to the fourth quarter of fiscal 2023, HashiCorp expects total revenue of $123 - $125 million and a Non-GAAP operating loss of $54 - $51 million. The company ended the third quarter with 3,899 customers, up from 3,612 customers at the end of the previous fiscal quarter and 2,392 customers at the end of 3Q22. HashiCorp has also ended Q3 with 760 customers with equal or greater than $100,000 in ARR.
C3 AI reported better than expected Q2 results with a loss of $(0.11) per share, excluding non-recurring items. This number was $0.05 better than the S&P Capital IQ Consensus of ($0.16). Revenues rose 7.1% year/year to $62.41 mln vs the $60.81 mln S&P Capital IQ Consensus. Subscription revenue grew 26% yr/yr to $59.5 mln.
The company also issued downside guidance for the third quarter of fiscal 2023, expecting total revenue between $63.0 - $65.0 million, as compared to the S&P Capital IQ Consensus of $66.82 mln. C3 AI reaffirmed its full-year fiscal 2023 guidance, predicting total revenue between $255.0 - $270.0 million, as compared to the S&P Capital IQ Consensus of $261.04 mln.
C3 AI has also increased its patent portfolio with over 100 granted patents and pending applications in the United States and numerous international jurisdictions. Additionally, C3 AI’s technology is now being used by New York State as part of a major sustainability effort. The NY Energy Manager application is built on the C3 AI Energy Management application, which includes more than 17,000 facilities for more than 1,000 customers in New York.
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