Amid Spending Constraints, Hashi Should Top List On Substantial Discount Over Microsoft, Amazon, Google Clouds: Analyst

Needham analyst Alex Henderson maintained a Hold on HashiCorp, Inc HCP.
Hashi demonstrated demand resilience against macro headwinds posting strong 52% Q3 revenue growth, beating consensus by 13% and guiding Q4 ahead.
The guidance calls for Q4 revenue of $123-$125 million and an EPS loss of $(0.23)-$(0.21), both above the Street estimates.
Results were highlighted by robust 134% DBNR, 63% customer growth to 3,899, and expansion with the company's third >$10 million ARR customer.
Hashi also demonstrated management agility by pivoting to a more modest spending trajectory, driving improved margins.
The analyst saw Hashi as an "Anchor" vendor that sees its wallet share grow as spending is constrained.
One of Terraform's core value propositions is a cost-effective way to control and rein in exorbitant Cloud expenses.
Hashi's products are a relatively minor cost compared to the large budgets of Microsoft Corp MSFT Azure, Amazon.com Inc AMZN AWS, Alphabet Inc GOOG GOOGL Google and even Private Cloud.
ROIs are often realized in months. As the environment puts constraints on spending, the analyst believes Hashi should remain high on the purchasing priority list.
The analyst thinks the strong print and guide are illustrative of this point.
Also Read: Hashi Has Ingredients To Insulate It From Slowdown, However It's Not immune, Analyst Says
Price Action: HCP shares traded higher by 7.9% at $28.84 on the last check Thursday.

Analyst Calendar