HashiCorp Shares Slip Despite Q2 Earnings Beat & FY24 Outlook Boost: Here's The Details

HashiCorp Inc HCP reported Q2 FY24 revenue of 26% Y/Y to $143.2 million, beating the consensus of $138.22 million. 

Subscription revenue from HashiCorp Cloud Platform (HCP) rose to $18.4 million from $10.6 million a year ago.

The trailing four-quarter average Net Dollar Retention rate stood at 124% at end-Q2 FY24, vs. 134% the prior year. 

Total RPO stood at $682.5 million in Q2, up from $476.0 million a year ago.

HashiCorp had 4,217 customers at the end of Q2 FY24, with 851 customers having equal or greater than $100,000 in Annual Recurring Revenue (ARR). 

Adjusted gross profit rose to $118.8 million from $96.1 million a year ago, with an adjusted gross margin of 83% vs. 84% a year ago. 

Adjusted operating loss stood at $(35.1) million vs. $(36.0) million the prior year.

Adjusted EPS loss of $(0.10) in Q2 FY24, beating estimate of $(0.15). 

Operating cash flow stood at $(33.7) million in Q2, and cash, cash equivalents, and investments stood at $1.244 billion as of end-Q2 FY24.

Outlook: HCP expects Q3 adjusted EPS loss of $(0.05)-$(0.03) versus $(0.04) estimate and revenue of $142 million-$144 million vs. consensus of $141.74 million. 

The company raised the outlook for adjusted EPS loss of $(0.23)-$(0.21) from $(0.24)-$(0.27) versus consensus of $(0.26) and revenue to $571 million-$575 million from $564 million-$570 million vs. $567.59 million estimate.  

Also Read: Analyst Asserts HashiCorp as a Solid Entry Point Post-Guidance Adjustment and Macro Turbulence

Price Action: HCP shares are trading lower by 4.15% at $27.95 premarket on the last check Friday.