Shares of New Relic (NYSE: NEWR) soared by more than 15% in pre-market trading on Wednesday after the cloud-based software reported fiscal Q3 adjusted earnings per share of $0.32, more than double the analysts’ consensus estimate of $0.15.
Revenues increased by 18% year-over-year to $239.8 million beating analysts’ expectations by $6.88 million.
Looking forward, management now expects revenue and adjusted earnings per share for Q4 2023 to be in the ranges of $240 million and $242 million and $0.20 to $0.23, respectively. For reference, analysts were expecting $239.7 million in revenue along with an adjusted EPS of $0.15.
The company raised its guidance for FY23 and has projected revenues to be between $923.1 million and $925.1 million versus a consensus of $914.77 million. Adjusted earnings are anticipated to come in the range of $0.40 to $0.43, above the consensus estimate of $0.19 per share.
Overall, Wall Street analysts are sidelined about NEWR stock with a consensus Hold rating based on two Buys and eight Holds.