New Relic, Inc. (NYSE:NEWR) Q3 2019 Earnings Conference Call Transcript

Feb 06, 2019 • 05:00 pm ET

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New Relic, Inc. (NYSE:NEWR) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Christina, and I will be your conference operator today. At this time, I would like to welcome everyone to the New Relic Third Quarter Fiscal 2019 Earnings Conference Call. (Operator Instructions) Thank you.

New Relic's Investor Relations, Tony Righetti, you may begin your conference.

Executive
Tony Righetti

Thank you. Good afternoon, and welcome to New Relic's Third Quarter Fiscal Year 2019 Earnings Conference Call. Joining me today are New Relic's Founder and CEO, Lew Cirne; and CFO, Mark Sachleben.

Today's conference call contains forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events, including financial projections and future market conditions is a forward-looking statement. Actual results may differ materially from those expressed in these forward-looking statements. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to our earnings release issued today as well as the risks described in our most recent Form 10-Q and subsequent filings with the SEC.

Our commentary today will include non-GAAP financial measures. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. But note that these measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our earnings release issued today.

At times, we may offer incremental metrics to provide greater insight into our business or results. This additional detail may be one-time in nature, and we may or may not provide an update in the future on these metrics. I encourage you to visit the Investor Relations section of New Relic's website to access our earnings release issued today, supplemental materials that accompany our earnings release, periodic SEC reports, a webcast replay of today's call or to learn more about New Relic.

With that, let me turn the call over to Lew.

Executive
Lew Cirne

Thanks, Tony, and good afternoon to everyone joining today's call to review New Relic's Third Quarter Fiscal 2019 Financial Results.

I'd like to start by announcing that New Relic has acquired SignifAI to address a significant, widespread problem that we see our customers struggle with on a daily basis. Later, I will provide more detail on this fantastic company and why I'm so excited at the prospect of bringing their exciting technology to our customers and to the broader market.

But first, let's talk about our third quarter. Results exceeded our guidance on both the top and bottom lines with revenue of $124 million and non-GAAP operating income of $7.8 million. It was one year ago this quarter that we reported our first quarter of non-GAAP profitability, which I am very pleased to see that we have sustained. At the same time, we've invested to enhance our platform and scale the business to an annual revenue run rate of nearly $500 million. While we've made great progress towards