New Relic
Market Cap
US$4.1b
Last Updated
2020/01/22 01:07 UTC
Data Sources
Company Financials +
Executive Summary
New Relic, Inc., a software-as-a-service company, provides various digital products worldwide.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Adequate balance sheet with concerning outlook.
Similar Companies
Share Price & News
How has New Relic's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NEWR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.0%
NEWR
1.3%
US Software
0.8%
US Market
1 Year Return
-25.1%
NEWR
40.6%
US Software
25.1%
US Market
Return vs Industry: NEWR underperformed the US Software industry which returned 39.8% over the past year.
Return vs Market: NEWR underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| NEWR | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.0% | 1.3% | 0.8% |
| 30 Day | 3.5% | 6.1% | 3.1% |
| 90 Day | 16.7% | 18.2% | 10.9% |
| 1 Year | -25.1%-25.1% | 41.8%40.6% | 27.7%25.1% |
| 3 Year | 91.2%91.2% | 140.2%130.7% | 51.3%41.6% |
| 5 Year | 126.9%126.9% | 220.2%197.9% | 77.2%57.6% |
Price Volatility Vs. Market
How volatile is New Relic's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Estimating The Intrinsic Value Of New Relic, Inc. (NYSE:NEWR)2 weeks ago | Simply Wall St
Is It Time To Consider Buying New Relic, Inc. (NYSE:NEWR)?1 month ago | Simply Wall St
Investors Who Bought New Relic (NYSE:NEWR) Shares Five Years Ago Are Now Up 122%Valuation
Is New Relic undervalued compared to its fair value and its price relative to the market?
11.15x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: NEWR ($70.67) is trading above our estimate of fair value ($67.46)
Significantly Below Fair Value: NEWR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NEWR is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: NEWR is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NEWR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NEWR is overvalued based on its PB Ratio (11.2x) compared to the US Software industry average (5.9x).
Next Steps
Future Growth
How is New Relic forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
18.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NEWR is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: NEWR is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: NEWR is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: NEWR's revenue (16.8% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: NEWR's revenue (16.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NEWR's Return on Equity is forecast to be low in 3 years time (12.5%).
Next Steps
Past Performance
How has New Relic performed over the past 5 years?
4.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEWR is currently unprofitable.
Growing Profit Margin: NEWR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NEWR is unprofitable, but has reduced losses over the past 5 years at a rate of 4.9% per year.
Accelerating Growth: Unable to compare NEWR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: NEWR is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).
Return on Equity
High ROE: NEWR has a negative Return on Equity (-16.66%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is New Relic's financial position?
Financial Position Analysis
Short Term Liabilities: NEWR's short term assets ($894.8M) exceed its short term liabilities ($297.3M).
Long Term Liabilities: NEWR's short term assets ($894.8M) exceed its long term liabilities ($479.1M).
Debt to Equity History and Analysis
Debt Level: NEWR's debt to equity ratio (111.3%) is considered high.
Reducing Debt: Insufficient data to determine if NEWR's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Inventory Level: NEWR has a low level of unsold assets or inventory.
Debt Coverage by Assets: NEWR's debt is covered by short term assets (assets are 2.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable NEWR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: NEWR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 96% per year.
Next Steps
Dividend
What is New Relic's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate NEWR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NEWR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NEWR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NEWR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NEWR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of New Relic's salary, the management and board of directors tenure and is there insider trading?
1.8yrs
Average management tenure
CEO
Lew Cirne (49yo)
11.9yrs
Tenure
US$4,292,404
Compensation
Mr. Lewis Cirne, also known as Lew, founded New Relic, Inc. in 2008 and has been its Chief Executive Officer since February 2008. Mr. Cirne serves as a Strategic Limited Partner at The Four Rivers Group. H ...
CEO Compensation Analysis
Compensation vs Market: Lew's total compensation ($USD4.29M) is about average for companies of similar size in the US market ($USD4.99M).
Compensation vs Earnings: Lew's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
1.8yrs
Average Tenure
54yo
Average Age
Experienced Management: NEWR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Age and Tenure
4.7yrs
Average Tenure
48.5yo
Average Age
Experienced Board: NEWR's board of directors are considered experienced (4.7 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman of the Board |
| Shares | 45,000 |
| Max Price | US$96.71 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.
Management Team
Lew Cirne (49yo)
Founder
- Tenure: 11.9yrs
- Compensation: US$4.29m
Mark Sachleben (54yo)
CFO & Corporate Secretary
- Tenure: 11.8yrs
- Compensation: US$2.54m
Mike Christenson (60yo)
President
- Tenure: 1.4yrs
- Compensation: US$198.44k
Roger Scott
Executive VP & Chief Customer Officer
- Tenure: 3.1yrs
Kristy Friedrichs
Chief People Officer
- Tenure: 2.9yrs
Tony Righetti
Senior Manager of Investor Relations
Andrew Lawson
Executive VP & GM of EMEA
- Tenure: 0.7yrs
Gregory Ouillon
EMEA Field Chief Technology Officer
- Tenure: 0.3yrs
Dmitri Chen
Executive VP and GM of Asia-Pacific & Japan
- Tenure: 0.2yrs
Board Members
Peter Fenton (46yo)
Independent Chairman of the Board
- Tenure: 11.2yrs
- Compensation: US$237.27k
James Tolonen (69yo)
Independent Director
- Tenure: 3.7yrs
- Compensation: US$237.61k
Caroline Carlisle (67yo)
Independent Director
- Tenure: 1.4yrs
- Compensation: US$198.44k
Hope Cochran (48yo)
Independent Director
- Tenure: 1.7yrs
- Compensation: US$266.33k
Lew Cirne (49yo)
Founder
- Tenure: 11.9yrs
- Compensation: US$4.29m
Mike Christenson (60yo)
President
- Tenure: 1.4yrs
- Compensation: US$198.44k
Adam Messinger (47yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$213.06k
Dan Scholnick (41yo)
Independent Director
- Tenure: 11.3yrs
- Compensation: US$226.06k
Company Information
New Relic, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: New Relic, Inc.
- Ticker: NEWR
- Exchange: NYSE
- Founded: 2007
- Industry: Application Software
- Sector: Software
- Market Cap: US$4.141b
- Shares outstanding: 58.79m
- Website: https://www.newrelic.com
Number of Employees
Location
- New Relic, Inc.
- 188 Spear Street
- Suite 1200
- San Francisco
- California
- 94105
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NEWR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2014 |
| 2NR | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2014 |
| 0K79 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 2014 |
| NEWR * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 2014 |
Biography
New Relic, Inc., a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Monitoring that provides visibility into the performance and usage of server-based applications, including data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications. It also provides New Relic Synthetics, which simulates usage and reproduces business-critical functionality that enables its users to test their software throughout the entire development life cycle; New Relic Infrastructure that provides a view of the health and configuration changes for an enterprise’s entire host ecosystem across various environments; and New Relic Insights that enables technology and business users to perform real-time analysis. In addition, the company offers New Relic Applied Intelligence platform; New Relic Alerts, which provides a centralized notification system; and New Relic’s extensible architecture that provides customers, partners, and third-party developers with APIs and SDKs to build software integrations. It sells its products through direct sales organizations, online and offline sales, and marketing activities. The company was founded in 2007 and is headquartered in San Francisco, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/22 01:07 |
| End of Day Share Price | 2020/01/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.