New Relic
Market Cap
US$3.5b
Last Updated
2020/11/24 00:36 UTC
Data Sources
Company Financials +
Executive Summary
New Relic, Inc., a software-as-a-service company, provides platform that companies use to build, develop, and operate their digital businesses worldwide. More Details
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: NEWR's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
4.2%
NEWR
0.3%
US Software
-0.5%
US Market
1 Year Return
-14.9%
NEWR
44.1%
US Software
18.3%
US Market
Return vs Industry: NEWR underperformed the US Software industry which returned 45.5% over the past year.
Return vs Market: NEWR underperformed the US Market which returned 19.1% over the past year.
Shareholder returns
| NEWR | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.2% | 0.3% | -0.5% |
| 30 Day | -10.3% | -0.8% | 3.6% |
| 90 Day | -4.8% | 4.1% | 5.6% |
| 1 Year | -14.9%-14.9% | 45.0%44.1% | 21.0%18.3% |
| 3 Year | -3.5%-3.5% | 133.9%126.4% | 45.2%35.6% |
| 5 Year | 51.8%51.8% | 237.9%219.1% | 89.8%68.8% |
Long-Term 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 week ago | Simply Wall St
David Henshall Is The Director of New Relic, Inc. (NYSE:NEWR) And Just Spent US$260k On Shares4 weeks ago | Simply Wall St
Is New Relic (NYSE:NEWR) A Risky Investment?2 months ago | Simply Wall St
Did New Relic's (NYSE:NEWR) Share Price Deserve to Gain 44%?Valuation
Is New Relic undervalued compared to its fair value and its price relative to the market?
8.99x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: NEWR ($56.88) is trading above our estimate of fair value ($53.06)
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 US 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 (9x) compared to the US Software industry average (7.7x).
Next Steps
Future Growth
How is New Relic forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
8.6%
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 (12.4% per year) is forecast to grow faster than the US market (10.2% per year).
High Growth Revenue: NEWR's revenue (12.4% 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 (7.7%).
Next Steps
Past Performance
How has New Relic performed over the past 5 years?
-7.7%
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, and losses have increased over the past 5 years at a rate of 7.7% 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 (8%).
Return on Equity
High ROE: NEWR has a negative Return on Equity (-34.61%), as it is currently unprofitable.
Next Steps
Financial Health
How is New Relic's financial position?
Financial Position Analysis
Short Term Liabilities: NEWR's short term assets ($988.7M) exceed its short term liabilities ($343.9M).
Long Term Liabilities: NEWR's short term assets ($988.7M) exceed its long term liabilities ($511.3M).
Debt to Equity History and Analysis
Debt Level: NEWR's debt to equity ratio (112.8%) 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
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 58.1% per year.
Next Steps
Dividend
What is New Relic current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NEWR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NEWR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Lew Cirne (50 yo)
12.75yrs
Tenure
US$5,122,230
Compensation
Mr. Lewis Cirne, also known as Lew, founded New Relic, Inc. in 2008 and has been its Chief Executive Officer since February 2008. Mr. Cirne serves as a Strategic Limited Partner at The Four Rivers Group. H...
CEO Compensation Analysis
Compensation vs Market: Lew's total compensation ($USD5.12M) is about average for companies of similar size in the US market ($USD5.22M).
Compensation vs Earnings: Lew's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 12.75yrs | US$5.12m | 10.06% $ 350.2m | |
| President | 2.25yrs | US$11.30m | 0.13% $ 4.7m | |
| CFO & Corporate Secretary | 12.58yrs | US$2.65m | 0.61% $ 21.2m | |
| Chief Product Officer | 0.75yr | US$5.68m | no data | |
| EMEA Field Chief Technology Officer | 1.08yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Marketing Officer | 0.50yr | no data | no data | |
| Chief People Officer | 3.75yrs | no data | no data | |
| Executive VP and GM of Asia-Pacific & Japan | 1yr | no data | no data | |
| Senior Vice President of Business Operations | no data | no data | no data | |
| Executive VP & Chief Customer Officer | 0.50yr | no data | no data | |
| Executive Vice President of Sales for Americas | 0.25yr | no data | no data |
1.0yrs
Average Tenure
50yo
Average Age
Experienced Management: NEWR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 12.75yrs | US$5.12m | 10.06% $ 350.2m | |
| President | 2.25yrs | US$11.30m | 0.13% $ 4.7m | |
| Independent Director | 4.5yrs | US$237.54k | 0.015% $ 528.9k | |
| Independent Director | 2.25yrs | US$211.84k | 0.0046% $ 160.5k | |
| Independent Chairman | 0.25yr | US$220.02k | 0.0046% $ 161.9k | |
| Director | 0.25yr | no data | 0.0078% $ 271.2k | |
| Independent Director | 6.58yrs | US$214.84k | 0.072% $ 2.5m | |
| Independent Director | 12.08yrs | US$222.37k | 0.060% $ 2.1m | |
| Director | 0.25yr | no data | no data |
2.3yrs
Average Tenure
52yo
Average Age
Experienced Board: NEWR's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NEWR insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.
Top Shareholders
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$3.482b
- Shares outstanding: 60.98m
- 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 platform that companies use to build, develop, and operate their digital businesses worldwide. It offers a suite of products on its open and exten...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/24 00:36 |
| End of Day Share Price | 2020/11/23 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.