New Relic
Market Cap
US$3.4b
Last Updated
2019/08/18 01:00 UTC
Data Sources
Company Financials +
Executive Summary
New Relic, Inc., a software-as-a-service company, provides various digital products worldwide.
Snowflake
Fundamentals
Adequate balance sheet with limited growth.
Risks
- New Relic has significant price volatility in the past 3 months.
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
Market Performance
7 Day Return
-8.8%
NYSE:NEWR
-3.0%
US Software
-1.0%
US Market
1 Year Return
-42.8%
NYSE:NEWR
18.5%
US Software
-0.4%
US Market
NEWR underperformed the Software industry which returned 18.4% over the past year.
NEWR underperformed the Market in United States of America which returned -0.4% over the past year.
Share holder returns
| NEWR | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.8% | -3.0% | -1.0% |
| 30 Day | -34.2% | -3.8% | -3.3% |
| 90 Day | -39.3% | 1.5% | 0.8% |
| 1 Year | -42.8%-42.8% | 20.2%18.5% | 1.9%-0.4% |
| 3 Year | 62.3%62.3% | 115.2%106.7% | 39.4%30.4% |
| 5 Year | n/a | 160.8%141.9% | 54.2%37.1% |
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
Is It Time To Consider Buying New Relic, Inc. (NYSE:NEWR)?1 month ago | Simply Wall St
Does New Relic, Inc.'s (NYSE:NEWR) CEO Salary Reflect Performance?1 month ago | Simply Wall St
Is New Relic (NYSE:NEWR) Using Too Much Debt?Valuation
Is New Relic undervalued based on future cash flows and its price relative to the stock market?
28%
Discount to future cash flow value
Intrinsic Value Based on Future Cash Flows
New Relic's share price is below the future cash flow value, and at a moderate discount (> 20%).
New Relic's share price is below the future cash flow value, but not at a substantial discount (< 40%).
Price Based on Earnings
New Relic is loss making, we can't compare its value to the US Software industry average.
New Relic is loss making, we can't compare the value of its earnings to the United States of America market.
Price Based on Expected Growth
Unable to calculate PEG ratio for New Relic, we can't assess if its growth is good value.
Price Based on Value of Assets
New Relic is overvalued based on assets compared to the US Software industry average.
Next Steps
Future Growth
How is New Relic expected to perform in the next 1 to 3 years based on estimates from 17 analysts?
30.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
New Relic's revenue is expected to grow significantly at over 20% yearly.
New Relic is not considered high growth as it is expected to be loss making for the next 1-3 years.
New Relic's revenue growth is expected to exceed the United States of America market average.
Unable to compare New Relic's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
Unable to compare New Relic's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Earnings per Share Growth Estimates
Future Return on Equity
New Relic is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Next Steps
Past Performance
How has New Relic performed over the past 5 years?
4.6%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
New Relic does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
Unable to compare New Relic's 1-year earnings growth to the 5-year average as it is not currently profitable.
Unable to compare New Relic's 1-year growth to the US Software industry average as it is not currently profitable.
Return on Equity
It is difficult to establish if New Relic has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
Return on Assets
It is difficult to establish if New Relic has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
Return on Capital Employed
It is difficult to establish if New Relic improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Next Steps
Financial Health
How is New Relic's financial position?
Financial Position Analysis
New Relic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
New Relic's cash and other short term assets cover its long term commitments.
Debt to Equity History and Analysis
New Relic's level of debt (113.5%) compared to net worth is high (greater than 40%).
Unable to establish if New Relic's debt level has increased without past 5-year debt data.
Balance Sheet
Low level of unsold assets.
Debt is covered by short term assets, assets are 2.2x 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.
Whilst loss making New Relic has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
Whilst loss making New Relic has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -110.9% per year.
Next Steps
Dividend
What is New Relic's current dividend yield, its reliability and sustainability?
Dividend Yield and Payments Analysis
Unable to evaluate New Relic's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate New Relic's dividend against the top 25% market benchmark as the company has not reported any payouts.
Unable to perform a dividend volatility check as New Relic has not reported any payouts.
Unable to verify if New Relic's dividend has been increasing as the company has not reported any payouts.
Current Payout to Shareholders
Unable to calculate sustainability of dividends as New Relic has not reported any payouts.
Future Payout to Shareholders
No need to calculate the sustainability of New Relic's dividends in 3 years as they are not expected to pay a notable one for United States of America.
Next Steps
Management
What is the CEO of New Relic's salary, the management and board of directors tenure and is there insider trading?
2.5yrs
Average management tenure
CEO
Lew Cirne (49yo)
11.5yrs
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
Lew's remuneration is about average for companies of similar size in United States of America.
Lew's compensation has increased whilst company is loss making.
Management Age and Tenure
2.5yrs
Average Tenure
49yo
Average Age
The tenure for the New Relic management team is about average.
Board Age and Tenure
3.3yrs
Average Tenure
49yo
Average Age
The tenure for the New Relic board of directors is about average.
Insider Trading
New Relic individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board |
| Shares | 45,000 |
| Max Price | US$96.71 |
| Entity | Individual |
| Role | CFO & Corporate Secretary |
| Shares | 22,500 |
| Max Price | US$85.08 |
| Entity | Individual |
| Role | CFO & Corporate Secretary |
| Shares | 22,500 |
| Max Price | US$106.20 |
| Entity | Individual |
| Role | Chairman of the Board |
| Shares | 51,971 |
| Max Price | US$110.24 |
Ownership Breakdown
Management Team
Lew Cirne (49yo)
Founder
- Tenure: 11.5yrs
- Compensation: $4.29m
Mark Sachleben (54yo)
CFO & Corporate Secretary
- Tenure: 11.3yrs
- Compensation: $2.54m
Jim Gochee (49yo)
Chief Technology Officer
- Tenure: 0.2yrs
- Compensation: $1.89m
Erica Schultz (45yo)
Chief Revenue Officer
- Tenure: 1.3yrs
- Compensation: $4.23m
Roger Scott
Executive VP & Chief Customer Officer
- Tenure: 2.7yrs
Kristy Friedrichs
Chief People Officer
- Tenure: 2.5yrs
Tony Righetti
Senior Manager of Investor Relations
Andrew Lawson
Executive VP & GM of EMEA
- Tenure: 0.3yrs
Board Members
James Tolonen (69yo)
Director
- Tenure: 3.3yrs
- Compensation: $237.61k
Caroline Carlisle (67yo)
Director
- Tenure: 1.0yrs
- Compensation: $198.44k
Lew Cirne (49yo)
Founder
- Tenure: 11.5yrs
- Compensation: $4.29m
Dan Scholnick (41yo)
Independent Director
- Tenure: 10.8yrs
- Compensation: $226.06k
Hope Cochran (48yo)
Director
- Tenure: 1.3yrs
- Compensation: $266.33k
Peter Fenton (46yo)
Chairman of the Board
- Tenure: 10.8yrs
- Compensation: $237.27k
Sohaib Abbasi (62yo)
Director
- Tenure: 3.3yrs
- Compensation: $217.62k
Mike Christenson (60yo)
Director
- Tenure: 1.0yrs
- Compensation: $198.44k
Adam Messinger (47yo)
Independent Director
- Tenure: 5.3yrs
- Compensation: $213.06k
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$3.358b
- Shares outstanding: 58.41m
- Website: Click here
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 |
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 colle ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/08/18 01:00 |
| End of Day Share Price | 2019/08/16 00:00 |
| Earnings | 2019/06/30 |
| 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.