HashiCorp Inc Well-Positioned to Sustain Solid Top-Line Growth Says Analyst
2022.09.02 20:14
HashiCorp Inc (NASDAQ:HCP) reported earnings after the close Thursday, topping earnings and revenue expectations.
The software company posted a loss per share of $0.17 on revenue of $113.9 million. Analysts expected a loss per share of $0.31 on revenue of $102.29 million.
Following the report, a BofA analyst released a note on Friday, reiterating a Buy rating and raising the price target to $42 from $40 per share.
“HashiCorp reported solid Q2 results & overall outlook. Total rev of $113.9mn (+52% y/y) exceeded our $102.1mn, w/ subs rev of $110.2mn (+50% y/y) exceeding our $99.5mn. PF cRPO (incl. cust deposits) & current bookings of $324.3mn (+50% y/y)/$132.9mn (+42% y/y) exceeded our $322.1mn/$119.0mn. cRPO & bookings strength was driven by strength in expansion deals,” stated the analyst.
“We are encouraged by increased focus on operating efficiency for two reasons. First, this is driving better than expected outlook for FY23 margin (+5-10% points, vs our +5.2%). Second, this illustrates a shift in focus from building a wider stack across multiple DevOps categories to building deeper functionality into existing offerings, enabling more focused development & GTM efforts with an already comprehensive stack. We raise our 2023-24E EPS ests to reflect the raised outlook,” he added.
Elsewhere, a Stifel analyst maintained a Buy rating, lowering the firm’s price target on the stock to $45 from $51.
“HashiCorp reported a strong F2Q23 print with 52% revenue growth, $11.6M ahead of expectations, driven by a sequential acceleration in NDRR to 134% vs 133% and a 31.5% Y/Y increase in $100K ARR customers to 734 (88% of total revenue). Management expressed confidence in sustained momentum and raised guidance for the full year despite factoring in a $4mn-$6mn headwind to revenue as they saw greater scrutiny on spend in the quarter,” wrote the analyst.
“Given strong secular trends driving Terraform (Compute) and Vault (Security) as well as emerging demand for Consul (Networking), we believe Hashi is well positioned to sustain solid +30% top-line growth as the company solidifies its position as the Cloud-System-of-Record.”
