On December 7, 2023, HashiCorp Inc (HCP, Financial) announced its financial results for the third quarter of fiscal year 2024, which ended on October 31, 2023. The company reported a significant year-over-year revenue increase of 17%, totaling $146.1 million, and achieved a milestone with its first quarter of positive Non-GAAP net income, amounting to $5.6 million.
Financial Performance Overview
HashiCorp Inc (HCP, Financial) demonstrated robust financial health in the third quarter of FY2024. The company's revenue growth was complemented by an increase in GAAP gross profit, which reached $120.5 million, maintaining an 82% gross margin, consistent with the previous year. Non-GAAP gross profit improved to $125.4 million, representing an 86% non-GAAP gross margin, up from 85% in the same period last year.
The company also reported a significant reduction in GAAP operating loss, which was $55.6 million, down from $77.3 million in the same quarter of the previous year. Non-GAAP operating loss saw a similar improvement, decreasing to $10.5 million from $30.4 million year-over-year.
HashiCorp Inc (HCP, Financial) also experienced a decrease in GAAP net loss, which was $39.5 million compared to a GAAP net loss of $72.0 million in the same period last year. The Non-GAAP net income per share was $0.03 in the third quarter of fiscal 2024, a significant improvement from a Non-GAAP net loss per share of $0.13 in the same period last year.
Balance Sheet and Cash Flow Highlights
The company's balance sheet remains strong with cash, cash equivalents, and short-term investments totaling $1,255.7 million. Net cash provided by operating activities was $8.7 million, a positive shift from $15.2 million used in operating activities in the same period last year.
Customer Growth and Product Development
HashiCorp Inc (HCP, Financial) ended the third quarter with 4,354 customers, an increase from 3,648 customers at the end of the third quarter of fiscal 2023. The company also reported growth in customers with $100,000 or more in Annual Recurring Revenue (ARR), which now stands at 877, up from 760 in the previous year.
During the quarter, HashiCorp continued to invest in its product portfolio, including updates to its HashiCorp Cloud Platform (HCP, Financial) and enhancements to its Terraform and Vault offerings. The company also held its global user conference, HashiConf, which had over 1,200 in-person attendees and more than 12,000 virtual participants.
Forward-Looking Financial Outlook
For the fourth quarter of fiscal 2024, HashiCorp Inc (HCP, Financial) expects total revenue to be between $148 - $150 million, with a Non-GAAP operating loss of $16 - $13 million and Non-GAAP EPS income of $0.00 - $0.02. The company anticipates a weighted average of 205.0 million fully diluted shares.
For the full fiscal year 2024, the company projects total revenue to be between $576 - $578 million, with a Non-GAAP operating loss of $89 - $86 million and a Non-GAAP EPS loss of $0.14 - $0.12. The Non-GAAP Free Cash Flow Margin is expected to be approximately (5)%.
Conclusion
HashiCorp Inc (HCP, Financial) has shown resilience and strategic growth in a challenging macroeconomic environment. With a focus on efficiency and increasing free cash flow, the company is well-positioned to meet its long-term opportunities. Investors and stakeholders can anticipate continued progress on HashiCorp's path to profitability as it capitalizes on its strong product offerings and customer base expansion.
For a detailed understanding of HashiCorp Inc (HCP, Financial)'s financial results, readers are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from HashiCorp Inc for further details.
