NEWR
New Relic Inc
TMT
04/19/2021
Presented
| Date | 04/14/2021 |
| Price | $66.88 |
| Market Cap | $4.22B |
| Ent Value | $3.73B |
| P/E Ratio | N/A |
| Book Value | $6.85 |
| Div Yield | 0% |
| Shares O/S | 63.07M |
| Ave Daily Vol | 807,835 |
| Short Int | 13.09% |
Current
| Price | $86.99 |
| Market Cap | $6.18B |
| New Relic, Inc., is 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 by Lewis Cirne in September 2007 and is headquartered in San Francisco, CA. |
Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Datadog Inc (DDOG), Dynatrace Inc (DT), New Relic Inc (NEWR), Splunk Inc (SPLK)
Highlights
The presenter is long shares of New Relic Inc (NEWR), a SaaS company that provides platforms for companies to build, develop, and operate their businesses globally. The company IPO’d in late 2014 and its stock chart shows SaaS-like performance until late 2018. In 2019, the stock fell sharply and has traded sideways since then due to the consensus belief that competitors DDOG and DT are the winners in the space. He disagrees with this sentiment but acknowledges that the numbers still tell that story. His thesis is that revenue growth will accelerate over the next twelve months from 10% in FY2021 (fiscal year ended March 31, 2021) to a going-forward rate north of 20%. At that point, investors would likely view NEWR as a SaaS company with strong growth in an underpenetrated market, allowing its valuation to double or triple from the current 5x EV/Sales on consensus numbers.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.