New Relic, Inc. (NYSE:NEWR) Q3 2023 Earnings Conference Call February 7, 2023 5:00 PM ET

Company Participants

Ingo Friedrichowitz – Senior Vice President of Investor Relations and Corporate Finance

Bill Staples – Chief Executive Officer

David Barter – Chief Financial Officer

Conference Call Participants

Fred Lee – Credit Suisse

Sanjit Singh – Morgan Stanley

Erik Suppiger – JMP Securities

Richard Poland – RBC

Taz Koujalgi – Wedbush Securities

Mike Cikos – Needham and Company

Yun Kim – Loop Capital Markets

Kingsley Crane – Canaccord Genuity

Michael Turits – KeyBanc

Operator

Good afternoon. My name is Matt, and I’ll be your conference operator today. At this time, I would like to welcome everyone to the New Relic Third Quarter Fiscal Year 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

It is now my pleasure to introduce your host, Ingo Friedrichowitz, Senior Vice President of Investor Relations and Corporate Finance. Thank you. You may begin.

Ingo Friedrichowitz

Good afternoon, and welcome to our third quarter fiscal year 2023 earnings call. On the call with me are Bill Staples, our Chief Executive Officer; and David Barter, our Chief Financial Officer. On our Investor Relations website, you can find the earnings press release and the investor summary slide deck, which is intended to supplement our prepared remarks during today’s call. In addition, an audio replay of this call will be available on our website, ir.newrelic.com, in a few hours.

During today’s call, we will be making forward-looking statements, including about our business outlook and strategies, which we based our predictions and expectations on as of today. Our actual results could differ materially due to a number of risks and uncertainties, including the risk factors in our most recent 10-Q and our upcoming third quarter 10-Q to be filed with the SEC. Also during this call, we will discuss certain non-GAAP financial measures. Unless otherwise noted, all of the expense and profitability metrics discussed on today’s call are non-GAAP results. We have reconciled those to the most directly comparable GAAP financial measures in our earnings release. These non-GAAP measures are not intended to be a substitute for our GAAP results.

And with that, I’d like to turn it over to Bill.

Bill Staples

Thanks, Ingo. I’m pleased to announce another well-executed quarter. We exceeded our revenue and profitability guidance. Revenue was $240 million, and we generated nearly $19 million of non-GAAP operating income, both high watermarks for the company despite an uneven economic climate. This is a result of the transformation we have driven across the business, including product innovation, our powerful and differentiated platform pricing model and focused execution. Let me start with an update on go-to-market execution this quarter. We saw strong new logo growth in the third quarter, adding more than 800 net new paid platform customers, a rate which is significantly ahead of other competitors in our category.