At HashiCorp, Susan oversaw all aspects of the customer journey, from sales to initial deployment and into expansion, maximizing customer value across the company's infrastructure automation and security products. Before joining HashiCorp, she served as President of Worldwide Field Operations at Okta and at Splunk, where she helped the company more than triple its revenue, from approximately $700M to nearly $2.5B. SAN FRANCISCO--(BUSINESS WIRE)--Vercel, the AI Cloud platform, today announced the appointment ...

Core Insights - HashiCorp, now an IBM company, introduced new Infrastructure and Security Lifecycle innovations at HashiConf 2025, including Project infragraph, aimed at enhancing hybrid operations and moving towards intelligent infrastructure operations [1][2][3] Project Infragraph - Project infragraph is a real-time infrastructure graph that connects infrastructure, applications, services, and ownership, addressing the complexity organizations face in operationalizing AI [2][3] - The project aims to provide a unified control plane across hybrid cloud environments, solving challenges related to visibility, ownership, and data governance [3][5] - Future plans for Project infragraph include integration with IBM's software portfolio, enhancing the unification of infrastructure, security, and applications [4] Infrastructure Lifecycle Management (ILM) - New ILM capabilities focus on accelerating infrastructure provisioning, policy governance, and Day 2 operations across complex hybrid environments [8] Security Lifecycle Management (SLM) - Recent SLM enhancements improve secrets detection, simplify secure access, and support policy governance for modern enterprise environments [9] Strategic Vision - The updates signal a shift towards a platform that unifies infrastructure and security data, facilitating intelligent decision-making and preparing organizations for AI integration [10]

Core Insights - HashiCorp is enhancing its collaboration with IBM to develop a unified automated hybrid cloud platform, integrating with IBM's software automation portfolio and supporting IBM Z Mainframe [1][16] - Despite 94% of enterprises utilizing cloud services, only 20% are achieving full ROI, indicating a significant gap in cloud maturity [1] - The emergence of one billion new AI applications by 2028 is expected to increase cloud complexity, necessitating strategic decisions for enterprises regarding their hybrid cloud strategies [1] Infrastructure Lifecycle Management (ILM) - ILM is a foundational priority for organizations scaling their hybrid strategies with IBM and HashiCorp, focusing on faster delivery and infrastructure resilience [4] - New features across Terraform, Packer, Nomad, and Waypoint have been introduced to automate critical workflows, enhancing team productivity and infrastructure resilience throughout the lifecycle [6][16] - Terraform's capabilities allow for standardized and scalable infrastructure provisioning, reducing configuration drift and manual rework [7] Security Lifecycle Management (SLM) - SLM integrates identity-based security, secrets management, and access governance into hybrid workflows, addressing the growing security surface area as organizations modernize their infrastructure [9][10] - HashiCorp's SLM tools provide proactive visibility, access control, and cryptographic assurance across hybrid environments, enabling teams to move faster without compromising control [10][16] - The introduction of features like HCP Vault Radar helps detect and remediate unmanaged secrets and credential sprawl, enhancing security posture [15] Customer Use Cases - Helvetia Insurance successfully migrated 200 applications to AWS and Azure within a year using HashiCorp Terraform, demonstrating the effectiveness of the platform in achieving ambitious cloud migration goals [5] - IG Group leveraged HashiCorp's products to strengthen security while accelerating delivery, onboarding 63 teams to HCP Vault with a centralized GitOps workflow [10] Product Announcements - New integrations with Red Hat Ansible Automation Platform and Red Hat OpenShift have been announced, enabling orchestration of complex infrastructure workflows [13] - Terraform provider for IBM Z allows organizations to integrate mainframe platforms into modern workflows and hybrid cloud strategies [14]

Group 1 - HashiCorp, Inc. will release its financial results for Q4 of the 2025 fiscal year on March 6, 2025, after U.S. markets close [1] - The fiscal year ended on January 31, 2025 [1] - Due to a pending transaction with IBM, HashiCorp will not host an earnings conference call or provide a financial outlook [1] Group 2 - HashiCorp is known as The Infrastructure Cloud™ company, focusing on automating multi-cloud and hybrid environments [2] - The company offers Infrastructure Lifecycle Management and Security Lifecycle Management services [2] - HashiCorp provides managed cloud services on the HashiCorp Cloud Platform (HCP), along with self-hosted enterprise offerings and community source-available products [2]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - Assesses stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +25.41% since 1988 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [11] Company Spotlight: HashiCorp, Inc. (HCP) - HCP is a real estate investment trust (REIT) focused on healthcare-related properties, with a diverse portfolio of 745 properties as of June 30, 2019 [12] - HCP holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Momentum Style Score of B, indicating positive performance trends [13] - Recent upward revisions in earnings estimates suggest strong future performance potential, with an average earnings surprise of 386.7% [13][14]

Company Performance - HashiCorp, Inc. (HCP) shares have increased by 1.8% over the past month, reaching a new 52-week high of $34.4 [1] - The company has reported a positive earnings surprise in the last four quarters, with the latest EPS of $0.13 exceeding the consensus estimate of $0.05 [2] - For the current fiscal year, HashiCorp is projected to achieve earnings of $0.36 per share on revenues of $674.73 million, reflecting a 550% increase in EPS and a 15.71% increase in revenues [3] Valuation Metrics - HashiCorp has a Value Score of F, while its Growth and Momentum Scores are A and B, respectively, resulting in a VGM Score of B [6] - The stock trades at 96.1X current fiscal year EPS estimates, significantly higher than the peer industry average of 29.7X [6] - On a trailing cash flow basis, HashiCorp trades at 5X compared to the peer group's average of 29.4X [6] Zacks Rank - HashiCorp holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7] - The company meets the criteria for investors looking for stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for further growth [8] Industry Context - The Internet - Software industry is performing well, ranking in the top 8% of all industries, providing a favorable environment for both HashiCorp and its peers [11] - Magnite, Inc. (MGNI), a competitor, also shows strong performance with a Zacks Rank of 2 (Buy) and positive earnings expectations [9][10]

Core Viewpoint - HashiCorp has demonstrated strong earnings performance, consistently beating earnings estimates and showing significant stock price appreciation, but its valuation metrics suggest it may be overvalued compared to industry peers [1][4][11]. Company Performance - HashiCorp reported an EPS of $0.13 in its last earnings report, exceeding the consensus estimate of $0.05, and beat revenue estimates by 6.09% [1]. - The stock has gained 44.8% since the beginning of the year, outperforming the Zacks Computer and Technology sector's 31.3% and the Zacks Internet - Software industry's 32% [11]. - For the current fiscal year, HashiCorp is expected to post earnings of $0.34 per share on revenues of $674.73 million, reflecting a 525% increase in EPS and a 15.71% increase in revenues [12]. Valuation Metrics - HashiCorp has a Value Score of F, while its Growth and Momentum Scores are both A, resulting in a combined VGM Score of B [4]. - The stock trades at 101.4X current fiscal year EPS estimates, significantly higher than the peer industry average of 32.8X, indicating a premium valuation [4]. - On a trailing cash flow basis, HashiCorp trades at 5X compared to the peer group's average of 26X, suggesting it does not rank highly from a value perspective [4]. Zacks Rank and Style Scores - HashiCorp holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [5]. - The combination of a Zacks Rank of 2 and Style Scores of A or B indicates potential for the stock in the near future [5]. Industry Context - The Internet - Software industry is performing well, ranking in the top 14% of all industries, providing a favorable backdrop for both HashiCorp and its peers [8].

Core Viewpoint - HashiCorp, Inc. (HCP) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - HashiCorp is expected to earn $0.34 per share for the fiscal year ending January 2025, reflecting a year-over-year increase of 525% [8]. - Over the past three months, the Zacks Consensus Estimate for HashiCorp has risen by 33.9% [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4][5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7][9]. - The upgrade of HashiCorp to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10][11].

Core Insights - HashiCorp, Inc. reported revenue of $173.39 million for the quarter ended October 2024, reflecting an 18.7% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $0.13, a significant rise from $0.03 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $163.43 million by 6.09%, while the EPS surpassed the consensus estimate of $0.05 by 160% [1] Revenue Breakdown - Subscription revenue was reported at $167.82 million, exceeding the average analyst estimate of $158.52 million [3] - Revenue from Professional Services and other was $5.57 million, surpassing the three-analyst average estimate of $4.91 million, marking a year-over-year increase of 32.9% [3][3] Stock Performance - Over the past month, HashiCorp's shares have returned -1.4%, in contrast to the Zacks S&P 500 composite's increase of 6.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Merger and Acquisition - The proposed Merger with IBM is expected to be completed in the first calendar quarter of 2025, with each share of Class A and Class B common stock converting to $35.00 in cash[84][85]. - As of October 31, 2024, transaction-related costs incurred amount to approximately $22.1 million[90]. - The Merger Agreement includes customary termination rights, with a termination fee of $264.2 million applicable under certain conditions[88]. - The company expects to incur an additional liability of approximately $92 million related to the proposed merger with IBM, primarily for transaction fees contingent upon the merger's consummation[196]. Financial Performance - The last four-quarter average net dollar retention rate was 109% for 2024 and 119% for 2023, indicating strong customer engagement and expansion opportunities[99]. - HCP subscription revenue for the three months ended October 31, 2024, was $29.0 million, up from $19.9 million for the same period in 2023, representing a growth of approximately 46.7%[108]. - For the nine months ended October 31, 2024, HCP subscription revenue was $80.1 million, compared to $54.8 million for the same period in 2023, indicating a growth of approximately 46.1%[108]. - Total revenue for the three months ended October 31, 2024, was $173.4 million, an increase of $27.3 million or 19% compared to $146.1 million for the same period in 2023[154]. - Total revenue for the nine months ended October 31, 2024, was $499.1 million, an increase of $71.8 million or 17% compared to $427.4 million for the same period in 2023[167]. - Subscription revenue for the nine months ended October 31, 2024, increased by $66.9 million, or 16%, driven by new customer additions and expanded product adoption[167]. Customer Metrics - As of October 31, 2024, the company served over 4,800 customers, an increase from over 4,300 customers as of October 31, 2023[102]. - Customers with $100,000 or greater ARR represented 89% of total revenue for the three months ended October 31, 2024, consistent with the same period in 2023[116]. - Total customers with $100,000 or greater ARR increased to 946 as of October 31, 2024, compared to 897 as of January 31, 2024[114]. Revenue Recognition and Models - The company generates revenue primarily from subscription sales, with a significant portion recognized ratably over the subscription term[92]. - HashiCorp Cloud Platform (HCP) operates on a consumption-based model, with revenue recognized based on actual resource consumption[93]. - The company expects to recognize approximately 62% of its GAAP Remaining Performance Obligations (RPOs) of $775.4 million as revenue over the next 12 months[119]. - Non-GAAP RPOs were $795.6 million as of October 31, 2024, down from $801.4 million as of January 31, 2024[120]. Operating Expenses and Profitability - The gross profit margin for the three months ended October 31, 2023, was 83%, up from 82% in the same period last year[151]. - Operating expenses for the three months ended October 31, 2023, totaled $173,483,000, a slight decrease from $176,093,000 in the same period last year[151]. - The company reported a net loss of $(13,006,000) for the three months ended October 31, 2023, compared to a net loss of $(39,473,000) for the same period last year, reflecting an improvement[151]. - The cost of subscription revenue for the three months ended October 31, 2023, was $24,456,000, which is 14% of total revenue, compared to 15% in the same period last year[151]. - Gross margin improved to 82% for the nine months ended October 31, 2024, compared to 81% in the prior year[170]. Cash Flow and Investments - Net cash provided by operating activities was $57.7 million for the nine months ended October 31, 2024, compared to a net cash used of $21.1 million in the prior year[185]. - Net cash provided by investing activities for the nine months ended October 31, 2024, was $95.6 million, with cash inflows from maturities and sales of investments totaling $715.8 million, offset by $619.9 million in cash outflows for purchases of short-term investments and capitalized software[191]. - The company has minimum spend commitments of $18.5 million for the 12 months ending February 2025, increasing to $25.0 million for the 12 months ending February 2029, under a new agreement with a cloud service provider[195]. Expenses and Future Outlook - The company expects its research and development expenses to continue increasing as it invests in new features and products[142]. - The company anticipates that sales and marketing expenses will increase over time as it expands its sales force and marketing efforts[141]. - General and administrative expenses increased by $11.2 million, or 11%, primarily due to a rise in professional services related to the pending acquisition by IBM[175]. Economic Factors - The company does not believe a hypothetical 10% relative increase or decrease in interest rates would materially impact its operating results as of October 31, 2024[202]. - If the U.S. dollar weakened by 10%, the company's operating expenses could increase by approximately 2% due to foreign currency fluctuations[204]. - The company implemented a foreign currency risk management program during the second quarter of fiscal 2024 to hedge forecasted foreign currency-denominated expenses[205]. - The company does not believe that inflation has had a material effect on its business or financial condition[206].