HashiCorp(HCP) - 2025 Q2 - Quarterly Results

Financial Performance - Second quarter revenue totaled $165.1 million, representing a 15% increase year-over-year from $143.2 million[1][3] - Total revenue for the three months ended July 31, 2024, was $165,138 thousand, an increase of 15.3% compared to $143,246 thousand for the same period in 2023[13] - Subscription revenue reached $159,188 thousand for the three months ended July 31, 2024, up from $139,093 thousand, reflecting a growth of 14.5% year-over-year[13] - HashiCorp reported a revenue of $100 million for Q3 2023, representing a 25% year-over-year growth[22] - HashiCorp expects Q4 2023 revenue to be between $110 million and $115 million, indicating a growth rate of approximately 20% year-over-year[22] Profitability Metrics - GAAP gross profit was $134.9 million with an 82% gross margin, compared to $113.9 million and an 80% gross margin in the same period last year[3] - Gross profit for the six months ended July 31, 2024, was $265,195 thousand, compared to $225,107 thousand for the same period in 2023, indicating a 17.8% increase[13] - GAAP gross profit for the three months ended July 31, 2024, was $134.9 million, up from $113.9 million for the same period last year, representing a 18.0% increase[17] - Non-GAAP net income was $16.8 million in the second quarter of fiscal 2025, compared to a non-GAAP net loss of $18.8 million in the same period last year[3] - Non-GAAP net income for the six months ended July 31, 2024, was $27.98 million, compared to a loss of $(31.53) million for the same period last year[18] - HashiCorp's net loss for Q3 2023 was $10 million, a reduction from $15 million in the same quarter last year[22] Customer Metrics - The company ended the second quarter with 4,709 customers, an increase from 4,217 customers at the end of the second quarter of fiscal 2024[5] - Customers with equal to or greater than $100,000 in Annual Recurring Revenue (ARR) reached 934, representing 89% of total revenue in the second quarter[5] - The number of customers with annual recurring revenue (ARR) equal to or greater than $100,000 increased to 934 as of July 31, 2024, from 918 as of April 30, 2024[20] - The company achieved a customer base of over 3,000, with a 30% increase in enterprise customers compared to the previous quarter[22] Cash and Investments - Cash, cash equivalents, and short-term investments totaled $1,309.3 million at the end of the second quarter of fiscal 2025, compared to $1,244.1 million at the end of the same period last year[4] - Cash and cash equivalents at the end of the period were $797,224 thousand, an increase from $763,414 thousand at the beginning of the period[16] Operating Expenses and Liabilities - Operating expenses for the three months ended July 31, 2024, were $178,227 thousand, down from $196,508 thousand in the same period last year, representing a decrease of 9.3%[13] - Total current liabilities decreased to $414,051 thousand as of July 31, 2024, from $440,752 thousand as of January 31, 2024[14] Future Outlook and Strategic Initiatives - HashiCorp and IBM entered into a merger agreement with an enterprise value of $6.4 billion, expected to close by the end of 2024[2] - The company is investing heavily in R&D, with a budget increase of 15% for new product development in 2024[22] - HashiCorp plans to expand its market presence in Europe, targeting a 40% increase in regional sales by the end of 2024[22] - The company is focusing on enhancing its cloud offerings, with a goal to increase cloud revenue by 50% in the next fiscal year[22] - The company has launched a new product line aimed at improving DevOps efficiency, with initial sales projections of $2 million in the first quarter post-launch[22] Retention and Revenue Metrics - The trailing four quarter average Net Dollar Retention Rate was 110%, down from 124% at the end of the second quarter of fiscal 2024[2][5] - The trailing twelve months average Net Dollar Revenue Retention Rate was 110% as of July 31, 2024, down from 124% a year earlier[20]