Trailing four quarter average Net Dollar Retention Rate was 110% at the end of the second quarter of fiscal 2025 as compared to 124% at the end of second quarter of fiscal 2024.
Second quarter GAAP RPO totaled $771.5 million, representing an increase of 13% year-over-year; second quarter current GAAP RPO totaled $473.4 million, representing an increase of 19% year-over-year.
Second quarter non-GAAP RPO totaled $793.3 million, representing an increase of 12% year-over-year; second quarter current non-GAAP RPO totaled $492.4 million, representing an increase of 17% year-over-year.
SAN FRANCISCO, Aug. 29, 2024 (GLOBE NEWSWIRE) -- HashiCorp, Inc. (NASDAQ:HCP), The Infrastructure Cloud™ company, today announced financial results for its second quarter of fiscal 2025, ended July 31, 2024.
"The HashiCorp team delivered another solid performance in Q2 of FY25, with revenue growth of 15% year-over-year, and 10% growth in $100K customers year-over-year," said Dave McJannet, CEO, HashiCorp. "We held a series of sold-out HashiDays events in London, Munich, and Sydney, launched new product capabilities for our customers, and continued work towards closing the transaction with IBM."
Proposed Merger with International Business Machines ("IBM")
As announced on April 24, 2024, HashiCorp and IBM have entered into a merger agreement under which IBM will acquire HashiCorp for $35.00 per share in cash, representing an enterprise value of $6.4 billion. HashiCorp stockholders approved the merger agreement on July 15, 2024. The transaction is currently expected to close by the end of 2024, subject to receipt of regulatory approvals, and satisfaction of other customary closing conditions.
In light of the proposed transaction with IBM, HashiCorp will not be holding a conference call to discuss financial results or providing financial guidance in conjunction with its second quarter of fiscal 2025 earnings release.
Fiscal 2025 Second Quarter Financial Results
Revenue: Total revenue was $165.1 million in the second quarter of fiscal 2025, up 15% from $143.2 million in the same period last year.
Gross Profit: GAAP gross profit was $134.9 million in the second quarter of fiscal 2025, representing an 82% gross margin, compared to a GAAP gross profit of $113.9 million and an 80% gross margin in the same period last year. Non-GAAP gross profit was $139.8 million in the second quarter of fiscal 2025, representing an 85% non-GAAP gross margin, compared to a non-GAAP gross profit of $118.8 million and an 83% non-GAAP gross margin in the same period last year.
Operating Income (Loss): GAAP operating loss was $43.3 million in the second quarter of fiscal 2025, compared to GAAP operating loss of $82.6 million in the same period last year. Non-GAAP operating income was $0.7 million in the second quarter of fiscal 2025, compared to a non-GAAP operating loss of $35.1 million in the same period last year.
Net Income (Loss): GAAP net loss was $26.5 million in the second quarter of fiscal 2025, compared to a GAAP net loss of $66.3 million in the same period last year. 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.
Net Income (Loss) per Share: GAAP basic and diluted net loss per share was $0.13 based on 201.9 million weighted-average shares outstanding in the second quarter of fiscal 2025, compared to a GAAP net loss per share of $0.34 based on 192.6 million weighted-average shares outstanding in the same period last year. Non-GAAP basic and diluted net income per share was $0.08 and $0.08, respectively, in the second quarter of fiscal 2025, compared to a non-GAAP basic and diluted net loss per share of $0.10 in the same period last year.
Remaining Performance Obligation (RPO): Total RPO was $771.5 million at the end of the second quarter of fiscal 2025, up from $682.5 million in the same period last year. The current portion of GAAP RPO was $473.4 million at the end of the second quarter of fiscal 2025, up from $398.9 million at the end of the same period last year. Total non-GAAP RPO was $793.3 million at the end of the second quarter of fiscal 2025, up from $708.0 million at the end of the same period last year. The current portion of non-GAAP RPO was $492.4 million at the end of the second quarter of fiscal 2025, up from $420.3 million at the end of the same period last year.
Cash, cash equivalents, and investments: Net cash used in operating activities was $8.6 million in the second quarter of fiscal 2025, compared to $33.7 million provided by operating activities in the same period last year. 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.
Reconciliations of GAAP financial measures to the most comparable non-GAAP financial measures have been provided in the tables included in this release.
Fiscal 2025 Second Quarter and Recent Operating Highlights
HashiCorp ended the second quarter of fiscal 2025 with 4,709 customers, up from 4,558 customers at the end of the previous fiscal quarter, and up from 4,217 customers at the end of the second quarter of fiscal 2024.
The Company ended the second quarter of fiscal 2025 with 934 customers with equal or greater than $100,000 in Annual Recurring Revenue ("ARR"), up from 918 customers at the end of the previous fiscal quarter and 851 customers at the end of the second quarter of fiscal 2024.
Customers with equal to or greater than $100,000 in ARR represented 89% of total revenue in the second quarter of fiscal 2025 compared to 90% in the previous fiscal quarter and 89% in the second quarter of fiscal 2024.
Quarterly subscription revenue from HashiCorp Cloud Platform (HCP) reached $26.5 million in the second quarter of fiscal 2025, up from $24.6 million in the previous fiscal quarter and up from $18.4 million in the second quarter of fiscal 2024.
The Company's trailing four quarter average Net Dollar Retention Rate was 110% at the end of the second quarter of fiscal 2025, compared to 113% in the previous quarter and 124% at the end of the second quarter of fiscal 2024.
About HashiCorp, Inc.
HashiCorp is The Infrastructure Cloud™ company, helping organizations automate multi-cloud and hybrid environments with Infrastructure Lifecycle Management and Security Lifecycle Management. HashiCorp offers The Infrastructure Cloud on the HashiCorp Cloud Platform (HCP) for managed cloud services, as well as self-hosted enterprise offerings and community source-available products. The company is headquartered in San Francisco, California. For more information, visit hashicorp.com.
All product and company names are trademarks or registered trademarks of their respective holders.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995, as amended, including, among others, statements about HashiCorp's business strategy, go-to-market initiatives, revenue growth, and long-term opportunity related to HashiCorp's product innovation. In some cases you can identify forward-looking statements because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "likely," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions and the negatives of those terms.
Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from current expectations and beliefs, including but not limited to risks and uncertainties related to market conditions, HashiCorp and its business as set forth in our filings with the Securities and Exchange Commission ("SEC") pursuant to our Annual Report on Form 10-K dated March 20, 2024, Quarterly Report on Form 10-Q dated August 29, 2024, and our future reports that we may file from time to time with the SEC. These documents contain and identify important factors that could cause the actual results for HashiCorp to differ materially from those contained in HashiCorp's forward-looking statements. Any forward-looking statements contained in this press release speak only as of the date hereof, and HashiCorp specifically disclaims any obligation to update any forward-looking statement, except as required by law.
Use of Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we have disclosed non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share, non-GAAP free cash flow and total and current non-GAAP RPOs, which are all non-GAAP financial measures. We have provided tabular reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure at the end of this release.
We calculate non-GAAP gross profit as GAAP gross profit before amortization of stock-based compensation included in the amortized expenses of capitalized internal-use software, stock-based compensation expense, and amortization of acquired intangibles included in cost of revenue.
We calculate non-GAAP gross margin as GAAP gross margin before the impact of stock-based compensation of capitalized internal-use software, stock-based compensation expense and amortization of acquired intangibles included in cost of revenue as a percentage of revenue.
We calculate non-GAAP operating loss as GAAP operating loss before amortization of stock-based compensation of capitalized internal-use software, stock-based compensation expense, amortization of acquired intangibles, and merger and acquisition-related expenses. We calculate non-GAAP net income (loss) as GAAP net loss before amortization of stock-based compensation of capitalized internal-use software, stock-based compensation expense, amortization of acquired intangibles, and merger and acquisition-related expenses, which comprise one-time costs associated with advisory, legal, and other professional fees, net of tax adjustments.
We calculate non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by weighted average shares outstanding (basic and diluted).
We calculate non-GAAP free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized internal-use software costs. Non-GAAP free cash flow as a % of revenue is calculated as non-GAAP free cash flow divided by total revenue.
We calculate non-GAAP RPOs as RPOs plus customer deposits, which are refundable pre-paid amounts, based on the timing of when these customer deposits are expected to be recognized as revenue in future periods. The current portion of non-GAAP RPO represents the amount to be recognized as revenue over the next 12 months.
Our management team uses these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In particular, other companies may report non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP net income (loss), non-GAAP net income (loss) per share, non-GAAP free cash flow, non-GAAP RPOs or similarly titled measures but calculate them differently, which reduces their usefulness as comparative measures. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, as presented below. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of our website at https://ir.hashicorp.com.
HashiCorp, Inc.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(amounts in thousands, except per share amounts)(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2024
2023
2024
2023
Revenue:
License
$
16,488
$
16,724
$
32,837
$
31,882
Support
116,166
103,997
229,798
205,910
Cloud-hosted services
26,534
18,372
51,124
34,916
Subscription revenue
159,188
139,093
313,759
272,708
Professional services and other
5,950
4,153
11,958
8,521
Total revenue
165,138
143,246
325,717
281,229
Cost of revenue:
—
—
Cost of license
470
498
1,007
1,083
Cost of support
14,817
16,304
30,016
31,147
Cost of cloud-hosted services
8,930
7,619
17,828
14,647
Cost of subscription revenue
24,217
24,421
48,851
46,877
Cost of professional services and other
5,992
4,913
11,671
9,245
Total cost of revenue
30,209
29,334
60,522
56,122
Gross profit
134,929
113,912
265,195
225,107
Operating expenses:
Sales and marketing
87,623
101,134
180,765
191,698
Research and development
54,981
59,962
113,816
114,155
General and administrative
35,623
35,412
81,625
69,660
Total operating expenses
178,227
196,508
376,206
375,513
Loss from operations
(43,298
)
(82,596
)
(111,011
)
(150,406
)
Interest income
17,745
16,300
34,952
31,280
Other expenses, net
(258
)
(105
)
(219
)
(225
)
Loss before income taxes
(25,811
)
(66,401
)
(76,278
)
(119,351
)
Provision (benefit) for income taxes
651
(86
)
1,312
222
Net loss
$
(26,462
)
$
(66,315
)
$
(77,590
)
$
(119,573
)
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted
$
(0.13
)
$
(0.34
)
$
(0.39
)
$
(0.62
)
Weighted-average shares used to compute net loss per share attributable to Class A and Class B common stockholders, basic and diluted
201,872
192,610
200,982
191,723
HashiCorp, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS(amounts in thousands, except per share amounts)(unaudited)
As of
July 31, 2024
January 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
797,224
$
763,414
