On Monday, BTIG maintained a Neutral rating on HashiCorp Inc (NASDAQ:HCP) after the company reported better-than-expected financial results for its second fiscal quarter.
HashiCorp's revenue reached $165.1 million with a growth rate of 15.3%, surpassing both BTIG's projection of $158.3 million and the consensus estimate of $157.2 million. The company's cloud revenue also exceeded expectations by 3.6%.
HashiCorp's operating income for the quarter was notably positive at $0.7 million, a significant improvement over the anticipated -$15.4 million. This marks the first instance of HashiCorp achieving non-GAAP operating income in the black. Furthermore, the company's earnings per share (EPS) of $0.08 outperformed both BTIG's and consensus estimates.
The company did not hold a conference call or provide updated guidance due to its impending acquisition by IBM (NYSE:IBM), which is not rated by BTIG. The transaction is expected to finalize by the end of calendar year 2024. BTIG has adjusted its fiscal year 2025 revenue estimate for HashiCorp to $661.6 million, up from $653.8 million, and has improved the forecast for the operating margin to -1.8% from the previous -5.7%. The firm's free cash flow (FCF) estimates for HashiCorp remain relatively unchanged.
In other recent news, Citi has resumed coverage on HashiCorp with a neutral rating and a new price target of $35.00, following a review of the company's financial results. Additionally, KeyBanc maintained its Sector Weight rating on HashiCorp, following these financial results and amidst the ongoing acquisition process by IBM.
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