HCP Earnings Prediction
The chart below shows how HCP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HCP sees a -0.71% change in stock price 10 days leading up to the earnings, and a -2.29% change 10 days following the report. On the earnings day itself, the stock moves by -2.23%. This data can give you a slight idea of what to expect for the next quarter's release.
HCP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
155.78M
14.73%
6.61%
Gross Margin
82.69%
-0.01%
0.25%
Operating Margin
-31.00%
-33.06%
-18.34%
Net Margin
-20.30%
-44.15%
-24.84%
EPS
-0.16
-38.46%
-20.00%
No Data Available
HCP Earnings Analysis
HashiCorp, Inc. Corporation (HCP.O) Earnings Conference Call
Positive
- HashiCorp reported solid fourth quarter results with revenue of $156 million, representing a 15% year-over-year growth. This exceeded top and bottom-line guidance.
- Non-GAAP remaining performance obligations reached $483 million, showing a 21% year-over-year growth, indicating continued demand for products from important new enterprise logo wins.
- Improved renewal rates and better pipeline conversion showed early signs of reengagement on new cloud initiatives, demonstrating a positive trend in the market.
- The company is focusing on initiatives to drive accelerated growth and has outlined the top three strategies to achieve this goal.
- Simplifying the go-to-market strategy led by President Susan St. Ledger to improve sales execution and revenue growth.
- Increasing commercial differentiation with Enterprise Cloud offerings like Terraform stacks and LTS releases to drive value for commercial customers.
- Shifting the business focus towards HashiCorp managed cloud products to drive net retention rates and enterprise adoption of cloud solutions.
- HashiCorp expects improved bookings in fiscal 2025 and anticipates a U-shaped recovery in revenue growth rates throughout the year.
- Plans to reach 20% quarterly revenue growth by fiscal 2026, emphasizing future growth potential and positive outlook.
- Quarterly and annual revenue guidance for fiscal 2025 indicate strong gross margins in the low to mid-80% range, with expectations to achieve non-GAAP operating income breakeven by Q4 of the year.
- The company has authorized a $250 million share repurchase program to return excess capital to shareholders, demonstrating responsible and strategic capital allocation.
- Expectations for positive free cash flow generation throughout fiscal 2025, except in Q2 due to seasonal bookings, highlighting financial stability and excess cash relative to operating needs.
- Confident in future growth prospects, coupled with a focus on shareholder returns, reflects a balanced approach to long-term value creation.
Negative
- The company is behind in their desired growth cycle and acknowledges the need to work on accelerating growth to achieve their target of 20% quarterly revenue growth by FY 2026.
- There are signs of abating market headwinds due to consumption optimization, but the company is still dealing with ongoing consumption of self-managed entitlements among parts of their customer base.
- While there were improvements in field execution and renewals in Q4, there is a critical need to improve sales execution, enhance commercial differentiation, and reallocate more R&D resources to cloud products to drive accelerated growth.
