New Relic drafts former Oracle exec to lead biz dev

New Relic has named John Gray, a former long-time channel exec for Oracle, as its new SVP of business development.

Gray, who was most recently at LivePerson, brings long experience dealing with channel partners in the hotly contested enterprise software arena. New Relic, already a hit in startups, really wants to sell more of its application performance management and analytics to these big-fish companies.

Gray will report to Hilarie Koplow-McAdams, another [company]Oracle[/company] alum who joined as New Relic’s chief revenue officer in late 2013 when the company was prepping its IPO.

All those years at Oracle should come in handy for [company]New Relic[/company]. Last fall the company launched an enterprise partner program and named several top [company]Microsoft[/company] Azure and [company]Amazon[/company] Web Services partners as inaugural members.

Working with enterprise-focused consultants, systems integrators and VARs is right in Gray’s wheelhouse. He will direct the company’s partner strategy and build its network of alliances and channel partners, the company said.

 

New Relic boosts revenue growth in first post-IPO earnings

New Relic’s first earnings report since going public last December seemed to please investors as the application-performance and analytics company took in $29 million in revenue in what it considers its third quarter 2015 earnings. That’s a 14 percent quarter-over-quarter increase from the second quarter of 2015 and a 69 percent year-over-year increase from the third quarter in 2014.

The San Francisco-based company also said it now has 11,270 paid business accounts as of December 31, 2014, which is up from the 10,590 paid business accounts it had as of September 30, 2014, as disclosed in an SEC filing.

New Relic also signed on some new customers during the quarter including [company]Capital One Services[/company], [company]Hootsuite Media[/company] and [company]Walgreens Boots Alliance[/company].

Seventy-five percent of [company]New Relic[/company]’s customer base is made up of small to medium-size businesses with the other 25 percent coming from companies with over 100 employees. However, those bigger clients account for roughly half of the company’s revenue, said New Relic CFO Mark Sachleben in a conference call.

New Relic sees its recently launched Insights real-time analytics product line as the main differentiator from competitors, and is part of the company’s “land and expand” strategy that involves selling a product line to a client and then persuading it to purchase more goods, explained Sachleben.

The company has also seen “quite a bit of success” in migrating clients from monthly billing cycles to up-front annual payments, which is something larger enterprises are more prone to do, said Sachleben.

In an interview with Gigaom after the conference call, New Relic CEO Lew Cirne wouldn’t say which of its many product lines has been the fastest growing in the past quarter, but he did say that the company is looking to boost staff in Dublin and London as it attempts to grow its market share in those regions. Cirne said 34 percent of New Relic’s business comes from outside the U.S., but the company doesn’t currently have a large global salesforce. So far, the plans are to expand outside the U.S. starting with Europe, but Cirne said the company has “nothing yet to share beyond those markets” at this time.

Here’s some of the numbers based on the company’s earnings report:

  • Revenue for the third quarter of 2015 was $29 million, which is a 14 percent increase from the second quarter of 2015 and a 69 percent increase from the third quarter in 2014.
  • New Relic took $15.6 million in GAAP loss from operations for the third quarter of 2015, which was an increase from the $11.7 million GAAP loss from operations it took in the third quarter of 2014.
  • The company ended up raising $119.9 million in net proceeds during its IPO.
  • For the fourth quarter of fiscal 2015, New Relic is projecting revenue between $30.0 million and $30.5 million and expects a non-GAAP loss from operations ranging between $11.0 million and $12.0 million.

New Relic ends first day of trading as a billion-dollar company

New Relic’s share price closed out at $33.83 on the application-analytics startup’s first day in the public markets. The share price ended up being 47 percent higher than the $23.00 share price it set on Thursday, and makes the company worth roughly $1.5 billion.

Lew Cirne, New Relic’s CEO, told me in an interview on Friday that the company is aiming full-steam ahead for the new year and compared his company to a football player that just made the big leagues.

[company]New Relic[/company] raked in $63.2 million in revenue for 2014, but also saw $91.8 million in operating expenses for the same year, according to the company’s S-1 form. That filing also shows that as of September 30, 2014, the startup has 10,590 paid business accounts and 250,000 users.

It’s going to be worth keeping an eye on how other application-analytic startups like [company]AppDynamics[/company] and [company]AppNeta[/company] will react to New Relic going public.