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HashiCorp Announces First Quarter of Fiscal Year 2025 Financial Results

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SAN FRANCISCO, May 30, 2024 (GLOBE NEWSWIRE) — HashiCorp, Inc. (NASDAQ: HCP), a leading provider of multi-cloud infrastructure automation software, today announced financial results for its first quarter of fiscal 2025, ended April 30, 2024.

“The HashiCorp team delivered another quarter of solid performance in Q1 of FY25, with revenue growth of 16% year-over-year,” said Dave McJannet, CEO, HashiCorp. “Additionally, the launch of the Infrastructure Cloud at the Nasdaq MarketSite in April demonstrated further progress in our efforts to expand the HashiCorp Cloud Platform and build a unified SaaS offering for the world’s largest enterprises as they mature their cloud estates.”

Proposed Merger with International Business Machines (“IBM”)

As announced on April 24, 2024, HashiCorp and IBM have entered into a definitive agreement under which IBM will acquire HashiCorp for $35.00 per share in cash, representing an enterprise value of $6.4 billion. The transaction is currently expected to close by the end of 2024, subject to receipt of regulatory approvals, approval of the transaction by HashiCorp shareholders, 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 first quarter 2025 earnings release.

Fiscal 2025 First Quarter Financial Results

Revenue: Total revenue was $160.6 million in the first quarter of fiscal 2025, up 16% from $138.0 million in the same period last year.

Gross Profit: GAAP gross profit was $130.3 million in the first quarter of fiscal 2025, representing an 81% gross margin, compared to a GAAP gross profit of $111.2 million and an 81% gross margin in the same period last year. Non-GAAP gross profit was $136.6 million in the first quarter of fiscal 2025, representing an 85% non-GAAP gross margin, compared to a non-GAAP gross profit of $115.0 million and an 83% non-GAAP gross margin in the same period last year.

Operating Loss: GAAP operating loss was $67.7 million in the first quarter of fiscal 2025, compared to GAAP operating loss of $67.8 million in the same period last year. Non-GAAP operating loss was $4.8 million in the first quarter of fiscal 2025, compared to a non-GAAP operating loss of $27.3 million in the same period last year.

Net Income (Loss): GAAP net loss was $51.1 million in the first quarter of fiscal 2025, compared to a GAAP net loss of $53.3 million in the same period last year. Non-GAAP net income was $11.2 million in the first quarter of fiscal 2025, compared to a non-GAAP net loss of $12.7 million in the same period last year.

Net Income (Loss) per Share: GAAP basic and diluted net loss per share was $0.26 based on 200.1 million weighted-average shares outstanding in the first quarter of fiscal 2025, compared to a GAAP net loss per share of $0.28 based on 190.8 million weighted-average shares outstanding in the same period last year. Non-GAAP basic and diluted net income per share was $0.06 and $0.05, respectively, in the first quarter of fiscal 2025, compared to a non-GAAP net loss per share of $0.07 in the same period last year.

Remaining Performance Obligation (RPO): Total RPO was $748.5 million in the first quarter of fiscal 2025, up from $635.3 million in the same period last year. The current portion of GAAP RPO was $454.0 million at the end of the first quarter of fiscal 2025, up from $373.5 million at the end of the same period last year. Total non-GAAP RPO was $770.9 million at the end of the first quarter of fiscal 2025, up from $660.2 million at the end of the same period last year. The current portion of non-GAAP RPO was $473.6 million at the end of the first quarter of fiscal 2025, up from $394.6 million at the end of the same period last year.

Cash, cash equivalents, and investments: Net cash provided by operating activities was $28.1 in the first quarter of fiscal 2025, compared to $3.9 million provided by operating activities in the same period last year. Cash, cash equivalents and short-term investments totaled $1,307.8 million at the end of the first quarter of fiscal 2025, compared to $1,289.2 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 First Quarter and Recent Operating Highlights

About HashiCorp, Inc.

HashiCorp is a leader in multi-cloud infrastructure automation software. HashiCorp’s software suite enables organizations to adopt consistent workflows and create a system of record for automating the cloud: infrastructure provisioning, security, networking, and application deployment. HashiCorp’s portfolio of products includes Vagrant™, Packer™, Terraform®, Vault™, Consul®, Nomad™, Boundary™, and Waypoint™. HashiCorp offers products as community, enterprise, and as managed cloud services. The company is headquartered in San Francisco, though most HashiCorp employees work remotely, strategically distributed around the globe. 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 May 30, 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 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
April 30,
    2024       2023  
Revenue:      
License $ 16,349     $ 15,158  
Support   113,632       101,913  
Cloud-hosted services   24,590       16,544  
Subscription revenue   154,571       133,615  
Professional services and other   6,008       4,368  
Total revenue   160,579       137,983  
Cost of revenue:      
Cost of license   537       585  
Cost of support   15,199       14,843  
Cost of cloud-hosted services   8,898       7,028  
Cost of subscription revenue   24,634       22,456  
Cost of professional services and other   5,678       4,332  
Total cost of revenue   30,312       26,788  
Gross profit   130,267       111,195  
Operating expenses:      
Sales and marketing   93,142       90,564  
Research and development   58,835       54,193  
General and administrative   46,002       34,248  
Total operating expenses   197,979       179,005  
Loss from operations   (67,712 )     (67,810 )
Interest income   17,207       14,980  
Other expenses, net   38       (120 )
Loss before income taxes   (50,467 )     (52,950 )
Provision (benefit) for income taxes   661       308  
Net loss $ (51,128 )   $ (53,258 )
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.26 )   $ (0.28 )
Weighted-average shares used to compute net loss per share attributable to Class A and Class B common stockholders, basic and diluted   200,073       190,806  
 
HashiCorp, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except per share amounts)
(unaudited)
  As of
  April 30, 2024   January 31, 2024
Assets      
Current assets:      
Cash and cash equivalents $ 594,738     $ 763,414  
Short-term investments   713,099       515,163  
Accounts receivable, net of allowance   106,071       182,614  
Deferred contract acquisition costs   48,988       50,285  
Prepaid expenses and other current assets   39,619       30,075  
Total current assets   1,502,515       1,541,551  
Deferred contract acquisition costs, non-current   75,263       80,055  
Acquisition-related intangible assets, net   10,903       11,611  
Goodwill   12,197       12,197  
Other assets, non-current   47,695       46,533  
Total assets $ 1,648,573     $ 1,691,947  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $ 17,404     $ 9,081  
Accrued expenses and other current liabilities   17,087       15,143  
Accrued compensation and benefits   48,049       56,007  
Deferred revenue   297,302       334,894  
Customer deposits   22,402       25,627  
Total current liabilities   402,244       440,752  
Deferred revenue, non-current   24,383       26,659  
Other liabilities, non-current   10,367       11,543  
Total liabilities   436,994       478,954  
Stockholders’ equity:      
Class A common stock, par value of $0.000015 per share; 1,000,000 and 1,000,000 shares authorized as of April 30, 2024 and January 31, 2024, respectively; 139,601 and 125,333 shares issued and outstanding as of April 30, 2024 and January 31, 2024, respectively   2       1  
Class B common stock, par value of $0.000015 per share; 200,000 and 200,000 shares authorized as of April 30, 2024 and January 31, 2024, respectively; 61,369 and 73,921 shares issued and outstanding as of April 30, 2024 and January 31, 2024, respectively   1       2  
Additional paid-in capital   2,235,808       2,184,451  
Accumulated other comprehensive loss   (2,036 )     (393 )
Accumulated deficit   (1,022,196 )     (971,068 )
Total stockholders’ equity   1,211,579       1,212,993  
Total liabilities and stockholders’ equity $ 1,648,573     $ 1,691,947  
 
HashiCorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
  Three Months Ended April 30,
    2024       2023  
Cash flows from operating activities      
Net loss $ (51,128 )   $ (53,258 )
Adjustments to reconcile net loss to cash from operating activities:      
Stock-based compensation expense, net of amounts capitalized   48,817       40,163  
Depreciation and amortization expense   3,117       1,583  
Non-cash operating lease cost   909       733  
Accretion of discounts on marketable securities   (3,550 )     (1,345 )
Other   11       (28 )
Changes in operating assets and liabilities:      
Accounts receivable   76,507       59,433  
Deferred contract acquisition costs   6,088       876  
Prepaid expenses and other assets   (9,601 )     (10,346 )
Accounts payable   8,187       1,020  
Accrued expenses and other liabilities   (158 )     (2,243 )
Accrued compensation and benefits   (7,958 )     (5,075 )
Deferred revenue   (39,868 )     (25,830 )
Customer deposits   (3,225 )     (1,809 )
Net cash provided by operating activities   28,148       3,874  
Cash flows from investing activities      
Purchases of property and equipment   (232 )     (391 )
Capitalized internal-use software   (2,523 )     (2,739 )
Purchases of short-term investments   (439,213 )     (342,330 )
Proceeds from sales of short-term investments   49,071       21,239  
Proceeds from maturities of short-term investments   194,477       —  
Net cash used in investing activities   (198,420 )     (324,221 )
Cash flows from financing activities      
Taxes paid related to net share settlement of equity awards   (31 )     (9 )
Payments related to acquisition holdback   (54 )     —  
Proceeds from issuance of common stock upon exercise of stock options   1,681       1,013  
Net cash provided by financing activities   1,596       1,004  
Net decrease in cash, cash equivalents, and restricted cash   (168,676 )     (319,343 )
Cash, cash equivalents, and restricted cash beginning of period   763,414       1,286,134  
Cash, cash equivalents, and restricted cash end of period $ 594,738     $ 966,791  
 
HashiCorp, Inc.
RECONCILIATION OF GAAP TO NON-GAAP DATA
(amounts in thousands, except per share amounts and percentages)
(unaudited)
  Three Months Ended April 30,
    2024       2023  
Reconciliation of gross profit      
GAAP gross profit $ 130,267     $ 111,195  
Add: Amortization of stock-based compensation of capitalized internal-use software   628       388  
Add: Stock-based compensation expense   5,070       3,431  
Add: Amortization of acquired intangibles   625       —  
Non-GAAP gross profit $ 136,590     $ 115,014  
GAAP gross margin   81 %     81 %
Non-GAAP gross margin   85 %     83 %
Reconciliation of loss from operations      
GAAP loss from operations $ (67,712 )   $ (67,810 )
Add: Amortization of stock-based compensation of capitalized internal-use software   628       388  
Add: Stock-based compensation expense   48,817       40,162  
Add: Amortization of acquired intangibles   708       —  
Add: Merger expense   12,767       —  
Non-GAAP loss from operations $ (4,792 )   $ (27,260 )
GAAP operating margin   (42 )%     (49 )%
Non-GAAP operating margin   (3 )%     (20 )%
  Three Months Ended April 30,
    2024       2023  
Reconciliation of net loss and net loss per share      
GAAP net loss $ (51,128 )   $ (53,258 )
Add: Amortization of stock-based compensation of capitalized internal-use software   628       388  
Add: Stock-based compensation expense   48,817       40,162  
Add: Amortization of acquired intangibles   708       —  
Add: Acquisition-related expenses   12,767       —  
Less: Tax adjustments (1) $ (602 )   $ —  
Non-GAAP net income (loss) $ 11,191     $ (12,708 )
GAAP net loss per share, basic and diluted $ (0.26 )   $ (0.28 )
Non-GAAP net income (loss) per share, basic $ 0.06     $ (0.07 )
Non-GAAP net income (loss) per share, diluted $ 0.05     $ (0.07 )
Weighted-average shares used in computing GAAP net loss per share, basic and diluted   200,073       190,806  
Weighted-average shares used to compute Non-GAAP net income (loss) per share, basic   200,073       190,806  
Weighted-average shares used to compute Non-GAAP net income (loss) per share, diluted   207,326       190,806  
       
Reconciliation of free cash flow      
GAAP net cash provided by operating activities $ 28,148     $ 3,874  
Add: purchases of property and equipment   (232 )     (391 )
Add: capitalized internal-use software   (2,523 )     (2,739 )
Non-GAAP free cash flow $ 25,393     $ 744  
GAAP net cash provided by operating activities as a % of revenue   18 %     3 %
Non-GAAP free cash flow as a % of revenue   16 %     1 %
       
Trailing twelve months (“TTM”) Total Revenue $ 605,733     $ 512,975  
TTM cash provided by (used in) operating activities   17,297       (66,869 )
TTM free cash inflow (outflow)   1,768       (69,999 )
TTM cash provided by (used in) operating activities as a % of revenue   3 %   (13 )%
TTM free cash inflow (outflow) as a % of revenue   — % (2) (14 )%

(1) The adjustments relate to the tax impact of stock-based compensation expense and amortization of acquired intangibles.
(2) Amount is less than 1%.

HashiCorp, Inc.
RECONCILIATION OF GAAP TO NON-GAAP RPOS
 (amounts in thousands)
(unaudited)
  As of
  April 30, 2024   January 31, 2024
GAAP RPOs      
GAAP short-term RPOs $ 454,030     $ 460,170  
GAAP long-term RPOs   294,439       315,580  
Total GAAP RPOs $ 748,469     $ 775,750  
Add:      
Customer deposits      
Customer deposits expected to be recognized within the next 12 months $ 19,522     $ 22,882  
Customer deposits expected to be recognized after the next 12 months   2,880       2,745  
Total customer deposits $ 22,402     $ 25,627  
Non-GAAP RPOs      
Non-GAAP short-term RPOs $ 473,552     $ 483,052  
Non-GAAP long-term RPOs   297,319       318,325  
Total Non-GAAP RPOs $ 770,871     $ 801,377  
 
HashiCorp, Inc.
PRESENTATION OF KEY HISTORICAL BUSINESS METRICS
(dollars in millions, except customers and percentages)
(unaudited)
  Three Months Ended
  April 30,
2024		   January 31,
2024		   October 30,
2023		   July 31,
2023		   April 30,
2023
Number of customers (as of end of period)   4,558       4,423       4,354       4,217       4,153  
Number of customers equal or greater than $100,000 in ARR   918       897       877       851       830  
GAAP Remaining Performance Obligations ($M) $ 748.5     $ 775.8     $ 678.2     $ 682.5     $ 635.3  
Non-GAAP Remaining Performance Obligations ($M)(1) $ 770.9     $ 801.4   (1) $ 700.4   (1) $ 708.0   (1) $ 660.2  
Quarterly subscription revenue from HCP ($M) $ 24.6     $ 21.3     $ 19.9     $ 18.4     $ 16.5  
Trailing four quarters average Net Dollar Revenue Retention Rate   113 %     115 %     119 %     124 %     127 %
Trailing twelve months cash provided by (used in) operating activities as a % of revenue   3 %     (2 )%     (3 )%     (8 )%     (13 )%
Trailing twelve months Non-GAAP free cash flow as a % of revenue(1)   — % (2)   (4 )% (1)   (6 )% (1)   (10 )% (1)   (15 )%

(1) For the reconciliation of GAAP to non-GAAP for the historical periods presented, refer to our prior earning releases.
(2) Amount is less than 1%.

HashiCorp, Inc.
PRESENTATION OF KEY HISTORICAL FINANCIAL DATA
(amounts in thousands)
(unaudited)
  Three Months Ended
  April 30,
2024		   January 31,
2024		   October 30,
2023		   July 31,
2023		   April 30,
2023
Revenue $ 160,579     $ 155,783     $ 146,125     $ 143,246     $ 137,983  
GAAP net cash provided by (used in) operating activities $ 28,148     $ 10,286     $ 8,657     $ (29,794 )   $ 3,874  
Non-GAAP free cash flow $ 25,393     $ 7,283   (1) $ 5,716   (1) $ (36,625 ) (1) $ 744  
                   

(1) For the reconciliation of GAAP to non-GAAP for the historical periods presented, refer to our prior earning releases.


Investor Contact
Alex Kurtz
HashiCorp
ir@hashicorp.com

Media Contact
Kate Lehman
HashiCorp
media@hashicorp.com


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