Shares of HashiCorp (NASDAQ: HCP), a provider of infrastructure automation software tanked in pre-market trading at the time of publishing on Thursday as the company stated that it will focus on cutting down discretionary spending and will reduce around 8% of its workforce.
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Dave McJannet, CEO, HashiCorp stated, “We are responding to the current customer and economic environment with proactive actions to lower our ongoing costs. This was a difficult decision that we don’t take lightly, and I am deeply disappointed to lose many valued colleague.”
This was even as the company’s Q1 adjusted loss narrowed down to $0.07 per share versus a loss of $0.17 in the same period last year while analysts were expecting HCP to report a loss of $0.13 per share.
HashiCorp posted revenues of $138 million in Q1, a jump of 37% year-over-year but fell short of consensus estimates of $139.4 million. In Q1, the company’s total Remaining Performance Obligation (RPO) was $635.3 million, up by 46% year-over-year.
In the second quarter, HCP’s revenues are expected to be between $137 million and $139 million while adjusted loss is projected to be in the range of $0.16 to $0.14 per share. In FY24, HashiCorp’s total revenues are expected to be between $564 million and $570 million while adjusted loss is likely to range from $0.27 to $0.24 per share.
Analysts are bullish about HCP stock with a Strong Buy consensus rating based on nine Buys and three Holds.
