Mission Statement, Vision, & Core Values (2024) of New Relic, Inc. (NEWR).

An Overview of New Relic, Inc. (NEWR)

General Summary of New Relic, Inc. (NEWR)

New Relic, Inc. (NEWR) was founded in 2008 and has established itself as a leading provider of observability and monitoring solutions for software applications. The company offers a diverse range of products and services designed to help organizations understand and improve their software performance and user experience. Key offerings include application performance monitoring (APM), infrastructure monitoring, and digital experience monitoring. As of 2024, New Relic has transitioned significantly towards a consumption-based revenue model, which aligns pricing with the value delivered to customers.

As of the second quarter of fiscal 2024, New Relic reported total revenue of $242.8 million for the three months ending September 30, 2023, representing a year-over-year increase of 7% from $226.9 million in the same quarter of the previous year. For the six-month period ending September 30, 2023, total revenue reached $485.4 million, up 9% from $443.4 million in the prior year.

Company's Financial Performance in the Latest Financial Reports

In the latest financial report for the quarter ending September 30, 2023, New Relic achieved a gross margin of 78%, up from 71% in the same quarter of 2022. This improvement is attributed to the company's shift from local data centers to public cloud hosting, enhancing operational efficiency. Despite these gains, New Relic reported a net loss of $23.8 million for the quarter, compared to a net loss of $46.8 million for the same period in the previous year. For the first half of fiscal 2024, the net loss totaled $61.2 million, down from $97.0 million in the same period of 2022.

Operating expenses increased slightly, with research and development costs at $69.4 million for Q2 2023, compared to $68.7 million in Q2 2022. Sales and marketing expenses decreased to $84.1 million from $96.2 million, reflecting the company’s focus on cost management amidst a restructuring initiative.

Introduction to Company as a Leader in the Industry

New Relic has positioned itself as a leader in the observability and monitoring sector, providing critical insights that empower organizations to optimize their software performance. As of September 30, 2023, the company had 16,000 active customer accounts, an increase from 15,300 in the prior year. Importantly, 1,255 of these accounts generated over $100,000 in revenue in the trailing 12 months, making up 84% of total revenue for the quarter. The company's net revenue retention rate (NRR) is currently at 114%, demonstrating robust growth among existing customers.

New Relic continues to invest in expanding its international footprint and enhancing its product offerings, which are central to its growth strategy. The company’s commitment to innovation and customer success makes it a key player in the competitive landscape of software observability.

Mission Statement of New Relic, Inc. (NEWR)

Mission Statement of New Relic, Inc. (NEWR)

The mission statement of New Relic, Inc. emphasizes their commitment to helping organizations understand and improve their software performance. The company's mission is to provide a comprehensive observability platform that enables businesses to monitor their applications, infrastructure, and customer experience in real-time.

This mission is significant as it guides New Relic's long-term goals, influencing their product development, customer engagement strategies, and overall business operations. By focusing on observability, New Relic aims to enhance operational efficiency and drive innovation across various industries.

Core Component 1: Customer-Centric Approach

New Relic's mission statement prioritizes a customer-centric approach, aiming to empower businesses with actionable insights. This commitment is reflected in their platform, which integrates various monitoring tools to provide a unified view of application performance.

As of September 30, 2023, New Relic reported having approximately 16,000 Active Customer Accounts, marking an increase of 700 from the previous year. The company generated 84% of its total revenue from Active Customer Accounts with trailing 12-month revenue greater than $100,000. This statistic highlights the effectiveness of their customer-centric strategy, as larger accounts contribute significantly to overall revenue.

Core Component 2: Innovation and Product Development

Innovation is another critical element of New Relic's mission statement. The company focuses on continuously enhancing its observability platform to meet the evolving needs of its customers. New Relic has shifted its business model towards a consumption-based pricing structure, which aligns customer costs with their usage of the platform.

In the second quarter of 2024, New Relic reported revenue of $242.8 million, a 7% increase year-over-year. The gross margin for the same period was recorded at 78%, indicating improved operational efficiency. This focus on innovation and adaptability is integral to their mission, enabling customers to derive maximum value from their investments in New Relic's solutions.

Core Component 3: Commitment to Quality and Reliability

New Relic's mission statement also emphasizes a commitment to delivering high-quality and reliable products. The company aims to provide a platform that not only meets but exceeds customer expectations regarding performance and usability.

In the six months ending September 30, 2023, New Relic reported a net loss of $61.2 million. Despite the losses, the company's ongoing investments in research and development, totaling $149.7 million for the same period, reflect their commitment to enhancing product quality and reliability. This strategic focus is essential for fostering customer trust and long-term relationships.

In summary, New Relic's mission statement encapsulates their dedication to customer success, innovation, and quality, which are critical components in guiding their strategic initiatives and long-term objectives.

Vision Statement of New Relic, Inc. (NEWR)

Vision Statement Overview

New Relic, Inc. (NEWR) envisions itself as the leading observability platform, aiming to empower organizations to deliver exceptional digital experiences through real-time data insights and analytics. The company focuses on transforming the way businesses manage their software and infrastructure, enhancing performance, and driving innovation.

Commitment to Innovation

New Relic's vision emphasizes a commitment to continuous innovation. In 2024, the company aims to enhance its platform capabilities, integrating advanced machine learning and artificial intelligence to provide predictive analytics and automated insights. This strategic direction is reflected in its R&D expenditure, which for the six months ended September 30, 2023, was $149.7 million, representing an increase from $133.5 million for the same period in 2022.

Focus on Customer Success

At the core of New Relic's vision is a strong focus on customer success. The company aims to provide tools that enable organizations to optimize their digital performance, enhance user experiences, and ultimately drive business growth. As of September 30, 2023, approximately 32% of New Relic's customers were on commitment contracts, which demonstrates a significant engagement level and confidence in the platform.

Global Reach and Accessibility

New Relic's vision includes expanding its global reach and making its services accessible to a broader audience. As of September 30, 2023, international revenues accounted for 38% of total revenue, with significant contributions from regions such as EMEA (18%) and APAC (12%). This reflects the company’s strategy to penetrate new markets and leverage partnerships to enhance its international footprint.

Commitment to Sustainability

The vision also incorporates a commitment to sustainability and responsible business practices. New Relic is focused on reducing its operational footprint and transitioning to cloud-based solutions, which not only enhance efficiency but also contribute to environmental sustainability. The transition has resulted in improved gross margins, with a reported gross margin of 78% for the three months ended September 30, 2023, compared to 71% for the same period in the previous year.

Table: Key Financial Metrics (2024)

Conclusion

New Relic's vision for 2024 is characterized by a strong commitment to innovation, customer success, global accessibility, and sustainability. The company's strategic focus is geared towards enhancing its platform capabilities and expanding its market presence, ensuring it remains a leader in the observability space.

Core Values of New Relic, Inc. (NEWR)

Innovation

The core value of innovation at New Relic, Inc. emphasizes the importance of continuous improvement and adaptation in a rapidly evolving technology landscape. This value drives the company to enhance its observability platform, ensuring it meets the dynamic needs of customers.

In 2024, New Relic has focused on product-led innovation, introducing features that enhance user experience. For instance, the company has implemented a new pricing model that aligns costs with actual usage, which has been well-received by customers. During the three months ended September 30, 2023, revenue from consumption-based pricing increased by 33% year-over-year, highlighting the success of this initiative.

Furthermore, New Relic has invested significantly in research and development, with expenses reaching $69.4 million for the three months ended September 30, 2023, compared to $68.7 million in the same period of 2022. This commitment to R&D showcases the company's dedication to fostering innovation.

Customer-Centricity

Customer-centricity is another foundational value for New Relic. The company prioritizes understanding and addressing customer needs to drive satisfaction and loyalty. In 2024, New Relic reported having over 16,000 active customer accounts, reflecting its successful engagement strategies.

New Relic's dedication to customer feedback is evident in its product development process. The company launched a free tier of its platform, allowing users to explore its capabilities without commitment. This initiative has proven effective, as approximately 92% of revenues in the second quarter of 2024 came from customers utilizing the consumption-based pricing model.

Integrity

Integrity is a vital core value for New Relic, underpinning its business practices and customer relationships. The company adheres to high ethical standards in its operations and communications. In the fiscal year 2024, New Relic has implemented comprehensive training programs for employees to reinforce the importance of ethical conduct and transparency in all business dealings.

Financially, New Relic is committed to transparency, as evidenced by its detailed quarterly earnings reports. For the three months ended September 30, 2023, the company reported a net loss of $23.8 million, but also highlighted its strategic investments aimed at future growth.

Diversity and Inclusion

Diversity and inclusion are integral to New Relic's culture and operations. The company recognizes that a diverse workforce fosters innovation and creativity. In 2024, New Relic has made strides in enhancing its diversity initiatives, including targeted recruitment efforts and employee resource groups.

As part of its commitment to inclusivity, New Relic has reported a workforce composition of 43% women and 37% underrepresented minorities as of September 30, 2023, demonstrating its ongoing efforts to create a more equitable workplace.

Excellence

Excellence is a core value that drives New Relic to deliver high-quality products and services consistently. The company aims to exceed customer expectations through operational efficiency and superior product performance. In 2024, New Relic achieved a gross margin of 78% for the three months ended September 30, 2023, up from 71% in the same period in 2022.

This focus on excellence is also reflected in the company's customer retention strategies, which have resulted in a net revenue retention rate of 114% as of September 30, 2023, indicating strong growth among existing customers.