Shares of software company New Relic (NYSE: NEWR) frequently sell off when it reports financial results. But preliminary commentary for the upcoming third quarter of its fiscal 2021 sent the stock flying today. Along with its updated revenue guidance, the company also announced a change at the president and chief operating officer positions, much to the excitement of investors. New Relic stock gained 16% for the session.
New Relic stock has languished as the rollout of New Relic One platform, its flagship product, failed to meet Wall Street’s expectations. Revenue growth has been falling, but it’s a little more complicated than that. The company changed from charging its customers for usage to charging them per user, creating an apples-to-oranges comparison of annual recurring revenue (ARR).