Shares of IronNet, Inc. (IRNT) were down 12.2% during the extended trading session on June 14 after the cybersecurity company reported worse-than-feared Q1 results.
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Q1 Beat
The company reported an adjusted loss of $0.33 per share, which fell 13 cents short of the street’s estimated loss of $0.20.
Revenues jumped 4.9% year-over-year to $6.69 million but lagged consensus estimates of $7.20 million. The increase in revenues reflects a surge in annual recurring revenue, which increased 17.6% to $30.1 million.
FY2023 Outlook
Looking forward, the company reiterated its full-year guidance.
The company forecasts revenues to grow 25% year over year to $34 million for the full year 2023. Furthermore, annual recurring revenue (ARR) is projected to grow 50% year over year to $48 million at the end of the fiscal year.
CEO’s Comments
IronNet Co-CEO, William Welch, said, “In addition to our transactional business, we believe that our strategic business pipeline of deals larger than $5 million in ARR remains strong, and our conviction is high that a number of these opportunities will materialize to support our growth for the year.”
Wall Street’s Take
Consensus among analysts is a Hold based on three Holds. The average IronNet stock forecast of $2.75 implies 7.84% upside potential to current levels.
Investors Stance
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on IronNet, with 4.1% of investors decreasing their exposure to IRNT stock over the past 30 days.
Conclusion
Shares of IronNet have lost almost three-fourths of its market capitalization over the past year.
Though top management has great confidence in its strategic pipeline of opportunities, as witnessed in the reiterated revenue guidance, investors perhaps should wait for better visibility before being buyers of the stock.
