New Relic Inc. (NYSE:NEWR) operates a cloud-based software platform that enables users to keep a check on the performance of their websites and apps. Its flagship product, New Relic One, help customers detect problems with software applications, if any. In simple words, what the company offers is a real-time performance monitoring service that allows DevOps teams to detect and understand performance issues with their applications.
The San Francisco, California-based tech company was founded by Lew Cirne in 2008. It raised $80 million in February 2013, and another $100 million in 2014 from investors for expanding its software analytics platform. It went public in December 2014 by selling 5 million shares priced at $23 per share for total proceeds of $115 million.
NEWR stock has seen many ups and downs since its IPO on financial performance and major developments related to its product portfolio. Overall, NEWR stock value has increased around 142 percent since going public, and about 9 percent over the past year.
The company’s share price during 2020 was mainly driven by financial performance and major developments announced by the company. One of the key developments includes the restructuring of its flagship product last summer. NEWR repackaged its flagship product suite in July by introducing a new pricing model to make it more affordable for its customers. Previously, it used to charge clients for every application instance they monitored. Comparatively, the new pricing model enables them to pay by the user instead of apps monitored, making it economical for those monitoring several apps at once.
Meanwhile, New Relic joined hands with Amazon Web Services in October, forming a multi-year strategic collaboration focusing on product development and integration. Separately, New Relic last month expanded its portfolio by acquiring Pixie Labs, a startup engaged in providing machine learning-based observability solutions.
Most recently, New Relic shares made a new 52-week high of $77.53 after the company’s CEO Lew Cirne said in a statement that the third-quarter revenue will come in above the high end of the outlook they provided during the previous earnings call.