The stock of IronNet, Inc. (IRNT) plunged in the after-hours following the announcement of its financial results of 3rd quarter of fiscal year 2022. The stock traded at $5.35 losing more than 21% from the previously closed value. At the end of the last trading session the stock closed at $6.80. The volume of the stock traded in the last trading session was around 1.85 million shares.
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Reason of the stock decline:
On 15th December, 2021 the company announced their financial results for the 3rd quarter of fiscal year 2022. As soon as the news hit the market the stock of the company plunged in the market losing more than 21% in its value.
Financial and operating highlights of 3rd quarter of the fiscal year 2022:
- The revenue of the company was reported to be $6.9 million. The revenue in the 3rd quarter of the previous year was $7.0 million.
- The gross margin also decreased to 65.7%. This was 70.5% in the 3rd quarter of last.
- GAAP operating loss was reported to be $185.6 million.
- GAAP Net loss was reported to be $193.1 million and non-GAAP adjusted net loss was announced to be $20.2 million.
- The annual recurring revenue in the 3rd quarter was $27.5 million. In the 3rd quarter of last year it was $21.2 million and in the previous quarter of this year it was $24.1 million.
- The average length of the dollar based contract was reported to be 2.8 years as compared to same quarter of the previous year it was 3.2 years.
- As of the 3rd quarter of 2022 the company had total cash and cash equivalents of around $73.9 million.
Effect on the stock decline:
The financial results of the company were not able to satisfy the investors and they were seen to be reluctant in investing in the stock of IronNet, Inc. (IRNT). Due to this blow the stock of the company lost more than 21% in its value in the after-hours.
Conclusion:
The company is looking forward to improving its financial numbers in the upcoming quarter and next year. The company has forecasted expected revenue of approx. $26 million and ARR of around $30 million at the end of this fiscal year.
