HashiCorp, Inc.

HashiCorp reported fourth-quarter fiscal 2024 revenue of $156 million, up 15% year over year, and non-GAAP remaining performance obligations of $483 million, up 21% year over year. Management said the quarter exceeded guidance on both the top and bottom line, and the company ended with another free cash flow positive quarter. For fiscal 2024, revenue grew 23% year over year. For fiscal 2025, management guided to revenue of $152 million to $154 million in Q1 and $643 million to $647 million for the full year, with non-GAAP operating loss of $19 million to $16 million in Q1 and $46 million to $43 million for the year. Gross margin is expected to remain in the low to mid 80% range, non-GAAP operating income breakeven is expected by Q4, and the company expects positive free cash flow in all quarters except Q2 due to seasonality.

Dave McJannet struck a candid but constructive tone, saying the company is “behind where we wanted” it to be in the growth cycle while also pointing to early signs of reengagement from large enterprises. He centered the strategy on three moves: simplifying go-to-market, widening commercial differentiation, and shifting more resources to HashiCorp-managed cloud offerings. He said the goal is to get back to 20% quarterly revenue growth in fiscal 2026, with the current fiscal year serving as the bridge.

Navam Welihinda highlighted a stronger-than-expected Q4, with 15% revenue growth, 23% full-year growth, and another free cash flow positive quarter. He said renewal rates, pipeline conversion, and sales-driven customer activity improved in Q4 versus Q3, and described FY25 as a “U-shaped recovery” with Q2 as the trough for revenue growth and CRPO growth, followed by improving back-half trends. He also said gross margins should stay in the low to mid 80% range, expenses will grow slower than revenue, and the board authorized a $250 million share repurchase program starting in fiscal 2025 because the company believes it has excess cash beyond operating and midterm M&A needs.

Analysts pressed on whether the cloud-first push for large enterprises is really gaining traction, and management said customer willingness and platform readiness have both improved, with enterprise cloud now the default motion for Terraform and sales compensation shifted to favor cloud land. Questions also focused on whether Q4 strength came from a better macro environment or better execution; management said it was both, citing easing optimization pressures and improved field execution. Other topics included security competition with Microsoft, where Armon Dadgar said Microsoft is more partner than competitor, and the impact of Terraform Stacks and LTS releases, which management said should strengthen commercial differentiation and renewals.