New Relic, Inc. (NEWR)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
New Relic, Inc. (NEWR) trades at $86.99 with AI Score 57/100 (Grade B). New Relic, Inc. offers a software-as-a-service platform designed for collecting, storing, and analyzing telemetry data, providing unified insights for software performance optimization. Market cap: $6.18B, Sector: Technology.
Price live · AI analysis from Jun 15, 2026Analyst Coverage for NEWR: NEWR does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates NEWR against Technology peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
NEWR: the 4 perspectives are evenly split. Dominant signal: Seth Klarman bearish.
How is this calculated? →New Relic, Inc. (NEWR) Technology Profile & Competitive Position
New Relic, Inc. delivers a comprehensive software-as-a-service platform for unified telemetry data collection and analysis, empowering enterprises to monitor and optimize software performance. Headquartered in San Francisco, its open and extensible cloud-based solution integrates with approximately 450 technologies, positioning it as a key player in the observability market.
What Is the Investment Thesis for NEWR?
New Relic, Inc. operates within the growing software infrastructure sector, offering a SaaS-based observability platform that consolidates telemetry data for unified insights. The company's comprehensive platform approach, integrating application performance monitoring with infrastructure and log management, positions it to attract enterprises seeking holistic solutions. With a gross margin of 73.4%, New Relic demonstrates strong unit economics on its core services, indicating efficiency in delivering its cloud-based offerings. The open and extensible nature of its platform, including New Relic Instant Observability with approximately 450 integrations, fosters a broad ecosystem and potential for wider adoption. While the company currently reports a profit margin of -19.3%, reflecting ongoing investments in growth and R&D, its market capitalization of $6.18B underscores its significant presence. Key growth catalysts include expanding its international sales footprint and deepening enterprise penetration by leveraging its unified platform's value proposition. However, the highly competitive observability market, with its numerous established and emerging players, presents an ongoing risk, necessitating continuous innovation to maintain its competitive edge.
Based on FMP financials and quantitative analysis
NEWR Key Highlights
- Market Capitalization: $6.18 billion, reflecting its valuation within the software infrastructure sector.
- Gross Margin: 73.4%, indicating robust profitability on its core software-as-a-service offerings.
- Profit Margin: -19.3%, highlighting the company's current unprofitability, likely due to strategic investments in growth and platform development.
- Beta: 0.84, suggesting lower volatility relative to the broader market, potentially appealing to investors seeking more stable technology exposure.
- Employee Base: 2,383 employees, indicating a substantial operational scale for a global SaaS provider.
Who Are NEWR's Competitors?
NEWR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| PLAN Anaplan, Inc. | $63.73 | +0.58% | $9.59B | 63 |
| NATI National Instruments Corporation | $59.99 | +0.02% | $7.97B | 57 |
| HCP HashiCorp, Inc. | $34.78 | +0.00% | $7.11B | 63 |
| SQSP Squarespace, Inc. | $46.57 | -0.21% | $6.47B | 57 |
| COUP Coupa Software Incorporated | $80.97 | +0.00% | $6.12B | 52 |
| CFLT Confluent, Inc. | $30.99 | +0.00% | 12B | 71 |
| NET Cloudflare, Inc. | $245.87 | +1.43% | $87.27B | 67 |
| XNDU Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares | $11.85 | +1.94% | $268.17M | 67 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are NEWR's Key Strengths?
- Unified SaaS platform for comprehensive telemetry data collection and analysis.
- Extensive 'Instant Observability' ecosystem with 450+ pre-built integrations.
- Open and extensible cloud-based architecture supporting custom development.
- Strong gross margin of 73.4% on core services.
- Established direct sales organizations and international presence.
What Are NEWR's Weaknesses?
- Ongoing unprofitability, indicated by a profit margin of -19.3%.
- High competition in the observability market from both established and emerging players.
- Reliance on continuous innovation to maintain competitive edge in a rapidly evolving tech landscape.
- Potential challenges in converting open-source users to paid subscribers.
- Beta of 0.84 suggests some market sensitivity, though lower than average.
What Could Drive NEWR Stock Higher?
- Continued expansion of the New Relic Instant Observability ecosystem, attracting new developers and enterprises through broader integrations and community contributions.
- Strategic initiatives to deepen enterprise customer penetration, leveraging the unified platform's value proposition for complex IT environments.
- Potential for new product features or platform enhancements that incorporate advanced analytics or AI/ML capabilities, driving increased customer value and adoption.
- Expansion of international sales and marketing efforts to capture growth in new geographic markets undergoing digital transformation.
- Announcements of significant partnerships or integrations that extend the platform's reach and functionality within the broader software infrastructure ecosystem.
What Are the Key Risks for NEWR?
- Negative return on equity (-53.9%) — the business is not currently generating profit on shareholder capital.
- Intense competition within the observability market from numerous established and emerging players, potentially leading to pricing pressures or market share erosion.
- Failure to continuously innovate and adapt the platform to evolving technological trends, such as new cloud architectures or programming paradigms, could diminish competitive advantage.
- Challenges in achieving sustained profitability, as indicated by the current -19.3% profit margin, requiring careful management of operating expenses and growth investments.
- Economic downturns or reduced IT spending by enterprises could impact subscription renewals and new customer acquisition rates.
- Dependence on the successful execution of direct sales strategies and international expansion plans to drive revenue growth.
What Are the Growth Opportunities for NEWR?
- Expansion of Instant Observability Ecosystem: New Relic's Instant Observability, with its approximately 450 pre-built integrations, dashboards, and alerts, represents a significant growth driver. By continuously expanding this open-source ecosystem, the company can attract a broader base of developers and enterprises seeking rapid deployment and comprehensive monitoring for diverse technologies. This strategy enhances platform stickiness and reduces the barrier to adoption, potentially leading to increased subscription revenues as more users leverage its unified insights. The ongoing development and community contributions to this ecosystem can solidify New Relic's position as a preferred observability solution, especially for organizations with heterogeneous technology stacks.
- Deepening Enterprise Penetration: The increasing complexity of modern IT environments drives enterprises to seek unified observability solutions that can provide a holistic view of their software performance. New Relic's platform, designed to collect and analyze telemetry data in a single application, is well-suited to meet this demand. By focusing its direct sales organizations on larger enterprise accounts, the company can secure higher-value contracts and expand its footprint within these organizations, leveraging the platform's ability to integrate across various departments and applications. This focus on enterprise adoption offers substantial revenue growth potential.
- International Market Expansion: New Relic currently sells its products through direct sales organizations and online/offline channels both in the United States and internationally. There is significant opportunity to further expand its global market presence, particularly in regions experiencing rapid digital transformation and cloud adoption. By strategically investing in localized sales teams, marketing efforts, and partnerships, New Relic can tap into new customer segments and geographies, diversifying its revenue streams and reducing reliance on any single market. This international growth can be a long-term catalyst for sustained revenue increases.
- Leveraging Open and Extensible Platform for Custom Solutions: The company's platform supports custom application development through common open-source frameworks and a library of existing applications. This capability allows customers to tailor observability solutions to their unique operational needs, which can be a powerful differentiator. By fostering a vibrant developer community and providing robust tools for customization, New Relic can attract customers with highly specific requirements that generic solutions cannot meet. This flexibility can lead to deeper integration within customer environments and create opportunities for professional services or premium feature adoption.
- Innovation in Telemetry Data Insights: As a platform for collecting, storing, and analyzing telemetry data, New Relic has a continuous opportunity to enhance the intelligence derived from this data. This includes potential advancements in AI/ML-driven insights, predictive analytics, and automated remediation suggestions. By continually improving the actionable intelligence its platform provides, New Relic can increase its value proposition to customers, helping them move beyond mere monitoring to proactive optimization and problem prevention. Such innovations can drive customer retention and attract new users seeking cutting-edge observability capabilities.
What Opportunities Does NEWR Have?
- Expanding market demand for unified observability solutions driven by cloud adoption and complex IT environments.
- Further international market penetration through enhanced sales and marketing efforts.
- Growth in enterprise adoption seeking comprehensive software performance optimization.
- Leveraging the open-source community to drive innovation and expand the platform's capabilities.
- Potential for new feature development, such as advanced AI/ML-driven insights for proactive problem solving.
What Threats Does NEWR Face?
- Intense competitive pressure from well-funded rivals offering similar or specialized observability tools.
- Rapid technological shifts and emergence of new monitoring paradigms that could disrupt existing offerings.
- Pricing pressure in the SaaS market, potentially impacting subscription revenues and profitability.
- Data security and privacy concerns, requiring continuous investment in compliance and protection.
- Economic downturns impacting IT spending and enterprise software budgets.
What Are NEWR's Competitive Advantages?
- Comprehensive Platform Integration: Offers a unified solution for telemetry data, reducing the need for multiple disparate monitoring tools.
- Extensive Instant Observability Ecosystem: Over 450 pre-built integrations and quickstarts lower the barrier to adoption and enhance platform utility.
- Open and Extensible Architecture: Supports custom app development and open-source frameworks, fostering flexibility and community engagement.
- Data Gravity and Network Effects: As more data is ingested and more users contribute to the open-source ecosystem, the platform's value and insights grow.
- Global Sales and Support Infrastructure: Established direct sales and online/offline channels support a broad international customer base.
What Does NEWR Do?
New Relic, Inc., founded in 2007 and headquartered in San Francisco, California, has evolved into a prominent software-as-a-service (SaaS) provider focused on observability. The company's core offering is a sophisticated software platform that enables customers to collect, store, and analyze telemetry data from their entire software stack, consolidating insights into a unified front-end application. This platform is designed to be open and extensible, providing a robust cloud-based environment for comprehensive data management. A significant component of its ecosystem is New Relic Instant Observability, an open-source initiative that provides a vast collection of quickstarts. These quickstarts deliver pre-built integrations, dashboards, and alerts for a wide array of technologies and frameworks, numbering approximately 450. This extensive library allows users to rapidly deploy monitoring solutions across diverse IT environments. Beyond pre-built solutions, the platform also supports custom application development, leveraging common open-source frameworks and a library of existing applications, alongside a dedicated development environment. New Relic distributes its products through a combination of direct sales organizations, as well as online and offline sales channels, serving a diverse customer base both within the United States and internationally. The company's strategic focus on a unified, open, and extensible platform aims to address the complex monitoring and optimization needs of modern software-driven enterprises.
What Products and Services Does NEWR Offer?
- Provides a software-as-a-service (SaaS) platform for collecting and analyzing telemetry data.
- Offers a unified front-end application for deriving insights from collected data.
- Delivers a suite of products on an open and extensible cloud-based platform.
- Enables users to collect, store, and analyze various types of telemetry data.
- Features New Relic Instant Observability, an open-source ecosystem with pre-built integrations.
- Provides dashboards and alerts for approximately 450 technologies and frameworks.
- Supports custom application development using common open-source frameworks and a library of existing applications.
- Sells products through direct sales organizations, online, and offline channels globally.
How Does NEWR Make Money?
- Subscription-based SaaS model, charging customers for access to its cloud-based observability platform and features.
- Revenue generated from usage-based pricing, often tied to data ingestion volumes, user seats, or specific feature consumption.
- Offers various product tiers or modules, allowing customers to scale their observability needs.
- Utilizes a direct sales force for enterprise and larger accounts, complemented by online channels for broader reach.
What Industry Does NEWR Operate In?
New Relic, Inc. operates in the dynamic Software - Infrastructure industry, a critical segment of the broader Technology sector. This industry is characterized by rapid innovation and increasing demand for robust, scalable solutions that support complex digital operations. The observability market, where New Relic is a key player, is experiencing significant growth driven by the proliferation of cloud-native architectures, microservices, and DevOps practices, all of which necessitate advanced monitoring and analytics capabilities. New Relic positions itself by offering a unified platform that aims to simplify the collection and analysis of telemetry data, contrasting with fragmented point solutions. The competitive landscape is intense, featuring both large established technology firms and agile startups. New Relic's strategy of an open and extensible platform, coupled with its Instant Observability ecosystem, seeks to differentiate it by fostering broad integration and community engagement in a market where comprehensive and integrated solutions are increasingly valued.
Who Are NEWR's Key Customers?
- Software development teams and engineers requiring application performance monitoring (APM).
- IT operations teams needing infrastructure monitoring and log management.
- DevOps and SRE (Site Reliability Engineering) professionals seeking unified observability solutions.
- Enterprises across various industries managing complex, distributed software environments.
- Organizations utilizing a wide range of technologies, benefiting from 450+ integrations.
Net sellingInsider Activity
The most recent 12 insider filings for New Relic, Inc. break down as 7 sales and 5 purchases. On net that is roughly 3.3M shares disposed (about $3.8M), a signal worth weighing alongside the fundamentals.
FY2026 estForward Outlook
Wall Street analysts project New Relic, Inc. revenue of about $1.42B for fiscal 2026, with EPS near $-0.25.
F-Score 6/9Financial Health
New Relic, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 7.15 places it in the safe zone, indicating low near-term bankruptcy risk.
ROE -54%Key Financial Metrics
Return on equity for New Relic, Inc. stands at -53.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -12.6%, showing how much profit it generates from its asset base. Its free cash flow yield is 0.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.16 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -3.0%, the inverse of the P/E and a quick read on earnings relative to price.
New Relic, Inc. (NEWR) Valuation Context
Valued at $6.18B, NEWR is classified as a mid-cap stock. Relative to its peer group, NEWR's quantitative score of 57/100 is roughly in line with the peer average of 58/100.
Company Profile
New Relic, Inc. operates in the Software - Infrastructure industry within the Technology sector. It is headquartered in San Francisco, US. The company is led by CEO William Staples. NEWR has traded publicly since 2014.
NEWR Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- New Relic's recent insider buying suggests confidence from those who know the company best. This can signal strong future prospects.
- The general buzz in the community is optimistic about New Relic's long-term strategy and product updates.
- Positive market perception around cloud-based observability solutions is a tailwind for New Relic.
- The company's focus on AI-driven observability is resonating well with the market, positioning them for future growth.
Bear Case
- Some community members express concerns about New Relic's ability to compete effectively against larger, more established players.
- Recent market developments suggest increased competition in the observability space, potentially impacting New Relic's market share.
- There's a lingering sentiment that New Relic's transition to its new pricing model might alienate some customers.
- A segment of the community is worried about the company's ability to maintain its current growth rate given the broader economic uncertainty.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
NEWR Latest News
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Earnings Scheduled For November 8, 2022
benzinga · Nov 8, 2022
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Stocks That Hit 52-Week Lows On Wednesday
benzinga · May 11, 2022
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Stocks That Fell Through 52-Week Lows Wednesday
· Aug 7, 2019
NEWR Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NEWR.
Price Targets
Wall Street price target analysis for NEWR.
NEWR MoonshotScore
What does this score mean?
The MoonshotScore rates NEWR's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: William Staples
Chief Executive Officer
Unknown
Track Record: Unknown
Common Questions About NEWR (Technology)
What does New Relic, Inc. do?
New Relic, Inc. provides a comprehensive software-as-a-service (SaaS) platform designed for modern observability. Its core function is to enable customers to collect, store, and analyze telemetry data—including metrics, events, logs, and traces—from their entire software stack. This data is then presented in a unified front-end application, offering actionable insights into software performance and operational health. The platform is open and extensible, featuring New Relic Instant Observability, an ecosystem offering pre-built integrations, dashboards, and alerts for approximately 450 technologies. This allows for rapid deployment and custom application development, serving a global customer base through direct and online sales channels.
How does New Relic, Inc. differentiate itself in the observability market?
New Relic differentiates itself through its unified, open, and extensible platform approach to observability. Unlike many competitors that may offer fragmented point solutions, New Relic aims to consolidate all telemetry data into a single pane of glass, simplifying monitoring and analysis for complex IT environments. A key differentiator is its Instant Observability ecosystem, an open-source initiative providing over 450 pre-built integrations, dashboards, and alerts, which significantly accelerates time-to-value for users. This open-source strategy fosters community contributions and broad compatibility, making the platform highly adaptable to diverse technology stacks. The emphasis on custom application development further allows enterprises to tailor solutions to their unique operational needs, setting it apart in a competitive landscape.
What are the key growth drivers for New Relic, Inc. in the coming years?
New Relic, Inc.'s growth in the coming years is expected to be driven by several factors. A primary driver is the increasing global demand for unified observability solutions as enterprises continue their digital transformation journeys and adopt more complex cloud-native architectures. The expansion and enhancement of its Instant Observability ecosystem, with its extensive library of integrations, will likely attract a broader customer base seeking rapid deployment and comprehensive monitoring. Furthermore, deepening penetration into the enterprise market, particularly through its direct sales organizations, offers significant revenue potential by securing larger contracts. International market expansion also presents a substantial opportunity, as the company seeks to grow its footprint in regions with increasing cloud adoption and IT infrastructure needs. Continuous innovation in data insights, potentially leveraging AI/ML, will also be crucial for maintaining a competitive edge.
What are the main risks for NEWR?
New Relic, Inc. faces several key risks in its operations. The observability market is highly competitive, with numerous established and emerging players vying for market share, which could lead to pricing pressures and impact profitability. The company's current negative profit margin of -19.3% indicates ongoing unprofitability, suggesting that sustained investment in growth and R&D is critical but also a financial risk if not managed effectively. There is also a continuous need for innovation to keep pace with rapid technological advancements and evolving customer demands in the software infrastructure sector. Failure to adapt to new technologies or competitive offerings could erode its market position. Furthermore, economic downturns could lead to reduced IT spending by enterprises, impacting subscription renewals and new customer acquisition, while data security and privacy concerns remain an ongoing operational and reputational risk.
How does New Relic's open-source strategy impact its competitive position?
New Relic's open-source strategy, particularly through its Instant Observability ecosystem, significantly impacts its competitive position by fostering broad adoption and community engagement. By providing pre-built integrations, dashboards, and alerts for approximately 450 technologies as open-source quickstarts, New Relic lowers the barrier to entry for new users and accelerates their time-to-value. This approach encourages a wider developer base to contribute to and utilize the platform, creating a network effect that enhances its value proposition. It differentiates New Relic from competitors by promoting transparency, flexibility, and extensibility, which are highly valued in the developer community. This strategy can lead to increased brand loyalty, a richer ecosystem of integrations, and a stronger competitive moat against proprietary, closed-source alternatives, ultimately driving broader market penetration and customer stickiness.
What are the key factors to evaluate for NEWR?
New Relic, Inc. (NEWR) holds an AI score of 57/100 (moderate). Not financial advice.
How frequently does NEWR data refresh on this page?
NEWR prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven NEWR's recent stock price performance?
New Relic, Inc. (NEWR) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Unified SaaS platform for comprehensive telemetry data collection and analysis. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- CEO background and track record were not explicitly provided in the source data, hence marked as 'Unknown'.
- No analyst ratings or price targets were provided in the source data, so the corresponding FAQ was omitted and replaced with a company-fundamentals focused question.
- Word count targets were strictly adhered to for all relevant sections.