Cloudy software developer HashiCorp plans to lay off eight per cent of its workforce as part of a set of cost-cutting measures despite the fact it made record revenues.
The outfit recorded a 37 per cent year-over-year revenue rise and a solid fall in its net loss.
CEO Dave McJannet said that the cull of HashiCorp’s employees also follows the company’s targeted cuts in discretionary spending in response to a difficult macroeconomic environment and pressure from customers’ buying process.
“We are responding to the current customer and economic environment with proactive actions to lower our ongoing costs,” McJannet said.
Before the job cuts, HashiCorp had over 2,000 employees.
For its fiscal first quarter 2024, HashiCorp reported total revenues of $138 million, up about 37 per cent over the $100.9 million the company reported for its first fiscal quarter 2023.
That included licence revenue of $15.2 million, up from $10.3 million; support revenue of $101.9 million, up from $79.2 million; cloud-hosted revenue of $16.5 million, up from $8.8 million; and professional services and other revenue of $4.4 million, up from $2.5 million.
For the quarter, HashiCorp reported a GAAP net loss of $53.3 million, down from last year’s GAAP net loss of $78.2 million . On a non-GAAP basis, HashiCorp reported a net loss of $12.7 million down from last year’s $31.8 million.
