Here’s why IronNet shares are up about 30% on Wednesday morning

IronNet Inc (NYSE: IRNT) said late on Tuesday its revenue came in lower than last year in the fiscal second quarter. Shares of the company, however, jumped about 30% this morning as investors focused more on the customer count that more than doubled from the same quarter last year.  

Q2 financial performance

IronNet said its revenue printed at $6.1 million in the second quarter versus the year-ago figure of $7.9 million, despite a growth in subscription revenue to $5.8 million from last year’s $5.3 million. The cybersecurity company saw $17.2 million of net loss in Q2 – an increase from $14.3 million in the comparable quarter of the previous year.

Cash stature and ARR

The NYSE-listed firm valued its cash and equivalents at $14.1 million at the end of the second quarter. IronNet now serves 51 customers compared to 22 customers only in Q2 of fiscal 2021. Its annual recurring revenue (ARR) also noted a year-over-year growth in the recent quarter to $24.1 million.

Guidance for the full year

For the full financial year, IronNet now forecasts $75 million of ARR on up to $45 million in revenue.

IronNet stock has now more than doubled since the $2.42 billion company completed its business combination with LGL Systems Acquisition Corp late last month.