IronNet plummets by 25% and announces Q2 2022 financials
- Increased its year-over-year customer base by 49
- Recorded a 74% year-over-year increase in its cloud subscription
- Reported $6.9 million in revenue in this quarter.
IronNet Inc (NYSE: IRNT) is a top-in-class provider of solutions that help transform cybersecurity via Collective Defense. However, it dropped 25% after announcing the $6.9 million revenue it recorded in Q3 2022.
Words from top management
IronNet’s Co-Chief Executive Officer and Chairman, GEN (Rtd) Keith Alexander, said their prior outlook for the quarter and the entire financial year would get support from what they deem as late-stage strategic customer opportunities. The CEO said:
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We had previously expected to finalize these opportunities in the second half of the fiscal year, however they remain pending primarily due to government delays in getting funding through to federal budgets.
Mr. Alexander said these opportunities continue to be viable in the company’s pipeline. The Co-CEO continued to say:
Our conviction remains strong that the need for IronNet Collective Defense(TM) — characterized by anonymized, real-time network detection, event correlation and response collaboration across the public and private sectors — has never been greater.
William Welch, the company’s other Co-Chief Executive Officer, claims they have taken the steps forward to drive better predictability in the business. This includes more emphasis on cloud-based deployments to allow for the company to provide its customers with more value.
Financial and business highlights
The company recorded revenue of $6.9 million in the third-quarter financial results of 2022. This was $100k less than what they recorded in the same quarter of the previous fiscal year.
The company grew its cloud subscription revenue to $3.8 million, more than the $2.2 million it recorded in the same quarter of the previous year. They also recorded a lower gross profit margin in this quarter compared to the same quarter of the last fiscal year.
The company’s gross margin came to 65.7%, representing a 2.4% year-over-year decrease.
The company’s Threat Intelligence Brief collects information from its expert threat analyst professionals to offer insight on significant community results from threat research and malware analysis.
The company’s executives offer thought leadership and create brand awareness for the company’s Collective Defense business model and NDR technology at high-profile events such as Washington Post LIVE, theCUBE interview and the Advanced Threat Summit.
The company expects to record a revenue of roughly $26 million by the end of this fiscal year.