HashiCorp trims workforce by 8 per cent

The cuts come despite a 37 per cent year-on-year rise in revenues

Multi-cloud infrastructure automation software developer HashiCorp said on Thursday it plans to lay off eight per cent of its workforce as part of a set of cost-cutting measures.

The move comes despite a solid first fiscal quarter 2024, which saw the San Francisco-based company record a 37 per cent year-over-year rise in revenues and a solid fall in its net loss.

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, said CEO Dave McJannet in a prepared statement.

"We are responding to the current customer and economic environment with proactive actions to lower our ongoing costs," McJannet said.

"This was a difficult decision that we don't take lightly, and I am deeply disappointed to lose many valued colleagues. I believe, however, that after these actions we are better positioned for our opportunity."

Prior to the job cuts, HashiCorp had over 2,000 employees.

For its fiscal first quarter 2024, HashiCorp reported total revenues of $138m, up about 37 per cent over the $100.9m the company reported for its first fiscal quarter 2023.

That included licence revenue of $15.2m, up from $10.3m; support revenue of $101.9m, up from $79.2m; cloud-hosted revenue of $16.5m, up from $8.8m; and professional services and other revenue of $4.4m, up from $2.5m.

For the quarter, HashiCorp reported a GAAP net loss of $53.3m or 28 cents per share, down from last year's GAAP net loss of $78.2m or 43 cents per share. On a non-GAAP basis, HashiCorp reported a net loss of $12.7m or 7 cents per share, down from last year's $31.8m or 17 cents per share.

HashiCorp, which has open source projects at its core, also used its first fiscal quarter 2023 financial report to unveil the hiring of Susan St. Ledger as the company's new president of worldwide field operations.

St. Ledger, who starts her role next month, formerly served as president of worldwide field operations for both Okta and Splunk.

Prior to her joining HashiCorp as an executive, St. Ledger has served on the HashiCorp board of directors since late 2019.