IRNT Stock: Why It Increased Today

By Annie Baker ● Sep 15, 2021
  • The stock price of IronNet Inc (NYSE: IRNT) increased by over 10% pre-market. This is why it happened.

The stock price of IronNet Inc (NYSE: IRNT) – a leading provider of solutions transforming cybersecurity through Collective Defense – increased by over 10% pre-market. Investors are responding positively to the company’s fiscal second quarter 2022 financial results.

IronNet had announced its financial results for the second quarter ended July 31, 2021. And the financial and operating results included in this release are for the IronNet business prior to the closing of the business combination with LGL Systems Acquisition, which occurred on August 26, 2021.

Q2 2022 Operating Highlights

— Annual Recurring Revenue (ARR): $24.1 million compared to $19.5 million at the end of the same quarter last year

— Dollar-based average contract length: 2.8 years compared to 3.2 years at the end of the same quarter last year

— Customer Count: 51 compared to 22 at the end of the same quarter last year

Q2 2022 Financial Highlights

— Revenue: $6.1 million compared to $7.9 million in the same quarter last year

— Subscription revenue grew to $5.8 million from $5.3 million in the same quarter last year\

— Operating loss: $17.0 million compared to $14.2 million in the same quarter last year

— Net loss: $17.2 million compared to $14.3 million in the same quarter last year

— Calculated billings (non-GAAP): $3.5 million compared to $7.4 million at the end of the same quarter last year

— Cash and cash equivalents: $14.1 million at end of quarter

— Excludes net proceeds from the business combination, after redemptions and estimated expenses, of approximately $109 million

— Weighted average diluted shares outstanding: 103,395,486 on a pro forma basis giving effect to the close of the business combination

— 1,078,125 additional shares will be added to shares outstanding in the fiscal third quarter 2022 as a result of the achievement of the earnout triggering event under the terms of the merger agreement

For the fiscal year 2022 and consistent with its most recent guidance for the year, IronNet still expects:

— Revenue of $43-45 million

— ARR of $75 million as of end of the fiscal year

KEY QUOTES:

“We are on target with our first half guidance and are encouraged to begin our journey as a public company this month following the recent completion of our business combination with LGL. New customer momentum so far in the second half of our fiscal year is strong and already includes an authorization to proceed with the first installment of a deployment in a significant defense industrial base customer group.”

— William Welch, co-CEO of IronNet

“The explosive increase in adversary activity that we are seeing spanning industries and geographies is unprecedented, and IronNet’s Collective Defense technology gives organizations the platform for real time exchange of cyber event information and online collaboration for a radically improved defense. In enabling much needed collaboration between the public and private sector, IronNet supports the faster identification of, protection against, and response to malicious cyber assaults that threaten the security and privacy of companies, sectors and nations.”

— GEN (Ret.) Keith Alexander, Founder and co-CEO of IronNet

“In the first half of fiscal 2022, IronNet was invited into larger deployments that shifted the anticipated closing of several large new customer contracts into the third quarter, including some that involve contracts for entire supply chain communities at once. Our cloud-based subscription revenue — which grew to 60% of product revenue in the first half of the year, a 65% year-over-year growth rate — is a strong proof point for the business and underscores the fully recurring aspect of our financial model. Our cloud focus coupled with the large deal formation that we are seeing reflects IronNet’s ease of deployment and increasing market recognition, which keeps us on pace to double ARR in the third quarter and meet our growth objectives for the full year.”

— James Gerber, CFO of IronNet

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.