New Relic continued to broaden its application performance monitoring (APM) platform in the first fiscal quarter of 2019. In its earnings call with investors the monitoring company said its functionalities for Kubernetes, infrastructure performance data, and distributed tracing continued to drive the company growth.
“We believe the application is the center of gravity,” said Lew Cirne, New Relic’s founder and CEO. “At the end of the day what people are spending all this money on cloud and infrastructure for is to run applications… it’s a natural add-on for products like infrastructure to increase our value to our customers.”
New Relic Infrastructure launched just 18 months ago, and according to Cirne has already become the highest attaching product to its core APM platform. The Infrastructure product adds visibility into enterprises’ servers, hosts, and services to identify performance issues. Cirne noted that the large rate of adoption of this product exposed a greater market trend, and it demonstrated that enterprises are seeking unified infrastructure and application monitoring.
At the end of July, New Relic added distributed tracing capabilities to the platform to allow for the monitoring of applications in complex modern architectures, particularly microservices. “We believe it has the potential to perhaps provide more incentive for our customers to instrument more of their environment as it becomes more interconnected,” said Cirne.
The company also added a Kubernetes monitoring integration this past quarter. It extends New Relic’s monitoring capabilities to the container orchestration layer.
Part of this is New Relic’s focus on DevOps and its growing focus on developers in particular. In the earnings call, Cirne discussed the extent to which enterprise management structures have changed software. Previously, there were central operations teams tasked with monitoring application performance, but now developers need to move faster and rapidly introduce change, he noted.
All of this focus on visibility (infrastructure, Kubernetes, microservices, etc) reflects a greater effort to give enterprises all the data points they want in one place to give a complete view of the network and production.
In its fiscal first quarter of 2019, New Relic posted revenue of $108.3 million, a 35 percent increase year-over-year. Its non-GAAP net income for the quarter was $8.7 million.
The company is also growing its international business. In its fiscal first quarter, it opened a new European headquarters in Dublin to continue to grow its customer base in Europe. And following its earnings call, New Relic said that it established a joint venture with Japan Cloud called New Relic K.K. In a blog post announcing the new venture, Cirne wrote that New Relic will establish a team in Tokyo and affirm “New Relic’s commitment to the Japanese market.”