Ironnet Inc (NYSE:IRNT) stock plummets 28.24% (As on Dec 16, 12:53:06 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the third quarter of FY 22 and slashed topline forecasts for full year. Cloud subscription revenue grew to $3.8 million in the third quarter of FY 22 from $2.2 million in the same quarter last year. Recurring product revenue, which is defined as revenue that is subscription-based, grew to $6.1 million in the third quarter of FY 22, up from $4.4 million in the same quarter last year. The company posted gross margin of 65.7% compared to 70.5% in the same quarter last year, with one-time cost of sales accounting charges accounting for 2.4% of the year over year decline.

IRNT in the third quarter of FY 22 has reported the adjusted earnings per share of $2.22, missing the analysts’ estimates for the adjusted loss per share of 15 cents. The company had reported the adjusted revenue growth of 35.9 percent to $6.9 million in the third quarter of FY 22, missing the analysts’ estimates for revenue of $11.79 million. The company posted GAAP Operating loss of $185.6 million, which includes $160.1 million in non-cash stock-based compensation expense and $1.6 million of transaction expenses, in both cases one-time, accounting-driven expenses triggered by the closing of the transaction this quarter, compared to $12.6 million in the same quarter last year. The company has reported Non-GAAP Adjusted Net loss of $20.2 million after excluding the one-time expenses. The company posted Annual Recurring Revenue (ARR) of $27.5 million compared to $21.2 million at the end of the same quarter last year and $24.1 million at the end of the prior quarter. Dollar-based average contract length is of 2.8 years compared to 3.2 years at the end of the same quarter last year. Calculated billings (Non-GAAP) were of $3.4 million compared to $8.1 million for the end of the same quarter last year. Cash and cash equivalents stood at $73.9 million at end of quarter.

The cybersecurity company slashed its fiscal 2022 revenue outlook to $26 million from the prior $43 million to $45 million range. Analysts expect $41.9 million. For the fiscal year 2022, IronNet now expects ARR to be of approximately $30 million to exit the fiscal year.