Ironnet Inc (NYSE:IRNT) stock fell 14.31% (As on June 15, 11:39:40 AM UTC-4, Source: Google Finance) after the company reported worse-than-expected financial results. Annual Recurring Revenue (ARR) is $30.1 million at April 30, 2022, compared to $25.6 million at the end of the same quarter last year. Excluding stock-based compensation expense and transaction costs and fees, net loss for the first quarter would be $21.4 million compared to $14.9 million in the same quarter last year. Dollar-based average contract length is 3.2 years for the first quarter, compared to 2.8 years in the same quarter last year. Cash and cash equivalents at $31.4 million at end of the first quarter. IronNet has not yet drawn on its equity line facility. Customer Count is 91 compared to 44 at the end of the same quarter last year. In addition to the transactional business, the company believes that the strategic business pipeline of deals larger than $5 million in ARR remains strong.

IRNT in the first quarter of FY 22 has reported the adjusted loss per share of 33 cents, missing the analysts’ estimates for the adjusted earnings per share of 17 cents. The company had reported flat revenue growth to $6.69 million in the first quarter of FY 22, missing the analysts’ estimates for revenue of $7.02 million. Gross margin for the first quarter was 62.7% compared to 69.6% in the same quarter last year, with 3.1% of the gross margin in the first quarter related to sensor inventory charges to support anticipated deployments this year.

For the fiscal year 2023, IronNet expects the revenue to be of approximately $34 million, representing nearly 25% growth year over year and ARR to be of approximately $48 million at the end of the fiscal year, representing 50% growth year over year.

Meanwhile, the company during the quarter announced as a flagship partner in the Mandiant Cyber Alliance Program, an intelligence-led, multi-vendor approach to nation-grade intelligence, innovative integrated solutions and expert managed services. The company has detected a threat hijacking attack carrying Emotet malware against an organization located in the Asia Pacific region this May, likely part of a new campaign by the MUMMY SPIDER threat group, designed to test a new bypass for Microsoft disabling macros by default for use in future large-scale campaigns. These and other important findings by IronNet Threat Research can be found on the blog and included in the monthly Threat Intelligence Briefs.