Ironnet Inc (NYSE:IRNT) stock plunges 40.91% (As on September 15, 11:29:32 AM UTC-4, Source: Google Finance) after the company withdrew its previously issued revenue guidance for fiscal 2023, citing management transitions, further restructuring aimed at containing costs, and “the underperformance of the transactional business this quarter.” Further, IronNet said its co-chief executive officer William Welch will step down but will continue to provide short-term support for the company. Chris Murphy, Head of Sales Operations, will lead the sales team in the interim, reporting to GEN (Ret.) Keith Alexander. Experienced software and cybersecurity executive Cameron Pforr has been appointed as IronNet’s new Chief Financial Officer (CFO), replacing current CFO James Gerber who will be departing the company to join a private cybersecurity company.

Meanwhile, Annual Recurring Revenue (ARR) was $26.5 million at July 31, 2022, compared to $24.1 million at the end of the same quarter last year. Cloud subscription revenue was $5.2 million, or 84% of product revenue, compared to 56% in the same quarter last year. Gross Margin was 62.3% for the quarter compared to 70.1% in the same quarter last year. The company has reported net loss of $28.4 million compared to $17.2 million in the same quarter last year. Excluding stock-based compensation expense and transaction costs and fees, net loss for the second quarter would be $20.6 million compared to $17.0 million in the same quarter last year. Dollar-based average contract length was 3.2 years for the second quarter, compared to 2.8 years in the same quarter last year. Cash and cash equivalents stood at $9.7 million at end of the second quarter. Subsequent to the end of the quarter, the company entered into an unsecured convertible debt facility with an institutional investor pursuant to which it will borrow an initial $10 million under a promissory note with an 18-month term and a 5% annual interest rate. Upon the satisfaction of certain conditions set forth in the convertible debt facility, including conditions related to the outstanding principal balance and the prevailing share price and trading volume of the company’s common stock, the company may have the ability to borrow an additional $15 million under the facility at a future date.

IRNT in the second quarter of FY 22 has reported the adjusted loss per share of 28 cents, beating the analysts’ estimates for the adjusted loss per share of 32 cents. The company had reported the adjusted revenue of $6.6 million in the second quarter of FY 22, missing the analysts’ estimates for revenue of $7.6 million.