Investor Presentation 1Q19

1. ©2008–18 New Relic, Inc. All rights reserved.
Investor Presentation
1Q19
August 7, 2018

2. ©2008–18 New Relic, Inc. All rights reserved
Forward-Looking Statements and Non-GAAP Financial
Measures
2
This presentation contains “forward-looking” statements, as that term is defined under the federal securities laws. Any statement that refers to expectations,
projections, targets or other characterizations of future events, including financial projections and future market conditions, is a forward-looking statement.
Statements included in this presentation that are forward-looking statements include but are not limited to statements regarding market trends and opportunity,
our future financial performance, such as our outlook on financial results for the second quarter of fiscal year 2019 and for the full fiscal year 2019, such as
revenue, non-GAAP operating income, non-GAAP earnings per share, deferred revenue, operating cash flow, free cash flow, and gross margin. These
forward-looking statements are based on our assumptions, expectations and beliefs as of the date of this presentation and are subject to substantial risks,
uncertainties, assumptions, and changes in circumstances that may cause our actual results, performance, or achievements to differ materially from those
expressed or implied in any forward-looking statement. We assume no obligation and do not intend to update these forward-looking statements, except as
required by law. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to our August
7, 2018 press release, as well as the risks described in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form
10-K for the fiscal year ended March 31, 2018 filed with the SEC, particularly in the section titled Risk Factors.
This presentation also contains certain non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures are in addition to, and not a
substitute for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these
non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or
may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.
Please refer to our August 7, 2018 press release for additional information as to why we believe these non-GAAP financial measures are useful to investors and
others in assessing our operating performance. As required by Regulation G, we have provided a reconciliation of those measures to their most directly
comparable GAAP measures, which is available in the appendix to this presentation. However, we have not reconciled our expectations as to non-GAAP
operating loss and income, non-GAAP earnings per share, gross margin, operating margin, non-GAAP expenses as a percentage of revenue, or free cash flow in
future periods to their most directly comparable GAAP measure because certain items, namely stock-based compensation, lawsuit litigation expenses and
employer payroll taxes on equity incentive plans, are out of our control or cannot be reasonably predicted. Accordingly, reconciliation is not available without
unreasonable effort, although it is important to note that these factors could be material to our results computed in accordance with GAAP.

3. ©2008–18 New Relic, Inc. All rights reserved
New Relic, Inc. (NEWR)
3
New Relic provides the real-time insights that businesses need to monitor, manage,
and operate digital systems. New Relic’s cloud platform is designed to make modern
software and infrastructure observable, so companies can find and fix problems faster,
build high-performing DevOps teams, and speed up software projects.
Multi-tenant
native cloud
Recurring revenue,
SaaS model with
best-in-class
gross margins
Gartner Magic
Quadrant Leader
2012 to present
Multi-billion dollar
market opportunity

4. ©2008–18 New Relic, Inc. All rights reserved
Strong Tailwinds For Our Business
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The percentage of application workflows monitored by APM is expected to quadruple by 2021
5%
20%
Source: Gartner, Magic Quadrant for Application Performance Monitoring Suites, March 2018
2017 2021

5. ©2008–18 New Relic, Inc. All rights reserved
Modern Software is Changing Businesses
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Technology
New technology and
dynamic infrastructure
Cloud
Multi-cloud
Serverless computing
Processes
New processes and
faster velocity
Containerization
Continuous integration
Continuous deployment
DevOps
Business Models
New business models
and revenue streams
IoT
Omnichannel
Mobile first
Digital transformation

6. ©2008–18 New Relic, Inc. All rights reserved
Dynamics Impacting Broad Range of Industries
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>75%
of customer interactions with
Capital One are digital
10Mstreaming sessions per day
60%
of US sales from digital channels in 2017

7. ©2008–18 New Relic, Inc. All rights reserved
Trends Driving Major Market Opportunities
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Technology
$125B
Global 2017 Cloud Spend 1
Processes
85%
Multi-Cloud Deployment 2
Business Models
$1.3T
Global IT spending on Digital
Transformations 3
Mission critical to all industries
1
IDC, Worldwide Semiannual Public Cloud Services Spending Guide, Dec 2017
2
IDC, Predominance of Multicloud Environments Among Cloud Users, IDC #US42830417, June 2017. Respondents identifying multi-cloud as their current or near-term cloud deployment option. n=6,084
worldwide respondents, weighted by country, company size and industry
3
IDC, Welcome to the 3rd Platform's Second Chapter, IDC #DR2018_GS1_FG, Feb 2018

8. ©2008–18 New Relic, Inc. All rights reserved
Key Technology Initiatives
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If it’s not measured, it’s not managed
DevOps
Transformation
Cloud Adoption Customer
Experience
Greater agility to deliver
products to market
Autonomy to rapidly scale
infrastructure
Deliver a flawless digital
customer experience
Modern Software

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Software Environments are Complex
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Visibility not included

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Software Businesses Require Real-Time Insights
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Business
Outcomes
Application and
Infrastructure
Performance
Customer
Experience
How are customers engaging?
What is the page load time to
initial experience?
Am I open for business?
Is the application working?
How is my business doing?
What changes influence business
success?

11. ©2008–18 New Relic, Inc. All rights reserved
The New Relic Platform
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End-to-end visibility to continuously observe, adapt, align ...
KPIs
Web and Mobile Concurrent Users
QoS – Process Abandons
Sessions by Geography or Product
# of Visitors, Views by Visitor Load Times
Trends (social, content, geography)
KPIs
Multi-Product Subscriptions
Feature Uptake
Conversion Rate
Revenue at Risk
Revenue per Streaming Video
Business Outcomes Customer Experience
KPIs
Transaction Times
Error Rates
Application Bottlenecks
On-Prem vs. Cloud
Application Performance
KPIs
Infrastructure Status and Changes
Server Downtime
Host Health
Database Performance
Cloud Spend
Infrastructure Performance

12. ©2008–18 New Relic, Inc. All rights reserved
An Enterprise Platform @ Cloud Scale
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All 6 paid SKUs are equipped with New Relic Applied Intelligence
1.8B Events & Metrics per Minute
✓ SSAE-16/SOC II New Relic Platform
✓ SSAE-16/SOC II Data Center
✓ CSA-STAR
Enterprise security
7 Programming Languages Cloud & On-Host Integrations
Pending

13. ©2008–18 New Relic, Inc. All rights reserved
Designed to Win the Cloud
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The future of enterprise workloads
Massive
Scalability
Easy to
Use
Quick Time
to Value
SaaS
Delivery
Full Stack
Visibility

14. ©2008–18 New Relic, Inc. All rights reserved
Growth Drivers
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Expand the platform:
new products, deeper
integrations, and
innovative features
and use cases
Add new enterprise
logos and extend
breadth within
existing ones
Increase non-APM
adoption to raise
annualized revenue
per average paid business
account
Further penetrate
international markets

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Land and Expand … Standardize Business Model
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“Land” application usage swells
Multiple applications
New digital /
software initiative
Enterprise: $50K - 100K+
Land
IT / Ops / Dev Middle
Manager
Expand
Software applications
Director level IT / Ops /
Dev
Expand
Platform
VP / GVP / CIO for IT /
Ops / Dev
Standardize
CTO and above
Enterprise: $100K - 500K+
All new software applications
On-premises displacement
100s - 1,000s of users
Executive dashboards
CTO as advocate
Enterprise: $1M+
Customers adopt multiple
paid products
Deployment across all
cloud applications
Replacing point solutions
Customer Success Investment
Enterprise: $500K - 1M+
1
2
1
2
3
1
2
4
3
4
5

16. ©2008–18 New Relic, Inc. All rights reserved
Financial Highlights
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35%
Year-Over-Year
1Q19 Revenue Growth
85%
Non-GAAP
1Q19 Gross Margin
8%
Non-GAAP
1Q19 Operating Margin
11%
Non-GAAP LTM Free
Cash Flow Margin
1Q19
See appendix for non-GAAP reconciliations.
* Mid-point of FY19 guidance
*

17. ©2008–18 New Relic, Inc. All rights reserved
Key Operating Metrics
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1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
Annualized
Dollar-Based Net
Expansion Rate
118% 116% 125% 133% 113% 123% 125% 141% 118%
% ARR from
Enterprise Paid
Business Accounts
43% 43% 44% 46% 49%* 51% 52% 54% 55%
Paid Business
Accounts >$100K
398 427 478 517 555 586 629 703 748
Paid Business
Accounts
>14,000 >14,500 >14,900 >15,200 >15,400 ~15,900 >16,600 >17,000 >17,000
Annualized
Revenue / Avg. Paid
Business Account
>$17,000 >$17,500 >$18,000 >$19,000 >$20,500 >$21,500 >$22,500 >$23,000 >$25,000
* Period included changes to the categorization of existing paid business accounts to reflect that they had expanded beyond the 1,000 employee threshold. See appendix for definitions.
1Q19

18. ©2008–18 New Relic, Inc. All rights reserved
Strong Operating Leverage
18
1Q19
See appendix for non-GAAP reconciliations.

19. ©2008–18 New Relic, Inc. All rights reserved
Target Operating Model*
19
* Metrics are non-GAAP and FY15 to FY18 were calculated prior to the April 1, 2018 adoption of ASC606. See appendix for reconciliations and how we define free cash flow.
** Assuming a $1B revenue run-rate for period ending March 31, 2022.
(% of Revenue) FY15 FY16 FY17 FY18 1Q19 FY22** Driver
Long-Term
Target
Gross Margin 81% 81% 82% 84% 85% 80–84%
Continued investments
in delivery, support
and services
80–84%
Sales & Marketing 76% 66% 59% 53% 48% 38-40%
Increased mix of
productive reps,
renewals, installed base
35–38%
Research &
Development
20% 22% 19% 17% 18% 19-21%
Maturation of
product portfolio
15–18%
General &
Administrative
18% 16% 14% 14% 11% 10–12% Economies of scale 7–9%
Operating Margin (33%) (23%) (10%) - % 8% 10–14% 25%+
Free Cash Flow
Margin
(32%) (8%) (2%) 3% 38% 15-20% 30%+
1Q19

20. ©2008–18 New Relic, Inc. All rights reserved
Second Quarter and Fiscal 2019 Outlook* (August 7, 2018)
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Q2 FY19 Guidance
Revenue: $110.5M – $112.5M
Non-GAAP operating income:
$4.5M – $5.5M
Non-GAAP EPS: $0.11 – $0.12
Deferred revenue to sequentially decline in the low to mid single digits
FY19 Guidance
Revenue: $457.5M – $462.5M
Non-GAAP operating income:
$18.0M – $22.0M
Non-GAAP EPS: $0.39 – $0.46
Gross Margin ~83%
Operating cash flow: $70.0M – $80.0M; Non-GAAP Free cash flow: $30.0M – $40.0M
* Operating income, earnings per share, gross margin, and free cash flow presented on a non-GAAP basis; Q2 FY19 EPS assumes 60.2M weighted average diluted shares
outstanding, which excludes the anti-dilutive impact of the capped call transactions entered into in the connection with the 0.50% convertible senior notes due 2023 issued in
May 2018; FY19 EPS assumes 60.5M weighted average common shares outstanding which excludes the anti-dilutive impact of the capped call transactions entered into in the
connection with the 0.50% convertible senior notes due 2023 issued in May 2018; See appendix for non-GAAP reconciliations and how we define free cash flow.

21. ©2008–18 New Relic, Inc. All rights reserved
Investment Highlights
21
Best-in-class SaaS
gross margins help
drive significant
operating leverage
Large, underpenetrated,
expanding multi-billion
dollar opportunity
Technological
competitive advantage →
$200M+ invested in R&D
building massively
scalable 100% SaaS
multi-tenant platform
Strong combination of
revenue growth and
non-GAAP profitability

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Appendix
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23. ©2008–18 New Relic, Inc. All rights reserved
Best-in-Class Gross Margin
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GAAP Gross Margin vs. SaaS Peers
Peer Average = 68%
NEWR
Source: Company earnings releases filed with the SEC covering the most recent quarter reported as of August 3, 2018. Peers identified based on Wall Street Research comparable SaaS company groupings.

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ASC 605 to ASC 606 GAAP Reconciliation
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1Q19

25. ©2008–18 New Relic, Inc. All rights reserved
ASC 605 to ASC 606 Non-GAAP Reconciliation
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1Q19

26. ©2008–18 New Relic, Inc. All rights reserved
Definitions
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Monthly and Annual Recurring Revenue (MRR and ARR)
Our monthly recurring revenue represents the revenue that we would contractually expect to receive from those customers over the following month, without any increase or
reduction in any of their subscriptions. Similarly, annual recurring revenue represents the revenue that New Relic would contractually expect to receive from those customers
over the following 12-month period, without any increase or reduction in any of their subscriptions.
Enterprise ARR is defined as ARR from paid business accounts with >1,000 employees.
Number of Paid Business Accounts
We define the number of paid business accounts at the end of any particular period as the number of accounts at the end of the period as identified by a unique account identifier
for which we have recognized revenue on the last day of the period indicated. A single organization or customer may have multiple paid business accounts for separate divisions,
segments, or subsidiaries. We define an enterprise paid business account as a paid business account that we measure to have over 1,000 employees.
>$100K and >$1M / year paid business accounts represents paid business accounts who have ARR greater than $100,000 or $1,000,000, respectively.
We define our annualized revenue per average paid business account as the annualized revenue for the current period divided by the average of the number of paid business
accounts at the end of the current period and the end of the prior period.
Dollar-Based Net Expansion Rate
Our dollar-based net expansion rate compares our recurring subscription revenue from customers from one period to the next. We measure our dollar-based net expansion
rate on a monthly basis because many of our customers change their subscriptions more frequently than quarterly or annually.
To calculate our annual dollar-based net expansion rate, we first establish the base period monthly recurring revenue from all our customers at the end of a month. This represents
the revenue we would contractually expect to receive from those customers over the following month, without any increase or reduction in any of their subscriptions.
We then (i) calculate the actual monthly recurring revenue from those same customers at the end of that following month; then (ii) divide that following month’s recurring revenue
by the base month’s recurring revenue to arrive at our monthly net expansion rate; then (iii) calculate a quarterly net expansion rate by compounding the net expansion rates
of the three months in the quarter; and then (iv) calculate our annualized net expansion rate by compounding our quarterly net expansion rate over an annual period.
Free Cash Flow
We define free cash flow as cash from operating activities minus purchases of property and equipment and capitalized software development costs.

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Thank you