New Relic, Inc. is an American

web tracking Web tracking is the practice by which operators of websites and third parties collect, store and share information about visitors' activities on the World Wide Web. Analysis of a user's behaviour may be used to provide content that enables the op ...

and

analytics Analytics is the systematic computational analysis of data or statistics. It is used for the discovery, interpretation, and communication of meaningful patterns in data, which also falls under and directly relates to the umbrella term, data sc ...

company based in

San Francisco San Francisco, officially the City and County of San Francisco, is a commercial, Financial District, San Francisco, financial, and Culture of San Francisco, cultural center of Northern California. With a population of 827,526 residents as of ...

. The company's cloud-based software allows websites and mobile apps to track user interactions and service operators' software and hardware performance. In November 2023, private equity firms Francisco Partners and

TPG Inc. TPG Inc., previously known as Texas Pacific Group and TPG Capital, is an American private equity firm based in Fort Worth, Texas. TPG manages investment funds in growth capital, venture capital, stock, public equity, and debt investments. The f ...

completed their acquisition of New Relic for approximately $6.5 billion.

History

Foundation and early years

Lew Cirne founded New Relic in 2008 and became the company's CEO. The name "New Relic" is an

anagram An anagram is a word or phrase formed by rearranging the letters of a different word or phrase, typically using all the original letters exactly once. For example, the word ''anagram'' itself can be rearranged into the phrase "nag a ram"; which ...

of founder Lew Cirne's name. On November 5, 2012, CA Technologies filed a lawsuit claiming that New Relic violated three patents that came into CA Technologies' possession through the acquisition of Wily Technology (a company also founded by Lew Cirne). In February 2013, New Relic raised $80 million from investors including Insight Venture Partners, T. Rowe Price, Benchmark Capital, Allen & Company, Trinity Ventures, Passport Capital, Dragoneer, and Tenaya Capital at a valuation of $750 million. The funding round helped New Relic extend its software analytics platform to include Android and iOS native mobile apps. In October 2013, the company announced that it was converting its software analytics product into a SaaS model, code named Rubicon. In April 2014, New Relic raised another $100 million in funding led by BlackRock, Inc., and Passport Capital, with participation from T. Rowe Price Associates, Inc. and Wellington Management. The company went public on December 12, 2014.

2020 to present

In January 2020, the company announced that Bill Staples was joining the company as Chief Product Officer on February 14, 2020. According to the announcement, he was to lead the product management, engineering and design functions, as well as drive the company's platform strategy. In March, the company signed a 10-year deal to move its Atlanta team out of co-working space into the 20th floor of a 28-story office tower off 12th Street in Midtown. In June, the company combined two teams in its Portland engineering office and reportedly laid off less than 20 employees with overlapping positions. Also in June, amid internal disagreements about how the company should respond to systemic racism in society, former CEO Lew Cirne sent a memo stating that Black Lives Matter discussions were "off-the-table". In July, New Relic announced it was replacing all of its legacy products with a full stack platform, priced by user rather than by server, with the goal of simplifying things for its customers. The new platform was called New Relic One. In October, the Oregonian reported unhappiness within the company's employees, stemming from ongoing concerns about the company's response to the ongoing racial justice movement, and also due to controversial donations made by Cirne to an anti-gay Christian school and an anti-Jewish evangelist. In December, the company acquired Pixie Labs, a service for monitoring cloud-native workloads running on Kubernetes clusters. In April 2021, New Relic reportedly laid off nearly 160 employees, as part of a restructuring plan to move away from its software subscription sales model to a consumption based model. In May, Bill Staples was promoted to CEO, and Cirne transitioned to executive chairman. In October, the company acquired CodeStream, a developer collaboration tool. In February 2022, the company released infrastructure monitoring software to help DevOps, site reliability engineering (SRE) and ITOps teams monitor issues across public, private and hybrid cloud environments. In May, the company launched a vulnerability management tool for security, DevOps, security operations (SecOps) and SRE teams. In June 2023, following a $55 million operational loss in the preceding fiscal year, New Relic laid off 155 employees in the US and up to 57 abroad. In July 2023, the company agreed to be acquired by private equity firms Francisco Partners and

in an all-cash deal valued at $6.5 billion. The acquisition was finalized in November and New Relic was delisted from the New York Stock Exchange. In December, the company listed half of its San Francisco headquarters space, as available for sub-leasing. In December 2023, the company announced former Proofpoint, Inc. CEO Ashan Willy as its new CEO.

Products

New Relic's technology, delivered in a

software as a service Software as a service (SaaS ) is a cloud computing service model where the provider offers use of application software to a client and manages all needed physical and software resources. SaaS is usually accessed via a web application. Unlike o ...

(SaaS) model, monitors Web and mobile applications in real-time with support for custom-built plugins to collect arbitrary data.

Operations

New Relic is headquartered in San Francisco. Its CEO as of January 2024 is Ashan Willy. The company partners with companies including

IBM International Business Machines Corporation (using the trademark IBM), nicknamed Big Blue, is an American Multinational corporation, multinational technology company headquartered in Armonk, New York, and present in over 175 countries. It is ...

Bluemix,

Amazon Web Services Amazon Web Services, Inc. (AWS) is a subsidiary of Amazon.com, Amazon that provides Software as a service, on-demand cloud computing computing platform, platforms and Application programming interface, APIs to individuals, companies, and gover ...

, CloudBees, Engine Yard, Heroku, Joyent, Rackspace Hosting, and Microsoft Azure as well as mobile application backend service providers Appcelerator, Parse, and StackMob.

References

External links

New Relic
{{Authority control 2008 establishments in California 2014 initial public offerings Software companies established in 2008 Software companies based in the San Francisco Bay Area Companies based in San Francisco Website monitoring software Cloud applications Companies formerly listed on the New York Stock Exchange American companies established in 2008 Software companies of the United States 2023 mergers and acquisitions Big data companies Software performance management