Q4 and FY16 Financial Results...FY13 FY14 FY15 FY16 FY17E FY17 Revenue Based on Midpoint of Guidance; See Appendix for an explanation of how we calculate paid business accounts, revenue

Q4 and FY16 Financial ResultsMay 10, 2016

1©2008-16 New Relic, Inc. All rights reserved.

This presentation contains “forward-looking” statements, as that term is defined under the federal securities laws. Any statement that refers to expectations, projections 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 our future financial performance, including our outlook on financial results for the first quarter of fiscal year 2017 and for the full fiscal 2017, expected improvements in non-GAAP operating margins, our expectations for improvements throughout fiscal 2017 in operating loss, our longer-term expectations in future years, non-GAAP operating income, operating cash flow and free cash flows, market trends and opportunity, our spending, and the customer adoption and momentum of our products, including by enterprise customers. 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 May 10, 2016 press release, as well as the risks described in our most recent Form 10-Q filed with the Securities and Exchange Commission (“SEC”), particularly in the section titled Risk Factors.

This presentation also contains certain non-GAAP financial measures as defined by the 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. 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, with respect to our expectations as to non-GAAP loss from operations, non-GAAP net loss per share or free cash flow, we have not provided a reconciliation to the most directly comparable GAAP measure because certain items such as stock-based compensation, lawsuit litigation expenses and employer payroll taxes on equity incentive plans are out of our control or cannot be reasonably predicted, and, accordingly, reconciliation is not available without unreasonable effort.

2

Forward-Looking Statements and Non-GAAP Financial Measures

©2008-16 New Relic, Inc. All rights reserved.

3

Strong Financial Performance


• Land, expand, standardize model driven by increasing penetration of the enterprise and expanding product portfolio

• Recurring revenue business with industry leading net revenue retention metrics

• Growing, multibillion dollar market opportunity

$30

$63

$110

$181

$251

FY13 FY14 FY15 FY16 FY17E

FY17 Revenue Based on Midpoint of Guidance; See Appendix for an explanation of how we calculate paid business accounts, revenue

per average paid business account and $100K+ per year paid business accounts

Historical Revenue ($MM)

Q4’13 Q4’16

$9.8M Revenue $52.5M

5,768 Paid Business Accounts 13,518

~$7,500Revenue per Average Paid

Business Account~$15,700

<50$100K+ Per Year Paid

Business Accounts>350

1 # of Paid Products 5

4

Our History of Innovation and Growth


2007

2016

1,000,000+ Users

>13,000 Paid Business Accounts

See Appendix for an explanation of how we calculate paid business accounts and users

5©2008-16 New Relic, Inc. All rights reserved.

Creating a Global Movement - #Customerlove

6

Fourth Quarter Fiscal 2016 Key Highlights


REVENUE UP 57% YOY

~800 BPS NON-GAAP OPERATING MARGIN IMPROVEMENT VS. Q415

1ST TIME ADDING MORE MRR FROM ENTERPRISE CUSTOMERS VS. SMB

~30% OF NEW MRR CAME FROM NON-APM PRODUCTS

DOLLAR-BASED NET EXPANSION RATE OF 140% (>170% IN ENTERPRISE)

See Appendix for reconciliation of Non-GAAP metrics, including operating margin, and for an explanation of how we define monthly

recurring revenue (MRR) and dollar-based net expansion rate

7

Fiscal 2016 Key Highlights


REVENUE UP 64% YOY

~1000 BPS NON-GAAP OPERATING MARGIN IMPROVEMENT VS. FY15

>25% OF CUSTOMERS PAYING FOR MORE THAN ONE PRODUCT

>1,500 ENTERPRISE PAID BUSINESS ACCOUNTS; >40% OF THE FORTUNE 100

MRR FROM ENTERPRISE CUSTOMERS INCREASED >90% YOY

>350 PAID BUSINESS ACCOUNTS PAYING $100K+ / YEAR; 15 PAYING >$1M / YEAR

See Appendix for reconciliation of Non-GAAP metrics, including operating margin, and for an explanation of how we define paid

business accounts, monthly recurring revenue (MRR) and $100K+/Year and $1M+/Year paid business accounts

8

First Quarter and Fiscal 2017 Outlook


Q1 FY17 Guidance

REVENUE: $56.2-57.2M OPERATING LOSS: ($11.5) – ($12.5M) EPS: ($0.23) – ($0.25)

FY17 Guidance

REVENUE: $248 – 253M OPERATING LOSS: ($31.5) – ($35.5M) EPS: ($0.61) – ($0.69)

GROSS MARGIN AROUND 80%

CASH FLOW FROM OPERATIONS POSITIVE FOR FULL-YEAR; FREE CASH FLOW NEGATIVE FOR FULL-YEAR

CAPEX SPEND OF $32-$34M, DRIVEN BY FACILITIES BUILD-OUTS, CLOUD INFRASTRUCTURE

LESS SALES & MARKETING SEASONALITY IN Q3 VS. Q2 COMPARED TO PAST YEARS

All expense and profitability metrics are non-GAAP; Q1 FY17 EPS assumes 50.4 weighted average shares; FY17 EPS assumes 51.6 weighted average shares;

See Appendix for how we define free cash flow

9

Strong Expansion Rates


100%

110%

120%

130%

140%

150%

Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

140%

Do

llar-

Based

Net

Exp

an

sio

n R

ate

s

See Appendix for an explanation of how we calculate dollar-based net expansion rate

130%

10

Steady Growth Of Large Paid Business Accounts


0

100

200

300

400

Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

Fiscal Quarter

Paid Business Accounts > $100k in Annual Subscription Revenue

See Appendix for an explanation of how we define $100K+/Year paid business accounts

11

Adding Customers At Higher Average Revenues


$5,000

$7,500

$10,000

$12,500

$15,000

$17,500

4,000

6,000

8,000

10,000

12,000

14,000

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

Annualiz

ed

Subscrip

tion R

eve

nu

e / A

vera

ge P

aid

Busin

ess A

ccount

Paid

Busin

ess A

ccounts

13,518

6,634

$15,761

$7,649

See Appendix for an explanation of how we define paid business accounts

90%76%

66%

24%

20%22%

14%

18%16%

17%

19%

19%

113%

144%

133%123%

113%

0%

25%

50%

75%

100%

125%

150%

FY14 FY15 FY16 FY17E

S&M R&D G&A COGS

12

Increased Scale Delivering Operating Leverage


Expenses as a Percentage of Revenue (%)

Expenses are presented on a non-GAAP basis; see Appendix for reconciliation to most directly comparable GAAP measures; FY17 Based on midpoint of guidance

Monthly Recurring Revenue (MRR)

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.

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.

>$100K and >$1M / year paid business accounts represents paid business accounts who have MRR greater than $100,000 divided by twelve or $1,000,000 divided by twelve, respectively.

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 minus capitalized software development costs.

Users

We define a user as an email address associated with an account that has deployed our software code and from which we receive data from at least one application.

13

Appendix - Definitions


14

Appendix - Non-GAAP To GAAP Reconciliation


Reconciliation from GAAP to Non-GAAP Results

(In thousands, except per share data; unaudited)

2016 2015 2014 2016 2015 2014

Reconciliation of gross profit and gross margin:

GAAP gross profit 41,871$ 26,587$ 16,465$ 144,126$ 88,589$ 52,394$

Plus: Stock-based compensation 345 232 58 1,238 591 159

Plus: Amortization of purchased intangibles 200 202 – 939 400 –

Plus: Amortization of stock-based compensation capitalized in software development costs 156 66 22 544 179 54

Plus: Employer payroll tax on employee equity incentive plans 6 – – 18 – –

Non-GAAP gross profit 42,578$ 27,087$ 16,545$ 146,865$ 89,759$ 52,607$

GAAP gross margin 80% 80% 83% 79% 80% 83%

Non-GAAP adjustments 1% 1% 0% 2% 1% 0%

Non-GAAP gross margin 81% 81% 83% 81% 81% 83%

Reconciliation of operating expenses:

GAAP research and development 15,009$ 7,366$ 4,284$ 46,394$ 24,024$ 16,496$

Less: Stock-based compensation (2,436) (877) (231) (6,659) (2,055) (1,425)

Less: Employer payroll tax on employee equity incentive plans (63) – – (258) – –

Non-GAAP research and development 12,510$ 6,489$ 4,053$ 39,477$ 21,969$ 15,071$

GAAP sales and marketing 36,476$ 26,067$ 16,065$ 129,677$ 89,162$ 58,156$

Less: Stock-based compensation (2,624) (1,730) (374) (9,258) (5,108) (1,373)

Less: Amortization of purchased intangibles (15) (13) – (50) (25) –


Non-GAAP sales and marketing 33,750$ 24,324$ 15,691$ 119,866$ 84,029$ 56,783$

GAAP general and administrative 9,679$ 7,846$ 5,621$ 35,693$ 25,319$ 17,178$

Less: Stock-based compensation (1,260) (1,235) (833) (6,113) (3,912) (3,263)

Less: Lawsuit litigation (3) (105) (1,449) (46) (1,322) (5,135)

Less: Amortization of purchased intangibles (44) (38) – (150) (75) –

Less: Transaction costs related to acquisition – – – (385) (71) –


Non-GAAP general and administrative 8,281$ 6,468$ 3,339$ 28,698$ 19,939$ 8,780$

Reconciliation of loss from operations and operating margin:

GAAP loss from operations (19,293)$ (14,692)$ (9,505)$ (67,638)$ (49,916)$ (39,436)$

Plus: Stock-based compensation 6,665 4,074 1,496 23,268 11,666 6,220

Plus: Lawsuit litigation 3 105 1,449 46 1,322 5,135

Plus: Amortization of purchased intangibles 259 253 – 1,139 500 –

Plus: Transaction costs related to acquisition – – – 385 71 –

Plus: Amortization of stock-based compensation capitalized in software development costs 156 66 22 544 179 54

Plus: Employer payroll tax on employee equity incentive plans 247 – – 1,080 – –

Non-GAAP loss from operations (11,963)$ (10,194)$ (6,538)$ (41,176)$ (36,178)$ (28,027)$

GAAP operating margin (37%) (44%) (48%) (37%) (45%) (62%)

Non-GAAP adjustments 14% 13% 15% 14% 12% 18%

Non-GAAP operating margin (23%) (31%) (33%) (23%) (33%) (44%)

Three Months Ended March 31, Year Ended March 31,

Q4 and FY16 Financial Results...FY13 FY14 FY15 FY16 FY17E FY17 Revenue Based on Midpoint of Guidance; See Appendix for an explanation of how we calculate paid business accounts, revenue

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