PR Newswire
ATLANTA, June 8, 2023
ATLANTA, June 8, 2023 /PRNewswire/ -- Secureworks® (NASDAQ: SCWX), a global leader in cybersecurity, today announced financial results for its first quarter, which ended on May 5, 2023.
Key Highlights
"I'm proud of our competitive advantage in the Managed XDR market. Our holistic approach, combined with our open XDR strategy, drives better security outcomes for customers, as reflected in the continued strong momentum in Taegis this quarter," said Wendy Thomas, CEO, Secureworks. "Our ongoing use of AI and automation helps Taegis achieve the most effective and efficient detection and response for our customers."
"As one of the largest providers of managed detection and response, Taegis ARR and revenue growth rates remain above the industry average," said Christian Grant, Interim Chief Financial Officer, Secureworks. "Taegis gross margin is expanding, reaching 70% in the first quarter, as we continue to deliver on our commitment to scaling our cost structure and managing our business toward profitable growth."
First Quarter Fiscal 2024 Financial Highlights
Business and Operational Highlights
Financial Outlook
For the second quarter of fiscal 2024, the Company expects:
Secureworks is providing the following updated guidance for full fiscal year 2024. The Company expects:
Fiscal Year 2024 Guidance | |
Taegis ARR | At least $300M |
Other MSS ARR | Below $20M |
Total revenue | $380M to $400M |
GAAP net loss | ($87M) to ($95M) |
| ($1.02) to ($1.11) per share |
Non-GAAP net loss | ($31M) to ($39M) |
| ($0.34) to ($0.43) per share |
Adjusted EBITDA | ($39M) to ($29M) |
Cash from operations | ($55M) to ($45M) |
| |
Conference Call Information
As previously announced, the Company will hold a conference call to discuss its first quarter fiscal 2024 results and financial guidance on June 8, 2023, at 8:00 a.m. U.S. ET. A live audio webcast of the conference call and the related supplemental financial information will be accessible on the Company's website at http://investors.secureworks.com. The webcast and supplemental information will be archived at the same location.
Operating Metrics
The Company defines annual recurring revenue (ARR) as the value of its subscription contracts as of a particular date. Because the Company uses recurring revenue as a leading indicator of future annual revenue, it includes operational backlog. Operational backlog is defined as the recurring revenue associated with pending contracts, which are contracts that have been sold but for which the service period has not yet commenced.
Non-GAAP Financial Measures
This press release presents information about the Company's non-GAAP gross margin, non-GAAP subscription cost of revenue, non-GAAP professional services cost of revenue, non-GAAP Taegis Subscription Solutions cost of revenue, non-GAAP Managed Security Services cost of revenue, non-GAAP gross profit, non-GAAP Taegis gross profit, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP earnings (loss) per share, adjusted EBITDA, weighted average common shares outstanding - diluted (non-GAAP), non-GAAP Taegis gross margin, non-GAAP Managed Security Services gross margin, non-GAAP subscription gross margin and non-GAAP professional services gross margin, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of each of the foregoing historical and forward-looking non-GAAP financial measures to the most directly comparable historical and forward-looking GAAP financial measure is provided below for each of the fiscal periods indicated.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "plan," "potential," "outlook," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes. Such forward-looking statements include, but are not limited to, the statements in this press release with respect to the Company's expectations regarding revenue, GAAP net loss per share and non-GAAP net loss per share for the second quarter of fiscal 2024, and Taegis ARR, other MSS ARR, total revenue, GAAP net loss, GAAP net loss per share, non-GAAP net loss, non-GAAP net loss per share, adjusted EBITDA, and cash from operations for full year fiscal 2024, all of which reflect the Company's current analysis of existing trends and information. These forward-looking statements represent the Company's judgment only as of the date of this press release.
Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties and other factors that include, but are not limited to, the following: the Company's ability to achieve or maintain profitability; the Company's ability to enhance its existing solutions and technologies and to develop or acquire new solutions and technologies; the Company's ability to navigate economic conditions, geopolitical uncertainty and financial market volatility; the Company's reliance on personnel with extensive information security expertise; the Company's ability to successfully implement its strategic plan to realign and optimize its investments with its priorities; intense competition in the Company's markets; the Company's ability to attract new customers, retain existing customers and increase its annual contract values; the Company's reliance on customers in the financial services industry; the Company's ability to manage its growth effectively; the Company's ability to maintain high-quality client service and support functions; terms of the Company's service level agreements with customers that require credits for service failures or inadequacies; the Company's recognition of revenue ratably over the terms of its Taegis SaaS applications and managed security services contracts; the Company's long and unpredictable sales cycles; risks associated with expansion of the Company's international sales and operations; the risks associated with proposed or currently enacted tax statutes, including Internal Revenue Code Section 174; the Company's exposure to fluctuations in currency exchange rates or inflation; the effect of new governmental export or import controls on the Company's business or any international sanctions compliance program applicable to the Company; the Company's ability to expand its key distribution relationships; the Company's technology alliance partnerships; real or perceived defects, errors or vulnerabilities in the Company's solutions or the failure of its solutions to prevent a security breach; the risks associated with cyber-attacks or other data security incidents; the ability of the Company's solutions to interoperate with its customers' IT infrastructure; the Company's ability to use third-party technologies; the effect of evolving information security and data privacy laws and regulations on the Company's business; the Company's ability to maintain and enhance its brand; risks associated with the Company's acquisition of other businesses; the effect of natural disasters, public health issues, geopolitical conflict and other catastrophic events on the Company's ability to serve its customers, including the Ukrainian/Russian conflict; the Company's reliance on patents to protect its intellectual property rights; the Company's ability to protect, maintain or enforce its non-patented intellectual property rights and proprietary information; claims by third parties of infringement of their proprietary technology by the Company; the Company's use of open source technology; risks related to the Company's relationship with Dell Technologies Inc. and Dell Inc. and control of the Company by Dell Technologies Inc.; and risks related to the volatility of the price of the Company's Class A common stock.
This list of risks, uncertainties and other factors is not complete. The Company discusses these matters more fully, as well as certain risk factors that could affect the Company's business, financial condition, results of operations and prospects, under the caption "Risk Factors" in the Company's annual report on Form 10-K, as well as in the Company's other SEC filings.
Any or all forward-looking statements the Company makes may turn out to be wrong and can be affected by inaccurate assumptions the Company might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. The Company does not undertake to update, and expressly disclaims any obligation to update, any of its forward-looking statements, whether resulting from circumstances or events that arise after the date the statements are made, new information or otherwise.
About Secureworks
Secureworks (NASDAQ: SCWX) is a global cybersecurity leader that protects customer progress with Secureworks® Taegis™, a cloud-native security analytics platform built on 20+ years of real-world threat intelligence and research, improving customers' ability to detect advanced threats, streamline and collaborate on investigations, and automate the right actions.
www.secureworks.com
(Tables Follow)
SECUREWORKS CORP. | |||
Condensed Consolidated Statements of Operations and Related Financial Highlights | |||
(in thousands, except per share data and percentages) | |||
(unaudited) | |||
| Three Months Ended | ||
| May 5, 2023 | | April 29, 2022 |
Net revenue: | | | |
Subscription | $ 77,259 | | $ 94,413 |
Professional services | 17,136 | | 26,602 |
Total net revenue | 94,395 | | 121,015 |
Cost of revenue: | | | |
Subscription | 31,019 | | 32,826 |
Professional services | 11,767 | | 16,609 |
Total cost of revenue | 42,786 | | 49,435 |
Gross profit | 51,609 | | 71,580 |
Operating expenses: | | | |
Research and development | 31,172 | | 33,331 |
Sales and marketing | 34,526 | | 39,245 |
General and administrative | 22,263 | | 25,360 |
Total operating expenses | 87,961 | | 97,936 |
Operating loss | (36,352) | | (26,356) |
Interest and other, net | (1,746) | | (697) |
Loss before income taxes | (38,098) | | (27,053) |
Income tax benefit | (7,128) | | (5,455) |
Net loss | $ (30,970) Werbung Mehr Nachrichten zur Secureworks Corp Aktie kostenlos abonnieren
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