SecureWorks Exceeds Financial Expectations for Q4 FY24

By Bobby Samwell • Thursday, March 14 10:44 • Permanent Link

Secureworks (NASDAQ: SCWX) has released its financial results for the fourth quarter and full year fiscal 2024. Looking ahead, Secureworks provided guidance for the first quarter of fiscal 2025, expecting revenue of $83 million to $85 million and adjusted EBITDA of $0 to $2 million. For the full fiscal year 2025, the company expects total ARR of $300 million or greater, total revenue of $325 million to $335 million, and adjusted EBITDA of $4 million to $12 million.

Here are the key highlights:

Taegis annual recurring revenue (ARR) grew to $285 million, showing a 9% increase on a year-over-year basis.
Taegis fourth quarter revenue saw a 15% year-over-year growth, reaching $68.9 million.
GAAP gross margin for Taegis in the fourth quarter expanded to 70.8%, while non-GAAP gross margin reached 73.1%.
Secureworks exceeded its guidance for adjusted EBITDA in the fourth quarter, delivering $3.8 million, representing a margin of 4.3%.

Now let's delve into the specific figures for the fourth quarter and full year fiscal 2024:

Total revenue for the fourth quarter was $89.2 million, compared to $115.3 million in the fourth quarter of fiscal 2023.
Taegis revenue for the fourth quarter was $68.9 million, compared to $60.2 million in the fourth quarter of fiscal 2023.
GAAP gross margin for the fourth quarter was 65.6%, compared with 59.7% in the same period last year. Non-GAAP gross margin was 68.1%, compared with 63.9% in the fourth quarter of fiscal 2023.
For the full year fiscal 2024, total revenue was $365.9 million, compared to $463.5 million in fiscal 2023.
Taegis revenue for fiscal 2024 was $265.3 million, compared to $188.1 million in fiscal 2023.

In terms of profitability and loss:

GAAP net loss was $8.3 million for the fourth quarter, or $0.10 per share, compared with a GAAP net loss of $40.0 million, or $0.47 per share, in the same period last year.
Non-GAAP net income was $6.6 million, or $0.08 per share, compared with a non-GAAP net loss of $14.3 million, or $0.17 per share, in the same period last year.
Adjusted EBITDA for the quarter was $3.8 million, compared with an adjusted EBITDA loss of $19.7 million in the fourth quarter of fiscal 2023.

Today the company's shares have moved 1.9% to a price of $6.12. For the full picture, make sure to review SecureWorks's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.