SolarWinds (NYSE: SWI) has recently announced a special cash dividend of $1.00 per share, payable on April 15, 2024, to stockholders of record as of the close of business on April 3, 2024. The aggregate payment will amount to approximately $168 million, which represents the company's approximate free cash flow for fiscal year 2023.
Since its initial public offering in 2018, SolarWinds has made remarkable financial strides. The company has paid down $739 million in debt and, including this special dividend, will have returned over $405 million to its stockholders. This demonstrates the company's ability to return significant capital to stockholders while continuing to grow the business, underscoring the strength of its business model.
Furthermore, SolarWinds' CFO, Bart Kalsu, emphasized the company's commitment to evaluating its capital allocation plans to strike a balance between preserving financial and operational flexibility, including investments in the business, and providing opportunities for debt repayment and returning capital to stockholders.
It's worth noting that SolarWinds defines non-GAAP measure free cash flow as net cash provided by operating activities less capital expenditures, as disclosed in the company's fourth quarter 2023 earnings press release.
These figures and the company's strategic approach to capital allocation highlight its solid financial performance and commitment to creating value for its stockholders. The market has reacted to these announcements by moving the company's shares 2.7% to a price of $12.35. For more information, read the company's full 8-K submission here.
