SolarWinds Corporation has recently released its 10-Q report, providing a detailed insight into the company's financial health and performance. SolarWinds Corporation is a leading provider of information technology (IT) management software products, offering a suite of network management, infrastructure management, application performance management, service management, and database performance management solutions. The company markets and sells its products directly to various IT professionals and was founded in 1999, with its headquarters in Austin, Texas.
The Management's Discussion and Analysis of Financial Condition and Results of Operations in the 10-Q report highlights several key points. SolarWinds Corporation reported a significant impact from macroeconomic conditions, including geopolitical tensions, market conditions related to inflation, fluctuating foreign currency exchange rates, and the effects of the COVID-19 pandemic. The company also provided an update on the Cyber Incident, detailing the extensive measures undertaken to investigate, contain, eradicate, and remediate the incident. Additionally, the report outlines the ongoing efforts as part of the "Secure by Design" initiative to implement enhanced security practices.
The report also presented the first quarter highlights for the three months ended March 31, 2024, as compared to the same period in 2023. Notably, the company reported a 35.7% year-over-year growth in Subscription Annual Recurring Revenue (ARR), reaching $251,327,000 as of March 31, 2024. The Total ARR stood at $695,331,000, reflecting a 7.3% year-over-year growth. SolarWinds Corporation also highlighted its customer base, reporting over 300,000 customers as of March 31, 2024, with 1,021 customers having Total ARR greater than $100,000.
The report delved into the components of SolarWinds Corporation's results of operations, detailing the breakdown of revenue into recurring revenue and perpetual license revenue. Recurring revenue, primarily consisting of subscription and maintenance revenue, was highlighted, along with the company's efforts to shift towards a subscription-first approach. The cost of revenue, amortization of acquired technologies, and operating expenses were also detailed, providing insights into the company's financial performance and expenses.
Today the company's shares have moved 1.0% to a price of $11.7. For more information, read the company's full 10-Q submission here.
