SecureWorks Reports Strong Financial Performance

Secureworks (NASDAQ: SCWX) has reported its first quarter fiscal 2025 results, ending on May 3, 2024, showcasing notable financial and operational highlights.

The company's taegis™ first quarter revenue increased by 10% year-over-year to $69.1 million, and the taegis annual recurring revenue (ARR) grew to $287 million, representing a 7% increase over the previous year.

In terms of gross margin, the GAAP gross margin for the first quarter was reported at 67.5%, a significant improvement from 54.7% in the same period last year. Additionally, the non-GAAP gross margin expanded to 69.9%, compared to 59.9% in the first quarter of fiscal 2024. Specifically for taegis, the GAAP gross margin was 71.9% for the quarter, up from 68.2% in the same period last year, while the non-GAAP taegis gross margin increased to 74.3% from 70.0% in the first quarter of fiscal 2024.

In terms of profitability, the company reported a GAAP net loss of $36.1 million for the first quarter, compared to a GAAP net loss of $31.0 million in the same period last year. However, the non-GAAP net income was $4.2 million, or $0.05 per share, compared with a non-GAAP net loss of $17.1 million, or $0.20 per share, in the same period last year. Adjusted EBITDA for the quarter was $5.6 million, compared to an adjusted EBITDA loss of $20.1 million in the first quarter of fiscal 2024, representing an adjusted EBITDA margin of 6.6%.

From a business and operational perspective, Secureworks introduced new product capabilities targeting high-risk attack vectors and added two high-profile partners in Japan, expanding its global partner program. The company also launched taegis network detection and response (NDR) and expanded its global MSSP partner program.

Looking ahead, for the second quarter of fiscal 2025, Secureworks expects revenue of $80 million to $82 million, adjusted EBITDA of $1 to $3 million, and non-GAAP net earnings per share of $0.00 to $0.02. 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 non-GAAP net income of $4 million to $10 million, equivalent to $0.05 to $0.11 per share.

Secureworks (NASDAQ: SCWX) has positioned itself as a global cybersecurity leader, leveraging its taegis™ platform to deliver advanced security solutions and drive business growth.

The company's ongoing focus on operational efficiencies and innovation, as evidenced by its financial and operational performance in the first quarter of fiscal 2025, underscores its commitment to delivering strong security outcomes and driving value for its customers and partners. Today the company's shares have moved 16.8% to a price of $6.83. Check out the company's full 8-K submission here.

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