The following is a summary of the SecureWorks Corp. (SCWX) Q1 2025 Earnings Call Transcript:

Financial Performance:

• SecureWorks reported Q1 total revenue of $86 million, surpassing the initially guided range of $83 million to $85 million.

• Taegis subscription revenue stood at $69 million, marking a 10% increase year-over-year.

• Adjusted EBITDA was $6 million, which exceeded the breakeven to $2 million guidance, showing a notable improvement from the same period last year.

• Non-GAAP net income was reported at $4 million, compared to a non-GAAP net loss of $17 million in the same quarter last year.

• Gross margins for Taegis expanded by 430 basis points year-over-year.

Business Progress:

• SecureWorks highlighted significant progress with the launch of new Taegis modules and capabilities.

• The company also emphasized the strengthening of its open XDR-based approach, which has been increasingly recognized in the industry.

• Major global partnerships were announced, further broadening SecureWorks' reach and market penetration.

• Two significant product advancements were introduced: Taegis Network Detection and Response (NDR) and Taegis Vulnerability Detection and Response (VDR), aimed at protecting against network-based attacks and software vulnerabilities, respectively.

Opportunities:

• SecureWorks highlighted the growth of the Taegis Annual Recurring Revenue (ARR) to $287 million.

• The company underscored the expansion in its product offerings and the broadening of its customer base through strategic partnerships and product enhancements.

• The new product capabilities are providing avenues to capture a larger segment of the cybersecurity market, particularly in addressing network threats and software vulnerabilities.

Risks:

• No explicit risks detected.

More details: Secureworks IR

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