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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