Secureworks Reports Taegis™ ARR Growth of 200% in Connection with Second Quarter Fiscal 2022 Results

ATLANTA, Sept. 2, 2021 /PRNewswire/ -- Secureworks (NASDAQ: SCWX), a global leader in cybersecurity, today announced financial results for its second quarter, which ended on July 30, 2021.

Key Highlights

  • Secureworks Taegis surpassed $100 million in annual recurring revenue (ARR) and ended the second quarter of fiscal 2022 with 700 customers.
  • Taegis ARR grew 200 percent on a year-over-year basis and 39 percent sequentially from the first quarter of fiscal 2022.
  • Raising full fiscal year 2022 Taegis guidance to at least $155 million ARR by end of fiscal year 2022.
  • Secureworks was ranked the 8th best software company in the Top 100 Software Companies of 2021 by The Software Report.

"We're proud to announce that just two years after launch, Taegis ARR has tripled year over year to surpass $100 million," said Wendy Thomas, President and incoming CEO, Secureworks. "Providing customers with access to the detection and response capabilities, best practices, and threat research used by our experts in an easy-to-use XDR solution is resonating."

Second Quarter Fiscal 2022 Financial Highlights

  • Taegis revenue grew 160 percent from the second quarter of fiscal 2021.
  • Overall revenue was $134.2 million, a decrease of 3.1 percent from the second quarter of fiscal 2021, reflective of our continued transformation.
  • GAAP gross margin was 57.9 percent, compared with 56.7 percent in the same period last year. Non-GAAP gross margin was 61.1 percent compared with 59.7 percent in the second quarter of fiscal 2021.
  • GAAP net loss was $11.8 million, or $0.14 per share, compared with $1.2 million, or $0.02 per share, in the prior year. Non-GAAP net income was $0.9 million, or $0.01 per share, compared with net income of $8.4 million, or $0.10 per share, in the same period last year.
  • Adjusted EBITDA for the quarter was $3.6 million, compared with $13.1 million in the second quarter of fiscal 2021.
  • Ended the second quarter with $197 million in cash and cash equivalents.

"Our transformation is accelerating and we're pleased to have added $28.2 million to Taegis ARR this quarter, up 61% from the $17.5 million Taegis ARR added in the first quarter of fiscal 2022," said Paul Parrish, Chief Financial Officer, Secureworks.

Business and Operational Highlights

  • Recognized as a Leader in the IDC MarketScape: U.S. Managed Detection and Response Services 2021 Assessment (doc # US48129921, August 2021).
  • Recipient of the 2021 Customer Value Leadership award by Frost & Sullivan in recognition of Taegis XDR's excellence in delivering improved security outcomes to customers.
  • Integrated Taegis VDR (Vulnerability Detection and Response) software with proprietary threat intelligence feeds from Secureworks Counter Threat Unit™ (CTU™), helping customers eliminate the latest high-risk vulnerabilities before they can be exploited.
  • Named a "late stage" XDR provider in Forrester's New Tech: Extended Detection and Response (XDR) Providers, Q3 2021, following being named a Leader in The Forrester Wave™: Managed Detection And Response, Q1 2021.

Financial Outlook

For the third quarter of fiscal 2022, the Company expects:

  • Revenue of $132 to $134 million.
  • GAAP net loss per share of $0.24 to $0.21 and net loss per share performance on a non-GAAP basis of $0.08 to $0.05.

Secureworks is providing the following updated guidance for full fiscal year 2022. The Company expects:

 

Fiscal Year 2022 Guidance

Prior guidance

Taegis ARR

At least $155M

At least $150M

Taegis revenue

$90M to $100M

$90M to $100M

Total revenue

$535M to $540M

$540M to $550M

GAAP net income

-$61M to -$54M

-73¢ to -66¢ per share

-$57M to -$48M

-70¢ to -59¢ per share

Non-GAAP net income

-$11M to -$5M

-13¢ to -6¢ per share

-$10M to -$3M

-13¢ to -4¢ per share

Adjusted EBITDA

-$4M to $4M

-$5M to $5M

Cash from operations

$3M to $8M

Breakeven to $10M

Conference Call Information

As previously announced, the Company will hold a conference call to discuss its second quarter fiscal 2022 results and financial guidance on Sep. 2, 2021, at 8:00 a.m. U.S. ET. A live audio webcast of the conference call and the related supplemental financial information will be accessible on the Company's website at http://investors.secureworks.com. The webcast and supplemental information will be archived at the same location.

Operating Metrics

The Company defines annual recurring revenue (ARR) as the value of its subscription contracts as of a particular date. Because the Company uses recurring revenue as a leading indicator of future annual revenue, it includes operational backlog. Operational backlog is defined as the recurring revenue associated with pending contracts, which are contracts that have been sold but for which the service period has not yet commenced.

Non-GAAP Financial Measures

This press release presents information about the Company's non-GAAP revenue, non-GAAP gross margin, non-GAAP subscription cost of revenue, non-GAAP professional services cost of revenue, non-GAAP gross profit, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating income (loss), non-GAAP net  income (loss), non-GAAP earnings (loss) per share and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of each of the foregoing non-GAAP financial measures to the most directly comparable GAAP financial measure is provided below for each of the fiscal periods indicated.

Special Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "plan," "potential," "outlook," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes. Such forward-looking statements include, but are not limited to, the statements in this press release with respect to the Company's expectations regarding revenue, GAAP net loss per share, and non-GAAP net loss per share for the third quarter of fiscal 2022, and revenue, GAAP net loss, GAAP net loss per share, non-GAAP net loss, non-GAAP net loss per share, Adjusted EBITDA, cash flow from operations, and annual recurring revenue and revenue for its Taegis platform for full year fiscal 2022, all of which reflect the Company's current analysis of existing trends and information. These forward-looking statements represent the Company's judgment only as of the date of this press release.

Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties and other factors, including those relating to, among others: the Company's ability to achieve or maintain profitability; the Company's ability to enhance its existing solutions and technologies and to develop or acquire new solutions and technologies; the Company's reliance on personnel with extensive information security expertise; intense competition in the Company's markets; the Company's ability to attract new customers, retain existing customers and increase its annual contract values; the Company's reliance on customers in the financial services industry; the Company's ability to manage its growth effectively; the Company's ability to maintain high-quality client service and support functions; terms of the Company's service level agreements with customers that require credits for service failures or inadequacies; the Company's recognition of revenue ratably over the terms of its Taegis SaaS applications and managed security services contracts; the Company's long and unpredictable sales cycles; risks associated with the Company's international sales and operations; the effect of Brexit on the Company's operations; the Company's exposure to fluctuations in currency exchange rates; the effect of governmental export or import controls on the Company's business; the Company's ability to expand its key distribution relationships; the Company's technology alliance partnerships; real or perceived defects, errors or vulnerabilities in the Company's solutions or the failure of its solutions to prevent a security breach; the risks associated with cyber attacks or other data security incidents; the ability of the Company's solutions to interoperate with its customers' IT infrastructure; the Company's ability to use third-party technologies; the effect of evolving information security and data privacy laws and regulations on the Company's business; the Company's ability to maintain and enhance its brand; risks associated with the Company's acquisition of other businesses; estimates or judgments relating to the Company's critical accounting policies; the effect of natural disasters, public health issues and other catastrophic events on the Company's ability to serve its customers, including the coronavirus (COVID-19) pandemic; the Company's reliance on patents to protect its intellectual property rights; the Company's ability to protect, maintain or enforce its non-patented intellectual property rights and proprietary information; claims by third parties of infringement of their proprietary technology by the Company; the Company's use of open source technology; and risks related to the Company's relationship with Dell Technologies Inc. and Dell Inc. and control of the Company by Dell Technologies Inc.

This list of risks, uncertainties and other factors is not complete. The Company discusses these matters more fully, as well as certain risk factors that could affect the Company's business, financial condition, results of operations and prospects, under the caption "Risk Factors" in the Company's annual report on Form 10-K, as well as in the Company's other SEC filings.  Any or all forward-looking statements the Company makes may turn out to be wrong and can be affected by inaccurate assumptions the Company might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. The Company does not undertake to update, and expressly disclaims any obligation to update, any of its forward-looking statements, whether as a result of circumstances or events that arise after the date the statements are made, new information or otherwise.

About Secureworks

Secureworks (NASDAQ: SCWX) is a global cybersecurity leader that protects customer progress with Secureworks® Taegis™, a cloud-native security analytics platform built on 20+ years of real-world threat intelligence and research, improving customers' ability to detect advanced threats, streamline and collaborate on investigations, and automate the right actions.
www.secureworks.com

(Tables Follow)

 

 

SECUREWORKS CORP.

Condensed Consolidated Statements of Operations and Related Financial Highlights

(in thousands, except per share data and percentages)

(unaudited)

                       
         

Three Months Ended

 

Six Months Ended

         

July 30, 2021

 

July 31, 2020

 

July 30, 2021

 

July 31, 2020

Net revenue:

               
 

Subscription

   

102,426

   

106,259

   

206,496

   

212,616

 
 

Professional Services

   

31,746

   

32,217

   

67,139

   

67,041

 
   

Total net revenue

   

134,172

   

138,476

   

273,635

   

279,657

 

Cost of net revenue:

               
 

Subscription

   

37,058

   

39,989

   

74,730

   

82,455

 
 

Professional Services

   

19,425

   

19,911

   

38,960

   

40,354

 
   

Total cost of net revenue

 

56,483

   

59,900

   

113,690

   

122,809

 
 

Gross margin

 

77,689

   

78,576

   

159,945

   

156,848

 
 

Research and development

 

30,417

   

24,109

   

58,569

   

48,182

 
 

Sales and marketing

 

34,685

   

35,624

   

71,090

   

73,076

 
 

General and administrative

 

26,488

   

21,800

   

52,043

   

49,316

 
   

Total operating expenses

 

91,590

   

81,533

   

181,702

   

170,574

 
 

Operating loss

 

(13,901)

   

(2,957)

   

(21,757)

   

(13,726)

 

Interest and other, net

 

(601)

   

30

   

(1,508)

   

1,023

 
 

Loss before income taxes

 

(14,502)

   

(2,927)

   

(23,265)

   

(12,703)

 

Income tax benefit

 

(2,739)

   

(1,700)

   

(5,112)

   

(3,940)

 
 

Net loss

 

$

(11,763)

   

$

(1,227)

   

$

(18,153)

   

$

(8,763)

 
                 

Loss per common share (basic and diluted)

 

$

(0.14)

   

$

(0.02)

   

$

(0.22)

   

$

(0.11)

 
                 

Weighted-average common shares outstanding (basic and diluted)

 

82,979

   

81,417

   

82,482

   

81,177

 
                       

Percentage of Total Net Revenue

               

Subscription gross margin

 

63.8

%

 

62.4

%

 

63.8

%

 

61.2

%

Professional services gross margin

 

38.8

%

 

38.2

%

 

42.0

%

 

39.8

%

Total gross margin

 

57.9

%

 

56.7

%

 

58.5

%

 

56.1

%

Research and development

 

22.7

%

 

17.4

%

 

21.4

%

 

17.2

%

Sales and marketing

 

25.9

%

 

25.7

%

 

26.0

%

 

26.1

%

General and administrative

 

19.7

%

 

15.7

%

 

19.0

%

 

17.6

%

Operating expenses

 

68.3

%

 

58.9

%

 

66.4

%

 

61.0

%

Operating loss

 

(10.4)

%

 

(2.1)

%

 

(7.9)

%

 

(4.9)

%

Loss before income taxes

 

(10.8)

%

 

(2.1)

%

 

(8.5)

%

 

(4.5)

%

Net loss

 

(8.8)

%

 

(0.9)

%

 

(6.6)

%

 

(3.1)

%

Effective tax rate

 

18.9

%

 

58.1

%

 

22.0

%

 

31.0

%

 

     Note:  Percentage growth rates are calculated based on underlying data in thousands

 

SECUREWORKS CORP.

Condensed Consolidated Statements of Financial Position

(in thousands)

(unaudited)

               
         

July 30,
2021

 

January 29,
2021

Assets:

         

Current assets:

         
 

Cash and cash equivalents

   

$

196,961

   

$

220,300

 
 

Accounts receivable, net

   

97,835

   

108,005

 
 

Inventories, net

   

627

   

560

 
 

Other current assets

   

17,143

   

17,349

 
   

Total current assets

   

312,566

   

346,214

 

Property and equipment, net

   

13,149

   

17,143

 

Operating lease right-of-use assets, net

   

20,085

   

22,330

 

Goodwill

   

426,149

   

425,861

 

Intangible assets, net

   

146,128

   

157,820

 

Other non-current assets

   

76,516

   

75,993

 
   

Total assets

   

$

994,593

   

$

1,045,361

 

Liabilities and Stockholders' Equity:

         

Current liabilities:

         
 

Accounts payable

   

$

15,446

   

$

16,769

 
 

Accrued and other

   

76,415

   

109,134

 
 

Short-term deferred revenue

   

168,001

   

168,437

 
   

Total current liabilities

   

259,862

   

294,340

 

Long-term deferred revenue

   

7,418

   

9,590

 

Operating lease liabilities, non-current

   

19,736

   

22,461

 

Other non-current liabilities

   

50,059

   

51,189

 
   

Total liabilities

   

337,075

   

377,580

 

Stockholders' equity

   

657,518

   

667,781

 

Total liabilities and stockholders' equity

   

$

994,593

   

$

1,045,361

 

 

SECUREWORKS CORP.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

         
   

Six Months Ended

   

July 30, 2021

 

July 31, 2020

Cash flows from operating activities:

       

Net loss

 

$

(18,153)

   

$

(8,763)

 

Adjustments to reconcile net loss to net cash provided by operating activities

       

Depreciation and amortization

 

19,863

   

20,872

 

Amortization of right of use asset

 

2,098

   

2,247

 

Stock-based compensation expense

 

13,615

   

11,594

 

Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies

 

1,344

   

(1,242)

 

Income tax benefit

 

(5,112)

   

(3,940)

 

Other non cash impacts

 

   

150

 

Provision for doubtful accounts

 

448

   

1,314

 

Changes in assets and liabilities:

       

Accounts receivable

 

9,532

   

2,352

 

Net transactions with parent

 

(8,903)

   

3,822

 

Inventories

 

(67)

   

41

 

Other assets

 

4,418

   

1,444

 

Accounts payable

 

(1,293)

   

1,507

 

Deferred revenue

 

(2,912)

   

(1,784)

 

Operating leases, net

 

(2,970)

   

(856)

 

Accrued and other liabilities

 

(25,185)

   

(22,735)

 

Net cash used in operating activities

 

(13,277)

   

6,023

 

Cash flows from investing activities:

       

Software development costs

 

(3,218)

   

 

Capital expenditures

 

(1,033)

   

(1,709)

 

Net cash used in investing activities

 

(4,251)

   

(1,709)

 

Cash flows from financing activities:

       

Proceeds from stock option exercises

 

4,134

   

 

Taxes paid on vested restricted shares

 

(9,945)

   

(4,658)

 

Net cash used in financing activities

 

(5,811)

   

(4,658)

 

Net decrease in cash and cash equivalents

 

(23,339)

   

(344)

 

Cash and cash equivalents at beginning of the period

 

220,300

   

181,838

 

Cash and cash equivalents at end of the period

 

$

196,961

   

$

181,494

 

 

Non-GAAP Financial Measures

This press release presents information about the Company's non-GAAP revenue, non-GAAP gross margin, non-GAAP subscription cost of revenue, non-GAAP professional services cost of revenue, non-GAAP gross profit, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP earnings (loss) per share and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with GAAP.  A detailed discussion of the Company's reasons for including these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding those items are presented below. The Company encourages investors to review its GAAP results in conjunction with the presentation of non-GAAP financial measures.

The following is a summary of the items excluded from the most comparable GAAP financial measures to calculate our non-GAAP financial measures:

  • Amortization of Intangible Assets. Amortization of intangible assets consists of amortization of customer relationships and acquired technology. In connection with the acquisition of Dell by Dell Technologies in fiscal 2014 and our acquisition of Delve Laboratories, Inc. in fiscal 2021, all of our tangible and intangible assets and liabilities were accounted for and recognized at fair value on the transaction date. Accordingly, amortization of intangible assets consists of amortization associated with intangible assets recognized in connection with each such transaction.
  • Stock-based Compensation Expense. Non-cash stock-based compensation expense relates to both the Dell Technologies and Secureworks equity plans. We exclude such expense when assessing the effectiveness of our operating performance since stock-based compensation does not necessarily correlate with the underlying operating performance of the business.
  • Aggregate Adjustment for Income Taxes. The aggregate adjustment for income taxes is the estimated combined income tax effect for the adjustments mentioned above. The tax effects are determined based on the tax jurisdictions where the above items were incurred.

 

 (Tables Follow)

 

SECUREWORKS CORP.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

 
       

Three Months Ended

 

Six Months Ended

       

July 30,
2021

 

July 31,
2020

 

July 30,
2021

 

July 31,
2020

GAAP net revenue

 

$

134,172

   

$

138,476

   

$

273,635

   

$

279,657

 

GAAP subscription cost of revenue

 

$

37,058

   

$

39,989

   

$

74,730

   

82,455

 
 

Amortization of intangibles

 

(4,044)

   

(3,648)

   

(7,863)

   

(7,108)

 
 

Stock-based compensation expense

 

(15)

   

(219)

   

(117)

   

(448)

 
   

Non-GAAP subscription cost of revenue

 

$

32,999

   

$

36,122

   

$

66,750

   

$

74,899

 

GAAP professional services cost of revenue

 

$

19,425

   

$

19,911

   

$

38,960

   

$

40,354

 
 

Stock-based compensation expense

 

$

(176)

   

$

(179)

   

$

(372)

   

$

(304)

 
   

Non-GAAP professional services cost of revenue

 

$

19,249

   

$

19,732

   

$

38,588

   

$

40,050

 

GAAP gross margin

 

$

77,689

   

$

78,576

   

$

159,945

   

$

156,848

 
 

Amortization of intangibles

 

4,044

   

3,648

   

7,863

   

7,108

 
 

Stock-based compensation expense

 

190

   

398

   

489

   

753

 
   

Non-GAAP gross margin

 

$

81,923

   

$

82,622

   

$

168,297

   

$

164,709

 

GAAP research and development expenses

 

$

30,417

   

$

24,109

   

$

58,569

   

$

48,182

 
 

Stock-based compensation expense

 

(1,542)

   

(1,097)

   

(2,640)

   

(2,388)

 
   

Non-GAAP research and development expenses

$

28,875

   

$

23,012

   

$

55,929

   

$

45,794

 

GAAP sales and marketing expenses

 

$

34,685

   

$

35,624

   

$

71,090

   

$

73,076

 
 

Stock-based compensation expense

 

(1,016)

   

(882)

   

(1,748)

   

(1,623)

 
   

Non-GAAP sales and marketing expenses

 

$

33,669

   

$

34,742

   

$

69,342

   

$

71,453

 

GAAP general and administrative expenses

 

$

26,488

   

$

21,800

   

$

52,043

   

$

49,316

 
 

Amortization of intangibles

 

(3,523)

   

(3,524)

   

(7,047)

   

(7,047)

 
 

Stock-based compensation expense

 

(4,832)

   

(3,330)

   

(8,738)

   

(6,830)

 
   

Non-GAAP general and administrative expenses

$

18,133

   

$

14,946

   

$

36,258

   

$

35,439

 

GAAP operating loss

 

$

(13,901)

   

$

(2,957)

   

$

(21,757)

   

$

(13,726)

 
 

Amortization of intangibles

 

7,567

   

7,172

   

14,910

   

14,155

 
 

Stock-based compensation expense

 

7,580

   

5,707

   

13,615

   

11,594

 
   

Non-GAAP operating income (loss)

 

$

1,246

   

$

9,922

   

$

6,768

   

$

12,023

 

GAAP net loss

 

$

(11,763)

   

$

(1,227)

   

$

(18,153)

   

$

(8,763)

 
 

Amortization of intangibles

 

7,567

   

7,172

   

14,910

   

14,155

 
 

Stock-based compensation expense

 

7,580

   

5,707

   

13,615

   

11,594

 
 

Aggregate adjustment for income taxes

 

(2,463)

   

(3,278)

   

(5,460)

   

(6,081)

 
   

Non-GAAP net income (loss)

 

$

921

   

$

8,374

   

$

4,912

   

$

10,905

 

GAAP loss per share

 

$

(0.14)

   

$

(0.02)

   

$

(0.22)

   

$

(0.11)

 
 

Amortization of intangibles

 

0.09

   

0.08

   

0.18

   

0.17

 
 

Stock-based compensation expense

 

0.09

   

0.07

   

0.16

   

0.14

 
 

Aggregate adjustment for income taxes

 

(0.03)

   

(0.04)

   

(0.07)

   

(0.07)

 
   

Non-GAAP earnings (loss) per share *

 

$

0.01

   

$

0.10

   

$

0.06

   

$

0.13

 

* Sum of reconciling items may differ from total due to rounding of individual components

GAAP net loss

 

$

(11,763)

   

$

(1,227)

   

$

(18,153)

   

$

(8,763)

 
 

Interest and other, net

 

601

   

(30)

   

1,508

   

(1,023)

 
 

Income tax benefit

 

(2,739)

   

(1,700)

   

(5,112)

   

(3,940)

 
 

Depreciation and amortization

 

9,945

   

10,386

   

19,863

   

20,872

 
 

Stock-based compensation expense

 

7,580

   

5,707

   

13,615

   

11,594

 
   

Adjusted EBITDA

 

$

3,624

   

$

13,136

   

$

11,721

   

$

18,740

 
 

 

SECUREWORKS CORP.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands)

(unaudited)

 
 
       

Three Months Ended

 

Six Months Ended

Percentage of Total Net Revenue

 

July 30, 2021

 

July 31, 2020

 

July 30, 2021

 

July 31, 2020

                 

GAAP gross margin

 

57.9

%

 

56.7

%

 

58.5

%

 

56.1

%

     Non-GAAP adjustment

 

3.2

%

 

3.0

%

 

3.0

%

 

2.8

%

Non-GAAP gross margin

 

61.1

%

 

59.7

%

 

61.5

%

 

58.9

%

                     

GAAP research and development expenses

 

22.7

%

 

17.4

%

 

21.4

%

 

17.2

%

     Non-GAAP adjustment

 

(1.2)

%

 

(0.8)

%

 

(1.0)

%

 

(0.8)

%

Non-GAAP research and development expenses

 

21.5

%

 

16.6

%

 

20.4

%

 

16.4

%

                     

GAAP sales and marketing expenses

 

25.9

%

 

25.7

%

 

26.0

%

 

26.1

%

     Non-GAAP adjustment

 

(0.8)

%

 

(0.6)

%

 

(0.7)

%

 

(0.5)

%

Non-GAAP sales and marketing expenses

 

25.1

%

 

25.1

%

 

25.3

%

 

25.6

%

                     

GAAP general and administrative expenses

 

19.7

%

 

15.7

%

 

19.0

%

 

17.6

%

     Non-GAAP adjustment

 

(6.2)

%

 

(4.9)

%

 

(5.7)

%

 

(4.9)

%

Non-GAAP general and administrative expenses

 

13.5

%

 

10.8

%

 

13.3

%

 

12.7

%

                     

GAAP operating loss

 

(10.4)

%

 

(2.1)

%

 

(7.9)

%

 

(4.9)

%

     Non-GAAP adjustment

 

11.4

%

 

9.3

%

 

10.4

%

 

9.2

%

Non-GAAP operating income (loss)

 

1.0

%

 

7.2

%

 

2.5

%

 

4.3

%

                     

GAAP net loss

 

(8.8)

%

 

(0.9)

%

 

(6.6)

%

 

(3.1)

%

     Non-GAAP adjustment

 

9.5

%

 

6.9

%

 

8.4

%

 

7.0

%

Non-GAAP net income (loss)

 

0.7

%

 

6.0

%

 

1.8

%

 

3.9

%

 

SECUREWORKS CORP.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in millions, except per share data)

(unaudited)

                 
   

Three Months Ending

 

Fiscal Year Ending

   

October 29, 2021

 

January 28, 2022

   

Low End of Guidance

 

High End of Guidance

 

Low End of Guidance

 

High End of Guidance

GAAP and non-GAAP net revenue

 

$

132

   

$

134

   

$

535

   

$

540

 
                 

GAAP net loss

 

$

(20)

   

$

(18)

   

$

(61)

   

$

(54)

 

Amortization of intangibles

 

8

   

8

   

30

   

30

 

Stock-based compensation expense

 

10

   

10

   

33

   

33

 

Aggregate adjustment for income taxes

 

(4)

   

(4)

   

(14)

   

(14)

 

   Non-GAAP net (loss)*

 

$

(7)

   

$

(4)

   

$

(11)

   

$

(5)

 
                 

GAAP net loss per share

 

$

(0.24)

   

$

(0.21)

   

$

(0.73)

   

$

(0.66)

 

Amortization of intangibles

 

0.09

   

0.09

   

0.36

   

0.36

 

Stock-based compensation expense

 

0.13

   

0.13

   

0.40

   

0.40

 

Aggregate adjustment for income taxes

 

(0.05)

   

(0.05)

   

(0.16)

   

(0.17)

 

   Non-GAAP net (loss) per share*

 

$

(0.08)

   

$

(0.05)

   

$

(0.13)

   

$

(0.06)

 
                 

GAAP net loss

         

$

(61)

   

$

(54)

 

Interest and other, net

         

2

   

2

 

Income tax benefit

         

(18)

   

(16)

 

Depreciation and amortization

         

39

   

39

 

Stock-based compensation expense

         

33

   

33

 

   Adjusted EBITDA*

         

$

(4)

   

$

4

 
                 

Other Items

               

Effective tax rate

             

22

%

Weighted average shares outstanding (in millions)

             

82.9

 

Cash flow from operations

         

$3 to $8

 

Capital expenditures

             

$7 to $10

 
   

*

Sum of reconciling items may differ from total due to rounding of individual components

 

Sum of quarterly guidance may differ from full year guidance due to rounding

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/secureworks-reports-taegis-arr-growth-of-200-in-connection-with-second-quarter-fiscal-2022-results-301368073.html

SOURCE SecureWorks, Inc.

Contact Information: Investor Inquiries: Andrew Storm, VP Investor Relations, 615-210-7124, astorm@secureworks.com; Media Inquiries: Derek Delano, Corporate Communications, 617-335-9516, press@secureworks.com


Investor Relations Email Alerts

Sign up to receive email alerts whenever SecureWorks posts new information to the site.
Just enter your email address and click submit.
Learn More