SolarWinds Corp (SWI) Reports Q3 2023 Earnings: 6% YoY Revenue Growth and $3.2M Net Loss
SolarWinds Corp (NYSE:SWI) reports a 6% YoY growth in total revenue, reaching $189.6M in Q3 2023.
The company records a net loss of $3.2M for the same period.
Adjusted EBITDA stands at $85.1M, representing a 21% YoY growth and a 45% margin of total revenue.
SolarWinds Corp (NYSE:SWI) anticipates total revenue in the range of $188.5M to $192.5M for Q4 2023.
On November 2, 2023, SolarWinds Corp (NYSE:SWI), a leading provider of simple, powerful, secure observability and IT management software, announced its financial results for the third quarter ended September 30, 2023.
Financial Performance
The company reported a total revenue of $189.6 million for Q3 2023, marking a 6% year-over-year growth. The total recurring revenue represented 92% of the total revenue. However, SolarWinds Corp (NYSE:SWI) also reported a net loss of $3.2 million for the third quarter. The adjusted EBITDA for the same period stood at $85.1 million, representing a 45% margin of total revenue and a 21% year-over-year growth.
Company Commentary
Sudhakar Ramakrishna, President and Chief Executive Officer of SolarWinds, commented on the results,
We again delivered total revenue and adjusted EBITDA that exceeded the high end of our guidance range, highlighted by 6% year-over-year revenue growth and 21% year-over-year adjusted EBITDA growth. Our subscription-first strategy continues to yield strong results while our product teams continue to deliver multi-cloud solutions on the SolarWinds Platform designed to improve customer productivity and reduce their costs. Im pleased with the teams progress and strong execution across our business.
Recent Business Highlights
In Q3 2023, SolarWinds made several notable business advancements. The company announced that its Next-Generation Build System meets or exceeds NIST Secure Software Development Framework guidance for secure software development. SolarWinds also unveiled enhancements to its Transform Partner Program, launched SolarWinds Enterprise Service Management, and upgraded SQL Sentry to accelerate customers digital transformations and innovation. The company received several industry awards and recognitions during the quarter.
Balance Sheet Overview
As of September 30, 2023, SolarWinds Corp (NYSE:SWI) had total cash and cash equivalents and short-term investments amounting to $235.2 million. The company's total debt stood at $1.2 billion.
Financial Outlook
For the fourth quarter of 2023, SolarWinds expects total revenue in the range of $188.5 to $192.5 million, representing approximately 2% growth compared to Q4 2022. The company also anticipates an adjusted EBITDA of approximately $80.5 to $82.5 million, marking approximately 9% growth over Q4 2022. For the full year of 2023, SolarWinds expects total revenue in the range of $749 to $753 million and an adjusted EBITDA of approximately $322 to $324 million.
Explore the complete 8-K earnings release (here) from SolarWinds Corp for further details.
This article first appeared on GuruFocus.
