ATLANTA, March 11, 2021 (GLOBE NEWSWIRE) — Secureworks (NASDAQ: SCWX), a global leader in cybersecurity, today announced financial results for its fourth quarter and full fiscal year which ended on January 29, 2021.
Key Highlights
- Nearly 400 customers on cloud-native Secureworks Taegis™ platform, resulting in annual recurring revenue (ARR) growth for the product of 266 percent since the beginning of the fiscal year, 31 percent from the third quarter to fourth quarter of fiscal year 2021, to end fiscal year 2021 at $55 million.
- Secureworks Taegis revenue totaled $32.1 million for fiscal year 2021.
- Issuing Secureworks Taegis guidance of at least $150 million ARR by end of fiscal year 2022 and Taegis revenue of $90 to $100 million for fiscal year 2022.
- Both GAAP and Non-GAAP full fiscal year 2021 gross margin up 6 percent over prior year.
- Ended the fourth quarter with a record $220.3 million in cash and cash equivalents.
“The ability to outpace the adversary at scale requires an integrated, open analytics platform that empowers the community to collectively defend against threats,” said Michael R. Cote, chief executive officer, Secureworks. “Nearly 400 customers around the world are now realizing the transformative power of that community through our cloud-native Taegis security analytics platform.”
Financial Summary
“We are pleased with the momentum in our Taegis platform, with over 266% annual growth in ARR for the product of $55 million, up from $15 million since the start of the fiscal year,” said Paul Parrish, chief financial officer, Secureworks. “Further, we’re excited about the future opportunity and see Taegis ARR growth continuing to accelerate.”
Fourth Quarter Fiscal 2021
- For the fourth quarter of fiscal 2021, GAAP revenue decreased 1.6 percent to $139.7 million from $142.0 million in the fourth quarter of fiscal 2020.
- GAAP gross margin was 57.2 percent in the fourth quarter of fiscal 2021, compared with 54.4 percent in the same period last year. Non-GAAP gross margin was 60.2 percent compared with 57.0 percent in the fourth quarter of fiscal 2020.
- GAAP net loss was $9.5 million, or $0.12 per share, in the fourth quarter of fiscal 2021, compared with $5.2 million, or $0.06 per share, in the prior year. Non-GAAP net income was $0.3 million, or breakeven per share, in the fourth quarter of fiscal 2021, compared with $1.9 million, or $0.02 per share, in the same prior year period.
- Adjusted EBITDA for the quarter was $3.2 million, compared with $2.3 million in the fourth quarter of fiscal 2020.
Full Year Fiscal 2021
- GAAP revenue in fiscal 2021 increased 1.5 percent to $561.0 million from $552.8 million in fiscal 2020.
- GAAP gross margin was 56.8 percent in fiscal 2021, up from 54.3 percent in the prior year. Non-GAAP gross margin increased to 59.7 percent from 57.0 percent year-over-year.
- GAAP net loss was $21.9 million, or $0.27 per share, in fiscal 2021, compared with a GAAP net loss of $31.7 million, or $0.39 per share, last year.
- Non-GAAP net income was $17.9 million, or $0.22 per share, in fiscal 2021, compared to non-GAAP net income of $0.2 million, or $0.01 per share, in fiscal 2020.
- Adjusted EBITDA was $33.2 million, compared with $10.3 million in fiscal 2020.
- Cash provided by operating activities for fiscal 2021 was $60.7 million.
Business and Operational Highlights
- During the fourth quarter of fiscal 2021, Secureworks unveiled threat detection and response security analytics improvements to Secureworks Taegis XDR (Extended Detection and Response) addressing customers’ need for a compelling SIEM alternative.
- Secureworks Taegis XDR customers experience benefits of nearly $3.6 million over three years and ROI of 413% according to a commissioned Total Economic Impact study conducted by Forrester Consulting.
- Secureworks recently introduced a new MSSP track within the Secureworks Global Partner Program, leveraging the Company’s 20+ years of experience as a leading MSSP, enabling partners to deliver services on the cloud-native Secureworks Taegis platform, strengthening the security community and creating additional revenue streams.
Financial Outlook
For the first quarter of fiscal 2022, the Company expects:
- Revenue of $134 to $136 million.
- GAAP net loss per share of $0.16 to $0.17 and non-GAAP net loss per share of $0.02 to $0.04.
For the full fiscal year 2022, the Company expects:
- Revenue of $535 to $545 million, reflecting our shift toward partner-delivered services as we scale our MSSP program.
- GAAP net loss of $63 to $71 million and $0.76 to $0.86 on a per share basis.
- Non-GAAP net loss of $18 to $26 million and $0.22 to $0.31 on a per share basis, primarily reflecting incremental investments in both R&D to extend the Taegis platform and in sales and marketing related to the expansion of our Partner Program and promotion of Taegis.
- Adjusted EBITDA to be $13 to $23 million negative for the full year.
- Cash flow from operations to range from breakeven to a $10 million use of cash.
- Taegis ARR of at least $150 million at the end of fiscal year 2022, which translates to Taegis revenue of $90 to $100 million for fiscal year 2022, as we ramp new customer acquisition and accelerate the transition of existing customers looking to benefit from the additional capabilities offered by the new platform.
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
