SolarWinds: A Great Business Model, And Tremendous Upside
Benjamin Sinclair • 22 Comments
Benjamin Sinclair • 22 Comments
Oct. 29, 2015, 5:20 PM
- SolarWinds (NYSE:SWI): Q3 EPS of $0.57 beats by $0.05.
- Revenue of $131.63M (+16.6% Y/Y) beats by $0.4M.
Oct. 21, 2015, 12:49 PM
Oct. 21, 2015, 9:46 AM
- Thoma Bravo and Silver Lake are buying SolarWinds (NYSE:SWI) for $4.5B, or $60.10/share, in cash. The price represents a 20% premium to Tuesday's close, and a 43% premium to where the systems/app management software firm traded before Reuters first reported of sale talks on Oct. 9.
- The deal, the latest in a string of P-E purchases of enterprise tech companies, is expected to close in Q1 2016. SolarWinds is halted.
- Update (10:01AM ET): SolarWinds has come off its halt. Shares are up 15.8% to $58.14.
Oct. 9, 2015, 11:43 AM
- Less than two hours after Reuters reported the company is in talks with P-E firms about potentially selling itself, SolarWinds (SWI +6.5%) announces it "has commenced a review of its strategic alternatives," including a possible sale or other business combination. JPMorgan and law firm DLA Piper have been hired to help out.
- Shares have pared the initial gains seen following Reuters' report, but remain sharply higher.
- Update (12:02PM ET): SolarWinds is now up 12.7%.
Oct. 9, 2015, 10:29 AM
- Reuters reports SolarWinds (SWI) is talking with several P-E firms about potentially selling itself.
- The systems/app management software vendor's shares have spiked higher. They're still more than $7 below a 52-week high of $53.44.
- A slew of enterprise tech firms have been acquired by P-E over the last two years. Examples include Riverbed, Tibco, and Informatica.
Sep. 10, 2015, 9:27 AM
- Believing its recent selloff spells a buying opportunity, Morgan Stanley's Sanjit Singh has upgraded SolarWinds (NYSE:SWI) to Overweight, while keeping his target at $50.
- Singh adds he expects fundamentals to recover over the next 3-4 quarters, and that management now has more experience in addressing sales execution issues.
- SWI +1.6% premarket to $40.35. The systems/app management software firm tumbled in July after posting mixed Q2 results and issuing soft revenue guidance.
Jul. 27, 2015, 10:16 AM
- With its shares having tumbled to new 52-week lows in response to the company's Q2 sales miss and soft top-line guidance (posted on July 16), SolarWinds (SWI +1.4%) is launching a $200M buyback.
- The buyback is good for repurchasing 7% of shares at current levels. The systems/app management software firm had $246M in cash/short-term investments at the end of Q2, and no debt.
Jul. 17, 2015, 12:44 PM
Jul. 17, 2015, 9:22 AM
Jul. 16, 2015, 5:41 PM
Jul. 16, 2015, 4:56 PM
- In addition to missing Q2 revenue estimates (while beating on EPS), SolarWinds (NYSE:SWI) is guiding for Q3 revenue of $130M-$134M (+15%-19% Y/Y, below a $136.1M consensus) and 2015 revenue of $502M-$512M (+17%-19% Y/Y, below a $519.7M consensus).
- EPS guidance is better: $0.49-$0.53 for Q3 (consensus is at $0.52) and $2.00-$2.08 for 2015 (consensus is at $2.00). Forex is expected to have an $18M-$19M impact on 2015 revenue.
- Weighing on Q2 sales: License revenue rose only 3% Y/Y to $38.6M. Maintenance revenue (driven by older license deals) rose 17% to $67.6M; subscription revenue (cloud software-related) rose 122% to $12.9M.
- Shares have fallen to $42.00 AH.
- Q2 results, PR
Jul. 16, 2015, 4:04 PM
- SolarWinds (NYSE:SWI): Q2 EPS of $0.52 beats by $0.06.
- Revenue of $119.07M (+17.3% Y/Y) misses by $3.55M.
Jul. 15, 2015, 5:35 PM
Apr. 28, 2015, 6:49 PM
- With forex taking a toll, SolarWinds (NYSE:SWI) expects Q2 revenue of $120.6M-$123.8M (+19%-22% Y/Y) and EPS of $0.45-$0.47, mostly below a consensus of $124.3M and $0.47. Full-year guidance is a little better: Revenue of $512M-$527M (+19%-23% Y/Y) and EPS of $1.92-$2.04 vs. a consensus of $521.3M and $2.00.
- The systems management software vendor also announces it's buying Papertrail, a provider of cloud-data log data management software tools, for $41M in cash. Papertrail's products are used by IT pros and developers to monitor/troubleshoot websites and cloud apps; machine data/IT operational intelligence analytics leader Splunk is a rival.
- SolarWinds already offers log management tools for on-premise software installations. The Papertrail deal follows SolarWinds' 2014 acquisition of website monitoring software firm Pingdom.
- License revenue rose 17% Y/Y in Q1 to $42.4M, and maintenance/subscription revenue 25% to $74.4M. Total revenue growth was 22% in actual dollars, and 27% in constant currency.
- Shares are unchanged in AH trading for now.
- Q1 results, PR
Apr. 28, 2015, 4:25 PM
- SolarWinds (NYSE:SWI): Q1 EPS of $0.46 beats by $0.01.
- Revenue of $116.8M (+21.8% Y/Y) misses by $0.69M.
- Shares +0.5%.
Apr. 7, 2015, 7:13 PM
- In a sign of the times, SolarWinds (NYSE:SWI) has made its Database Performance Analyzer (DPA) app, which monitors/optimizes the performance of Oracle, Microsoft, SAP, and IBM databases, available on companies using Amazon Web Services (NASDAQ:AMZN), by far the world's biggest public cloud infrastructure (IaaS) platform.
- AWS support is one of the features provided in a DPA update that also includes the ability to simultaneously monitor hundreds of database instances (whether on-premise or in the cloud), and the ability to annotate configuration changes and link them to performance changes.
- The AWS version of DPA (monitors databases running on the platform) is available through a machine image offered on the AWS Marketplace; SolarWinds claims it can be deployed in minutes. Amazon announced last November AWS' customer base has topped 1M.
- Last June: SolarWinds buys website monitoring software firm Pingdom
SolarWinds Inc designs, develops, markets, sells and supports enterprise-class IT infrastructure management software to IT professionals. Its product offerings range from individual software tools to more comprehensive software products.
Industry: Application Software
Country: United States
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