- SolarWinds (NYSE:SWI) pauses between this week's two Congressional hearings into the security breach to report fourth quarter results that beat consensus estimates on the top and bottom lines.
- Revenue was up 6% on the year to $265.47M. EPS beat estimates by one cent at $0.26.
- Note that the breach didn't become public knowledge until December and the company's Q4 ended on December 31.
- Recurring revenue was up 13% to $230.9M. Maintenance sales were up 8% and subscription increased 20%.
- For Q1, the company forecasts $247-252M in revenue, which ranges from down 1% to up 1% on the prior year quarter and inline with the $251.29M consensus. Adjusted EBITDA is expected from $98-101M and EPS at $0.19-0.20 (consensus: $0.21).
- “The sophisticated cyberattack on us and our customers at the end of the fourth quarter has taught us a great deal about the resiliency of our business, the commitment of our employees, and the support we can expect from our customers and partners. I want to thank our employees for their dedication and thank our customers and partners for their ongoing support as we continue our investigation, apply the learnings, and share them broadly. We believe that this level of transparency and cooperation is critical to help address the broader issues that nation-state level cyber operations pose for the software industry. We have a strong foundation from which to grow, and to establish a model for the future of the software industry by delivering powerful, affordable, and secure solutions," says CEO Sudhakar Ramakrishna.
- Press release.
- SWI shares are up 1.9% pre-market.
- Today, SoalrWinds, Microsoft, and FireEye execs will appear at a hearing before the House committees on homeland security and on oversight and reform.