AUSTIN, Texas - SolarWinds (NYSE:SWI), a company specializing in observability and IT management software, today announced the upcoming appointment of Lewis Black as Executive Vice President, Chief Financial Officer, and Treasurer, effective August 2024. Black succeeds J. Barton Kalsu, who resigned on June 6, 2024, to pursue other opportunities but will remain in an advisory role to ensure a smooth transition until mid-August.
With over 25 years of strategic finance experience in the IT sector, Black's background includes significant roles at AT&T, Lucent Technologies, Avaya, and Citrix. Before joining SolarWinds, he was the CEO of Actian from 2020 to 2023 and its CFO from 2018 to 2020. His expertise lies in financial and capital management strategies, operational planning, and driving operational execution.
SolarWinds' President and CEO, Sudhakar Ramakrishna, expressed confidence in Black's ability to contribute to the company's growth and transformation, highlighting his extensive experience in the tech industry.
Black, who graduated from Strathclyde University and is a Fellow of the Chartered Association of Certified Accountants in the UK, also held leadership positions at Nexmo, Inc., including CFO and later COO and General Manager after its acquisition by Vonage Holdings (NASDAQ:VG) Corp.
Kalsu's tenure at SolarWinds spanned 17 years, during which he played a pivotal role in the company's financial milestones, including two public offerings and a privatization process. Ramakrishna acknowledged Kalsu's contributions and wished him success in future endeavors.
SolarWinds, headquartered in Austin, Texas, is recognized for its software solutions that support digital transformation by providing a unified view of modern network environments. The company remains dedicated to meeting the evolving needs of IT professionals across various sectors.
This corporate update is based on a press release statement from SolarWinds. The company has also filed a Form 8-K with the Securities and Exchange Commission regarding this announcement.
In other recent news, SolarWinds Corporation reported a robust first quarter, surpassing its financial guidance with total revenue reaching $193 million, marking a 4% year-over-year growth. The quarter also saw a notable 36% growth in subscription Annual Recurring Revenue (ARR), contributing to a 7% increase in total ARR. Adjusted EBITDA for the quarter was reported at $92 million, which was above the company's expected range.
Furthermore, Baird raised its price target on SolarWinds shares to $15.00 from the previous $14.00, maintaining a Neutral rating on the stock. This adjustment followed SolarWinds' recent earnings report, which showed a stronger-than-expected quarter, particularly in terms of profitability, largely attributed to the strength of its Subscription services.
InvestingPro Insights
As SolarWinds (NYSE:SWI) prepares for a leadership transition with the appointment of Lewis Black as the new CFO, the company's financial health and market performance remain key areas of interest for investors. With a market capitalization of $1.96 billion, SolarWinds is navigating the competitive landscape of IT management software with strategic financial management at its helm.
InvestingPro data shows that SolarWinds has a Price/Earnings (P/E) Ratio of 160.41, which has adjusted down to 58.84 when considering the last twelve months as of Q1 2024. This suggests a significant change in earnings expectations over time. Moreover, the company's Price to Book (P/B) ratio stands at a modest 1.53, indicating that the stock may be reasonably valued in terms of its assets.
The company's revenue growth has been steady with a 5.16% increase over the last twelve months as of Q1 2024, and a 3.94% quarterly growth in Q1 2024. This consistent growth is a positive signal for the company's financial trajectory. Additionally, the gross profit margin is robust at 90.42%, reflecting strong operational efficiency and cost management.
An InvestingPro Tip suggests that investors should consider the company's EBITDA growth, which has surged by 30.98% in the last twelve months as of Q1 2024. This is a strong indicator of the company's earning potential and operational success. For those looking to delve deeper into SolarWinds' financials and strategic positioning, InvestingPro offers 14 additional tips that could further inform investment decisions.
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