ATLANTA - Secureworks (NASDAQ: SCWX), a leader in cybersecurity solutions, reported a stronger-than-expected performance for its fourth quarter, surpassing analyst estimates for both earnings per share (EPS) and revenue. The company announced an EPS of $0.08, which was $0.12 higher than the analyst estimate of -$0.04. Revenue for the quarter was reported at $89.2 million, exceeding the consensus estimate of $87.12 million.
The company's Taegis™ platform showed significant growth, with a 9% increase in annual recurring revenue (ARR) to $285 million and a 15% rise in fourth-quarter revenue to $68.9 million compared to the same quarter last year. Additionally, both GAAP and adjusted gross margins for Taegis™ expanded, reaching 70.8% and 73.1%, respectively.
Secureworks' CEO, Wendy Thomas, highlighted the company's role as an open security platform and its contribution to combating the LockBit ransomware operation. CFO Alpana Wegner expressed confidence in the company's financial outlook, citing the fourth quarter's results as evidence of a successful cloud architecture that benefits both customers and the company's margins.
Looking ahead, Secureworks provided guidance for fiscal year 2025 that is above analyst expectations. The company forecasts EPS to be between $0.00 and $0.08, compared to the consensus estimate of -$0.33. Revenue guidance for FY2025 is set at $325-335 million, which falls below the analyst consensus of $364 million.
The company's fourth-quarter results marked a significant improvement over the previous year, with a GAAP net loss of $8.3 million, or $0.10 per share, improving from a GAAP net loss of $40.0 million, or $0.47 per share. Moreover, adjusted EBITDA for the quarter was $3.8 million, a notable turnaround from an adjusted EBITDA loss of $19.7 million in the fourth quarter of fiscal 2023.
Despite the overall decline in total revenue from $115.3 million in the fourth quarter of fiscal 2023 to $89.2 million in the same period of fiscal 2024, the strategic wind-down of Secureworks' Other MSS business was a contributing factor. The company ended the fourth quarter with $68.7 million in cash and cash equivalents and no borrowings on its credit facility.
Secureworks' financial outlook for the first quarter of fiscal 2025 includes expected revenue of $83 million to $85 million and adjusted EBITDA between $0 and $2 million. The company anticipates a non-GAAP net loss per share of ($0.01) to non-GAAP net earnings per share of $0.01.
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