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  • 3 September 2021 12:25

Secureworks Reports Taegis™ ARR Growth of 200% in Connection with Second Quarter Fiscal 2022 Results

Secureworks (NASDAQ: SCWX) announces financial results for its second quarter.

Secureworks (NASDAQ: SCWX), a global leader in cybersecurity, today announced financial results for its second quarter, which ended on July 30, 2021.

Key Highlights:

- Secureworks Taegis surpassed $100 million in annual recurring revenue (ARR) and ended the second quarter of fiscal 2022 with 700 customers.

- Taegis ARR grew 200 percent on a year-over-year basis and 39 percent sequentially from the first quarter of fiscal 2022.

- Raising full fiscal year 2022 Taegis guidance to at least $155 million ARR by end of fiscal year 2022.

- Secureworks was ranked the 8th best software company in the Top 100 Software Companies of 2021 by The Software Report.

"We're proud to announce that just two years after launch, Taegis ARR has tripled year over year to surpass $100 million," said Wendy Thomas, President and incoming CEO, Secureworks. "Providing customers with access to the detection and response capabilities, best practices, and threat research used by our experts in an easy-to-use XDR solution is resonating."

Second Quarter Fiscal 2022 Financial Highlights:

- Taegis revenue grew 160 percent from the second quarter of fiscal 2021.

- Overall revenue was $134.2 million, a decrease of 3.1 percent from the second quarter of fiscal 2021, reflective of our continued transformation.

- GAAP gross margin was 57.9 percent, compared with 56.7 percent in the same period last year. Non-GAAP gross margin was 61.1 percent compared with 59.7 percent in the second quarter of fiscal 2021.

- GAAP net loss was $11.8 million, or $0.14 per share, compared with $1.2 million, or $0.02 per share, in the prior year. Non-GAAP net income was $0.9 million, or $0.01 per share, compared with net income of $8.4 million, or $0.10 per share, in the same period last year.

- Adjusted EBITDA for the quarter was $3.6 million, compared with $13.1 million in the second quarter of fiscal 2021.

- Ended the second quarter with $197 million in cash and cash equivalents.

"Our transformation is accelerating and we're pleased to have added $28.2 million to Taegis ARR this quarter, up 61% from the $17.5 million Taegis ARR added in the first quarter of fiscal 2022," said Paul Parrish, Chief Financial Officer, Secureworks.

Business and Operational Highlights:

- Recognised as a Leader in the IDC MarketScape: U.S. Managed Detection and Response Services 2021 Assessment (doc # US48129921, August 2021).

- Recipient of the 2021 Customer Value Leadership award by Frost & Sullivan in recognition of Taegis XDR's excellence in delivering improved security outcomes to customers.

- Integrated Taegis VDR (Vulnerability Detection and Response) software with proprietary threat intelligence feeds from Secureworks Counter Threat Unit™ (CTU™), helping customers eliminate the latest high-risk vulnerabilities before they can be exploited.

- Named a "late stage" XDR provider in Forrester's New Tech: Extended Detection and Response (XDR) Providers, Q3 2021, following being named a Leader in The Forrester Wave™: Managed Detection And Response, Q1 2021.

For the third quarter of fiscal 2022, the Company expects:

- Revenue of $132 to $134 million.

- GAAP net loss per share of $0.24 to $0.21 and net loss per share performance on a non-GAAP basis of $0.08 to $0.05.

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