Why SecureWorks Shares Are Plunging Today - SecureWorks (NASDAQ:SCWX)

SecureWorks Corp SCWX reported a fourth-quarter FY22 revenue decline of 8.5% year-on-year to $127.9 million, missing the consensus of $128.9 million.
SecureWorks Taegis posted $165 million in annual recurring revenue (ARR) and added 400 customers. Taegis ARR grew 200% Y/Y and revenue 156% Y/Y.
Segments: Subscription revenue declined 7.1% Y/Y to $99.5 million. Professional Services revenue reduced 13% Y/Y to $28.4 million.
The non-GAAP gross margin expanded 330 bps to 60.5%.
Non-GAAP EPS of $0.03 beat the consensus loss of $(0.08).
SecureWorks held $220.7 million in cash and equivalents.
"With the first true XDR solution, Secureworks Taegis has one of the fastest XDR customer and ARR growth rates in the market due to the superior outcomes and ROIs we're delivering customers," said CEO Wendy Thomas.
Outlook: SecureWorks sees Q1 FY23 revenue of $120 million - $122 million below the consensus of $131.33 million.
The company sees a non-GAAP EPS loss between $(0.15) - $(0.14) worse than the consensus loss of $(0.05).
SecureWorks sees FY23 revenue of $475 million - $490 million below the consensus of $526.7 million.
The company sees a non-GAAP EPS loss between $(0.70) - $(0.61) worse than the consensus loss of $(0.22).
Price Action: SCWX shares traded lower by 14.10% at $11.04 in the market session on the last check Thursday.