SolarWinds Shares Drop Post Dismal Guidance; Tops Q1

  • SolarWinds Corporation SWI reported first-quarter FY22 revenue growth of 1.7% year-on-year to $176.9 million, beating the consensus of $174.6 million.
  • Maintenance revenue declined 4.3% Y/Y to $115.5 million. Subscription revenue climbed 36.8% Y/Y to $38.7 million.
  • License revenue declined 9% to $22.6 million.
  • Margins: The non-GAAP gross margin contracted 140 bps to 90.3%, and the non-GAAP EBITDA margin contracted 300 bps to 38.9%.
  • Non-GAAP EPS of $0.24 beat the consensus of $0.22.
  • SolarWinds held $751.2 million in cash and equivalents.
  • "In the first quarter, we made significant progress on our key priorities of customer retention, increased focus on subscription revenue growth, and our accelerated evolution to platform-based solutions with the April launch of Hybrid Observability solutions," CEO Sudhakar Ramakrishna said.
  • Outlook: SolarWinds sees Q2 revenue of $174 million- $177 million, below the consensus of $182.6 million.
  • It sees a non-GAAP EPS of $0.20, below the consensus of $0.26.
  • SolarWinds reiterated FY22 revenue guidance of $730 million - $750 million against the consensus of $740.9 million.
  • SolarWinds cut the non-GAAP EPS outlook from $1.01 - $1.08 to $0.88 - $0.95 below the consensus of $1.05.
  • Price Action: SWI shares traded lower by 7.02% at $11.65 on the last check Thursday.

Posted In: BriefsEarningsNewsGuidanceSmall CapMoversTechTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.