- 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.
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