Software Developer SolarWinds Stock Shines After Q1 Earnings - Here's Why

Zinger Key Points
  • SolarWinds Q1 revenue up 4% to $193.31M, topping forecasts; adjusted EPS of $0.29 beats $0.22 estimate.
  • Subscription revenue jumps 26.5% to $68.76M; adjusted EBITDA margin rises sharply by 600 bps to 47.6%.

SolarWinds Corp SWI reported a fiscal first-quarter 2024 revenue growth of 4% year-on-year to $193.31 million, beating the analyst consensus of $190.84 million

Adjusted EPS of $0.29 beat the analyst consensus of $0.22.

Maintenance revenue declined 2.4% Y/Y at $111.72 million. Subscription revenue climbed 26.5% Y/Y to $68.76 million, while License revenue declined 25.1% to $12.83 million.

Also Read: AI Is Going Well For Microsoft, But Cybersecurity Is Not

The adjusted gross margin increased by 30 bps to 90.9%, and the adjusted EBITDA margin increased by 600 bps to 47.6%.

SolarWinds held $312.8 million in cash and equivalents as of March 31, 2024.

Outlook: SolarWinds expects second-quarter revenue of $186 million—$191 million, versus the consensus of $191.80 million. It projects an adjusted EPS of $0.21 – $0.23 versus the consensus of $0.22.

SolarWinds reiterated fiscal 2024 revenue of $771 million – $786 million versus the consensus of $779.74 million.

SolarWinds expects fiscal 2024 adjusted EPS of $1.00 – $1.04 (prior $0.95 – $1.00) versus the consensus of $0.95.

SolarWinds stock gained 26% in the last 12 months. Investors can gain exposure to the stock via SPDR S&P Software & Services ETF XSW and ProShares Big Data Refiners ETF DAT.

Price Action: SWI shares traded higher by 2.89% at $11.39 at the last check Thursday.

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceTop StoriesMoversTechBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!