Secureworks Reports over $200 Million in Taegis ARR (100% year over year growth) in Connection with Second Quarter Fiscal 2023 Results

Secureworks Reports over $200 Million in Taegis ARR (100% year over year growth) in Connection with Second Quarter Fiscal 2023 Results

ATLANTA, Sept. 1, 2022 /PRNewswire/ -- Secureworks (NASDAQ: SCWX), a global leader in cybersecurity, today announced financial results for its second quarter, which ended on July 29, 2022.

Key Highlights
  • Secureworks Taegis™ grew to $201 million in annual recurring revenue (ARR), an increase of 100% on a year-over-year basis.
  • Added 800 Taegis Customers year-over-year, a 114% increase, to finish the second quarter of fiscal 2023 with 1,500 customers on the Taegis cloud-native security platform.
  • Taegis revenue grew 131% from the second quarter of fiscal 2022 to $42.8 million.

"With the 10th consecutive quarter of triple digit growth in Taegis ARR, our pace of XDR growth underscores the strength of our product and customer base, and the execution of our transformation strategy," said Wendy Thomas, President & CEO, Secureworks. "We are defining the future of threat detection and analysis to keep our customers secure, driving sustainable growth and value creation for investors as we capitalize on the large and growing XDR opportunity with Secureworks Taegis."

"Our momentum continues as we surpassed the $200 million Taegis ARR milestone and delivered another quarter of triple-digit growth in Taegis ARR, Taegis Customer Count and Taegis-related Revenue," said Paul Parrish, Chief Financial Officer, Secureworks. "Taegis average revenue per customer remained strong, growing to $136 thousand in the second quarter."

Second Quarter Fiscal 2023 Financial Highlights
  • Overall revenue was $116.2 million, compared to $134.2 million in the second quarter of fiscal 2022, as we actively exit non-strategic, lower-margin services.
  • GAAP gross profit was $66.6 million, compared with $77.7 million in the second quarter of fiscal 2022. Non-GAAP gross profit was $71.2 million, compared with $81.9 million in the same period last year.
  • GAAP gross margin was 57.3%, compared with 57.9% in the same period last year. Non-GAAP gross margin was 61.3% compared with 61.1% in the second quarter of fiscal 2022.
  • GAAP net loss was $24.7 million, or $0.29 per share, compared with net loss of $11.8 million, or $0.14 per share, in the prior year. Non-GAAP net loss was $11.3 million, or $0.13 loss per share, compared with non-GAAP net income of $0.9 million, or $0.01 per share, in the same period last year.
  • Adjusted EBITDA loss for the quarter was $14.3 million, compared with adjusted EBITDA income of $3.6 million in the second quarter of fiscal 2022.
  • Ended the second quarter with $167 million in cash and cash equivalents.
Business and Operational Highlights
  • Appointed former Goldman Sachs and Google Cloud executive, Michael Aiello, as Chief Technology Officer.
  • During the second quarter, Secureworks unveiled a new Taegis™ Agent. This new endpoint agent, natively built into Taegis XDR, brings greater telemetry and visibility to detect threats faster with less noise. It also expands our reach, offering native integration into Windows, MacOS, and Linux systems. This feature improves the flexibility of the Taegis platform architecture as we build incident response, next-gen antivirus, and vulnerability detection capabilities into a single, unified agent.
  • Technology Alliance Partnerships (TAP)
    • Secureworks has expanded its partnership program to include integration with Secure Access Service Edge (SASE), Cloud Access Security Broker (CASB), Operation Technology (OT), and Internet of Things (IoT). To accomplish this, the company is announcing new partnership agreements with Netskope to support SASE/CASB integration and SCADAfence to expand Taegis into OT and Industrial Control Systems (ICS).
    • Netskope, in the SASE framework, has a unique approach for protecting IT assets that is user-centric and prioritizes data protection across devices and applications inside and outside traditional company networks. Integration will enable customers to perform all investigations using Secureworks Taegis for a more holistic view of threats and risks.
    • In its integration with SCADAfence, Secureworks expands Taegis into OT and ICS, providing improved visibility and reducing client infrastructure vulnerabilities. Integrating a truly open XDR platform with the leading OT platform in SCADAfence provides the potential for analysts to cut their workflows in half, allowing our joint customers to use a truly integrated OT plus XDR offering.
  • Recognition and awards in the second quarter of 2022 include:
    • Highlighted in the Cyber Top 20 by Enterprise Security Tech
    • Won Silver for Taegis XDR in the Security Software Category,17th Annual 2022 Information Technology World Globee Awards
    • Received Editor's Choice Award for XDR in the Cyber Defense Global InfoSec Awards for 2022
Financial Outlook

For the third quarter of fiscal 2023, the Company expects:

  • Revenue of $111 million to $113 million.
  • GAAP net loss per share of $0.36 to $0.38 and non-GAAP net loss per share of $0.20 to $0.22.

Secureworks is providing the following updated guidance for full fiscal year 2023. The Company expects:

Fiscal Year 2023 Guidance


Taegis ARR

At least $265M

Other MSS ARR

Below $70M

Total revenue

$458M to $465M

GAAP net loss

($110M) to ($114M)


($1.30) to ($1.35) per share

Non-GAAP net loss

($55M) to ($59M)


($.64) to ($.70) per share

Adjusted EBITDA

($63M) to ($68M)

Cash from operations

($60M) to ($65M)




Conference Call Information

As previously announced, the Company will hold a conference call to discuss its second quarter fiscal 2023 results and financial guidance on September 1, 2022, at 8:00 a.m. U.S. ET. A live audio webcast of the conference call and the related supplemental financial information will be accessible on the Company's website at http://investors.secureworks.com. The webcast and supplemental information will be archived at the same location.

Operating Metrics

The Company defines annual recurring revenue (ARR) as the value of its subscription contracts as of a particular date. Because the Company uses recurring revenue as a leading indicator of future annual revenue, it includes operational backlog. Operational backlog is defined as the recurring revenue associated with pending contracts, which are contracts that have been sold but for which the service period has not yet commenced.

Non-GAAP Financial Measures

This press release presents information about the Company's non-GAAP revenue, non-GAAP gross margin, non-GAAP subscription gross margin, non-GAAP professional services gross margin, non-GAAP gross margin, non-GAAP subscription cost of revenue, non-GAAP professional services cost of revenue, non-GAAP gross profit, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP earnings (loss) per share and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of the foregoing historical and forward-looking non-GAAP financial measures to the most directly comparable historical and forward-looking GAAP financial measure is provided below for each of the fiscal periods indicated.

Special Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "plan," "potential," "outlook," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes. Such forward-looking statements include, but are not limited to, the statements in this press release with respect to the Company's expectations regarding revenue, GAAP net loss, GAAP net loss per share, non-GAAP net loss and non-GAAP net loss per share for the third quarter of fiscal 2023, and revenue, GAAP net loss, GAAP net loss per share, non-GAAP net loss, non-GAAP net loss per share, adjusted EBITDA, cash from operations, Taegis ARR and other MSS ARR for full year fiscal 2023, all of which reflect the Company's current analysis of existing trends and information. These forward-looking statements represent the Company's judgment only as of the date of this press release.

Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties and other factors that include, but are not limited to, the following: the Company's ability to achieve or maintain profitability; the Company's ability to enhance its existing solutions and technologies and to develop or acquire new solutions and technologies; the Company's reliance on personnel with extensive information security expertise; intense competition in the Company's markets; the Company's ability to attract new customers, retain existing customers and increase its annual contract values; the Company's reliance on customers in the financial services industry; the Company's ability to manage its growth effectively; the Company's ability to maintain high-quality client service and support functions; terms of the Company's service level agreements with customers that require credits for service failures or inadequacies; the Company's recognition of revenue ratably over the terms of its Taegis SaaS applications and managed security services contracts; the Company's long and unpredictable sales cycles; risks associated with the Company's international sales and operations; the effect of Brexit on the Company's operations; the Company's exposure to fluctuations in currency exchange rates or global inflationary environment; the effect of governmental export or import controls on the Company's business or any international sanctions compliance program applicable to the Company; the Company's ability to expand its key distribution relationships; the Company's technology alliance partnerships; real or perceived defects, errors or vulnerabilities in the Company's solutions or the failure of its solutions to prevent a security breach; the risks associated with cyber attacks or other data security incidents; the ability of the Company's solutions to interoperate with its customers' IT infrastructure; the Company's ability to use third-party technologies; the effect of evolving information security and data privacy laws and regulations on the Company's business; the Company's ability to maintain and enhance its brand; risks associated with the Company's acquisition of other businesses; estimates or judgments relating to the Company's critical accounting policies; the effect of natural disasters, public health issues, geopolitical conflict and other catastrophic events on the Company's ability to serve its customers, including the Ukrainian/Russian conflict, and the coronavirus (COVID-19) pandemic; the Company's reliance on patents to protect its intellectual property rights; the Company's ability to protect, maintain or enforce its non-patented intellectual property rights and proprietary information; claims by third parties of infringement of their proprietary technology by the Company; the Company's use of open source technology; and risks related to the Company's relationship with Dell Technologies Inc. and Dell Inc. and control of the Company by Dell Technologies Inc.

This list of risks, uncertainties and other factors is not complete. The Company discusses these matters more fully, as well as certain risk factors that could affect the Company's business, financial condition, results of operations and prospects, under the caption "Risk Factors" in the Company's annual report on Form 10-K, as well as in the Company's other SEC filings.

Any or all forward-looking statements the Company makes may turn out to be wrong and can be affected by inaccurate assumptions the Company might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. The Company does not undertake to update, and expressly disclaims any obligation to update, any of its forward-looking statements, whether as a result of circumstances or events that arise after the date the statements are made, new information or otherwise.

About Secureworks

Secureworks (NASDAQ: SCWX) is a global cybersecurity leader that protects customer progress with Secureworks® Taegis™, a cloud-native security analytics platform built on 20+ years of real-world threat intelligence and research, improving customers' ability to detect advanced threats, streamline and collaborate on investigations, and automate the right actions.
www.secureworks.com

(Tables Follow)

SECUREWORKS CORP.

Condensed Consolidated Statements of Operations and Related Financial Highlights

(in thousands, except per share data and percentages)

(unaudited)


Three Months Ended


Six Months Ended


July 29,
2022


July 30,
2021


July 29,
2022


July 30,
2021

Net revenue:








Subscription

$     90,322


$   102,426


$   184,735


$   206,496

Professional services

25,860


31,746


52,462


67,139

Total net revenue

116,182


134,172


237,197


273,635

Cost of revenue:








Subscription

34,060


37,058


66,886


74,730

Professional services

15,519


19,425


32,128


38,960

Total cost of revenue

49,579


56,483


99,014


113,690

Gross profit

66,603


77,689


138,183


159,945

Operating expenses:








Research and development

33,638


30,417


66,969


58,569

Sales and marketing

40,940


34,685


80,185


71,090

General and administrative

24,274


26,488


49,634


52,043

Total operating expenses

98,852


91,590


196,788


181,702

Operating loss

(32,249)


(13,901)


(58,605)


(21,757)

Interest and other, net

131


(601)


(566)


(1,508)

Loss before income taxes

(32,118)


(14,502)


(59,171)


(23,265)

Income tax benefit

(7,399)


(2,739)


(12,854)


(5,112)

Net loss

$    (24,719)


$    (11,763)


$    (46,317)


$    (18,153)









Loss per common share (basic and diluted)

$        (0.29)


$        (0.14)


$        (0.55)


$        (0.22)

Weighted-average common shares outstanding (basic and diluted)

84,483


82,979


84,123


82,482









Percentage of Total Net Revenue








Subscription gross margin

62.3 %


63.8 %


63.8 %


63.8 %

Professional services gross margin

40.0 %


38.8 %


38.8 %


42.0 %

Total gross margin

57.3 %


57.9 %


58.3 %


58.5 %

Research and development expenses

29.0 %


22.7 %


28.2 %


21.4 %

Sales and marketing expenses

35.2 %


25.9 %


33.8 %


26.0 %

General and administrative expenses

20.9 %


19.7 %


20.9 %


19.0 %

Operating expenses

85.1 %


68.3 %


83.0 %


66.4 %

Operating loss

(27.8) %


(10.4) %


(24.7) %


(7.9) %

Loss before income taxes

(27.6) %


(10.8) %


(24.9) %


(8.5) %

Net loss

(21.3) %


(8.8) %


(19.5) %


(6.6) %

Effective tax rate

23.0 %


18.9 %


21.7 %


22.0 %

   Note:  Percentage growth rates are calculated based on underlying data in thousands





 

SECUREWORKS CORP.

Condensed Consolidated Statements of Financial Position

(in thousands)

(unaudited)














July 29,
2022


January 28,
2022

Assets:






Current assets:







   Cash and cash equivalents



$            167,487


$           220,655


   Accounts receivable, net



71,339


86,231


   Inventories, net



475


505


   Other current assets



27,283


26,040



   Total current assets



266,584


333,431

Property and equipment, net



6,150


8,426

Operating lease right-of-use assets, net



15,236


17,441

Goodwill



425,878


425,926

Intangible assets, net



121,144


133,732

Other non-current assets



65,589


68,346



   Total assets



$            900,581


$           987,302

Liabilities and Stockholders' Equity:






Current liabilities:







   Accounts payable



$              20,883


$             15,062


   Accrued and other current liabilities



64,622


88,122


   Short-term deferred revenue



151,026


163,304



   Total current liabilities



236,531


266,488

Long-term deferred revenue



8,881


12,764

Operating lease liabilities, non-current



14,346


16,869

Other non-current liabilities



33,230


43,124



   Total liabilities



292,988


339,245

Total stockholders' equity



607,593


648,057

Total liabilities and stockholders' equity



$            900,581


$           987,302

 

SECUREWORKS CORP.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)








Six Months Ended



July 29, 2022


July 30, 2021

Cash flows from operating activities:





   Net loss


$           (46,317)


$           (18,153)

   Adjustments to reconcile net loss to net cash used in operating activities:





      Depreciation and amortization


18,515


19,863

      Amortization of right of use asset


1,932


2,098

      Amortization of costs capitalized to obtain revenue contracts


8,985


9,912

      Amortization of costs capitalized to fulfill revenue contracts


2,565


2,738

      Stock-based compensation expense


17,938


13,615

      Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies


516


1,344

      Income tax benefit


(12,854)


(5,112)

      Provision for credit losses


(102)


448

      Changes in assets and liabilities:





  Accounts receivable


14,329


9,532

  Net transactions with Dell


(592)


(8,903)

  Inventories


30


(67)

  Other assets


(6,933)


(8,232)

  Accounts payable


5,685


(1,293)

  Deferred revenue


(17,165)


(2,912)

  Operating leases, net


(2,801)


(2,970)

  Accrued and other liabilities


(25,145)


(25,185)

   Net cash used in operating activities


(41,414)


(13,277)

Cash flows from investing activities:





Capital expenditures


(827)


(1,033)

Software development costs


(2,840)


(3,218)

   Net cash used in investing activities


(3,667)


(4,251)

Cash flows from financing activities:





Taxes paid on vested restricted shares


(8,087)


(9,945)

Proceeds from stock option exercises



4,134

   Net cash used in financing activities


(8,087)


(5,811)

Net decrease in cash and cash equivalents


(53,168)


(23,339)

Cash and cash equivalents at beginning of the period


220,655


220,300

Cash and cash equivalents at end of the period


$          167,487


$          196,961



Non-GAAP Financial Measures

This press release presents information about the Company's non-GAAP revenue, non-GAAP gross margin, non-GAAP subscription gross margin, non-GAAP professional services gross margin, non-GAAP gross margin, non-GAAP subscription cost of revenue, non-GAAP professional services cost of revenue, non-GAAP gross profit, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP earnings (loss) per share and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with GAAP.  A detailed discussion of the Company's reasons for including these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding those items are presented below. The Company encourages investors to review its GAAP results and supplement their review of the Company's GAAP results with the corresponding non-GAAP financial measures.

The following is a summary of the items excluded from the most comparable GAAP financial measures to calculate our non-GAAP financial measures:

  • Amortization of Intangible Assets. Amortization of intangible assets consists of amortization associated with external software development costs capitalized and customer relationships and technology acquired. In connection with the acquisition of Dell by Dell Technologies in fiscal 2014 and our acquisition of Delve in fiscal 2021, our tangible and intangible assets and liabilities associated with customer relationships and technology were accounted for and recognized at fair value on the related transaction date.

  • Stock-based Compensation Expense. Non-cash stock-based compensation expense relates to both the Dell Technologies and Secureworks equity plans. We exclude such expense when assessing the effectiveness of our operating performance since stock-based compensation does not necessarily correlate with the underlying operating performance of the business.

  • Aggregate Adjustment for Income Taxes. The aggregate adjustment for income taxes is the estimated combined income tax effect for the adjustments mentioned above. The tax effects are determined based on the tax jurisdictions where the above items were incurred.

 (Tables Follow)

SECUREWORKS CORP.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)


Three Months Ended


Six Months Ended


July 29, 2022


July 30, 2021


July 29, 2022


July 30, 2021

GAAP net revenue

$             116,182


$             134,172


$             237,197


$             273,635

GAAP subscription cost of revenue

$               34,060


$               37,058


$               66,886


$               74,730

Amortization of intangibles

(4,115)


(4,044)


(8,380)


(7,863)

Stock-based compensation expense

(167)


(15)


(290)


(117)

Non-GAAP subscription cost of revenue

$               29,778


$               32,999


$               58,216


$               66,750

GAAP professional services cost of revenue

$               15,519


$               19,425


$               32,128


$               38,960

Stock-based compensation expense

(345)


(176)


(732)


(372)

Non-GAAP professional services cost of revenue

$               15,174


$               19,249


$               31,396


$               38,588

GAAP gross profit

$               66,603


$               77,689


$             138,183


$             159,945

Amortization of intangibles

4,115


4,044


8,380


7,863

Stock-based compensation expense

511


190


1,021


489

Non-GAAP gross profit

$               71,229


$               81,923


$             147,584


$             168,297

GAAP research and development expenses

$               33,638


$               30,417


$               66,969


$               58,569

Stock-based compensation expense

(2,640)


(1,542)


(5,383)


(2,640)

Non-GAAP research and development expenses

$               30,998


$               28,875


$               61,586


$               55,929

GAAP sales and marketing expenses

$               40,940


$               34,685


$               80,185


$               71,090

Stock-based compensation expense

(1,627)


(1,016)


(3,265)


(1,748)

Non-GAAP sales and marketing expenses

$               39,313


$               33,669


$               76,920


$               69,342

GAAP general and administrative expenses

$               24,274


$               26,488


$               49,634


$               52,043

Amortization of intangibles

(3,523)


(3,523)


(7,047)


(7,047)

Stock-based compensation expense

(4,034)


(4,832)


(8,269)


(8,738)

Non-GAAP general and administrative expenses

$               16,717


$               18,133


$               34,318


$               36,258

GAAP operating loss

$              (32,249)


$              (13,901)


$              (58,605)


$              (21,757)

Amortization of intangibles

7,638


7,567


15,427


14,910

Stock-based compensation expense

8,812


7,580


17,938


13,615

Non-GAAP operating (loss) income

$              (15,799)


$                 1,246


$              (25,240)


$                 6,768

GAAP net loss

$              (24,719)


$              (11,763)


$              (46,317)


$              (18,153)

Amortization of intangibles

7,638


7,567


15,427


14,910

Stock-based compensation expense

8,812


7,580


17,938


13,615

Aggregate adjustment for income taxes

(3,024)


(2,463)


(5,944)


(5,460)

Non-GAAP net (loss) income

$              (11,293)


$                     921


$              (18,896)


$                 4,912

GAAP loss per share

$                  (0.29)


$                  (0.14)


$                  (0.55)


$                  (0.22)

Amortization of intangibles

0.09


0.09


0.18


0.18

Stock-based compensation expense

0.10


0.09


0.21


0.16

Aggregate adjustment for income taxes

(0.04)


(0.03)


(0.07)


(0.07)

Non-GAAP (loss) earnings per share *

$                  (0.13)


$                   0.01


$                  (0.22)


$                   0.06

* Sum of reconciling items may differ from total due to rounding of individual components

GAAP net loss

$              (24,719)


$              (11,763)


$              (46,317)


$              (18,153)

Interest and other, net

(131)


601


566


1,508

Income tax benefit

(7,399)


(2,739)


(12,854)


(5,112)

Depreciation and amortization

9,132


9,945


18,515


19,863

Stock-based compensation expense

8,812


7,580


17,938


13,615

Adjusted EBITDA

$              (14,305)


$                 3,624


$              (22,152)


$               11,721

 

SECUREWORKS CORP.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)














Three Months Ended


Six Months Ended

Percentage of Total Net Revenue

July 29, 2022


July 30, 2021


July 29, 2022


July 30, 2021









GAAP gross margin

57.3 %


57.9 %


58.3 %


58.5 %


Non-GAAP adjustment

4.0 %


3.2 %


3.9 %


3.0 %

Non-GAAP gross margin

61.3 %


61.1 %


62.2 %


61.5 %











GAAP research and development expenses

29.0 %


22.7 %


28.2 %


21.4 %


Non-GAAP adjustment

(2.3) %


(1.2) %


(2.2) %


(1.0) %

Non-GAAP research and development expenses

26.7 %


21.5 %


26.0 %


20.4 %











GAAP sales and marketing expenses

35.2 %


25.9 %


33.8 %


26.0 %


Non-GAAP adjustment

(1.4) %


(0.8) %


(1.4) %


(0.7) %

Non-GAAP sales and marketing expenses

33.8 %


25.1 %


32.4 %


25.3 %











GAAP general and administrative expenses

20.9 %


19.7 %


20.9 %


19.0 %


Non-GAAP adjustment

(6.5) %


(6.2) %


(6.4) %


(5.7) %

Non-GAAP general and administrative expenses

14.4 %


13.5 %


14.5 %


13.3 %











GAAP operating loss

(27.8) %


(10.4) %


(24.7) %


(7.9) %


Non-GAAP adjustment

14.2 %


11.4 %


14.1 %


10.4 %

Non-GAAP operating (loss) income

(13.6) %


1.0 %


(10.6) %


2.5 %











GAAP net loss

(21.3) %


(8.8) %


(19.5) %


(6.6) %


Non-GAAP adjustment

11.6 %


9.5 %


11.5 %


8.4 %

Non-GAAP net (loss) income

(9.7) %


0.7 %


(8.0) %


1.8 %

 

SECUREWORKS CORP.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in millions, except per share data)

(unaudited)












Three Months Ending


Fiscal Year Ending



October 28, 2022


February 3, 2023



Low End of
Guidance


High End of
Guidance


Low End of
Guidance


High End of
Guidance

GAAP net revenue


$            111


$            113


$            458


$         465










GAAP net loss


$             (32)


$             (30)


$           (114)


$        (110)

Amortization of intangibles


7


7


30


30

Stock-based compensation expense


11


10


41


41

Aggregate adjustment for income taxes


(4)


(4)


(16)


(16)

Non-GAAP net loss*


$             (18)


$             (17)


$             (59)


$          (55)










GAAP net loss per share


$          (0.38)


$          (0.36)


$          (1.35)


$       (1.30)

Amortization of intangibles


0.08


0.08


0.35


0.35

Stock-based compensation expense


0.13


0.12


0.49


0.48

Aggregate adjustment for income taxes


(0.05)


(0.05)


(0.19)


(0.19)

Non-GAAP net loss per share*


$          (0.22)


$          (0.20)


$          (0.70)


$       (0.64)










GAAP net loss






$           (114)


$        (110)

Interest and other, net






1


Income tax benefit






(32)


(31)

Depreciation and amortization






35


35

Stock-based compensation expense






41


41

Adjusted EBITDA*






$             (68)


$          (63)










Other Items









Effective tax rate








22 %

Weighted average shares outstanding (in millions)








84.7

Cash flow from operations






$(65) to $(60)

Capital expenditures








$7 to $9




*

Sum of reconciling items may differ from total due to rounding of individual components


Sum of quarterly guidance may differ from full year guidance due to rounding

 


Source: Secureworks, Inc. Related Stocks: NASDAQ:SCWX
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