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Mar 31, 2024
SolarWinds Q1 2024 Earnings Report
SolarWinds' first quarter results for 2024 were announced, demonstrating year-over-year growth in total revenue and adjusted EBITDA.
Key Takeaways
SolarWinds reported a strong start to 2024, exceeding revenue and adjusted EBITDA guidance. Total revenue grew by 4% year-over-year to $193.3 million, with recurring revenue comprising 93% of the total. Adjusted EBITDA reached $92.1 million, representing a 48% margin and a 19% increase year-over-year. Subscription ARR increased by 36% to $251.3 million, and Total ARR grew by 7% to $695.3 million.
Total revenue for Q1 2024 was $193.3 million, a 4% increase year-over-year.
Subscription ARR reached $251.3 million, demonstrating 36% year-over-year growth.
Total ARR was reported at $695.3 million, a 7% increase year-over-year.
Adjusted EBITDA was $92.1 million, representing a 48% margin of total revenue and a 19% year-over-year increase.
SolarWinds
SolarWinds
SolarWinds Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comMaintenance Revenue
CapyFin.comLicense Revenue
CapyFin.com Forward Guidance
SolarWinds provided its financial outlook for the second quarter and full year of 2024, anticipating continued growth in revenue and adjusted EBITDA.
Positive Outlook
- Total revenue for Q2 2024 is expected to be in the range of $186 to $191 million, representing approximately 2% growth compared to Q2 2023.
- Adjusted EBITDA for Q2 2024 is projected to be approximately $85 to $88 million, about 9% growth over Q2 2023.
- Non-GAAP diluted earnings per share for Q2 2024 are expected to be $0.21 to $0.23.
- For the full year 2024, total revenue is anticipated to be in the range of $771 to $786 million, representing approximately 3% growth.
- Full year 2024 adjusted EBITDA is expected to be approximately $360 to $370 million, an increase of about 11%.
Challenges Ahead
- The financial outlook is based on non-GAAP measures, which exclude items like stock-based compensation and cyber incident costs.
- Uncertainty regarding excluded items in future periods makes reconciliation to GAAP measures unavailable without unreasonable effort.
- Global macroeconomic conditions, including geopolitical tensions and supply chain disruptions, could impact financial performance.
- Risks related to cybersecurity incidents and evolving regulations of AI could affect business operations.
- Potential fluctuations in operating income and increased competition in the markets served pose challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income