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Jun 30, 2020
SolarWinds Q2 2020 Earnings Report
SolarWinds' Q2 2020 results were announced, showcasing revenue growth and strategic initiatives.
Key Takeaways
SolarWinds reported Q2 2020 results, with total revenue reaching $246.0 million, a 7.5% increase year-over-year. The company saw growth in recurring revenue, driven by maintenance and subscription services. They also closed the largest commercial transaction in its history and introduced new subscription-based pricing.
Total revenue grew by 7.5% to $246.0 million.
Recurring revenue increased by 12.0% to $212.3 million.
The largest commercial transaction in SolarWinds' history was closed.
New subscription-based pricing was introduced for on-premises products.
SolarWinds
SolarWinds
SolarWinds Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comMaintenance Revenue
CapyFin.comLicense Revenue
CapyFin.com Forward Guidance
SolarWinds provided financial outlook for Q3 2020 and full year 2020, expecting continued revenue growth and adjusted EBITDA. The company is also exploring a potential spin-off of its MSP business.
Positive Outlook
- Non-GAAP total revenue for Q3 2020 is expected to be in the range of $254.0 to $259.0 million.
- Q3 revenue growth is projected to be 5% to 7% over Q3 2019.
- Adjusted EBITDA for Q3 is anticipated to be between $119.0 to $122.0 million.
- Non-GAAP diluted earnings per share for Q3 are expected to be $0.24.
- The board of directors authorized management to explore a potential spin-off of the MSP business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income