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Sep 30, 2022
SolarWinds Q3 2022 Earnings Report
SolarWinds' Q3 2022 results were announced, highlighting subscription revenue growth and adjusted EBITDA margins amidst a challenging macroeconomic environment.
Key Takeaways
SolarWinds reported a slight decline in total revenue year-over-year, but a 1% growth on a constant currency basis. The company experienced a net loss of $292.2 million, including impairment charges. However, there was a 31% subscription revenue growth and solid adjusted EBITDA margins.
Total revenue was $179.4 million, a slight year-over-year decline on a reported basis but 1% growth on a constant currency basis.
Subscription revenue grew by 31%.
Net loss was $292.2 million, including $284.6 million in impairment charges.
Adjusted EBITDA was $70.3 million, representing a margin of 39% of total revenue.
Revenue by Segment
Forward Guidance
SolarWinds provided its financial outlook for the fourth quarter and updated its financial outlook for the full year of 2022.
Positive Outlook
- Total revenue in the range of $178 to $183 million for Q4 2022.
- Adjusted EBITDA margin of approximately 38% to 39% of total revenue for Q4 2022.
- Non-GAAP diluted earnings per share of $0.23 to $0.25 for Q4 2022.
- Total revenue in the range of $710 to $715 million for full year 2022.
- Adjusted EBITDA margin of approximately 39% of total revenue for full year 2022.
Challenges Ahead
- Total revenue represents a decline of 2% to 5% as compared to the fourth quarter of 2021.
- Slight decline of 1% over the full year of 2021 total revenue from continuing operations.
- Uncertainty regarding stock-based compensation expense.
- Uncertainty regarding amortization.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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