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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.
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 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.
- Uncertainty regarding expenses related to the cyberattack.
Revenue & Expenses
Visualization of income flow from segment revenue to net income