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Dec 31, 2023
SolarWinds Q4 2023 Earnings Report
Reported results for the fourth quarter and full year ended December 31, 2023.
Key Takeaways
SolarWinds' Q4 2023 total revenue reached $198.1 million, a 6% year-over-year increase, with recurring revenue accounting for 92% of the total. The company reported a net loss of $0.6 million and an adjusted EBITDA of $87.0 million, representing 44% of total revenue and a 17% year-over-year growth.
Total revenue for the fourth quarter was $198.1 million, representing 6% year-over-year growth.
Total recurring revenue represented 92% of total revenue.
Net loss for the fourth quarter was $0.6 million.
Adjusted EBITDA for the fourth quarter was $87.0 million, representing a margin of 44% of total revenue and 17% year-over-year growth.
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 first quarter and full year of 2024.
Positive Outlook
- Total revenue in the range of $187 to $192 million for Q1 2024, representing growth of approximately 2% over the first quarter of 2023 total revenue at the midpoint of the range.
- Adjusted EBITDA of approximately $81.5 to $84.5 million for Q1 2024, representing growth of approximately 7% over the first quarter of 2023 adjusted EBITDA at the midpoint of the range.
- Non-GAAP diluted earnings per share of $0.20 to $0.22 for Q1 2024.
- Total revenue in the range of $771 to $786 million for FY 2024, representing growth of approximately 3% over the full year of 2023 total revenue at the midpoint of the range.
- Adjusted EBITDA of approximately $350 to $360 million for FY 2024, representing growth of approximately 8% over the full year of 2023 adjusted EBITDA at the midpoint of the range.
Challenges Ahead
- Uncertainty regarding stock-based compensation expense and related employer-paid payroll taxes.
- Uncertainty regarding amortization.
- Uncertainty regarding certain expenses related to the cyberattack that occurred in December 2020.
- Uncertainty regarding restructuring costs.
- Uncertainty regarding other costs related to non-recurring items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income