Q1 2025 SecureWorks Corp Earnings Call Transcript
Key Points
- Taegis revenue grew 10% year over year to $69 million, with annual recurring revenue (ARR) now at $287 million.
- SecureWorks Corp (SCWX) delivered Q1 total revenue and adjusted EBITDA above guidance ranges.
- Taegis gross margins improved by 430 basis points year over year, indicating better profitability.
- The company launched new Taegis modules and capabilities, enhancing their product offerings.
- SecureWorks Corp (SCWX) was recognized by Frost & Sullivan as a leader in the 2024 MDR Radar, highlighting their industry innovation.
- Total revenue continues to be impacted by the wind-down of nonstrategic legacy business, contributing to a 9% decline year over year.
- GAAP net loss was $36 million for the first quarter, reflecting a significant noncash tax expense.
- The company used $13 million of cash from operations, although this was an improvement from the prior year.
- Q2 fiscal year '25 guidance indicates a potential decline in total revenue to $80 million to $82 million.
- The macroeconomic environment and buying behaviors remain uncertain, affecting future ARR growth.
Good morning. My name is Emily, and I'll be your conference operator today. At this time, I would like to welcome everyone to the SecureWorks first-quarter fiscal 2025 earnings conference call. (Operator Instructions)
At this time, I would like to turn over the call to Kevin Toomey, SecureWorks Vice President of Investor Relations. Mr. Toomey, you may begin your conference.
Thank you, operator. Good morning, and welcome to SecureWorks first-quarter fiscal 2025 earnings call. Joining me today are Wendy Thomas, our Chief Executive Officer; and Alpana Wegner, our Chief Financial Officer.
During this call, unless otherwise indicated, we will reference non-GAAP financial measures. You will find the reconciliations between these GAAP and non-GAAP measures in the press release and presentation posted on our website earlier today.
Finally, I'd like to remind you that all statements made during this call that relate to future results and events are forward-looking statements
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