Why SolarWinds (SWI) Shares Are Shooting Higher Today

SolarWinds Corp SWI reported a first-quarter FY23 revenue growth of 5% year-on-year to $185.98 million, beating the consensus of $179.93 million.
Maintenance revenue fell by 0.8% Y/Y to $114.48 million. Subscription revenue climbed 40.3% Y/Y to $54.36 million.
License revenue declined 24.2% to $17.14 million.
Margins: Non-GAAP gross margin increased by 30 bps to 90.6%, and the adjusted EBITDA margin increased by 270 bps to 41.6%.
Non-GAAP EPS of $0.20 beat the consensus of $0.16.
SolarWinds held $140.7 million in cash and equivalents.
"We had a strong start to the year building off the foundations we established in 2022 and delivered total revenue and adjusted EBITDA results above the high end of our guidance, driven by strong subscription revenue growth," said Sudhakar Ramakrishna, President, and Chief Executive Officer, SolarWinds.
Outlook: SolarWinds sees Q2 revenue of $177 million- $182 million, versus the consensus of $178.51 million.
It sees Q2 non-GAAP EPS of $0.15 - $0.17 versus the consensus of $0.17.
SolarWinds reiterates FY23 revenue of $725 million - $740 million versus the consensus of $732.72 million.
SolarWinds raised the FY23 non-GAAP EPS outlook to $0.71 to $0.76, up from $0.69 - $0.74, versus the consensus of $0.71.
Price Action: SWI shares traded higher by 7.97% at $8.81 on the last check Thursday.
Editor's Note: The story has been updated to correct the EPS miss typo

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