SolarWinds Q3 Earnings: Subscription Gains Drive Revenue, Raises Full-Year Forecast

SolarWinds Corp SWI reported a fiscal third-quarter 2024 revenue growth of 6% year-on-year to $200.03 million, beating the analyst consensus estimate of $194.04 million. 

Adjusted EPS of 27 cents beat the analyst consensus estimate of 25 cents. The stock price gained after the print.

Maintenance revenue declined 5% year-over-year at $110.63 million. Subscription revenue climbed 30.1% year-over-year to $76.46 million, while License revenue declined 10.3% to $12.93 million.

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The adjusted gross margin decreased by 30 bps to 90.5%, and the adjusted EBITDA margin increased by 310 bps to 48.0%.

SolarWinds held $199.2 million in cash and equivalents as of September 30, 2024.

Outlook: SolarWinds expects fourth-quarter revenue of $201 million — $204 million, versus the consensus of $203.11 million. It projects an adjusted EPS of 27 cents — 28 cents versus the consensus of 25 cents.

SolarWinds expects fiscal 2024 revenue of $788 million — $791 million (prior $778 million—$788 million) versus the consensus of $783.68 million.

SolarWinds expects fiscal 2024 adjusted EPS of $1.08 — $1.09 (prior $1.04—$1.08) versus the consensus of $1.06.

SolarWinds stock gained close to 40% in the last 12 months.

Price Action: SolarWinds stock is up 3.58% at $12.86 at the last check Thursday.

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