SecureWorks Corp. ( (SCWX) ) has released its Q3 earnings. Here is a breakdown of the information SecureWorks Corp. presented to its investors.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
SecureWorks Corp., a global cybersecurity leader, offers its Secureworks Taegis platform, a SaaS-based open XDR solution designed to enhance security operations through advanced threat detection and AI-driven capabilities. In its third quarter of fiscal year 2025, SecureWorks Corp. reported a 6% year-over-year increase in revenue for its Taegis platform, totaling $71.4 million, and a 4% growth in total annual recurring revenue reaching $288.8 million. Notably, the company’s GAAP and non-GAAP gross margins for Taegis expanded to 72% and 75% respectively. Despite these gains, the total revenue for the quarter decreased to $82.7 million from $89.4 million in the previous year, attributed to the strategic wind-down of the legacy MSS business.
SecureWorks’ financial performance showed a GAAP net loss of $27.5 million, or $0.31 per share, marking an increase from the $14.4 million loss in the same quarter the previous year. However, the company achieved a positive non-GAAP net income of $0.2 million, and adjusted EBITDA improved to $1.4 million from a loss of $1.2 million in the prior year. The company’s cash and cash equivalents stood at $53.1 million with no debt on its credit facility.
Strategically, SecureWorks emphasized innovation in its Taegis platform to counter the rising threat of ransomware, with a 30% increase in active groups reported. The company also launched new cybersecurity solutions in Japan and received industry recognition for its network security solutions. Furthermore, SecureWorks announced a forthcoming merger with Sophos, anticipated to conclude in early 2025, which aims to enhance its security offerings for a broader customer base.
Looking forward, SecureWorks has suspended its financial guidance for the fourth quarter and the full fiscal year 2025 due to the pending acquisition by Sophos. The company remains focused on expanding its Taegis platform and strengthening its market position in cybersecurity, leveraging its partnership with Sophos to deliver enhanced security solutions.
