Solarwinds Corp ( (SWI) ) has released its Q4 earnings. Here is a breakdown of the information Solarwinds Corp presented to its investors.
SolarWinds Corporation is a prominent provider of observability and IT management software, offering solutions to accelerate digital transformation across various network environments. The company reported a solid financial performance for the fourth quarter and full year of 2024, with noteworthy revenue growth and a strong adjusted EBITDA margin. The total revenue for the fourth quarter reached $210.3 million, indicating a 6% year-over-year increase, while the net income stood at $72.7 million. For the entire year, SolarWinds achieved a total revenue of $796.9 million, marking a 5% growth compared to the previous year, alongside a net income of $111.9 million.
Key financial highlights from the report include a significant increase in subscription annual recurring revenue by 34% year-over-year, reaching $311.7 million. Total annual recurring revenue also saw a 7% growth, totaling $729.0 million. The company’s adjusted EBITDA for the fourth quarter was $104.1 million, a 20% increase year-over-year, reflecting a strong margin of 49%. Additionally, SolarWinds announced a definitive agreement to be acquired by Turn/River Capital for a projected transaction value of $4.4 billion, expected to close in the second quarter of 2025.
SolarWinds’ strategic focus on a subscription-first approach and continuous innovation on its platform has contributed to its robust performance. The company also unveiled new product offerings, such as the SolarWinds Observability SaaS and a Universal Database License, which are anticipated to enhance customer success in complex multi-cloud environments.
Looking ahead, SolarWinds’ management expressed confidence in continuing its growth trajectory, emphasizing the importance of its partnership with Turn/River Capital to drive platform innovations and reinforce customer relationships. However, the company will not provide specific financial guidance for 2025 due to the pending acquisition.