HomeInvesting NewsSecureworks Stock Declines After the Company Releases Announce FQ2 2023

Secureworks Stock Declines After the Company Releases Announce FQ2 2023

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A leader in cybersecurity, Secureworks (NASDAQ: SCWX), has released its financial results for the second quarter of 2022, which concluded on July 29, today.

Secureworks (NASDAQ:SCWX)

In the second quarter of fiscal 2022, Taegis’ revenue increased by 131% to $42.8 million.

In trading on Thursday afternoon, Secureworks (NASDAQ:SCWX) stock dropped as much as 10.9% to $9.27 after the cybersecurity firm released mixed FQ2 2023 results and lowered its fiscal year revenue outlook.

As of 1308 ET, the company’s Class A shares had mostly recovered their losses and were trading slightly lower. Early in the day, SCWX reported Q2 non-GAAP EPS of -$0.13, above expectations by $0.04. Its sales, which were in line with forecasts at $116.2 million, decreased 13.4% year over year.

The firm reported that Taegis, its main security platform, increased its annual recurring revenue year over year to $201 million and that it added 800 Taegis clients to end the quarter with 1.5K customers.

According to SCWX, the company’s exit from non-strategic, lower-margin services was the primary cause of the overall decline in quarterly revenue.

Annual recurring revenue (ARR) for Secureworks TaegisTM increased by 100% year over year to $201 million.

One thousand five hundred customers were using the Taegis cloud-native security platform at the end of the second quarter of fiscal 2023, a growth of 114%, and 800 Taegis clients year over year.

2023 Outlook 

Additionally, SCWX reduced its expectation for the overall fiscal year 2023 revenue from $475 million to $490 million to a range of $458 million to $465 million. $480.32 million is the estimated total revenue.

The business stated that it still anticipates Taegi’s annual recurring revenue of at least $265M for the fiscal year 2023.

From an earlier range of $0.61 to $0.70, SCWX narrowed its non-GAAP net loss per share expectation to $0.64 to $0.70. The estimated consensus EPS is -$0.67. In contrast to the average estimate of $119.08 million for Q3 revenue, the company’s expectations are for revenue of $111 million to $13 million and a non-GAAP net loss per share of $0.20 to $0.22.

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