Earnings Review and Free Research Report: SecureWorks’s Q2 Top-line Grew 11.9% to Outshine Forecast

LONDON, UK / ACCESSWIRE / September 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on SecureWorks Corp. (NASDAQ: SCWX), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SCWX, following the Company’s reporting of its financial results for the second quarter fiscal 2018 (Q2 FY18) on September 06, 2017. The Atlanta, Georgia-based Company’s non-GAAP revenues and grew 11.9% y-o-y, outperforming market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

For the three months ended on August 04, 2017, SecureWorks reported GAAP net revenues of $116.12 million, which came in above the $103.65 million recorded at the end of Q2 FY17. The Company non-GAAP total revenues increased to $116.27 million in Q2 FY18 from $103.87 million in Q2 FY17. Furthermore, non-GAAP total revenues numbers beat market forecasts of $113.7 million.

The information security services provider posted GAAP net loss of $12.12 million, or $0.15 loss per diluted share, in Q2 FY18 compared to GAAP net loss $12.05 million, or $0.15 loss per diluted share, in Q2 FY17. Meanwhile, the Company’s non-GAAP net loss stood at $5.36 million, or $0.07 loss per diluted share, in Q2 FY18 compared to non-GAAP net loss of $5.58 million, or $0.07 loss per diluted share, in Q2 FY17. Wall Street had expected the Company to report non-GAAP net loss of $0.09 per diluted share.

Operational Metrics

In the reported quarter, the Company’s non-GAAP gross margin for Q2 FY18 stood at $63.58 million, or 54.7% of revenues, compared to $54.67 million, or 52.6% of revenues, in the previous year’s same quarter. The Company’s non-GAAP research and development (R&D) expenses for Q2 FY17 came in at $18.93 million, or 16.3% of revenues, compared to $16.69 million, or 16.1% of revenues, in Q2 FY17. Non-GAAP sales and marketing (S&M) expenses increased during Q2 FY18 to $37.21 million, or 32.0% of revenues from $31.46 million, or 30.3% of revenues, in the last year’s comparable quarter. Furthermore, non-GAAP general and administrative (G&A) expenses stood at $15.22 million, or 13.1% of revenues, for Q2 FY18 versus $16.10 million, or 15.5% of revenues, in Q2 FY17.

Meanwhile, the Company’s non-GAAP operating loss narrowed to $7.78 million, or 6.7% of revenues, during the reported quarter from non-GAAP operating loss $9.58 million, or 9.2% of revenues, in Q2 FY17. Furthermore, the Company reported negative adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $4.57 million during Q2 FY18 compared to negative adjusted EBITDA of $7.03 million in Q2 FY17.

Cash Flow & Balance Sheet

During the first six months ended on August 04, 2017, SecureWorks used $8.42 million of cash in its operating activities versus net cash used in operating activities $21.58 million in the prior year’s comparable quarter. The Company had $97.78 million in cash and cash equivalents as on August 04, 2017, compared to $116.60 million as on February 03, 2017.

Outlook

In its outlook for the year ending February 02, 2018, SecureWorks expects non-GAAP revenues in the range of $463 million to $466 million. Non-GAAP net loss per share for full-year FY18 is projected to be in the range of $0.29 to $0.32.

For Q3 FY18, the Company’s GAAP and non-GAAP revenues is anticipated to be in the range of $115 million to $116 million. Moreover, non-GAAP net loss per share for Q3 FY18 is forecasted to be in the range of $0.09 to $0.10.

Stock Performance

At the closing bell, on Thursday, September 28, 2017, SecureWorks’ stock slipped 1.26%, ending the trading session at $12.54. A total volume of 74.36 thousand shares have exchanged hands. The Company’s stock price soared 21.16% in the previous one month, 35.28% in the last three months and 29.55% in the past six months. Moreover, the stock surged 18.41% since the start of the year. The stock currently has a market cap of $1.00 billion.

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