SolarWinds Corp. reported a fourth-quarter FY21 revenue growth of 0.6 percent year-on-year to $186.7 million, beating the consensus of $181.8 million.
Maintenance revenue declined 2.8 percent Y/Y to $118.5 million. Subscription revenue climbed 18.2 percent Y/Y to $34.4 million.
License revenue declined 2 percent to $33.8 million.
Margins
The non-GAAP gross margin contracted 160 bps to 90.7 percent, and the non-GAAP EBITDA margin contracted 720 bps to 42 percent.Non-GAAP EPS of $0.30 beat the consensus of $0.26.
SolarWinds held $732.1 million in cash and equivalents.
“We made significant progress on a number of key priorities, including customer retention, our solutions portfolio, and go-to-market expansions, due to our employees’ dedication, the relevance of our solutions, and our Partners’ and customers’ commitment to SolarWinds,” said Sudhakar Ramakrishna, CEO.
Outlook
SolarWinds sees Q1 FY22 revenue of $173 million–$176 million, below the consensus of $178.3 million.It sees a non-GAAP EPS of $0.22, below the consensus of $0.25.
SolarWinds sees FY22 revenue of $730 million–$750 million against the consensus of $739.5 million.
It sees a non-GAAP EPS of $1.01–$1.08, below the consensus of $1.09.
By Anusuya Lahiri
© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.
