SolarWinds Corp (SWI) has announced impressive fiscal third-quarter 2024 results, exceeding analyst expectations on both revenue and earnings. The company’s revenue surged 6% year-over-year to $200.03 million, outperforming the consensus estimate of $194.04 million. This growth was driven by a significant increase in subscription revenue, which climbed 30.1% year-over-year to $76.46 million, highlighting the company’s ongoing shift towards recurring revenue models.
On the earnings front, SolarWinds delivered an adjusted EPS of 27 cents, surpassing the analyst consensus estimate of 25 cents. This strong earnings performance further underscores the company’s ability to manage costs and enhance profitability.
The positive earnings report has been met with enthusiasm from investors, leading to a surge in SolarWinds’ stock price. The stock gained close to 40% over the past year, demonstrating investor confidence in the company’s growth trajectory.
Looking ahead, SolarWinds maintains a positive outlook for the remainder of the year. The company expects fourth-quarter revenue to range between $201 million and $204 million, exceeding the consensus estimate of $203.11 million. Furthermore, SolarWinds projects an adjusted EPS of 27 cents to 28 cents for the fourth quarter, surpassing the consensus estimate of 25 cents.
For the full fiscal year 2024, SolarWinds expects revenue between $788 million and $791 million, compared to the consensus of $783.68 million. The company also anticipates an adjusted EPS between $1.08 and $1.09 for the year, exceeding the consensus estimate of $1.06. These projections demonstrate SolarWinds’ confidence in its ability to sustain its growth momentum and deliver strong financial performance throughout the year.
In addition to the positive financial results, SolarWinds has also been making strategic investments to drive future growth. The company is expanding its global presence, including plans to establish an office in Riyadh in 2025, capitalizing on the growing tech investment in the region.
The company’s strong financial performance, strategic investments, and positive outlook suggest that SolarWinds is well-positioned for continued success in the future. The company’s focus on subscription revenue, coupled with its commitment to innovation and expansion, indicates its potential to remain a leading player in the technology industry.
