SecureWorks Corp. (NASDAQ: SCWX) reported Q1 EPS of ($0.06), $0.01 better than the analyst estimate of ($0.07). Revenue for the quarter came in at $126.5 million versus the consensus estimate of $122.5 million.

First Quarter Fiscal 2019 Highlights

• Revenue grew 11 percent over fiscal 2018 to $126.2 million.
• Monthly recurring revenue (MRR) increased 11 percent year-over-year to $35.5 million.
• International revenue grew 57 percent over prior year.
• Revenue retention rate was 100 percent in the first quarter of fiscal 2019.

ATLANTA--(BUSINESS WIRE)-- Secureworks (NASDAQ: SCWX), a leading global cybersecurity company that protects organizations in the digitally connected world, today announced financial results for its first quarter ended May 4, 2018.

“We had a strong start to the year with first quarter revenue and MRR each up 11 percent and with sales continuing its momentum. The global demand for our solutions continues to be large and growing. As a global leader, we are well positioned to succeed in the rapidly evolving cybersecurity space,” said Michael R. Cote, Chief Executive Officer of Secureworks.

“Our business model combines the power of years of historical attack data, our knowledge of the threat actors and technology including our algorithms to create a “network effect” delivering solutions to protect our clients. Our focus is on execution — on development efforts to bring innovative, technology-driven solutions to the market, on increasing velocity and impact for our clients through automation and on productivity initiatives across the organization,” continued Mr. Cote. “I am excited about our progress so far this year delivering results for our clients, as well as the progress we are making in executing against our strategic objectives.”

For the second quarter of fiscal 2019 the Company expects:

• Revenue of $127 to $128 million on both a GAAP and non-GAAP basis.
• Net loss per share of $0.16 to $0.17 and non-GAAP net loss per share of $0.05 to $0.06.

Based on first quarter fiscal 2019 performance and current business trends, the Company has updated its guidance for the full fiscal year 2019. The Company now expects:

• GAAP and non-GAAP revenue of $515 to $518 million.
• Net loss of $48 to $51 million and $0.59 to $0.63 on a per share basis. The increased net loss and net loss per share are primarily attributable to a lower tax benefit rate now anticipated for fiscal 2019 of approximately 22 percent.
• Non-GAAP net loss per share of $0.15 to $0.19.
• Adjusted EBITDA loss of $3 to $7 million.
• Monthly recurring revenue of $38 to $39 million, at the end of the fourth quarter of fiscal 2019.
• Cash flow from operations of $15 to 20 million.

GUIDANCE:

SecureWorks Corp. sees FY2019 EPS of ($0.19)-($0.15), versus the consensus of ($0.18). SecureWorks Corp. sees FY2019 revenue of $515-519 million, versus the consensus of $513.86 million.

For earnings history and earnings-related data on SecureWorks Corp. (SCWX) click here.