SolarWinds (SWI) Reports Q3 EPS of $0.17 on Revenues of $213.28M; Offers FY18 EPS/Revenue Guidance
SolarWinds (NYSE: SWI) reported Q3 EPS of $0.17. Revenue for the quarter came in at $213.28 million.
“Our third quarter 2018 results illustrate the progress we have made in our business since going private in early 2016. Third quarter non-GAAP total revenue of $214.0 million, representing year-over-year growth of 12%, highlights the large scale we have achieved. Non-GAAP recurring revenue of $170.3 million grew 13% year-over-year and represented 80% of total non-GAAP revenue. This significant mix shift toward recurring revenue reflects the combination of the large, fast-growing subscription revenue stream we have built by addressing the needs of Managed Service Providers and the need to manage today’s hybrid IT environments - including public cloud - coupled with our high cash flow generating maintenance revenue base.
“And, as has been historically the case, we continue to invest in and deliver solid results through our on-premise network and systems management business. We believe it is our continued focus and commitment to this business has helped us secure the number one position in Network Management, according to IDC.1 According to Gartner, we have the number four position in Systems Management2, based on 2017 market share, worldwide,” said Kevin Thompson, SolarWinds’ President, and Chief Executive Officer.
“In addition to increased revenue scale and visibility, we also operate more efficiently and generate more cash flow today than at the time of our take private transaction. Third quarter 2018 adjusted EBITDA of $106.5 million represents an adjusted EBITDA margin of 49.8% and showcases the efficiencies in our business and the work we have done as a private company to drive even greater levels of profitability, which translates into strong cash flow generation. For the first nine months of 2018, net cash provided by operating activities was $166.1 million and unlevered free cash flow of $259.7 million increased 18% year-over-year, representing 88% of year-to-date adjusted EBITDA,” added Bart Kalsu, SolarWinds' Executive Vice President and Chief Financial Officer.
GUIDANCE:
SolarWinds sees FY2018 EPS of $0.57-$0.58, versus the consensus of $0.00. SolarWinds sees FY2018 revenue of $833.2-835.2 million, versus the consensus of $0 million.
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