SolarWinds (NYSE: SWI) reported Q4 EPS of $0.24, $0.02 better than the analyst estimate of $0.22. Revenue for the quarter came in at $249.4 million versus the consensus estimate of $251.7 million.

On a non-GAAP basis:

• Non-GAAP total revenue for the fourth quarter of $249.4 million, representing 12.5% year-over-year growth on a reported basis and 13.3% year-over-year growth on a constant currency basis.
• Non-GAAP total recurring revenue for the fourth quarter of $204.8 million, representing 16.8% year-over-year growth on a reported basis and 17.6% year-over-year growth on a constant currency basis. Non-GAAP total recurring revenue includes:
  • Non-GAAP maintenance revenue for the fourth quarter of $115.6 million, representing 9.3% growth on a reported basis.
  • Non-GAAP subscription revenue for the fourth quarter of $89.2 million, representing 28.1% growth on a reported basis.
• Adjusted EBITDA for the fourth quarter of $122.9 million, representing a margin of 49.3% of non-GAAP total revenue.

“We had a solid finish to a successful 2019 delivering fourth quarter non-GAAP revenue of $249.4 million reflecting 13% year-over-year growth, which resulted in full year 2019 non-GAAP total revenue of $938.5 million,” said Kevin Thompson, SolarWinds’ President & Chief Executive Officer. “Our fourth quarter revenue performance was within the range of our outlook, led primarily by non-GAAP subscription revenue exceeding the high end of our outlook representing 28% growth year-over-year for the quarter. In 2019, we also made significant progress towards our goal of solving the full complement of IT management challenges for our customers. We expanded our footprint in IT Operations Management through the acquisition of Samanage in the second quarter and the acquisition of VividCortex late in the fourth quarter which completed our infrastructure and application management picture. We can now help technology professionals monitor and manage all the key components of hybrid IT infrastructure through what we believe is the broadest coverage of the modern IT infrastructure and application environments.”

“In addition to solid 2019 non-GAAP total revenue growth, non-GAAP recurring revenue has grown 17% on a constant currency basis and non-GAAP recurring revenue accounted for 82% of total non-GAAP revenue for 2019. We also finished the year with strong profit margins exceeding the high end of our outlook for the year with full year 2019 Adjusted EBITDA of $453.6 million or an Adjusted EBITDA margin of 48% for 2019, despite the dilutive impact of the Samanage acquisition,” added Bart Kalsu, SolarWinds\' Executive Vice President and Chief Financial Officer.

GUIDANCE:

SolarWinds sees Q1 2020 EPS of $0.20-$0.21, versus the consensus of $0.20. SolarWinds sees Q1 2020 revenue of $243.5-248.5 million, versus the consensus of $244.21 million.

SolarWinds sees FY2020 EPS of $0.88-$0.91, versus the consensus of $0.88. SolarWinds sees FY2020 revenue of $1.035-1.055 billion, versus the consensus of $1.05 billion.

Financial Outlook for First Quarter of 2020

SolarWinds’ management currently expects to achieve the following results for the first quarter of 2020:

• Non-GAAP total revenue in the range of $243.5 to $248.5 million, representing growth over the first quarter of 2019 non-GAAP total revenue of 12.8% to 15.2%, or 13.5% to 15.9% on a constant currency basis assuming the same average foreign currency exchange rates as those in the first quarter of 2019.
• Adjusted EBITDA in the range of $108.0 to $112.0 million, representing 44.4% to 45.1% of non-GAAP total revenue.
• Non-GAAP diluted earnings per share of $0.20 to $0.21.
• Weighted average outstanding diluted shares of approximately 313.6 million.

Financial Outlook for Full Year 2020

SolarWinds’ management currently expects to achieve the following results for the full year 2020:

• Non-GAAP total revenue in the range of $1.035 to $1.055 billion, representing growth over 2019 non-GAAP revenue of 10.3% to 12.4%, or 10.5% to 12.6% on a constant currency basis assuming the same average foreign currency exchange rates as those in 2019.
• Adjusted EBITDA in the range of $475.0 to $485.0 million, representing approximately 46.0% of non-GAAP total revenue.
• Non-GAAP diluted earnings per share of $0.88 to $0.91.
• Weighted average outstanding diluted shares of approximately 317.2 million.

For earnings history and earnings-related data on SolarWinds (SWI) click here.