SolarWinds (NYSE: SWI) reported Q1 EPS of $0.20, in-line with the analyst estimate of $0.20. Revenue for the quarter came in at $248.5 million versus the consensus estimate of $240.35 million.

On a non-GAAP basis:

• Non-GAAP total revenue for the first quarter of $248.5 million, representing 15.1% year-over-year growth on a reported basis and 15.9% year-over-year growth on a constant currency basis.
• Non-GAAP total recurring revenue for the first quarter of $211.5 million, representing 18.9% year-over-year growth on a reported basis and 19.8% year-over-year growth on a constant currency basis. Non-GAAP total recurring revenue includes:
• Non-GAAP maintenance revenue for the first quarter of $116.3 million, representing 9.5% year-over-year growth on a reported basis.
• Non-GAAP subscription revenue for the first quarter of $95.1 million, representing 33.0% year-over-year growth on a reported basis.
• Adjusted EBITDA for the first quarter of $110.9 million, representing a margin of 44.6% of non-GAAP total revenue.

“We are pleased to report a very strong start to 2020 delivering non-GAAP total revenue of $248.5 million, representing 15% year-over-year growth, at the high end of our first quarter outlook,” said Kevin Thompson, SolarWinds’ President & Chief Executive Officer. “As companies across most industry verticals have been forced to accommodate a more \'remote\' workforce throughout 2020, it is our view that Technology Pros and Managed Service Providers will rely on SolarWinds’ products more than ever in order to ensure the availability, performance and security of essential IT infrastructures. Additionally, as companies need to \'do more with less,\' we’re observing a higher level of urgency to adopt new technologies that are both affordable and provide high value. We believe we remain well-positioned in the current economic environment as a preferred vendor for businesses of all sizes to deliver powerful and scalable IT management products that are easy to use, very fast to deploy, and can fit the needs of any budget.”

“Non-GAAP subscription revenue grew 33% year-over-year in the first quarter, marking a fourth consecutive quarter of acceleration, while total ARR reached $862 million, representing 15% year-over-year growth,” added Bart Kalsu, SolarWinds\' Executive Vice President and Chief Financial Officer. “We also started the year with a solid quarter of non-GAAP profitability generating approximately $111 million in Adjusted EBITDA for the quarter. We believe SolarWinds is positioned to successfully weather any potential economic downturn given our highly recurring revenue model and best-in-class profitability.”

Thompson continued, “we could not have accomplished this without the incredible level of commitment from the SolarWinds IT team, who have gone above and beyond the call of duty over the last seven weeks. I want to take a moment to thank not only the SolarWinds IT team, but also all of the IT professionals who have put in an amazing level of effort to ensure that employees in businesses around the world can continue to operate and be productive during this period of disruption. Many times, your efforts are not noticed or appreciated. But in this crisis, you have been the heroes of businesses all over the world.”

GUIDANCE:

SolarWinds sees Q2 2020 EPS of $0.20-$0.21, versus the consensus of $0.21. SolarWinds sees Q2 2020 revenue of $240-248 million, versus the consensus of $246.35 million.

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

• Non-GAAP total revenue in the range of $240.0 to $248.0 million, representing growth over the second quarter of 2019 non-GAAP total revenue of 4.1% to 7.6%, or 5.8% to 9.3% on a constant currency basis assuming the same average foreign currency exchange rates as those in the second quarter of 2019.
• Adjusted EBITDA in the range of $108.0 to $112.0 million, representing 45% of non-GAAP total revenue.
• Non-GAAP diluted earnings per share of $0.20 to $0.21.
• Weighted average outstanding diluted shares of approximately 315.0 million.

Additional details on our outlook will be provided on the conference call.

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