SolarWinds Corp (NYSE:SWI) reported a fiscal first-quarter 2024 revenue growth of 4% year-on-year to $193.31 million, beating the analyst consensus of $190.84 million.

Adjusted EPS of $0.29 beat the analyst consensus of $0.22.

Maintenance revenue declined 2.4% Y/Y at $111.72 million. Subscription revenue climbed 26.5% Y/Y to $68.76 million, while License revenue declined 25.1% to $12.83 million.

Also Read: AI Is Going Well For Microsoft, But Cybersecurity Is Not

The adjusted gross margin increased by 30 bps to 90.9%, and the adjusted EBITDA margin increased by 600 bps to 47.6%.

SolarWinds held $312.8 million in cash and equivalents as of March 31, 2024.

Outlook: SolarWinds expects second-quarter revenue of $186 million—$191 million, versus the consensus of $191.80 million. It projects an adjusted EPS of $0.21 – $0.23 versus the consensus of $0.22.

SolarWinds reiterated fiscal 2024 revenue of $771 million – $786 million versus the consensus of $779.74 million.

SolarWinds expects fiscal 2024 adjusted EPS of $1.00 – $1.04 (prior $0.95 – $1.00) versus the consensus of $0.95.

SolarWinds stock gained 26% in the last 12 months. Investors can gain exposure to the stock via SPDR S&P Software & Services ETF (NYSE:XSW) and ProShares Big Data Refiners ETF (NYSE:DAT).

Price Action: SWI shares traded higher by 2.89% at $11.39 at the last check Thursday.