The following is a summary of the SecureWorks Corp. (SCWX) Q2 2025 Earnings Call Transcript:
Financial Performance:
SecureWorks reported Q2 2025 total revenue of over $82 million, with Taegis subscription revenue at $71 million, up 7% year-over-year.
Annual Recurring Revenue (ARR) reached $290 million, driven by new customer acquisitions and expansion.
Non-GAAP Taegis subscription gross margin improved by 360 basis points to 74.3% year-over-year.Adjusted EBITDA was $1 million, reflecting operational efficiency and productivity improvements.
Business Progress:
Launched Taegis IDR, enhancing identity threat detection and response capabilities.
Expanded global partner ecosystem, adding new key partners and improving sales productivity and partner win rates.
Introduced Taegis ManagedXDR Plus, offering personalized threat hunting and security posture management.
Transitioned customers from legacy SIEM technology to Taegis platform, contributing to an increase in ARPC and endpoint growth.
Opportunities:
Strong momentum in Taegis platform with expanded offerings such as Taegis IDR and ManagedXDR Plus positions the company well for further market expansion and new customer engagement.
Growing global partner ecosystem and increased sales productivity with partner deals representing 80% of global Taegis new logo sales.
Consolidation opportunities in the cybersecurity market are accelerating, with potential displacements of legacy security technologies.
Risks:
The transition from legacy MSS business might impact short-term revenue as it completes, although most transition costs have concluded.
Market competition and dynamics around consolidations in the cybersecurity sector pose potential risks.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
