分组1 - SecureWorks reported break-even quarterly earnings per share, matching the Zacks Consensus Estimate of a loss of $0.01, representing an earnings surprise of 100% [1] - The company posted revenues of $82.73 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 3.47%, but down from $89.36 million year-over-year [2] - SecureWorks has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times in the same period [2] 分组2 - The stock has added about 14.6% since the beginning of the year, underperforming the S&P 500's gain of 26.8% [3] - The current consensus EPS estimate for the coming quarter is -$0.01 on revenues of $80.21 million, and $0.03 on revenues of $328 million for the current fiscal year [7] - The Computers - IT Services industry, to which SecureWorks belongs, is currently in the top 22% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Secureworks reported a 6% year-over-year revenue growth for its Taegis platform, reaching $71.4 million in Q3 fiscal 2025 [2][4] - The total annual recurring revenue (ARR) increased by 4% year-over-year to $288.8 million [2] - The company is committed to enhancing its cybersecurity offerings amid a 30% rise in active ransomware groups [3] Financial Highlights - Taegis revenue for Q3 was $71.4 million, up from $67.3 million in Q3 fiscal 2024 [4] - Total revenue for Q3 was $82.7 million, down from $89.4 million in Q3 fiscal 2024, attributed to the strategic wind-down of the legacy Other MSS business [4] - GAAP gross profit for Taegis was $51.5 million, compared to $47.4 million in the same quarter last year [4] - Non-GAAP Taegis gross profit was $53.5 million, up from $48.9 million year-over-year [4] - GAAP net loss for the quarter was $27.5 million, or $0.31 per share, compared to a loss of $14.4 million, or $0.17 per share, in the prior year [4] - Adjusted EBITDA for the quarter was $1.4 million, compared to an adjusted EBITDA loss of $1.2 million in Q3 fiscal 2024 [4] Business and Operational Highlights - The company hosted its 9th annual Global Threat Intelligence Summit and published the Secureworks State of the Threat Report for 2024 [5] - New products, Taegis ManagedXDR Plus and Taegis ManagedXDR Elite, were launched in Japan to enhance global cybersecurity maturity [5] - Secureworks Taegis NDR was recognized as the Best Network Security Solution in the 2024 Tech Ascension Awards [5] Recent Developments - On October 21, 2024, Secureworks announced a definitive agreement for Sophos to acquire the company, pending customary closing conditions [6] - As a result of the proposed transaction, Secureworks is suspending financial guidance for Q4 and fiscal year 2025 [7]

Group 1 - Secureworks plans to release its third quarter fiscal 2025 financial results on December 4, 2024, before the U.S. stock market opens [1] - The company will not host a quarterly earnings conference call due to a pending transaction with Sophos [1] Group 2 - Secureworks is a global cybersecurity leader, offering the Secureworks Taegis™, a SaaS-based open XDR platform [2] - Taegis is built on over 20 years of real-world detection data and security operations expertise, utilizing advanced AI-driven capabilities [2] - The platform is integrated into the security operations of thousands of organizations worldwide, aiding in threat detection and investigation automation [2]

Group 1 - Monteverde & Associates PC is investigating SecureWorks Corp. in relation to a proposed merger with Sophos Inc., where all SecureWorks shares will be converted into the right to receive $8.50 in cash [1] - The firm has a successful track record in recovering money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report [1] - The firm operates from the Empire State Building in New York City and emphasizes that no company, director, or officer is above the law [2] Group 2 - Monteverde & Associates PC is a national class action securities firm with experience in trial and appellate courts, including the U.S. Supreme Court [2] - The firm encourages shareholders with concerns to contact them for additional information free of charge [2] - Contact information for Juan Monteverde, Esq. is provided for shareholders seeking assistance [2]

Core Insights - The 2024 State of the Threat Report by Secureworks indicates a 30% year-over-year increase in active ransomware groups, highlighting a fragmented criminal ecosystem with 31 new groups emerging in the past year [1][3]. Ransomware Landscape - The report identifies LockBit as the most active ransomware group, accounting for 17% of victim listings, a decrease of 8% from the previous year, indicating the impact of law enforcement actions [1][3]. - PLAY, the second most active group, doubled its victim count year-over-year, while RansomHub, a new entrant, has quickly become the third most active group with 7% of the victim share [1][3]. - The median dwell time for ransomware attacks is reported at 28 hours, reflecting the evolving tactics of these groups [2]. Cybersecurity Trends - Law enforcement operations targeting groups like LockBit and BlackCat have significantly disrupted the ransomware landscape, leading to a 30% increase in active groups using "name and shame" leak sites [3]. - Despite the growth in ransomware groups, the number of victims has not increased at the same rate, suggesting a more fragmented and potentially less effective landscape for these new groups [3]. - Scan-and-exploit and stolen credentials remain the primary initial access vectors observed in ransomware engagements [3]. Emerging Threats - There is a notable increase in adversary-in-the-middle (AiTM) attacks, which pose a significant concern for cybersecurity defenders [3][5]. - The use of AI tools by cybercriminals is on the rise, with discussions on underground forums about leveraging AI for phishing and other malicious activities [6][7]. - A novel example of AI usage includes "obituary pirates" who exploit trending topics to create fraudulent content that directs users to malicious sites [8]. State-Sponsored Threat Activity - The report highlights significant activities from state-sponsored threat groups from China, Russia, Iran, North Korea, and Hamas, with geopolitical motives driving their actions [9]. - Chinese cyber activity continues to focus on information theft aligned with the objectives of the Chinese Communist Party, with recent indictments against members of the BRONZE VINEWOOD group [10]. - Iranian cyber operations are primarily politically motivated, targeting adversaries like Israel and the US, often using fake hacktivist personas for plausible deniability [11]. - North Korea's cyber activities focus on revenue generation through cryptocurrency theft and fraudulent employment schemes, particularly targeting the IT sector [12]. - The outbreak of the Israel-Hamas war has led to increased cyber activity from groups aligned with Hamas, primarily targeting Israel [13]. - Russian state-sponsored cyber activity remains aggressive, particularly in the context of the ongoing war in Ukraine, with a focus on critical infrastructure [14].

Core Insights - Secureworks reported a 7% year-over-year revenue growth for its Taegis platform, reaching $71.2 million in the second quarter of fiscal 2025 [2][4] - The total annual recurring revenue (ARR) increased by 5% year-over-year to $290 million [2] - The company continues to expand its gross margins, with Taegis GAAP gross margin at 71.8% and non-GAAP gross margin at 74.3% [2][4] Financial Performance - Total revenue for the second quarter was $82.2 million, down from $93.0 million in the same quarter of fiscal 2024, primarily due to the strategic wind-down of the legacy Other MSS business [4] - GAAP gross profit for Taegis was $51.2 million, compared to $45.7 million in the second quarter of fiscal 2024 [4] - The company reported a GAAP net loss of $14.7 million, or $0.17 per share, an improvement from a net loss of $32.4 million, or $0.38 per share, in the same period last year [4] Business Developments - The launch of the new Identity Threat Detection and Response (ITDR) solution, Taegis IDR, aims to enhance security by leveraging AI and machine learning [5] - The company introduced Taegis ManagedXDR Plus to provide a premium experience for clients, enhancing cyber resiliency and compliance with regulatory requirements [5] - Secureworks expanded its Global MSSP Partner Program by adding Coretelligent, enhancing its Managed Detection and Response (MDR) services [5] Awards and Recognition - Secureworks won Gold in the 2024 Golden Bridge Awards for AI in Cybersecurity Innovation [6] - The company was recognized as the Best Network Security Solution in the 2024 Tech Ascension Awards [6] - It was named a finalist in CRN's 2024 Tech Innovator Awards for its Managed Detection and Response services [6] Financial Outlook - For the third quarter of fiscal 2025, Secureworks expects revenue between $80 million and $82 million, with adjusted EBITDA projected between $0 to $2 million [7] - The updated guidance for the full fiscal year 2025 includes total ARR of $300 million or greater and total revenue between $328 million and $335 million [7]

Core Viewpoint - SecureWorks (SCWX) shares experienced a significant increase of 20.4% to close at $8.73, following news of a potential sale by its parent company, Dell Technologies [1][2]. Company Summary - SecureWorks' stock price surged due to an exclusive report indicating that Dell Technologies is exploring a sale of the cybersecurity firm, with investment bankers from Morgan Stanley and Piper Sandler engaged to find potential buyers [2]. - The upcoming quarterly earnings report for SecureWorks is expected to show earnings of $0.01 per share, reflecting a year-over-year increase of 110%, while revenues are projected to be $80.98 million, a decrease of 12.9% from the previous year [3]. - The consensus EPS estimate for SecureWorks has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without trends in earnings estimate revisions [4]. Industry Summary - SecureWorks is categorized within the Zacks Computers - IT Services industry, where another company, SAIC, closed 0.6% higher at $129.22, with a 3.3% return over the past month [4]. - SAIC's consensus EPS estimate has decreased by 1% over the past month to $1.86, representing a year-over-year decline of 9.3%, and it currently holds a Zacks Rank of 4 (Sell) [5].

Core Insights - Secureworks has launched the Taegis™ IDR solution, which sets a new benchmark of 90 seconds to discover identity-related risks and misconfigurations, addressing an issue that affects 95% of organizations [1][2] Group 1: Product Features and Capabilities - Taegis IDR leverages advanced AI and machine learning to automatically detect, prioritize, and respond to identity-based threats across an organization's environment and the dark web [1][4] - The solution protects against 100% of MITRE ATT&CK Credential Access techniques, including kerberoasting, password spraying, and brute force attacks [4] - Key capabilities include continuous scanning for misconfigurations, monitoring for exposed credentials, identifying risky user behaviors, and providing full visibility into identities within 90 seconds [4] Group 2: Market Context and Trends - Identity remains a critical access vector for ransomware, with a 688% increase in stolen credentials observed on dark web marketplaces over the last three years [2] - Analysis indicates that 95% of Microsoft Entra ID environments are misconfigured, creating vulnerabilities for cybercriminals [2] Group 3: Customer Feedback - Customers, such as First Community Bank, report improved visibility into identity risks and enhanced overall cyber posture through the centralized view provided by Taegis IDR [3]

Financial Results Announcement - Secureworks plans to release its second quarter fiscal 2025 financial results on September 5, 2024, before the U.S. stock market opens [1] - A conference call will be held on the same day at 8:00 a.m. Eastern time to review the results [2] Company Overview - Secureworks is a global cybersecurity leader, offering the Secureworks Taegis™, a SaaS-based, open XDR platform [3] - The Taegis platform is built on over 20 years of real-world detection data and security operations expertise, utilizing advanced AI-driven capabilities [3]

Core Viewpoint - Secureworks has launched Taegis™ ManagedXDR Plus, a new Managed Detection and Response (MDR) solution aimed at providing tailored cybersecurity for mid-market companies, moving away from generic security solutions that do not meet their specific needs [1][3]. Product Features - Taegis ManagedXDR Plus offers customized use cases, compliance reports, and alerting tailored to the unique requirements of mid-market companies [1][6]. - The new offering quadruples the number of AI-assisted threat hunts available, allowing for customized requests to uncover emerging threats more rapidly [3][6]. - Customers can access premium support from Secureworks experts for personalized guidance in optimizing their security posture [3][6]. Market Context - Approximately 30% of mid-market companies experienced at least one ransomware attack in 2023, highlighting the urgent need for enhanced cyber resiliency [6]. - The economic impact of cyberattacks on mid-market organizations can have widespread effects, emphasizing the importance of robust cybersecurity solutions for this sector [3][6]. Competitive Advantage - Taegis ManagedXDR Plus enhances the value of Secureworks' MDR services by providing additional capabilities that improve prevention, detection, and response [4][6]. - The offering is part of a broader Taegis ManagedXDR portfolio that includes multiple tiers, ensuring that customers can find a solution that fits their security journey [7].