Recent Business Highlights Balance Sheet At March 31, 2024, total cash and cash equivalents and short-term investments were $312.8 million, and total debt was $1.2 billion. The special cash dividend of $168.2 million declared in March and reflected as a current liability on our balance sheet as of March 31, 2024 was paid on April 15, 2024. The financial results included in this press release are preliminary and pending final review by the company and its external auditors. Financial results will not be fina ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38711 SolarWinds Corporation (Exact name of registrant as specified in its charter) Delaware 81-0753267 (State or other jurisdiction ...

SolarWinds Corp (NYSE:SWI) Q4 2023 Earnings Conference Call February 8, 2024 8:30 AM ET Company Participants Tim Karaca - Vice President, Strategic Finance and Investor Relations Sudhakar Ramakrishna - President and Chief Executive Officer Barton Kalsu - Executive Vice President, Chief Financial Officer and Treasurer Conference Call Participants Robert Oliver - Baird Matthew Hedberg - RBC Capital Markets Jaiden Patel - JPMorgan Erik Suppiger - JMP Securities Operator Good morning. My name is Jeannie and I w ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38711 SolarWinds Corporation (Exact name of registrant as specified in its charter) Delaware 81-0753267 (State or other juri ...

Financial Data and Key Metrics - Q3 subscription revenue was $59 million, up 39% YoY, driven by the success of the subscription-first strategy and multi-year arrangements [3] - Maintenance revenue was $116 million in Q3, up 2% YoY, attributed to high renewal rates and price increases implemented at the start of the year [3] - Total revenue for Q3 was $190 million, a 6% increase YoY, exceeding the guidance range of $182-186 million [30] - Adjusted EBITDA for Q3 was $85 million, representing a 45% margin and a 21% YoY growth, the highest since Q4 2020 [25] - Non-GAAP fully diluted EPS is projected to be $0.83-$0.85 for the full year, assuming 166.4 million fully diluted shares outstanding [5] - Total ARR reached $668 million, up 8% YoY, with subscription ARR at $213 million, up 34% YoY [30] Business Line Data and Key Metrics - Subscription revenue growth reflects the ongoing success of the subscription-first strategy, with a higher percentage of new deals sold as subscriptions [3] - Hybrid Cloud Observability solution continues to gain widespread adoption, helping customers reduce tool sprawl and alert fatigue through AIOps services [26] - The company launched an upgraded version of its Database Performance Monitoring and DataOps solution, SQL Sentry, enhancing customers' ability to prevent database performance issues [27] - The Transform Partner Program was updated to accelerate growth and revenue for partners, with new opportunities for channel offerings and specialized options for database and ITSM products [68] Market Data and Key Metrics - The company's customer base is diversified across sizes and industries, with 955 customers spending over $100,000 in the last 12 months, an 8% increase YoY [25] - The Federal segment remains a strong area of growth, with continued expansion and high customer loyalty [9] - The SME sector shows robust demand, with mid-market customers investing in solutions to reduce complexity and improve productivity [10] - The company sees consistent demand across North America, Europe, and APAC, with transaction counts increasing despite macro challenges in EMEA [65] Company Strategy and Industry Competition - The company is focused on driving subscription adoption, improving profitability, and retaining customers through its subscription-first strategy [28] - The Hybrid Cloud Observability and SolarWinds Observability solutions are positioned as the most comprehensive AI-powered full-stack observability solutions in the industry [26] - The company is committed to public-private partnerships to improve cybersecurity and respond to cyberattacks, despite concerns about the SEC's actions [6] - The company is making selective investments in its product portfolio and go-to-market strategies, which are starting to yield results [39] Management Commentary on Operating Environment and Future Outlook - The company believes it is well-positioned to achieve its fiscal year goals and enter 2024 with strong momentum, despite macroeconomic challenges [2] - The company expects to grow its top-line in 2023, driven by an expanded product portfolio, improved execution, and strong customer renewal rates [4] - The company is focused on improving its profitability profile and maintaining expense discipline in a challenging macro environment [4] - The company raised its full-year revenue guidance to $749-753 million, representing 4% YoY growth, and adjusted EBITDA guidance to $322-324 million, representing 15% YoY growth [71] Other Important Information - The company received multiple industry awards, including the 2023 Cloud Security Award for the best security infrastructure in enterprise and the Gold Global Award as Most Innovative Company of the Year in the cloud SaaS category [58] - The company is working to reduce its net leverage ratio, which improved to 3.2x trailing 12-month adjusted EBITDA, down from 3.9x at the end of the previous year [32] - The company expects to pay approximately $8 million in cash taxes during Q4, with a non-GAAP tax rate of 26% [33] Q&A Session Summary Question: Drivers of growth in larger customers (spending over $100,000) - The company attributes the growth to delivering greater value to customers, including eliminating tool sprawl and consolidating vendor tools onto the SolarWinds Platform [74] Question: Public sector and Federal customer demand in Q3 - The company saw good demand in Q3, with some deals slipping into Q4 due to continuing resolution issues, but overall results were strong, reflecting the diversity and robustness of solutions across all verticals [9] Question: SME market health and customer spending trends - The SME sector shows robust demand, with mid-market customers investing in solutions to reduce complexity and improve productivity, while large enterprise deals face longer approval cycles [10] Question: New ESM product reception and typical customer profile - The new Enterprise Service Management (ESM) product is aimed at mid-market customers, particularly those where the CIO plays a significant role in technology decisions [78] Question: Potential upside in Q4 due to budget flushes - The company is cautious in its Q4 guidance due to macro headwinds but plans to exceed the guidance, with potential upside from budget flushes [63] Question: Vertical performance in Q3 - The company saw consistent results across all verticals, with traditional traction in the Federal segment despite government shutdown-related issues [67] Question: Net new ARR contribution from migrations and growth portfolio - The company noted that migrations often involve customer expansion, with consolidation of tool sprawl and preparation for the cloud contributing to ARR growth [50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38711 SolarWinds Corporation (Exact name of registrant as specified in its charter) Delaware 81-0753267 (State or other jurisdicti ...

Financial Data and Key Metrics Changes - The company reported total revenue of $185 million for Q2 2023, a 5% increase year-over-year, exceeding the guidance range of $177 million to $182 million [47] - Subscription revenue grew by 44% year-over-year, reaching $53 million, while subscription ARR increased by 33% to $198 million [49][50] - Adjusted EBITDA for Q2 was $79.1 million, an 18% year-over-year growth, with an adjusted EBITDA margin of 43% [54][82] Business Line Data and Key Metrics Changes - The database monitoring portfolio and observability solutions are gaining traction, with significant adoption among both large and mid-market customers [6][7] - The service management solution, which is entirely SaaS-based, is particularly appealing to mid-market customers due to its quick time to value [9] - Maintenance revenue was $116 million, a 2% increase from the prior year, while license revenue declined by approximately 38% to $16 million [51][52] Market Data and Key Metrics Changes - The company has 933 customers who have spent more than $100,000 in the last 12 months, reflecting a 6% year-over-year growth [53] - The maintenance renewal rate was 94% on a trailing 12-month basis, indicating strong customer loyalty [51][81] Company Strategy and Development Direction - The company is focused on a subscription-first strategy, aiming to convert existing maintenance relationships to subscription models, which is expected to enhance recurring revenue [46][78] - Investments in AI and AIOps are ongoing, with the company positioned to leverage these technologies to improve customer productivity and security [12][84] - The company aims to reduce its net leverage ratio below 3x over the next couple of years, with a focus on debt paydown [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment remains challenging, the demand for their products is robust, with a growing pipeline [1][44] - The company is optimistic about maintaining revenue growth in 2023, despite potential macroeconomic headwinds affecting IT spending [58][59] - The company has raised its full-year guidance for total revenue to a range of $740 million to $748 million, reflecting confidence in its growth trajectory [61] Other Important Information - The company has received recognition for its innovations and efforts in cybersecurity, including awards for its Secure by Design principles [30][80] - The company is committed to selective investments and operational discipline to enhance profitability while managing costs [32][65] Q&A Session All Questions and Answers Question: Decline in the 100K customer cohort - Management explained that the decline is partly due to the conversion of customers to subscription arrangements, which tend to be smaller in size compared to perpetual deals, but noted a 6% year-over-year increase in this cohort [2] Question: Product traction in subscription, database management, ITSM, and observability - Management highlighted strong performance in the database monitoring portfolio and observability solutions, with significant traction among both large and mid-market customers [6][7] Question: Maintenance conversion and higher conversion rates - Management clarified that the higher conversion rates are due to customers moving to higher value solutions, not just like-for-like conversions [11] Question: AI investment and future integration - Management indicated that AI investments are ongoing, with expectations for increased integration into the product stack over the next year [12][13] Question: Debt ratio and future targets - Management confirmed a reduction in the net leverage ratio to 3.5x and expressed a goal to bring it down below 3x in the coming years [16][17] Question: International market opportunities - Management noted that the pipeline in EMEA is growing, although deal conversion cycles are longer due to macroeconomic conditions [24] Question: Hiring approach and headcount guidance - Management stated that hiring will be approached prudently, focusing on selective investments while managing costs [26][56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38711 SolarWinds Corporation (Exact name of registrant as specified in its charter) Delaware 81-0753267 (State or other jurisdict ...

Financial Data and Key Metrics Changes - In Q1 2023, total revenues reached $186 million, a 5% year-over-year increase, exceeding the high end of the guidance range [5][38] - Adjusted EBITDA grew 12% year-over-year to $77.4 million, representing an adjusted EBITDA margin of 42% [6][20] - Subscription revenue was $54 million, up 40% year-over-year, while subscription ARR increased by 31% to $185 million [5][18] Business Line Data and Key Metrics Changes - The company reported strong growth in its observability, service management, and database monitoring product lines, with double-digit year-over-year adjusted EBITDA growth [10][71] - Maintenance revenue was $114 million, a decrease of 1% from the prior year, reflecting the transition to subscription models [39] - The trailing 12-month renewal rate was 93%, the highest since Q4 2019, indicating strong customer retention [19][30] Market Data and Key Metrics Changes - The company expanded its SaaS observability solutions in Europe by opening a new data center in Germany and launched an ITSM data center in Australia for the Asia Pacific region [12][31] - The company ended Q1 with 945 customers spending over $100,000 in the last 12 months, an increase of 11% year-over-year [11][20] Company Strategy and Development Direction - The company is focused on a subscription-first transformation, aiming to drive subscription adoption and improve profitability while managing costs [15][36] - Key priorities include enhancing customer retention, expanding the product portfolio, and evolving hybrid cloud observability solutions [16][36] - The company aims to achieve $1 billion in ARR with mid-40s adjusted EBITDA margins, emphasizing the importance of subscription growth for revenue stability [36][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and portfolio despite macroeconomic challenges affecting IT spending [46][43] - The outlook for Q2 2023 includes total revenue guidance of $177 million to $182 million, reflecting a 2% year-over-year growth at the midpoint [23][44] - The company plans to continue selective hiring and disciplined expense management to navigate the uncertain economic environment [21][82] Other Important Information - The company reported a net leverage of approximately 3.8x trailing 12-month adjusted EBITDA, with cash and cash equivalents totaling $141 million at the end of Q1 [42] - One-time costs related to a cyber incident and restructuring charges were noted, with expectations for these costs to fluctuate in future quarters [41] Q&A Session Summary Question: Can you elaborate on the traction with partners and co-selling motions with AWS and Azure? - Management indicated strong co-sell motions with AWS and Azure, noting that these partnerships are still in the early stages, representing a larger opportunity moving forward [50] Question: Can you quantify the size of the larger deals being won? - Management highlighted an increase in the number of deals over $100,000, indicating a positive trend in winning larger customers [61][74] Question: What is the conversion ratio from maintenance to subscription? - The conversion rate from maintenance to subscription was reported at approximately 1.8, exceeding expectations [80] Question: How are you managing expenses in the current environment? - Management emphasized prudent expense management, with selective hiring and a focus on reaping dividends from past investments [82] Question: What are the trends in customer demand from 2022 to 2023? - Management noted a mix of demand driven by both 2022 budget decisions and 2023 budgeting processes, indicating a combination of factors influencing customer decisions [67][68]

Safe Harbor and Other Information These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as "aim," "anticipate," "believe," "can," "could," "seek," "should," "feel," "expect," "will," "would," "plan," "project," "intend," "estimate," "continue," "may," or similar expressions and the negatives of those terms. Forw ...