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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 (Mark One) FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 ...

Financial Data and Key Metrics Changes - In Q4 2022, total revenue was $187 million, a slight increase year-over-year, and above the guidance range of $178 million to $183 million [42] - Adjusted EBITDA for Q4 was $74.5 million, representing a margin of 40%, exceeding the previous outlook of 38% to 39% [21][42] - For the full year 2022, total revenue was $719 million, slightly higher than the prior year and above the guidance of $710 million to $715 million [42] - Subscription ARR as of December 31 was $175 million, a 30% increase year-over-year [19] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 was $50 million, up 45% year-over-year, with full-year subscription revenue of $168 million, up 35% [118] - Maintenance revenue for Q4 was $115 million, a decrease of 3% year-over-year, and $459 million for the full year, down 4% [44] - License revenue for Q4 was $22 million, a decline of approximately 34% compared to Q4 2021, and $93 million for the full year, down 19% [45] Market Data and Key Metrics Changes - The company experienced currency headwinds, with constant currency revenue for Q4 estimated at approximately $191 million, reflecting a 2% year-over-year growth [18] - The total ARR at the end of Q4 was $636 million, up 2% year-over-year, with a constant currency increase of over 3% [43] Company Strategy and Development Direction - The company is focused on a subscription-first strategy, aiming to grow subscription ARR to over $1 billion with mid-40s adjusted EBITDA margins in the coming years [26] - The transition to subscription is seen as a way to deliver greater value to customers, despite some total revenue headwinds [34] - The company is expanding its observability solutions and enhancing its product portfolio to address the growing complexity of IT environments [37][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment in 2022 but noted healthy demand and strong customer retention [39] - For 2023, the company plans to continue optimizing its expense structure while selectively investing to improve profitability [40] - The outlook for Q1 2023 includes total revenue guidance of $177 million to $182 million, representing a 1% year-over-year growth at the midpoint [23] Other Important Information - The company refinanced its debt, extending the maturity date to February 2027 and making voluntary prepayments totaling approximately $650 million [22] - Adjusted EBITDA for 2023 is expected to be approximately $290 million to $300 million, reflecting a 5% year-over-year growth at the midpoint [48] Q&A Session All Questions and Answers Question: How are SME customers thinking about cloud optimization? - Management noted that the hybrid cloud solutions provide flexibility for customers to pace their investments alongside their cloud evolution [78] Question: Can you comment on the trends in the international market, particularly in Europe? - The pipeline remains robust, but management is modeling lower pipeline conversion due to increased deal scrutiny in the macro environment [62] Question: What are the expectations for the observability solutions launched in 2022? - Initial customer success has been positive, and management is optimistic about the contributions of observability to revenue growth [122] Question: How is the company addressing the transition from maintenance to subscription? - The company is using maintenance renewals as opportunities to pitch the Hybrid Cloud Observability product, with high conversion rates observed [111]

Revenue on a Constant Currency Basis Reconciliation ($ in millions) Three Months Ended Year Ended unning ma @solarwinds 1 Forward-Looking Statements 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, ...

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 September 30, 2022 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 juris ...

Financial Data and Key Metrics Changes - For Q3 2022, total revenue was $179 million, down 1% year-over-year, but on a constant currency basis, it showed a 1% growth [11][25] - Adjusted EBITDA was $70.3 million, representing an adjusted EBITDA margin of 39% [14][32] - Total Annual Recurring Revenue (ARR) was $623 million, roughly flat compared to the prior year, with subscription ARR at $159 million, up 23% year-over-year [26][27] Business Line Data and Key Metrics Changes - Subscription revenue for Q3 was $42 million, up 31% year-over-year, reflecting the success of the subscription-first strategy [28] - Maintenance revenue was $114 million, a decrease of 4% from the prior year, impacted by the conversion of maintenance customers to subscription [29] - License revenue was $23 million, down approximately 22% compared to Q3 2021, due to the focus on subscription sales [30] Market Data and Key Metrics Changes - The federal business showed improved sales performance in Q3 compared to the previous year, with a total of 882 customers spending over $100,000 in the last 12 months, a 12% increase year-over-year [31] - The company experienced delays in deal closures in Europe, but demand remained strong across all regions [21][50] Company Strategy and Development Direction - The company is focused on a subscription-first strategy, aiming to grow annual recurring revenues to over $1 billion in the coming years [13][15] - The launch of the SolarWinds Transform Partner Program aims to enhance channel growth and development [20] - The transition from monitoring to observability solutions is a key element of the company's strategy to address customer challenges in hybrid and multi-cloud environments [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term opportunity despite macroeconomic challenges and FX headwinds [22][38] - The company is focused on customer retention and expansion, maintaining a renewal rate of 91% [12][43] - Management plans to exercise expense discipline while seeking selective investment opportunities [44] Other Important Information - The company completed a voluntary debt prepayment of $300 million and expects to make additional payments to reduce gross debt [35] - A goodwill impairment of $279 million was recorded in Q3 due to the current macroeconomic environment [40] Q&A Session Summary Question: Insights on federal business performance - Management noted good growth in the federal sector due to long-term engagement and the stickiness of solutions [48] Question: Pipeline in Europe and deal closures - Management acknowledged strong demand but mentioned local conditions causing some delays in deal closures [50] Question: Update on SME spending - Management indicated that scrutiny is more prevalent in upper mid-market and enterprise segments, while SME spending remains robust [53] Question: Initial response to SolarWinds Observability - Management reported positive initial responses and emphasized the advantages of their full stack capabilities [55] Question: Partner ecosystem evolution - Management highlighted the importance of global system integrators in reaching larger digital transformation initiatives [59] Question: Sustainability of renewal rates - Management expressed confidence that the 91% renewal rate is sustainable despite macro uncertainties [61] Question: Interest expense modeling - Management indicated that interest expenses have increased due to rising rates, with a current estimate around $24 million [67]