Financial Data and Key Metrics Changes - For Q4 2021, the company reported revenues of $186.7 million, exceeding the high end of the guidance range of $180 million to $184 million [12][25] - Adjusted EBITDA for Q4 was $78.4 million, representing an adjusted EBITDA margin of 42%, again exceeding the high end of the outlook for the quarter [12][34] - For the full year 2021, total GAAP revenue was $719 million, with subscription revenue contributing $125 million, reflecting a 90% year-over-year growth on a GAAP basis [32][33] Business Line Data and Key Metrics Changes - Subscription revenues increased by 18% year-over-year in Q4, driven by additional subscription revenue from SentryOne products and increased sales of on-premises subscriptions [14][30] - Total license and maintenance revenue for Q4 was $152 million, a decrease of 3% from the prior year, with maintenance revenue also down by 3% [26][33] - The company finished 2021 with 829 customers spending over $100,000 in the last 12 months, a 5% improvement over the previous year [34] Market Data and Key Metrics Changes - Total ARR reached approximately $631 million as of December 31, 2021, reflecting year-over-year growth of 1% [31] - Subscription ARR was $134.7 million, an increase of more than 20% year-over-year [31] - The company anticipates both license and subscription revenues to grow in 2022, reflecting a recovery in sales to new and existing customers [15][38] Company Strategy and Development Direction - The company aims to achieve $1 billion in ARR by 2025 with a compounded annual subscription ARR growth north of 30% [10] - The focus is on transitioning customers to subscription offerings and enhancing the product portfolio with unified platforms and superior customer experiences [48][49] - The company is committed to building a safer customer environment through its secure-by-design initiative [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving customer retention rates, expecting to approach historical best-in-class levels in the low 90% range [13] - The company anticipates total revenue growth in 2022 to be positively impacted by increases in licensed and subscription revenue, despite a decline in maintenance revenue [38][40] - Management highlighted the importance of customer success management in driving adoption rates and expanding customer relationships [100] Other Important Information - The company completed the spin-off of the N-able business on July 19, 2021, and results now reflect SolarWinds as a standalone business [4][22] - One-time costs related to the Cyber Incident totaled approximately $33.1 million for the full year of 2021, which are excluded from adjusted EBITDA [35][36] - The company ended Q4 2021 with a cash balance of $732 million and net debt of approximately $1.2 billion [37] Q&A Session Summary Question: What percentage of new customers are choosing subscription? - Management noted that there is a good mix of customers choosing subscription, particularly in the database opportunity and midmarket [52][53] Question: How do you feel about SME spending trends in 2022? - Management indicated that while SME spending trends are stabilizing, they expect growth primarily from the SME segment [58] Question: What are the expectations for federal maintenance renewal rates in 2022? - Management projected that federal renewal rates would be consistent with commercial renewal rates, showing positive trends [60] Question: Can you discuss the rollout plans for the application monitoring service? - Management explained that application monitoring will be integrated into the hybrid cloud platform, enhancing customer experience and competitive positioning [63][64] Question: What gives you confidence that the licensed business can rebound in 2022? - Management cited improved demand activities, increased personnel in go-to-market efforts, and better packaging and pricing as factors for expected growth [108]

Q4'21 Results February 17, 2022 © 2022 SolarWinds Worldwide, LLC. All rights reserved. General Disclaimer 2 Forward-Looking Statements This presentation and the accompanying oral presentation contain "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook, our expectations regarding impact of the cyberattack that occurred in December 2020 (the "Cyber Incident"), the spin-off of ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's financials reflect the N-able spin-off, a decrease in assets, and lower net income and cash flow [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $4.83 billion due to the N-able spin-off, while cash increased and equity declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $708,890 | $270,708 | | Total current assets | $820,480 | $512,733 | | Goodwill | $3,326,805 | $3,375,319 | | Total assets | $4,834,811 | $5,710,483 | | **Liabilities & Equity** | | | | Total current liabilities | $406,568 | $491,204 | | Long-term debt, net | $1,873,472 | $1,882,672 | | Total liabilities | $2,512,312 | $2,699,796 | | Total stockholders' equity | $2,322,499 | $3,010,687 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 revenue decreased slightly while operating loss widened significantly due to higher expenses Q3 2021 vs Q3 2020 Operating Results (in thousands) | Metric | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Total Revenue | $181,271 | $184,818 | | Gross Profit | $123,440 | $131,891 | | Operating Income (Loss) | $(3,822) | $20,995 | | Net Income (Loss) from Continuing Operations | $1,080 | $2,443 | | Net Income (Loss) from Discontinued Operations | $(10,059) | $10,059 | | Net Diluted EPS | $(0.06) | $0.08 | Nine Months 2021 vs 2020 Operating Results (in thousands) | Metric | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | | Total Revenue | $531,915 | $531,221 | | Gross Profit | $362,187 | $375,047 | | Operating Income (Loss) | $(22,510) | $50,326 | | Net Income (Loss) from Continuing Operations | $(42,585) | $(10,766) | | Net Income from Discontinued Operations | $14,822 | $36,528 | | Net Diluted EPS | $(0.18) | $0.17 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly decreased, while financing activities provided cash from the N-able spin-off Nine Months Ended Sep 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities (continuing) | $81,945 | $202,942 | | Net cash used in investing activities (continuing) | $(9,587) | $(18,116) | | Net cash provided by (used in) financing activities (continuing) | $247,625 | $(11,448) | | Net cash provided by discontinued activities | $22,212 | $71,958 | | **Net increase in cash and cash equivalents** | **$338,392** | **$251,614** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the N-able spin-off, a special dividend, and significant costs from the Cyber Incident - On July 19, 2021, the company completed the separation of its N-able business, which is now a separately traded public company and its historical financial results are reflected as **discontinued operations**[32](index=32&type=chunk)[49](index=49&type=chunk) - The company effected a **2:1 reverse stock split** on July 30, 2021, and paid a special cash dividend of **$1.50 per share**, totaling **$237.2 million**, on August 24, 2021[35](index=35&type=chunk)[36](index=36&type=chunk) - As a result of the Cyber Incident, the company is subject to numerous lawsuits, including class actions and shareholder derivative actions, as well as investigations by the **DOJ, SEC, and state Attorneys General**[98](index=98&type=chunk)[99](index=99&type=chunk) - The company will indemnify N-able for all liabilities arising from the Cyber Incident, with the exception of certain specified expenses[103](index=103&type=chunk) Cyber Incident Costs (Nine Months Ended Sep 30, 2021, in millions) | Description | Amount | | :--- | :--- | | Pretax Gross Expenses | $39.8 | | Insurance Receipts/Proceeds | $(15.0) | | **Net Pretax Expense** | **$24.8** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the N-able spin-off, ongoing Cyber Incident impacts, and Q3 financial performance - The company completed the spin-off of its N-able business on July 19, 2021, with related separation costs of **$7.3 million** for Q3 and **$30.4 million** for the nine months ended Sep 30, 2021[109](index=109&type=chunk)[110](index=110&type=chunk) - The company estimates ongoing annual costs of approximately **$20 million** for its 'Secure By Design' initiatives, implemented in response to the Cyber Incident[115](index=115&type=chunk) - As of September 30, 2021, the company had over **300,000 customers**, with **786** of them spending more than **$100,000** in the trailing twelve months[122](index=122&type=chunk) Annual Recurring Revenue (ARR) as of September 30, 2021 | Metric | 2021 (in thousands) | 2020 (in thousands) | YoY Growth | | :--- | :--- | :--- | :--- | | Subscription ARR | $130,176 | $105,869 | 23.0% | | Total ARR | $623,761 | $572,078 | 9.0% | [Comparison of the Three and Nine Months Ended September 30, 2021 and 2020](index=28&type=section&id=Comparison%20of%20the%20Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202021%20and%202020) Q3 revenue fell 1.9% as subscription growth was offset by a decline in license revenue and higher expenses - The maintenance renewal rate for the trailing twelve months ended September 30, 2021, was **89%**, down from **92%** in the prior year, with the decline primarily attributed to the Cyber Incident[143](index=143&type=chunk)[144](index=144&type=chunk) - Q3 2021 operating expenses increased primarily due to higher personnel costs, marketing program costs, and **$2.4 million** in net costs related to the Cyber Incident and **$1.4 million** in spin-off costs[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) Q3 2021 vs Q3 2020 Revenue Breakdown (in thousands) | Revenue Type | Q3 2021 | Q3 2020 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Subscription | $32,293 | $26,871 | $5,422 | 20.2% | | Maintenance | $119,742 | $118,663 | $1,079 | 0.9% | | License | $29,236 | $39,284 | $(10,048) | -25.6% | | **Total Revenue** | **$181,271** | **$184,818** | **$(3,547)** | **-1.9%** | [Non-GAAP Financial Measures from Continuing Operations](index=34&type=section&id=Non-GAAP%20Financial%20Measures%20from%20Continuing%20Operations) Non-GAAP operating income and Adjusted EBITDA both declined in Q3 compared to the prior year Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Q3, in thousands) | Metric | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | GAAP operating income (loss) | $(3,822) | $20,995 | | Stock-based compensation & related taxes | $16,019 | $18,390 | | Amortization of acquired tech & intangibles | $53,666 | $51,878 | | Restructuring costs | $2,596 | $2,022 | | Cyber Incident costs, net | $2,927 | $— | | Other adjustments | $232 | $1,469 | | **Non-GAAP operating income** | **$71,618** | **$94,754** | Adjusted EBITDA Reconciliation (Q3, in thousands) | Metric | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net income (loss) from continuing operations | $1,080 | $2,443 | | Amortization and depreciation | $57,354 | $55,210 | | Income tax expense (benefit) | $(19,321) | $1,505 | | Interest expense, net | $15,897 | $16,792 | | Stock-based compensation & related taxes | $16,019 | $18,390 | | Cyber Incident costs, net | $2,927 | $— | | Other adjustments | $1,312 | $3,708 | | **Adjusted EBITDA** | **$75,268** | **$98,048** | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $708.9 million in cash despite a decrease in operating cash flow - Cash and cash equivalents stood at **$708.9 million** as of September 30, 2021[184](index=184&type=chunk) - Total debt was **$1.9 billion** as of September 30, 2021, with **$117.5 million** available under the revolving credit facility[187](index=187&type=chunk) - Net cash from financing activities for the nine months ended Sep 30, 2021, was significantly impacted by a **$505.6 million** net distribution from the N-able spin-off and a **$237.2 million** special dividend payment[198](index=198&type=chunk)[199](index=199&type=chunk) [Quantitative and Qualitative Disclosures of Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20of%20Market%20Risk) The company is exposed to market risks from variable interest rates on its debt and foreign currency fluctuations - The company's debt has variable interest rates, and a hypothetical 100 basis point increase in interest rates would result in an approximate annual increase of **$19.3 million** in interest expense[209](index=209&type=chunk) - The company faces foreign currency exchange risk from operating globally, with primary exposures in the **Euro, British Pound Sterling, and Australian Dollar**[211](index=211&type=chunk) - The company utilizes foreign currency forward contracts to manage exposure but had **no contracts outstanding** as of September 30, 2021[215](index=215&type=chunk)[216](index=216&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in the quarter - The CEO and CFO concluded that as of September 30, 2021, the company's disclosure controls and procedures were **effective** at a reasonable assurance level[220](index=220&type=chunk) - **No material changes** to internal control over financial reporting occurred during the third quarter of 2021[221](index=221&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company faces numerous lawsuits and investigations related to the Cyber Incident - The company is subject to numerous lawsuits and government investigations as a result of the **Cyber Incident**[224](index=224&type=chunk) - Excluding the Cyber Incident, the company is not party to any material legal proceedings, though it may be involved in various claims arising in the ordinary course of business[225](index=225&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last disclosure - **No material changes** to the company's risk factors have occurred since the last quarterly report[226](index=226&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed, including agreements related to the N-able spin-off - Key exhibits filed include the **Separation and Distribution Agreement** with N-able, Inc and related transaction agreements[229](index=229&type=chunk) - An amendment to the **First Lien Credit Agreement**, dated July 27, 2021, was also filed as an exhibit[229](index=229&type=chunk)

Financial Performance - Total revenue for Q3 2021 was $1813 million, a 2% year-over-year decline[34] - Year-to-date total revenue reached $532 million[23] - Total Annual Recurring Revenue (ARR) amounted to $624 million[23] - Adjusted EBITDA for Q3 2021 was $75 million, with a 42% Adjusted EBITDA Margin[23] - Year-to-date Adjusted EBITDA totaled $225 million[23] - Year-to-date Unlevered Free Cash Flow was $139 million[23] Revenue Breakdown - GAAP subscription revenue grew 20% year-over-year to $323 million[29] - GAAP license + maintenance revenue declined year-over-year to $1490 million[29] Customer & Renewal Metrics - The company had 786 customers with over $100K in Trailing Twelve Months (TTM) spend[23] - TTM Maintenance Renewal Rate was 89%[23] Financial Outlook - The company anticipates Q4 2021 total revenue of $180-$184 million, representing a (3%) - (1%) year-over-year growth[44] - The company anticipates full year 2021 total revenue of $712 - $716 million, representing a (1%) – 0% year-over-year growth[47]

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $181.3 million, exceeding the high end of the outlook range of $176 million to $180 million [12][22] - Adjusted EBITDA for Q3 was $75.3 million, representing an adjusted EBITDA margin of 42% [12][33] - Maintenance renewal rate for Q3 was approximately 88%, above the expected low to mid-80% range [13][25] - Subscription revenue grew 20% year-over-year, with subscription ARR increasing 23% year-over-year [14][31] Business Line Data and Key Metrics Changes - Total license and maintenance revenue was $149 million, a decrease of 6% from the prior year [24] - License revenue for Q3 was $29.2 million, representing a decline of approximately 26% compared to Q3 2020 [27] - Subscription revenue for Q3 was $32.3 million, up 20% year-over-year [29] Market Data and Key Metrics Changes - Total ARR reached approximately $624 million as of September 30, 2021, reflecting year-over-year growth of 9% [30] - The company finished Q3 with 786 customers spending more than $100,000 in the last 12 months, a 4% improvement over the previous year [32] Company Strategy and Development Direction - The company completed the spin-off of the N-able business on July 19, 2021, allowing for a standalone strategy [5][15] - Focus on increasing subscription bookings and transitioning to a greater subscription mix [13][39] - Introduction of SolarWinds' observability solutions aimed at enhancing customer value and addressing evolving needs [16][45] Management's Comments on Operating Environment and Future Outlook - Management noted that customer conversations have shifted from incident-related discussions to strategic improvements and security enhancements [52] - The company expects maintenance renewal rates to remain in the high 80s for Q4 and anticipates continued progress into 2022 [40] - Management expressed confidence in the ongoing improvement of license revenue as the impact of the SUNBURST incident diminishes [77] Other Important Information - The company completed a 2-for-1 reverse stock split and declared a dividend of $1.50 per share [35] - Net leverage at September 30 was approximately 3.8x pro forma trailing 12-month adjusted EBITDA [34] Q&A Session Summary Question: How is Q4 looking from a new bookings perspective? - Management indicated that new bookings for Q4 are expected to trend positively, consistent with previous quarters [48] Question: Update on customer conversations and renewal trends post-breach? - Management reported an improvement in renewal rates to 88% and noted that conversations have shifted to strategic discussions about security improvements [50][52] Question: What is the traction in new logos on the enterprise side? - Management stated that traction is being seen across the portfolio, particularly with the Orion Platform and database monitoring solutions [55] Question: What has been the impact of the shift to subscription on revenue growth? - Management noted an 11% headwind to total revenue from the shift to subscription, with ongoing improvements expected as the company moves forward [64] Question: How is the renewal rate in the Federal sector? - Management confirmed that the renewal rate in the Federal sector remains above 80% [71][75] Question: Will the decline in license revenue continue? - Management expects improvements in license revenue as the company anniversaries the SUNBURST incident [77] Question: Has the supply chain issue impacted the company? - Management clarified that supply chain issues have not impacted the company, as it primarily sells software [90]

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, 2021 or (Exact name of registrant as specified in its charter) Delaware 81-0753267 (State or other jurisdiction of incorporation or organization) 7171 Southwest Parkway Building 400 Austin, Texas 78735 (512) 682.9300 (Address and telephone number of principal executive offices) Securities r ...

Financial Data and Key Metrics Changes - Total consolidated non-GAAP revenue for Q2 2021 was $262 million, representing year-over-year growth of 6% [12][19] - Consolidated adjusted EBITDA was $111.1 million, with an adjusted EBITDA margin of 42%, exceeding the high end of the outlook [13][25] - Ongoing SolarWinds maintenance renewal rate was 86%, above the expected low to mid-80s range [13][20] - Total ARR reached approximately $992 million as of June 30, reflecting year-over-year growth of 14% [23] Business Line Data and Key Metrics Changes - Total ongoing SolarWinds revenue was $177 million, above the high end of the second quarter revenue outlook [20] - Consolidated non-GAAP subscription revenue was $112.5 million, up 17% year-over-year, with ongoing SolarWinds subscription revenue growing 60% year-over-year [24] - License revenue was $26.7 million, a decline of approximately 21% compared to Q2 2020 [21] Market Data and Key Metrics Changes - The company secured the largest on-premises term subscription deal in its history from a large healthcare provider [13] - The company is winning large public sector deals globally, with the Secure by Design initiative being a key differentiator [14] Company Strategy and Development Direction - The company is focused on customer retention and aims to return to historical renewal rates of over 90% [13][34] - The Secure by Design initiative emphasizes enhancing security across internal environments, software build systems, and supply chain processes [11] - The company plans to continue expanding subscription offerings and prioritize new subscription sales [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to help customers accelerate business transformation through secure solutions [36] - The company anticipates challenges in the federal sector due to tough comparisons from the previous year [32][61] - Management expects maintenance renewal rates to remain in the mid-80s for the rest of 2021, with a target to return to historical performance in 2022 [34][78] Other Important Information - The spinoff of the N-able business was completed on July 19, 2021, allowing both companies to better align with market needs [16] - The company completed a two-for-one reverse stock split and declared a dividend of $1.50 per share [28] Q&A Session Summary Question: Customer retention and renewal rates - Management highlighted employee commitment and the relevance of solutions as key factors for improved renewal rates, which are currently at 86% [40][41] Question: Trends in the quarter and July performance - Management noted progress in demand generation activities and positive trends in Q3 and Q4 [42][43] Question: Federal business impact - Management indicated that the federal business comprises approximately 10% of total revenue and is experiencing slower conversations due to the cyber incident [98] Question: Subscription transition and unit economics - Management explained that the subscription transition typically has a two- to three-year return model, with pricing based on the three-year value of a license and maintenance model [65][67] Question: Product evolution and database opportunity - Management emphasized the focus on consolidating capabilities for clearer value propositions and integrating database solutions to support various platforms [82][85]

Q2'21 Results August 3, 2021 © 2021 SolarWinds Worldwide, LLC. All rights reserved. General Disclaimer Forward-Looking Statements This presentation and the accompanying oral presentation contain "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook, the impact of the cyberattack that occurred in December 2020 (the "Cyber Incident"), the recently completed spin-off of our N-ab ...

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 March 31, 2021 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 jurisdic ...

SolarWinds Corp (NYSE:SWI) Q1 2021 Earnings Conference Call April 29, 2021 8:30 AM ET Company Participants Howard MA - Senior Director, IR Sudhakar Ramakrishna - President, CEO & Director John Pagliuca - EVP & President, MSP Barton Kalsu - EVP, CFO & Treasurer Conference Call Participants Matt Hedberg - RBC Capital Markets Sterling Auty - JPMorgan Chase & Co. Robert Oliver - Robert W. Baird & Co. Kingsley Crane - Berenberg Erik Suppiger - JMP Securities Melissa Dunn - Morgan Stanley Terry Tillman - Truist S ...