Secureworks Announces Second Quarter Fiscal 2025 Results

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]