SolarWinds Earnings: Q4 Revenues Up 32%, IT Management Sales Look Strong

SolarWinds (NYSE: SWI), which promotes IT management software to MSPs and corporate IT departments, says Q4 revenues jumped 32 percent to $73.5 million. The earnings results, disclosed today, should give managed services providers (MSPs) a fresh shot of confidence as the quest to automate and optimize business systems accelerates. SolarWinds is part of the Talkin' Cloud Stocks Index. Here's the update, including insights from CEO Kevin Thompson.

Roughly 14 percent of MSPs are running SolarWinds' software, according to the sixth-annual MSPmentor 100 survey results -- which will be announced during a Webcast on Feb. 14, 2013. In addition to record Q4 revenues, SolarWinds said Q4 free cash flow rose 32 percent to $48 million. Earnings rose to $0.29 per share, up from $0.22 in Q2 2011. It sounds like the results exceeded Wall Street's expectations, though MSPmentor has not independently confirmed that.

In a prepared statement, SolarWinds CEO Kevin Thompson said the company is seeing strong growth across all geographies, with particularly strong demand for network configuration products like SolarWinds IP Address Manager.

Keeping Score

Few MSP-oriented software companies are publicly held so getting a feel for the industry's overall health can be difficult. But the anecdotal evidence sounds promising. In addition to SolarWinds' earnings announcement:
Generally speaking it sounds like the MSP software market, and by extension MSPs themselves, continue to enjoy expansion opportunities. Though I certainly don't want to suggest this is an easy market to navigate. Managed services has never been an easy sell.
TAGS: Financing
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