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 ScoreFew 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:
- CA Technologies recently praised the performance of its Nimsoft software business -- which focuses on emerging enterprises and mid-market MSPs.
- GFI Max, part of GFI Software, said its MSP base grew to 7,000 partners in 2012, up about 2,000 during the year.
- N-able Technologies last week said its 2012 growth exceeded internal goals, though the company did not disclose those actual goal figures.