SolarWinds Ups Total Revenue to $112.9M in Q3
SolarWinds (SWI), parent company of remote monitoring and management platform provider N-able, exceeded its own expectations for total revenue in the third quarter of 2014, according to its most recent earnings report. Kevin Thompson, SolarWinds’ CEO said yesterday during an earnings report call that the Austin, Texas-based IT management software provider recorded $112.9 million in total revenue during the third quarter, which represents a 28 percent year-over-year increase.
“We are very pleased to report another quarter of strong license and recurring revenue growth and leverage,” Thompson said in a prepared statement. “Our results in the third quarter reflect broad-based strength across our product portfolio.”
Other SolarWinds Q3 earnings report highlights included:
- Total recurring revenue, which includes both maintenance revenue and subscription revenue, rose 31 percent in the third quarter to $70.1 million. This amount represents 62 percent of SolarWinds’ total revenue for the quarter.
- License revenue was $42.8 million for the quarter, which represents a 24 percent year-over-year increase.
- Net cash provided by operating activities was $54.3 million for the quarter, which represents a 29 percent year-over-year increase.
- There was a 31 percent year-over-year increase in SolarWinds’ new business sales.
- New business sales in the North America commercial market for the quarter rose 28 percent year over year.
- SolarWinds’ managed service provider (MSP) new business sales for the quarter increased 35 percent year over year.
Jason Ream, SolarWinds’ chief financial officer (CFO), said during the earnings call that his company could make several investments over the next few quarters as well.
“There are so many areas where we believe this continued investment will drive a positive return for the business, and we intend to continue to aggressively make those investments over the coming quarters but also intend to maintain our rigorous approach to spending — always with an eye towards the return on that investment,” he said.
Expect “impactful product releases” from SolarWinds
SolarWinds was busy during the third quarter, as the company released Network Performance Monitor (NPM) version 11.0 in July and acquired Swedish performance management and website monitoring solutions provider Pingdom in June.
Thompson pointed out his company has invested more in its business in 2014, and as a result, he expects his company to launch various “impactful product releases” soon.
“Our product pipeline, which has been funded by the increased investment in our business that we kicked off in late 2013, continues to be strong,” he said. “We expect to have a number of impactful product releases come to market over the next several quarters.”
Thompson also noted Pingdom could provide a huge opportunity for his company to expand globally.
“We plan to meaningfully increase the investment and the capabilities and size of the Pingdom product development, marketing and sales teams over the next several quarters to aggressively attack this opportunity,” he said. “We continue to feel confident that a large and rapidly growing market opportunity exists to manage the performance and uptime of the website and web application, and Pingdom is the right brand and technology platform for us to exploit to capture this opportunity.”
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