SolarWinds Q3 Earnings Highlight MSP Milestones
When SolarWinds announced quarterly financial results today, the IT management software company pointed to several recent MSP-centric milestones. The key takeaway: The SolarWinds MSP business unit truly is strategic to the broader company’s strategy and performance.
Two key examples:
- SolarWinds MSP launched the latest version of SolarWinds N-Central with deeper PSA application integration, enhanced patch management, and NetPath for network-oriented monitoring and management.
- SolarWinds launched Threat Monitor, which can detect suspicious activity and malware by aggregating asset data, security events, host intrusion detection, network intrusion detection, and more. The company is lining up a handful of MSSPs to run SolarWinds Threat Monitor. Those MSSPs, in turn, can deliver threat monitoring services to smaller MSPs, SolarWinds has emphasized.
Third quarter non-GAAP revenue was $214.0 million, up 12 percent from the corresponding quarter last year. The company is seeing a “significant mix shift toward recurring revenue” — which reflects the “combination of the large, fast-growing subscription revenue stream we have built by addressing the needs of Managed Service Providers and the need to manage today’s hybrid IT environments – including public cloud – coupled with our high cash flow generating maintenance revenue base,” according to CEO Kevin Thompson.
SolarWinds: The Road Ahead
Still, SolarWinds expects slowing growth in the months ahead. The company predicts total non-GAAP revenue of $218.0 to $220.0 million in Q4 2018. That revenue range represents 9.1 percent to 10.1 percent year-over-year growth.
ChannelE2E is checking to see if SolarWinds Q3 2018 results met Wall Street’s expectations. We’ll add those details to this article as soon as we have the information.
SolarWinds returned to public markets when the company launched an IPO in October 2018. Private equity firms continue to own major stakes in the software provider.