Nikada
SecureWorks Corp. (NASDAQ:SCWX) nosedived on Thursday after cutting its full-year revenue guidance below analyst estimates, along with a mixed quarterly earnings show, on account of longer sales cycles and a faster winding down of certain businesses.
The cybersecurity company fell about 8% after forecasting 2024 revenue in the range of $360 to $368 million, compared to the average analyst estimate of 382.63 million.
Consistent with others in the industry, the company continued to experience longer sales cycles than last year as customers adjust their budgets in the current inflationary environment, said Wendy Thomas, company chief executive.
The company now expected a non-GAAP net loss of $0.36 to $0.41 per share, while analysts estimated a loss of $0.39. This compares to a loss of $0.34 to $0.43 per share forecasted in the first quarter.
SecureWorks is currently in the midst of closing its legacy businesses in favor of a subscription model through its flagship system Taegis XDR, as it looks to implement a series of cost-saving measures announced in February.
For the second quarter, the company posted revenue of $93 million, down 20% compared to last year, missing estimates of about $10 million.
However, for the same period, Taegis contributed $66.4 million in revenue, higher than the $42.8 million posted last year.
The company also delivered a non-GAAP per-share loss of $0.10, beating estimates by $0.05 for the second quarter.
SCWX is up 1.67% since the start of the year, but is down 34.51% on a 12-month reading.