SCWX - Secureworks stock falls after co reports mixed FQ2 2023 results slashes revenue guidance

Secureworks ( NASDAQ: SCWX ) stock lost as much as 10.9% to $9.27 in Thursday afternoon trading, after the cybersecurity company reported mixed FQ2 2023 results and cut its fiscal year revenue guidance.

Class A shares of the company had pared most of the losses and were trading marginally lower as of 1308 ET.

SCWX earlier in the day posted Q2 non-GAAP EPS of -$0.13 which beat estimates by $0.04 . Its revenue fell 13.4% Y/Y to $116.2M, which was in-line with expectations.

The company said annual recurring revenue from its flagship security platform Taegis doubled Y/Y to $201M, and that it added 800 Taegis customers to finish the quarter with 1.5K customers.

SCWX said that the overall fall in quarterly revenue was due to the company exiting non-strategic, lower-margin services.

SCWX also slashed its fiscal year 2023 total revenue guidance to a range of $458M-$465M from a prior forecast of $475M-$490M. The consensus revenue estimate is $480.32M.

The company said it continues to expect fiscal year 2023 Taegis annual recurring revenue of at least $265M.

SCWX tightened its non-GAAP net loss per share outlook to $0.64 to $0.70 from a previous range of $0.61 to $0.70. The consensus EPS estimate is -$0.67.

For Q3, the company expects revenue of $111M-$113M vs. consensus of $119.08M, and non-GAAP net loss per share of $0.20-$0.22 vs. consensus of -$0.18.

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