2024-02-13 21:49:09 ET
Summary
- SolarWinds surpasses expectations in Q4 2023 earnings, marking its fourth consecutive quarter of beating EPS and revenue forecasts.
- Transitioning to a subscription-based revenue model, SolarWinds witnessed a substantial 34% YoY increase in annual recurring revenue, signaling strong customer retention and acquisition strategies.
- With improving financials, including impressive adjusted EBITDA growth and a promising outlook for FY2024, SolarWinds emerges as an undervalued investment opportunity, warranting an upgrade to a buy rating.
SolarWinds ( SWI ) recently reported its Q4 2023 earnings , in which the company beat EPS and revenue expectations for the fourth consecutive quarter. In 2022, I previously recommended a hold rating because the company was still early in the transition phase of moving its customers to a more profitable subscription-based revenue model, and the company was yet to generate profits. Furthermore, I was also still cautious of the long-term reputational damage to the company's well-documented hack in 2020. Since my first article, the stock value has increased by 60.46%....
Read the full article on Seeking Alpha
For further details see:
SolarWinds: Strong Earnings And Positive Long-Term Prospects (Rating Upgrade)