Q3 FY21 Performance Review

Dec. 3, 2020

//Secureworks/Confidential - Limited External Distribution

Disclaimers

Non-GAAP

Financial Measures

This presentation includes information about SecureWorks Corp.'s non-GAAP revenue, non-GAAP gross margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non- GAAP operating income, non-GAAP net income, adjusted EBITDA, and non-GAAP net income per share, which are not measurements of financial performance prepared in accordance with U.S. generally accepted accounting principles. We have provided a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures in the slides captioned "Reconciliation of non-GAAP to

GAAP Financial Measures."

• This is what a divider slide looks like.

2

//Secureworks/Confidential - Limited External Distribution

Special Note on Forward

Looking Statements

Statements in this material that relate to future results and events are forward-looking statements and are based on SecureWorks Corp.'s current expectations. These forward-looking statements include but are not limited to SecureWorks Corp.'s current expectations regarding GAAP revenue, non-GAAP revenue, GAAP net loss per share, and non-GAAP net income per share for the fourth quarter of fiscal 2021, and GAAP revenue, non-GAAP revenue, Adjusted EBITDA, non-GAAP net income per share, GAAP net loss per share, cash flow from operations, capital expenditures, and tax benefit rate for the full year of fiscal 2021. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "could," "estimate," "expect," "intend," "confidence," "may," "plan," "potential," "should," "will" and "would," or similar expressions. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including those discussed in SecureWorks Corp.'s periodic reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this

presentation. SecureWorks Corp. assumes no obligation to update its forward-looking statements.

Q3 Fiscal 2021

Consolidated

GAAP

Results

($ in millions)

//Secureworks/Confidential - Limited External Distribution

Q3 FY21

Q3 FY20

Change

Revenue

141.6

141.3

0.2%

Gross Margin

82.0

79.8

2.8%

GM % of Revenue

57.9%

56.4%

150 bps

R&D

27.6

24.1

14.6%

S&M

34.8

40.7

-14.5%

G&A

24.5

25.1

-2.3%

Operating Expenses *

86.9

89.9

-3.3%

OpEx % of Revenue

61.4%

63.6%

-220 bps

Operating Loss

(4.9)

(10.1)

-51.7%

OpLoss % of Revenue

-3.5%

-7.2%

370 bps

Interest & Other (Net)

(0.1)

(1.3)

-93.7%

I&O % of Revenue

-0.1%

-0.9%

80 bps

Income Tax

(1.4)

(3.5)

-60.7%

Effective Tax Rate

28%

31%

Net Loss

(3.6)

(7.9)

-88.0%

NL % of Revenue

-2.5%

-5.6%

310 bps

* Sum of individual items may differ from total due to rounding of individual components

3

Q3 Fiscal 2021

Consolidated

Non-GAAP

Results

($ in millions)

//Secureworks/Confidential - Limited External Distribution

Q3 FY21

Q3 FY20

Change

Revenue

141.6

141.3

0.2%

Gross Margin

85.9

83.7

2.7%

GM % of Revenue

60.7%

59.2%

150 bps

R&D

26.8

23.1

16.1%

S&M

33.7

40.0

-15.7%

G&A

17.0

18.5

-8.0%

Operating Expenses

77.6

81.6

-5.0%

OpEx % of Revenue

54.8%

57.8%

-300bps

Operating Income

8.4

2.0

309.6%

OpInc % of Revenue

5.9%

1.4%

450 bps

Net Income

6.7

0.8

711.3%

NI % of Revenue

4.7%

0.6%

410 bps

Adj. EBITDA

11.3

5.8

93.8%

Adj. EBITDA % of Revenue

8.0%

4.1%

390 bps

4

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

SecureWorks Corp. published this content on 03 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 December 2020 12:22:04 UTC