Q3 Fiscal Performance Review

Dec. 2, 2021

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Disclaimers

Non-GAAP

Financial Measures

This presentation includes information about SecureWorks Corp.'s non-GAAP revenue, non-GAAP subscription cost of revenue, non- GAAP professional services cost of revenue, non-GAAP gross profit, 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 (loss), non-GAAP net income (loss), adjusted EBITDA, and non- GAAP earnings (loss) 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 GAAP to non-GAAP Financial Measures."

Operating Metrics

The Company defines annual recurring revenue (ARR) as the value of its subscription contracts as of a particular date. Because the Company uses recurring revenue as a leading indicator of future annual revenue, it includes operational backlog. Operational backlog is defined as the recurring revenue associated with

pending contracts, which are contracts that have been sold but for

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 loss per share for the fourth quarter of fiscal 2022, and GAAP revenue, non-GAAP revenue, Adjusted EBITDA, non-GAAP net loss per share, net loss per share, cash flow from operations, capital expenditures, tax benefit rate, annual recurring revenue and revenue for the Taegis platform for the full year of fiscal 2022. 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.

which the service period has not yet commenced.

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Our Vision

Our Purpose

3

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Q3 Fiscal 2022

Performance Highlights

SOLID 3Q22 RESULTS:

  • Taegis ARR grew to $123 million, now representing over 30% of Total ARR
  • Total Revenue of $133.7 million (-6%Y/Y)
  • Gross margin percentage
    of 63.6% (+300 bps Y/Y)
  • Adjusted EBITDA of $4.7 million
  • Earnings per Share of $0.01

Taegis ARR growth of 193% y/y

Taegis customer count to 800

Record Gross Margin

performance GAAP and Non-GAAP gross margins at 60.4% and 63.6%.

Recognized as a Leader in the

IDC MarketScape: U.S. Managed

Detection and Response Services 2021

Assessment*

*IDC MarketScape: U.S. Managed Detection and Response Services 2021 Assessment (doc # US48129921, August 2021)

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Q 3 F I S C A L 2 0 2 2

+$155M ARR

Taegis Traction & ARR Momentum

  • Taegis ARR of $123M
  • 30% of total ARR
  • 800 Taegis customers

+22% Q/Q

+22.5

+6% Q/Q

+28.2

+14% Q/Q

+17.5

+12.9

+8.5

On track to

+8.6

FY22 Guide

+9.4

+8.6

+6.1

+0.8

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

FY 22

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SecureWorks Corp. published this content on 02 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2021 13:20:04 UTC.