SolarWinds (SWI) Q2 2024 earnings summary
Event summary combining transcript, slides, and related documents.
Q2 2024 earnings summary
2 Feb, 2026Executive summary
Q2 2024 revenue reached $193.3 million, up 4–4.4% year-over-year, with 93% from recurring sources and strong subscription growth; subscription ARR grew 36–36.5% to $269.9–$270 million.
Adjusted EBITDA rose 17% year-over-year to $92.5 million, with a 47.9–48% margin, marking the highest in 15 quarters.
Net income for Q2 was $11.1 million, up from $0.3 million in Q2 2023; non-GAAP diluted EPS was $0.26, above guidance.
Customer retention remained high with a 97% maintenance renewal rate; large customer base expanded to 1,042 with $100K+ ARR.
Product innovation, AI-driven enhancements, and a new CFO appointment marked recent milestones.
Financial highlights
Q2 2024 total revenue: $193.3 million (up 4–4.4% year-over-year); subscription revenue: $70 million (up 31–31.2%); maintenance revenue: $110.3 million (down 5%); license revenue: $12.9–$13 million (down 17–17.2%).
Total ARR reached $704.7–$705 million, a 7–7.2% year-over-year increase; recurring revenue now 93% of total.
Adjusted EBITDA: $92.5 million (48% margin, up 17% year-over-year); non-GAAP net income: $44.3 million; non-GAAP gross margin: 90.8%.
Unlevered free cash flow for H1 2024: $111–$111.3 million; cash and equivalents plus short-term investments at quarter end: $169.6–$170 million.
Paid a $168–$168.2 million special dividend in April 2024.
Outlook and guidance
Q3 2024 revenue guidance: $191–$196 million (2% growth at midpoint); adjusted EBITDA: $90–$93 million (8% growth at midpoint); non-GAAP EPS: $0.24–$0.26.
Full-year 2024 revenue guidance: $778–$788 million (3% growth at midpoint); adjusted EBITDA: $368–$375 million (13% growth at midpoint); non-GAAP EPS: $1.04–$1.08.
Guidance assumes a non-GAAP tax rate of 26% and euro/dollar exchange rate of 1.06.
Management expects continued subscription revenue growth and a slight increase in international revenue share.
Ongoing legal and professional costs related to the Cyber Incident are expected to continue and could be material.
