SolarWinds (SWI) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $210.3M, up 6% year-over-year, with 94% from recurring sources.

• Net income for Q4 was $72.7M; full-year net income totaled $111.9M.

• Adjusted EBITDA for Q4 was $104.1M (49% margin, +20% YoY); full-year Adjusted EBITDA was $384.7M (48% margin, +17% YoY).

• Subscription ARR grew 34% YoY to $311.7M; Total ARR rose 7% YoY to $729.0M.

• Announced definitive agreement to be acquired by Turn/River Capital for $4.4B, expected to close in Q2 2025.

Financial highlights

• Full-year revenue was $796.9M, up 5% YoY; recurring revenue comprised 94% of total.

• Q4 gross margin was 89.9% GAAP and 90.8% non-GAAP; full-year gross margin was 89.5% GAAP and 90.7% non-GAAP.

• Q4 operating income was $60.4M (GAAP), $98.9M (non-GAAP); full-year operating income was $208.4M (GAAP), $361.4M (non-GAAP).

• Q4 diluted EPS was $0.41 (GAAP), $0.51 (non-GAAP); full-year diluted EPS was $0.64 (GAAP), $1.32 (non-GAAP).

• Unlevered free cash flow for 2024 was $263.8M, up from $254.5M in 2023.

Segment performance

• Subscription revenue for Q4 was $89.3M (+32% YoY); full-year subscription revenue was $304.5M (+30% YoY).

• Maintenance revenue for Q4 was $107.9M; full-year maintenance revenue was $440.6M.

• License revenue for Q4 was $13.1M; full-year license revenue was $51.8M.