SecureWorks Corp. ver: 2

Q4 2021 Earnings Conference Call

3/11/2021

spk_2: Good morning and welcome to the Secureworks fourth quarter. In four year fiscal 2021 financial results Conference call following prepared remarks, We will conduct a question and answer session. If you have a question, simply press star, then one on your telephone keypad at any time during the presentation. At this time, all participants on a listen only mode. We are webcasting this car live on the secureworks investor relations website. After the completion of the call, a recording of the call will be made available on the same site. Now I would turn to call over to paul paris, chief financial officer you may begin.
spk_1: Thanks everyone for joining us with me. Today is mike Cody, our Ceo and Wendy thomas, R president of customer success. Who will join us for questions at the end of our prepared remarks during this call, we will reference non gap financial measures including non gap revenue, gross margin operating expenses, operating income, net income earnings per share, Davidoff adjusted ebitda and cash flow from operations reconciliation of these measures to their most directly comparable gap measures can be found in our Web deck and press release which are available on our IR website. Please also note that all growth percentages refer to year over year change unless otherwise specified. Finally, I'd like to remind you that all statements made during this call that relate to future results and events are far looking statements based on current expectations, actual results and events could differ materially from those projected due to a number of risks and uncertainties which are discussed in our press release. Web deck and sec filings. We assume no obligation to update our foreign looking statements. Now I'll turn it over to mike.
spk_0: Thanks paul. Our fourth quarter marked the solid end to an unprecedented year. Despite the macro uncertainty, our path remain clear. We leaned into our strategy of becoming the cloud native security analytics platform of choice and broaden our reach with the partner community to deliver our holistic approach to security at scale. Our security analytics platform. What we are now calling contagious is differentiated by intellectual property developed over more than 20 years. As the managed security services leader, we have deep experience across tens of thousands of environments allowing us to create detectors and security analytics that work in an integrated way. We also see how threat actors, tactics, techniques and procedures avoid point product security controls on a daily basis and embed this understanding of the threat landscape and behaviors into our platform. Furthermore, our approach to security is vendor inclusive. We use telemetry from both our sources and third parties to create the most comprehensive effective security analytics. Platform customers are consistently telling us about the value they're realizing what stages and initial results are promising. Cage is A. R. R. has grown to $55 million, up from approximately $15 million 13% of total. Are are Additionally we drove robust stages customer growth up 390% and increase the average revenue per customer to approximately $140,000. This lifted the total average revenue per customer to the highest in our company history. I thank my teammates who were undeterred by the challenges presented this past year and I continue to be incredibly proud of the resiliency and adaptability they've shown in protecting our customers every day. They've done a terrific job but we know in the security business our work is never done. We must continue to defend our customers and get better each day to outpace and outmaneuver an ever evolving adversary, cyber threats continue to rise and cybercrime continues to accelerate with the explosion of data and devices expanding the vulnerable attack surface from the core to the edge. Recent well publicized breaches have once again demonstrated the capability of nation states to coordinate and execute a sophisticated attack. In response to this, we leverage the visibility of our global threat intelligence to keep all customers and forms and apprised of their vulnerability status events like these. Also underscore the importance of our strategic focus. We believe that the ability to outpace the adversary of scale requires an integrated inclusive analytics platform, one that works with point products from across the industry, allowing the community to come together and defend against the threat. Historically, we delivered our
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