SolarWinds (SWI)

SolarWinds is a leading provider of powerful and affordable IT management software. Its products give organizations worldwide-regardless of type, size, or complexity-the power to monitor and manage their IT services, infrastructures, and applications; whether on-premises, in the cloud, or via hybrid models. The company continuously engages with technology professionals-IT service and operations professionals, DevOps professionals, and managed services providers (MSPs)-to understand the challenges they face in maintaining high-performing and highly available IT infrastructures and applications. The insights the company gains from them, in places like its THWACK® community, allow SolarWinds to solve well-understood IT management challenges in the ways technology professionals want them solved. Its focus on the user and commitment to excellence in end-to-end hybrid IT management has established SolarWinds as a worldwide leader in solutions for network and IT service management, application performance, and managed services. Targeted for MSPs, the SolarWinds MSP product portfolio delivers broad, scalable IT service management solutions that integrate layered security, collective intelligence, and smart automation. Its products are designed to enable MSPs to provide highly-effective outsourced IT services for their SMB end-customers and more efficiently manage their own businesses.

Company profile

Kevin B. Thompson
Fiscal year end
Monalytic, Inc. • Pingdom AB • Pragmatic Works Software, Inc. • SAManage Australia Pty Ltd. • SentryOne Innovative Solutions UK Limited • SolarWinds Canada Corporation • SolarWinds Czech s.r.o. • SolarWinds EMEA Limited • SolarWinds France SAS • SolarWinds Holdings, Inc. ...
IRS number

SWI stock data


5 Aug 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Cost of revenue
Operating income
Operating margin
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Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 722.44M 722.44M 722.44M 722.44M 722.44M 722.44M
Cash burn (monthly) 9.59M (no burn) 204.75M 54.09M 5.68M 3.66M
Cash used (since last report) 13.93M n/a 297.24M 78.52M 8.24M 5.31M
Cash remaining 708.51M n/a 425.2M 643.92M 714.2M 717.13M
Runway (months of cash) 73.9 n/a 2.1 11.9 125.8 196.0

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
4 Jul 22 Sudhakar Ramakrishna Common Stock Payment of exercise Dispose F No No 10.45 21,318 222.77K 1,282,327
26 May 22 Cathleen A Benko Common Stock Grant Acquire A No No 0 17,964 0 47,170
26 May 22 Bock William G Common Stock Grant Acquire A No No 0 17,964 0 62,265
26 May 22 Dennis Howard Common Stock Grant Acquire A No No 0 17,964 0 49,032
26 May 22 Kinney Catherine R Common Stock Grant Acquire A No No 0 17,964 0 60,979

Financial report summary

  • Risks Related to Cybersecurity and the Cyber Incident
  • Risks Related to Our Business and Industry
  • Risks Related to the N-able Spin-Off
  • Risks Related to Government Regulation
  • Risks Related to Our Intellectual Property
  • Risks Related to Our Indebtedness
  • Risks Related to Ownership of Our Common Stock
  • Risks Related to Our Organizational Structure
  • Risks Related to Cybersecurity and the Cyber Incident
  • Cyberattacks, including the Cyber Incident, and other security incidents have resulted, and in the future may result, in compromises or breaches of our and our customers’ systems, the insertion of malicious code, malware, ransomware or other vulnerabilities into our systems and products and in our customers’ systems, the exploitation of vulnerabilities in our and our customers’ environments, theft or misappropriation of our and our customers’ proprietary and confidential information, interference with our and our customers’ operations, exposure to legal and other liabilities, higher customer, employee and partner attrition, negative impacts to our sales, renewals and upgrades and reputational harm and other serious negative consequences, any or all of which could materially harm our business.
  • The Cyber Incident has had and may continue to have an adverse effect on our business, reputation, customer, employee and partner relations, results of operations, financial condition and cash flows.
  • Interruptions or performance problems associated with our internal infrastructure, and its reliance on technologies from third parties, may adversely affect our ability to manage our business and meet reporting obligations.
  • Interruptions or performance problems associated with our products, including disruptions at any third-party data centers upon which we rely, may impair our ability to support our customers.
  • Risks Related to Our Business and Industry
  • Our quarterly revenue and operating results may fluctuate in the future because of a number of factors, which makes our future results difficult to predict and could cause our operating results to fall below expectations or the guidance we may provide in the future.
  • If we are unable to capture significant volumes of high quality sales leads from our digital marketing initiatives and account-based marketing, it could adversely affect our revenue growth and operating results.
  • If we are unable to sell products to new customers or to sell additional products or upgrades to our existing customers, it could adversely affect our revenue growth and operating results.
  • If we fail to successfully manage our solutions evolution, our financial results could be negatively impacted.
  • Our business depends on customers renewing their maintenance or subscription agreements. Any decline in renewal or net retention rates could harm our future operating results.
  • The global COVID-19 pandemic may continue to adversely affect our business, results of operations and financial condition.
  • Because our long-term success depends on our ability to operate our business internationally and increase sales of our products to customers located outside of the United States, our business is susceptible to risks associated with international operations.
  • We operate in highly competitive markets, which could make it difficult for us to acquire and retain customers at historic rates.
  • The ability to recruit, retain and develop key employees and management personnel is critical to our success and growth, and our inability to attract and retain qualified personnel could harm our business.
  • We have experienced substantial growth in recent years, and if we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of customer satisfaction or adequately address competitive challenges, and our financial performance may be adversely affected.
  • Our actual operating results may differ significantly from information we may provide in the future regarding our financial outlook.
  • Acquisitions present many risks that could have an adverse effect on our business and results of operations.
  • Businesses that we acquire may have greater than expected liabilities for which we become responsible.
  • Charges to earnings resulting from acquisitions may adversely affect our operating results.
  • We depend on the U.S. federal government in certain calendar quarters for a meaningful portion of our on-premises license sales, including maintenance renewals associated with such products, and orders from the U.S. federal government are unpredictable. The delay or loss of these sales may harm our operating results.
  • Our operating margins and cash flows from operations could fluctuate as we make further expenditures to expand our operations and continue our increased investments in our Secure by Design initiatives and our Customer Success motion.
  • Our success depends on our ability to maintain a product portfolio that responds to the needs of technology professionals and the evolving IT management market.
  • If we are unable to develop and maintain successful relationships with channel partners, our business, results of operations and financial condition could be harmed.
  • If we fail to develop and maintain our brands cost-effectively, our financial condition and operating results might suffer.
  • Adverse economic conditions may negatively affect our business.
  • Climate change may have a long-term negative impact on our business.
  • If we fail to integrate our products with a variety of operating systems, software applications, platforms and hardware that are developed by others or ourselves, our products may become less competitive or obsolete and our results of operations would be harmed.
  • Material defects or errors in our products could harm our reputation, result in significant costs to us and impair our ability to sell our products.
  • Risks Related to the N-able Spin-Off
  • The spin-off of N-able may not achieve some or all of the anticipated benefits, which may disrupt or adversely affect our business, results of operations and financial condition.
  • We could incur significant liability if the Separation is determined to be a taxable transaction.
  • Potential indemnification liabilities pursuant to the Separation could materially affect our business and financial statements.
  • N-able may fail to perform under various transaction agreements that were executed as part of the Separation.
  • Risks Related to Government Regulation
  • We are subject to various global data privacy and security regulations, which could result in additional costs and liabilities to us.
  • We are subject to governmental export controls and economic sanctions laws that could impair our ability to compete in international markets and subject us to liability if we are not in full compliance with applicable laws.
  • Government regulation of the Internet and e-commerce is evolving, and unfavorable changes or our failure to comply with regulations could harm our operating results.
  • Risks Related to Our Intellectual Property
  • The success of our business depends on our ability to obtain, maintain, protect and enforce our intellectual property rights.
  • Exposure related to any future litigation could adversely affect our results of operations, profitability and cash flows.
  • Our use of open source software could negatively affect our ability to sell our products and subject us to possible litigation.
  • Our products use third-party software that may be difficult to replace or cause errors or failures of our products that could lead to a loss of customers or harm to our reputation and our operating results.
  • Risks Related to Our Indebtedness
  • We have substantial indebtedness, which could adversely affect our financial health and our ability to obtain financing in the future, react to changes in our business and meet our obligations with respect to our indebtedness.
  • Despite our current indebtedness level, we and our restricted subsidiaries may be able to incur substantially more indebtedness, which could further exacerbate the risks associated with our substantial indebtedness.
  • The agreements governing our indebtedness contain restrictions and limitations that may restrict our business and financing activities and expose us to risks that could adversely affect our liquidity and financial condition.
  • Certain of our indebtedness may be denominated in foreign currencies, which subjects us to foreign exchange risk, which could cause our debt service obligations to increase significantly.
  • Risks Related to Accounting and Taxation
  • We are subject to fluctuations in interest rates.
  • Failure to maintain proper and effective internal controls could have a material adverse effect on our business, operating results and stock price.
  • Changes in financial accounting standards or practices may cause adverse, unexpected financial reporting fluctuations and affect our reported results of operations.
  • Our business and financial performance could be negatively impacted by changes in tax laws or regulations or changes in our effective tax rates.
  • Additional liabilities related to taxes or potential tax adjustments could adversely impact our business and financial performance.
  • Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our operating results.
  • Risks Related to Ownership of Our Common Stock
  • The trading price of our common stock has been and may continue to be volatile, which could cause the value of your investment to decline.
  • The requirements of being a public company, including compliance with the reporting requirements of the Exchange Act, the requirements of the Sarbanes-Oxley Act and the requirements of the NYSE, may strain our resources, increase our costs and distract management, and we may be unable to comply with these requirements in a timely or cost-effective manner.
  • If securities analysts or industry analysts were to downgrade our stock, publish negative research or reports or fail to publish reports about our business, our competitive position could suffer, and our stock price and trading volume could decline.
  • Sales of substantial amounts of our common stock in the public markets, or the perception that such sales could occur, could reduce the market price of our common stock.
  • Our issuance of additional capital stock in connection with financings, acquisitions, investments, our stock incentive plans or otherwise will dilute all other stockholders.
  • We do not intend to pay dividends on our common stock.
  • Risks Related to Our Organizational Structure
  • Our restated charter and restated bylaws contain anti-takeover provisions that could delay or discourage takeover attempts that stockholders may consider favorable.
  • The Lead Sponsors have a controlling influence over matters requiring stockholder approval, which could delay or prevent a change of control.
  • Certain of our directors have relationships with the Lead Sponsors, which may cause conflicts of interest with respect to our business.
  • The Sponsors and their affiliated funds may pursue corporate opportunities independent of us that could present conflicts with our and our stockholders’ interests.
  • We may issue preferred stock whose terms could adversely affect the voting power or value of our common stock.
  • Our restated charter designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or agents.
  • We are a controlled company within the meaning of the NYSE rules and, as a result, may rely on exemptions from certain corporate governance requirements.
Management Discussion
  • Total revenue increased $1.9 million, or 0.3%, for the year ended December 31, 2021 compared to the year ended December 31, 2020. Revenue from North America was approximately 69% and 71% of total revenue for the years ended December 31, 2021 and 2020, respectively. Other than the United States, no single country accounted for 10% or more of our total revenue during these periods. We expect our international total revenue to increase slightly as a percentage of total revenue as we expand our international sales and marketing efforts across our product lines.
  • The Cyber Incident negatively impacted revenue, profitability and cash flows in 2021 and may continue to do so in 2022 and beyond. Certain of our customers have, and others may, defer renewals or cancel subscriptions which has had, and could in the future have, a negative impact on our revenue. However, despite the impact of the Cyber Incident, our maintenance renewal rate for the trailing twelve month period ended December 31, 2021 was 88%.

Content analysis

H.S. junior Avg
New words: accreted, accretion, adapt, addressed, adequate, arrive, assist, assumption, broader, chain, classification, collection, commercial, conflict, corroborated, denial, deploy, deploying, detection, deterioration, direct, directly, endeavor, evidenced, factor, forecast, fraudulent, frequently, heavily, indirect, indirectly, insertion, install, instrument, intent, interference, introduce, introduced, judged, length, Likewise, lived, malware, manufacture, pace, paper, persistent, phishing, play, portion, prevention, procure, projected, ransomware, rapid, reconciled, recoverability, recoverable, reevaluate, refinance, release, role, run, Russia, scale, scheme, sophisticated, sought, specialist, Subsequent, supply, suspended, suspension, Treasury, undetected, undiscounted, user, virtue, weakening, weighting
Removed: call, reimbursable