In a recent transaction, Jason Bliss, Chief Administrative Officer of SolarWinds Corp (NYSE:SWI), sold 135,000 shares of the company's common stock. The shares were sold at prices ranging from $12.87 to $13.09, with a total value of approximately $1.76 million. Following this sale, Bliss retains ownership of 838,789 shares directly. This move is part of routine trading activity and reflects the ongoing management of personal stock portfolios by company executives. SolarWinds, based in Austin, Texas, continues its focus on providing prepackaged software services.
In other recent news, SolarWinds has reported growth in its Q3 2024 earnings, with total revenue reaching $200 million, a 6% increase from the previous year. The company's revenue exceeded its forecasted value of $196 million, and it witnessed a significant surge in subscription revenue, contributing to an Annual Recurring Revenue (ARR) of $724 million. This 8% year-on-year increase led SolarWinds to raise its full-year revenue guidance.
The company's Q3 earnings were also bolstered by a robust maintenance renewal rate of 96%, and an adjusted EBITDA of $96 million. However, as SolarWinds transitions to subscription models, it experienced a decline of 5% in maintenance revenue. Despite this, the company's Subscription First strategy appears to be driving growth effectively, with 94% of total revenue now recurring.
Looking ahead, SolarWinds expects Q4 2024 revenue to range between $201 million and $204 million, with an adjusted EBITDA for the full year projected to be between $376 million and $379 million. These recent developments indicate a promising outlook for SolarWinds, despite some market uncertainties.
InvestingPro Insights
The recent insider sale by Jason Bliss comes at a time when SolarWinds (NYSE:SWI) is showing some positive financial indicators. According to InvestingPro data, the company's stock has demonstrated strong performance, with a 34.9% total return over the past year and a 21.47% return in the last three months. This upward trend suggests investor confidence in the company's direction.
SolarWinds' financial health appears robust, with a revenue of $784.73 million in the last twelve months as of Q3 2024, representing a 4.96% growth. The company's gross profit margin stands at an impressive 90.43%, indicating efficient cost management in its software services business.
InvestingPro Tips highlight that SolarWinds has a high return on invested capital, which aligns with the company's strong gross profit margin. Additionally, analysts have recently revised their earnings upwards for the company, potentially reflecting positive expectations for future performance.
It's worth noting that InvestingPro offers 16 additional tips for SolarWinds, providing investors with a comprehensive analysis of the company's financial position and market outlook. These insights can be particularly valuable for those looking to understand the context of insider transactions like the one executed by Jason Bliss.
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