SecureWorks Corp. (NASDAQ:SCWX) Q3 2023 Results Earnings Conference Call December 1, 2022 8:00 AM ET
Company Participants
Kevin Toomey - Vice President, Investor Relations
Wendy Thomas - President and Chief Executive Officer
Paul Parrish - Chief Financial Officer
Conference Call Participants
Saket Kalia - Barclays Capital
Mike Cikos - Needham & Company
Hamza Fodderwala - Morgan Stanley
Madeline Brooks - Bank of America Global Research
Operator
Good morning. My name is Bailey and I'll be your conference operator today. At this time, I would like to welcome everyone to the SecureWorks Third Quarter Fiscal 2023 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. A supplemental slide presentation to accompany the prepared remarks can be found on the company's website. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you.
At this time, I would like to turn the call over to Kevin Toomey, SecureWorks Vice President of Investor Relations. Mr. Toomey, you may begin your conference.
Kevin Toomey
Thanks, everyone, for joining us. With me this morning are Wendy Thomas, our CEO, and Paul Parrish, our CFO.
During this call, unless otherwise indicated, we will reference non-GAAP financial measures. You will find the reconciliations between these GAAP and non-GAAP measures in the press release and presentation posted on our website earlier today. Please also note that all growth percentages refer to year-over-year changes 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 forward-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 forward-looking statements.
Now I'll turn it over to SecureWorks CEO, Wendy Thomas.
Wendy Thomas
Thank you, Kevin. And welcome everyone. I am pleased to report that Taegis ARR grew more than 80% to a record $222 million in the third quarter. We doubled our Taegis customer base over the past 12 months, ending the third quarter with a total of 1,600 customers. Our Taegis ARR and customer count growth rates continue to be among the highest in the XDR and MDR space. And we've only just started to scratch the surface of the emerging market opportunity.
In addition, our business model transition is accelerating. Taegis represents 65% of our overall subscription ARR and is now expected to be approximately 80% of ARR by the end of this fiscal year. We extended the reach and performance of our platform in the third quarter with the launch of a localized version of the Taegis platform in Japan, a significant step in both the global expansion of Taegis and the strategic repositioning of our business.