SecureWorks Corp. (NASDAQ:SCWX) Q3 2024 Earnings Conference Call December 7, 2023 8:00 AM ET
Company Participants
Kevin Toomey - VP, IR
Wendy Thomas - CEO
Alpana Wegner - CFO
Conference Call Participants
Mike Cikos - Needham
Matt Saltzman - Morgan Stanley
Operator
Good morning, everyone. My name is Bruno, and I'll be your conference call operator today. At this time, I would like to welcome everyone to the Secureworks Third Quarter Fiscal 2024 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]
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
Thank you, operator. Good morning, and welcome to Secureworks' third quarter fiscal 2024 earnings call. Joining me today are Wendy Thomas, our Chief Executive Officer; and Alpana Wegner, our Chief Financial Officer. 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.
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, which you can also find on the Investor Relations website at investors.secureworks.com. We assume no obligation to update our forward-looking statements.
With that, I'll turn the call over to Secureworks' CEO, Wendy Thomas.
Wendy Thomas
Thank you, Kevin, and welcome, everyone. I'm pleased to share that our Taegis business continued to yield industry-leading results in 3Q, with Taegis revenue expanding 41% year-over-year to over $67 million in the quarter. Taegis annual recurring revenue or ARR now stands at $279 million, a 25% growth over last year.
In the context of this growth, we recently were recognized as having the largest market share of cloud-native XDR at 32% as published in the IDC Worldwide Cloud-Native XDR Marketshare report this quarter. And we are delivering on our drive to profitability, with a sequential improvement in adjusted EBITDA, narrowing our loss to $1 million in 3Q with a clear path to breakeven next quarter.