SecureWorks Corp. (NASDAQ:SCWX) Q2 2025 Earnings Conference Call September 5, 2024 8:00 AM ET

Company Participants

Kevin Toomey - VP of IR
Wendy Thomas - CEO
Alpana Wegner - CFO

Conference Call Participants

Hamza Fodderwala - Morgan Stanley
Mike Cikos - Needham
Saket Kalia - Barclays
Madeline Brooks - Bank of America Securities

Operator

Good morning, my name is Carly and I'll be the conference operator for today. At this time I'd like to welcome everyone to the SecureWorks Second Quarter Fiscal 2025 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 speaker's remarks, there'll 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, please begin.

Kevin Toomey

Thank you, operator. Good morning and welcome to SecureWorks' second quarter fiscal 2025 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. Our business continued its strong momentum in the second quarter. Taegis revenue grew 7% year-over-year to $71 million, and we delivered on our Q2 total revenue commitment. Annual recurring revenue, or ARR, now stands at $290 million, driven by the strength in new customer acquisition and expansion. And our Taegis average revenue per customer, or ARPC, expanded to $150,000 per customer. Our non-GAAP Taegis gross margin of 74% remains strong, growing 360 basis points year-over-year. And we delivered positive adjusted EBITDA once again this quarter.