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SolarWinds (SWI) reports fourth-quarter earnings, with quarterly revenue of $198.14 million, up 5.9% year over year, and full year revenue of $758.7 million, up 5% year over year. was shown.
SolarWinds CEO and President Sudhakar Ramakrishna joins Yahoo Finance to discuss the company’s performance, its switch to a subscription model, and its ongoing battle with the Securities and Exchange Commission (SEC).
Ramakrishna explains: “SolarWinds has always been great at monitoring, networking, databases, applications, and systems. What we’ve done is consolidate all of that into a single entity, the SolarWinds platform. We can provide superior functionality to [customers] A better way to integrate all this. So while some of our competitors carefully monitor their applications, infrastructure, and databases, we bring it all together to provide comprehensive visibility, reducing the time it takes to detect and resolve issues. It can be shortened. . This increases productivity, reduces costs, and improves overall security.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by Nicholas Jacobino
video transcript
[AUDIO LOGO]
– SolarWinds stock is rising today after strong fourth-quarter earnings. The software developer saw a 6% year-over-year increase in total revenue. To learn more about the latest results, we are joined by his Sudhakar Ramakrishna, CEO and President of SolarWinds. Thank you very much for being here.
Please talk about the demand you are currently seeing from businesses. I mean, we talk a lot about companies cutting back, right? That’s one of the reasons they’re profitable, but obviously they’re still investing in companies as well.
Sudhakar Ramakrishna: Yes, first of all, thank you for being here. We are very fortunate to have a very large customer base all over the world. In fact, we have over 300,000 customers around the world who are all looking for ways to reduce complexity, increase productivity, and do it in an easy way.
Everyone is resource constrained, so we provide it to them. And we’re solving their problems, both physically and financially, and we think there’s a demand there.
– And the number one thing that investors and financial analysts who are covering you on the street are concerned about, Mr. Sudhakar, is this transition to this kind of subscription model that you guys are moving towards? Why guys? Do you think is well-positioned for that pivot?
Sudhakar Ramakrishna: For us, subscription-only is not just a business model shift, it’s a value model shift. So every time we go to a customer and move them to a subscription, we’re actually giving them more features to help them manage their multi-cloud environments. And you’ll see an elevator there.
We’ve made them incredibly easy to get. We made it very compelling from a value proposition perspective. We’ve also made it cloud-enabled, so you can start where you are and evolve at the pace your business needs. So we’re giving them the best of both worlds. And that’s what draws them to us.
– And Sudhakar, you’re also doing this interesting work in the observability market. For example, there is a lot of competition when it comes to app monitoring software. In other words, why do you think Splunk and Datadog are well-positioned to compete and win in that market?
Sudhakar Ramakrishna: Yes, SolarWinds has always excelled in monitoring, networking, databases, applications, and systems. So what we’ve done is consolidate all of that into a single entity: the SolarWinds platform. And we can provide a better way to integrate all this.
So while some of our competitors carefully monitor their applications, infrastructure, and databases, we bring it all together to provide comprehensive visibility that helps reduce time to detection. can. Solve problems and solve problems. Therefore, productivity is increased, costs are reduced, and overall security is also improved.
– Mr. Sudhakar, I’d like to switch gears and talk a little bit about the ongoing SEC litigation with SolarWinds. This case involved something that happened before you became CEO, a major hack at your company. And the SEC is basically saying that SolarWinds hasn’t disclosed enough and is trying to impose some new rules on disclosure.
Well, you’re against it. But many other companies are also participating in this quest. What’s the problem with disclosing more information? Please help people understand the point you are trying to make here.
Sudhakar Ramakrishna: absolutely. I think the SEC is right to strive to improve disclosure and disclosure levels. But our stance is always to be good and very proactive and transparent in disclosing events.
So in many ways it appears to be the right intention, but the wrong target. In essence, we feel like we are the victims of one of the most sophisticated attacks of all time. And no company is immune to this type of attack. Since then, we have continued to improve.
And I think the entire industry is coming together to support us because the entire industry understands that no one company can handle a nation-state attack. We all have to work together as a community. And if there are too many restrictions, that actually holds us back, discourages us from actually coming out and sharing openly, and it creates even more asymmetry in this security war.
That’s why I feel like everyone is rallying behind us. We are so confident in our facts, and we hope you see us that way, that we will put this issue behind us and focus even more on our customers and employees.
– And Sudhakar, I would like you to take this question from here. It’s clear that interest in AI is booming, but how well are you responding to his AI questions from your clients, Sudhakar, and how are you positioning your company to take advantage of that big trend? How do you position yourself?
Sudhakar Ramakrishna: We have been investing in AI-related technologies since 2021. In fact, our solution is called an AI-powered stack. But more specifically, we use AI to help our customers detect and remediate issues in their environments faster.
So leveraging AI across your portfolio, whether it’s observability or service management, is very practical. And while it’s been very well received by our customers, we’re still in the very early stages of that evolution as an industry.
– Sudhakar Ramakrishna from SolarWinds, thank you very much for your time today. appreciate.
Sudhakar Ramakrishna: thanks again.
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