Wendy Thomas, incoming CEO, SecureworksSecureworks is gaining momentum in the XDR (eXtended Detection and Response) security market, but the Top 250 MSSP's business transformation also involves falling top-line revenues.First, the good news: Secureworks Taegis, an XDR platform, surpassed $100 million in annual recurring revenue (ARR) and ended the second quarter of fiscal 2022 with 700 customers, the MSSP said on September 2, 2021.Now, the challenge: Overall Secureworks quarterly revenue was $134.2 million, a 3.1 percent decline compared to the corresponding quarter last year. Also, the MSSP had a GAAP net loss of $11.8 million.
New Secureworks CEO Wendy Thomas
The financial results surface amid a planned Secureworks CEO transition to Wendy Thomas from Michael Cote, which is effective September 3, 2021.In a prepared statement about the quarterly results, Thomas emphasized the XDR momentum. She said:
"We're proud to announce that just two years after launch, Taegis ARR has tripled year over year to surpass $100 million. Providing customers with access to the detection and response capabilities, best practices, and threat research used by our experts in an easy-to-use XDR solution is resonating."
Despite those milestones, Wall Street wants even faster growth. SecureWorks stock ($SCWX) fell about 14 percent amid the earnings announcement on Sept 2, 2021.
Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.
As security teams move toward agentic SOC models, NDR retains its relevance because the network still gives defenders visibility that endpoint and log-based tools can miss.
