SecureWorks Corp (NASDAQ: SCWX) was one of the top gainers in Thursday’s trading session. The stock rallied to close the day with gains of 29.45%. This followed Q3 earnings that beat analyst expectations.
The company had an EPS of $0.01 a figure that beat analyst expectations of a loss of $0.03 per share. Revenues in the quarter stood at $141.3 million, or an increase of 6.2%, when compared to a similar quarter in the last financial year. The company’s GAAP gross margins also increased in the quarter. The company announced a gross margin of 56.4% compared to a gross margin of 53.3%. In the same period, non-GAAP gross margin was 59.2%, a significant increase compared to a gross margin of 56% in the same period in the last financial year.
SecureWorks Corp also reported a GAAP net loss of $7.9 million in Q3. This was significantly higher than the net loss of $3.7 million that it reported in a similar quarter in the last financial year. The net income was also lower to stand at $0.8 million. In the same period in the last financial year, the non-GAAP net income stood at $5.2 million. The company also announced that it had ended the quarter with $138 million in cash and cash equivalents.
The company management also offered guidance for Q4 2020. It announced that it expects revenues of $138 to $140 million on both GAAP and non-GAAP. It also expects a GAAP net loss of between $0.12 and $0.13 and a non-GAAP net loss of $0.00 to $0.01.
From the charts, the stock opened with a gap up and was trading between $12.20 and $14.55. Volumes in the day stood at 702.47k.
About SecureWorks Corp
SecureWorks Corp is a cybersecurity company that offers intelligence-driven security solutions. The Dell Inc subsidiary has its headquarters in Atlanta, Georgia.