Shares in Secureworks Corp. rose nearly 6% in regular trading today after the cybersecurity company reported strong beats in earnings and revenue in its fiscal 2024 fourth quarter.

For the quarter that ended Feb. 2, Secureworks reported adjusted earnings of eight cents per share, up from a loss of 17 cents per share in the same quarter of the previous year, on revenue of $89.2 million, down from $115.3 million a year prior. Analysts were expecting Secureworks to report an adjusted four cents per share loss on revenue of $87.12 million.

The tale of Securework’s quarter was one of a shift away from its other managed security services business towards Taegis, Secureworks’ cloud-native security platform designed to provide comprehensive threat detection, investigation and response capabilities — hence the drop in overall revenue. Revenue from Targis in the fourth quarter came in at $68.9 million, up from $60.2 million in the fourth quarter of fiscal 2023.

Secureworks reported a net loss of $8.3 million in the quarter and ended the quarter with $68.7 million in cash and cash equivalents on hand. The latter figure does not give Secureworks much room to play without further financing.

Recent business highlights include Secureworks announcing on Feb. 1 a new artificial intelligence-powered service designed to help security analysts become more confident in prioritizing and responding to alerts that pose the greatest risks.

Called Threat Score, the service reduces security analyst workloads by over 50% by assisting them in assessing the risk of an alert they investigate. Threat Score anticipates the likelihood of a negative impact within the context of their operations, giving them – and the business – the confidence that their teams are reducing organizational risk.

For its full fiscal year 2024, Secureworks reported an adjusted loss per share of 22 cents, an improvement over a 56-cents-per-share loss in fiscal 2023, on revenue of $365.9 million, down from $463.5 million in the previous year.

“Our fourth-quarter results demonstrated how our unique cloud architecture creates a win-win situation, fueling the delivery of the best security outcomes for our customers with spend predictability while contributing to our expanding margins,” Chief Financial Officer Alpana Wegner said in the company’s earnings release. “We exceeded our commitment for breakeven adjusted EBITDA in the fourth quarter, which marks an important milestone and gives us confidence in our EBITDA guidance for the full year fiscal 2025.”

For its fiscal 2025 first quarter, Secureworks expects adjusted earnings of between a loss of a penny a share and a profit of a penny ar share on revenue of $83 million to $85 million. For the full fiscal year, the company expects adjusted earnings of between break-even and eight cents per share on revenue of $325 million to $335 million.

Image: Secureworks