SecureWorks Corp. (NASDAQ:SCWX) Q2 2020 Earnings Conference Call - Final Transcript

Sep 05, 2019 • 08:00 am ET

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SecureWorks Corp. (NASDAQ:SCWX) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

I will now open the call for questions. [Operator Instructions] We'll take our first question from Sterling Auty with JP Morgan.

Analyst
Sterling Auty

Yeah, thanks. Hi, guys. So the improvement in terms of the top-line, can you give us a sense, because you did touch upon it, is it just improved close rates or did you actually increased the coverage ratio in the quarter as well, so you're seeing some flow through effects of that?

Executive
Michael R. Cote

Good morning, Sterling. It's Mike. Thanks for the question. It's actually a little bit of both, it's higher close rates and an expansion of the coverage.

Analyst
Sterling Auty

And within the close rates, specifically there's been lots of questions on a lot of these calls around concerns around the macro environment that's out there. How would you see the business reacting if we saw further kind of economic slowdown? Do you think because of cost savings on headcount, et cetera, that the business would actually benefit or does that actually take a hit as companies look to restrain spending?

Executive
Michael R. Cote

So that's a great question, Sterling, and thank you again. It's Mike. Couple of things I'd add or respond to that question was one is, in the quarter we saw better close rates in coverage in all markets across the world, which was the first time we've sort of -- that first time, it's been a while since we've seen that kind of productivity an increase from a coverage perspective so definitely moving in the right direction, my sense having been around for a long time is that security is not a luxury and as we go through this process, our focus on creating better efficiency and effectiveness in delivering value so that the security operations centers are actually going after and spending their time on things that matter should help us in this process and the software that we're creating -- that we've created and taken to market we believe -- we're optimistic that we'll be -- will sit in a very good [Technical Issues] to show that increased value as the -- if any downturn were to occur from an economic perspective.

Analyst
Sterling Auty

Got it. Thank you.

Executive
Michael R. Cote

Thank you.

Operator
Operator

Next question from Fatima Boolani with UBS.

Analyst
Fatima Boolani

Good morning. Thank you for taking the questions and apologies for any background noise. I have a question for Mike and a question for Wayne, but Mike to start with you, it's good to see that you're undertaking this transformation strategy as it relates to the product platform and essentially creating a software platform to collect your customers onto. So my question for you is we put a lot of cybersecurity product vendors venture into this sort of automation arena. So I wanted to get your perspective on how that's impacting your customer discussions and buying cycles and buying behavior? And I have a followup for Wayne.

Executive
Michael R. Cote

So I think, Fatima, I've got your question, but let me try and respond, and if I didn't, we'll give you a pass of being able to