SecureWorks Corp. (NASDAQ:SCWX) Q3 2021 Earnings Conference Call - Final Transcript

Dec 03, 2020 • 08:00 am ET


SecureWorks Corp. (NASDAQ:SCWX) Q3 2021 Earnings Conference Call - Final Transcript


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Good morning and welcome to the SecureWorks Third Quarter Fiscal 2021 Financial Results Conference Call. [Operator Instructions] We are webcasting this call live on the SecureWorks Investor Relations website. After the completion of the call, a recording of this call will be made available on the same site.

Now, I will turn the call over to Paul Parrish, Chief Financial Officer. You may begin.

Paul Parrish

Thanks, everyone, for joining us. With me today is Mike Cote, our CEO; and Wendy Thomas, President of Customer Success, will join us for questions at the end of our prepared remarks.

During this call, we will reference non-GAAP financial measures, including non-GAAP revenue, gross margin, operating expenses, operating income, net income, EPS, EBITDA, adjusted EBITDA, and cash flow from operations. A reconciliation of these measures to their most directly comparable GAAP measures can be found in our web deck and press release. Please also note that our growth percentages refer to year-over-year change unless otherwise specified.

Finally, I'd like to remind you that all statements made during this call that relate to future results and events are forward-looking statements based on current expectations. Actual results and events could differ materially from those projected due to a number of risks and uncertainties, which are discussed in this morning's press release and our SEC reports.

Now, I'll turn it over to Mike.

Michael R. Cote

Thanks, Paul. The events of 2020 underscored how transformative technology can be to help adapt, innovate and increase productivity. Cybercrime continues to accelerate as the explosion of data and devices have expanded the attack surface, and the shift to work-from-home has required additional cyber security controls and operational changes. These same events have created an opportunity for cyber criminals to exploit and capitalize on the expanding number of vulnerabilities.

Our recently published Incident Response Report, highlighted increased risk areas in direct response to the pandemic. These included an increased risk with more people accessing SaaS applications, delays in vulnerability patching, circumvention of VPN connections and increased phishing attacks. This is the first time we've seen cyber criminals globally focused on one issue, with threat actors using COVID-19 theme tactics to exploit vulnerabilities.

Against this backdrop, I continue to be incredibly proud of the resiliency, determination and adaptability of my teammates in serving our customers and partners every day.

For many years, the security industry has been overrun with thousands of point products that do not enable organizations to mount a holistic defense against adversaries, who's unrelenting attacks only have to succeed once. Through a variety of means, the adversary has consistently been able to navigate between security controls, going undetected and undeterred in organizations that lack integrated detection and response capabilities across their environment.

We believe that the ability to outpace the adversary at scale requires an integrated security platform that closes the gaps between point products, put security detections in context of risk to an organization and automates the remediation process with agility.

Our superior threat detection and remediation capabilities are accelerated with deep learning,