Secureworks -- a Top 250 MSSP -- continues to evolve its security business and related partnerships toward XDR (eXtended detection and response) opportunities.
The latest milestones surfaced over the past two days. First up, the company announced new partnerships with Netskope and SCADAfence. Those deal will enable Secureworks XDR to address Secure Access Service Edge (SASE), Operational Technology (OT) and Industrial Control Systems (IOS).
Next up, Secureworks disclosed that its XDR revenue was $42.8 million in Q2 of fiscal 2023 -- up 131% from Q2 of fiscal 2022. The growth involves Taegis, a home-grown, cloud-native XDR platform that now has 1,500 customers -- up 114% from this time last year.
Related: Secureworks CEO Wendy Thomas will further describe trends in the XDR market during MSSP Alert Live 2022 (September 19-21, Washington, D.C.).
New Secureworks XDR Partnerships
Secureworks is building multiple business partnerships in a bid to keep the Taegis momentum going.
For instance, Netskope and Secureworks will "enable customers to perform all investigations and apply detectors using Secureworks Taegis for a more holistic view of threats and business risks – widening the aperture of cyber environments all the way to the edge," the two companies said.
Meanwhile, the SCADAfence relationship extends Taegis XDR into the Industrial environment, "bringing intelligence from OT into a unified view with all other security telemetry across the IT landscape," the companies said. As a result, security analysts will gain "greater context around the threats they are investigating," the duo added.
Overall Secureworks Business Performance
Still, the Secureworks pivot toward XDR also involved "actively exiting non-strategic, lower-margin services" over the past couple of years or so. As a result: Even as XDR revenues grow, Secureworks' top-line revenues have been falling.
For Q2 of fiscal 2023, Secureworks reported:
- Overall revenue of $116.2 million, down from $134.2 million in the second quarter of fiscal 2022.
- A GAAP net loss of $24.7 million, compared to a net loss of $11.8 million in Q2 of fiscal 2022.
The figures generally met or exceeded Wall Street's expectations. Looking ahead, Secureworks expects to generate revenue of roughly $458 million to $465 million for fiscal year 2023.
Additional insights from MSSP Alert Managing Editor Jim Masters.
