Shares of cybersecurity firm SecureWorks Corp (SCWX) surged over 8% in intraday trading on Thursday, September 6, 2024, fueled by the company's impressive second-quarter fiscal 2025 results and optimistic full-year outlook.

SecureWorks reported strong momentum in its core Taegis security platform, with Q2 Taegis subscription revenue growing 7% year-over-year to $71 million. The company's Annual Recurring Revenue (ARR) increased 5% to $290 million, driven by new customer acquisitions and expansions, while the Average Revenue Per Customer (ARPC) jumped 14% to $150,000.

Notably, SecureWorks achieved robust profitability metrics, with a non-GAAP Taegis gross margin of 74.3% and adjusted EBITDA of $1 million. The company attributed these improvements to its focus on operational efficiency, productivity enhancements, and cost discipline, leveraging automation, cloud scaling, and AI/ML capabilities across the business.