Solarwinds announced Q2 2012 results

Solarwinds released their Q2 results. They have grown 40% in total revenue and 43% growth in net income year over year. Their Q-o-Q growth is 7% in total revenue and 13% in net income.

Their selling cost has gone up only by 36% y-o-y and 3.8% q-o-q. This is also a great sign for their spending control.

They have done one more acquisition now. They acquired  webhelpdesk.com a help desk company (installable) for $20M. They are increasing their breadth of IT products by acquisition. They have acquired Seven companies in the last couple of years.

1. webhelpdesk.com - July 2012 - Help Desk - $20M
2. Eminentware   -  Feb 2012 - Patch Management - $ M
3. Dameware - Dec. 2011  -  Remote control tools - $40M
4. DNSstuff.com - Dec 2011 - DNS Management - $11M
5. TriGeo - July 2011 - Log Management - $35M
6. Hyper9 - Jan 2011 - Virtualization - $23M
7. Tek Tools - Jan 2010 - Storage Management -  $42M

I was expecting SWI will acquire a help desk company in Q1 2012, but it happend now in early Q3.

http://vpsaran.blogspot.in/2012/01/solarwinds-acquicition-continues.html

Solarwinds was expecting a revenue of around $245M - $255M, a 24% - 29% growth in 2012. The present growth rate shows they will be doing between $265M and $270M which is more than 33% growth. Their strategy of acquire and grow works very well.

Solarwinds CEO Kevin Thompson said that "SolarWinds feels comfortable with an acquisition a quarter".

Now they have few more areas where they can invest - Customer Support, Project Management and CRM. Soon they will move from IT to collaborative business applications.

One big draw back they have is that they are not investing on the cloud applications. They may miss that market now. As their approach is acquire and grow, it is very easy for them to acquire cloud companies and establish them self on cloud any time. Now cloud business is started growing, they will get good established companies when it matures. Then their growth rate will be fast and good.

Saravanan

Google Q2 2012 report - a Review

Google has announced its Q2 results $12.2 billion. It is 35% growth y-o-y and 15% growth compared to Q1 2012.

The major revenue contribution is from Advertising and other category (90%). Also the growth rate is high in non-us region (53%).

The employee count has increased from 33k last year to 55k. The increase is due to the motorola acquisition. 23k  employees were moved under Google from Motorola. 1000 employees were recruited by Google directly in Q2 2012 alone.

The Cost-Per-Click has gone down by 16% in Q2 2012 compared to Q1 2012. But this has gone up by 1% compared to Q1 2012.

The growth differentiator is the revenue from Motorola. Otherwise the revenue growth is same trend of previous quarters. The standalone growth is 21%.

Google registers consistent increase in revenue from non-US region. The Europe region growth was limited due to the economic turmoil in Countries like Spain, Greece, Italy. UK had a growth of 20% y-o-y.