AUSTIN, Texas - SolarWinds (NYSE:SWI), a company specializing in observability and IT management software, has declared a special cash dividend of $1.00 per share. This dividend is payable on April 15, 2024, to shareholders of record as of April 3, 2024. The total distribution of approximately $168 million corresponds to the company's free cash flow for the fiscal year 2023.
The announcement reflects the company's confidence in its financial health and commitment to shareholder return. According to CFO Bart Kalsu, the significant capital return is indicative of SolarWinds' robust business model, characterized by high customer retention and subscription revenue growth.
The company's financial strategy balances investment in the business and debt repayment with shareholder returns. Since its initial public offering in 2018, SolarWinds has reduced its debt by $739 million and returned over $405 million to shareholders, including the latest dividend.
The calculation of free cash flow, as mentioned in the press release, excludes capital expenditures from net cash provided by operating activities. This measure is a non-GAAP financial metric, typically used to assess a company's financial performance and liquidity.
The press release also contains forward-looking statements regarding the special dividend and the company's future plans. These statements are based on current management beliefs and available information but are subject to a variety of risks and uncertainties that could cause actual results to differ materially.
SolarWinds' forward-looking statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Potential risks include, but are not limited to, the repercussions of a cyberattack that occurred in December 2020 and other cybersecurity threats, as well as broader market and economic conditions.
The information provided in this article is based on a press release statement from SolarWinds, a leader in IT management software, offering solutions that provide a unified view of modern, distributed, and hybrid network environments.
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