SecureWorks Corp. (SCWX) has disclosed a new risk, in the Corporate Activity and Growth category.
SecureWorks Corp. faces a significant business risk if it doesn’t effectively implement its go-to-market strategy for Taegis subscription solutions. Expanding and retaining its customer base, in addition to increasing annual contract values, is crucial for revenue growth. However, challenges such as customers not renewing contracts or negotiating less favorable terms could hinder the company’s ability to maintain or elevate its annual contract values. With contracts averaging two years and no renewal obligations, SecureWorks must continuously sell additional services to compensate for potential declines in revenue, which could adversely impact its financial health.
Overall, Wall Street has a Moderate Sell consensus rating on SCWX stock based on 2 Sells and 1 Hold.
To learn more about SecureWorks Corp.’s risk factors, click here.
