SecureWorks (SCWX) 10-Q 3 Jun 21 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Apr. 30, 2021	Jun. 01, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2021
Document Transition Report	false
Entity File Number	001-37748
Entity Registrant Name	SecureWorks Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0463349
Entity Address, Address Line One	One Concourse Parkway NE
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Atlanta,
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30328
City Area Code	404
Local Phone Number	327-6339
Title of 12(b) Security	Class A Common Stock,
Trading Symbol	SCWX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Central Index Key	0001468666
Current Fiscal Year End Date	--01-28
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock - Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		13,559,038
Common Stock - Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		70,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 29, 2021
Current assets:
Cash and cash equivalents	$ 180,607	$ 220,300
Accounts receivable, net of allowances of $4,534 and $4,830, respectively	94,901	108,005
Inventories, net	687	560
Other current assets	16,920	17,349
Total current assets	293,115	346,214
Property and equipment, net	15,243	17,143
Operating lease right-of-use assets, net	21,207	22,330
Goodwill	426,278	425,861
Intangible assets, net	152,247	157,820
Other non-current assets	76,721	75,993
Total assets	984,811	1,045,361
Current liabilities:
Accounts payable	17,473	16,769
Accrued and other current liabilities	60,194	109,134
Short-term deferred revenue	166,211	168,437
Total current liabilities	243,878	294,340
Long-term deferred revenue	8,193	9,590
Operating lease liabilities, non-current	21,082	22,461
Other non-current liabilities	50,609	51,189
Total liabilities	323,762	377,580
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock - $0.01 par value: 200,000 shares authorized; — shares issued	0	0
Additional paid in capital	916,528	917,344
Accumulated deficit	(236,222)	(229,831)
Accumulated other comprehensive (loss) income	(196)	(660)
Treasury stock, at cost - 1,257 and 1,257 shares, respectively	(19,896)	(19,896)
Total stockholders' equity	661,049	667,781
Total liabilities and stockholders' equity	984,811	1,045,361
Common Stock - Class A
Stockholders' equity:
Common stock	135	124
Common Stock, Class B
Stockholders' equity:
Common stock	$ 700	$ 700

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Apr. 30, 2021	Jan. 29, 2021
Accounts receivable, allowance for doubtful accounts	$ 4,534,000	$ 4,830
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	200,000	200,000
Preferred Stock, shares issued (in shares)	0	0
Treasury stock, shares (in shares)	1,257	1,257
Common Stock - Class A
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,500,000	2,500,000
Common stock, shares issued (in shares)	13,550	12,450
Common stock, shares outstanding (in shares)	13,550	12,450
Common Stock, Class B
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000	500,000
Common stock, shares issued (in shares)	70,000	70,000
Common stock, shares outstanding (in shares)	70,000	70,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Income Statement [Abstract]
Net revenue	$ 139,463	$ 141,181
Cost of revenue	57,207	62,909
Gross margin	82,256	78,272
Research and development	28,152	24,073
Sales and marketing	36,405	37,452
General and administrative	25,555	27,516
Total operating expenses	90,112	89,041
Operating loss	(7,856)	(10,769)
Interest and other, net	(907)	993
Loss before income taxes	(8,763)	(9,776)
Income tax benefit	(2,373)	(2,240)
Net loss	$ (6,390)	$ (7,536)
Loss per common share (basic and diluted) (usd per share)	$ (0.08)	$ (0.09)
Weighted-average common shares outstanding (basic and diluted) (in shares)	81,985	80,938

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,390)	$ (7,536)
Foreign currency translation adjustments, net of tax	464	(1,222)
Comprehensive loss	$ (5,926)	$ (8,758)

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Cash flows from operating activities:
Net loss	$ (6,390)	$ (7,536)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	9,918	10,486
Stock-based compensation expense	6,035	5,887
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	798	(856)
Income tax benefit	(2,373)	(2,240)
Provision for credit losses	434	909
Changes in assets and liabilities:
Accounts receivable	12,573	(5,987)
Net transactions with parent	(9,859)	2,494
Inventories	(127)	(66)
Other assets	3,320	5,267
Accounts payable	526	8,495
Deferred revenue	(3,773)	1,291
Accrued and other liabilities	(41,640)	(38,481)
Net cash used by operating activities	(30,558)	(20,337)
Cash flows from investing activities:
Capital expenditures	(2,294)	(1,020)
Net cash used in investing activities	(2,294)	(1,020)
Cash flows from financing activities:
Taxes paid on vested restricted shares	(6,841)	(4,491)
Net cash used in financing activities	(6,841)	(4,491)
Net decrease in cash and cash equivalents	(39,693)	(25,848)
Cash and cash equivalents at beginning of the period	220,300	181,838
Cash and cash equivalents at end of the period	$ 180,607	$ 155,990

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common StockCommon Stock - Class A	Common StockCommon Stock - Class B	Additional Paid in Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income	Treasury Stock
Balances, at beginning of the period (in shares) at Jan. 31, 2020		11,206	70,000
Balances, at beginning of the period at Jan. 31, 2020	$ 666,880	$ 112	$ 700	$ 896,983	$ (207,929)	$ (3,090)	$ (19,896)
Statement of Shareholders' Equity
Net loss	(7,536)				(7,536)
Other comprehensive income	(1,222)					(1,222)
Vesting of restricted stock units (in shares)		842
Vesting of restricted stock units	0	$ 8		(8)
Grant of restricted stock awards (in shares)		455
Grant of restricted stock awards	0	$ 5		(5)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)		(383)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(4,491)	$ (4)		(4,487)
Stock-based compensation	5,887			5,887
Balances, at end of the period (in shares) at May. 01, 2020		12,120	70,000
Balances, at end of the period at May. 01, 2020	659,518	$ 121	$ 700	898,370	(215,465)	(4,312)	(19,896)
Balances, at beginning of the period (in shares) at Jan. 29, 2021		12,450	70,000
Balances, at beginning of the period at Jan. 29, 2021	667,781	$ 124	$ 700	917,344	(229,831)	(660)	(19,896)
Statement of Shareholders' Equity
Net loss	(6,390)				(6,390)
Other comprehensive income	464					464
Vesting of restricted stock units (in shares)		1,140
Vesting of restricted stock units	0	$ 11		(11)
Grant of restricted stock awards (in shares)		485
Grant of restricted stock awards	0	$ 5		(5)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)		(525)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(6,841)	$ (5)		(6,836)
Stock-based compensation	6,035			6,035
Balances, at end of the period (in shares) at Apr. 30, 2021		13,550	70,000
Balances, at end of the period at Apr. 30, 2021	$ 661,049	$ 135	$ 700	$ 916,527	$ (236,221)	$ (196)	$ (19,896)

Description of the Business and

Description of the Business and Basis of Presentation	3 Months Ended
	Apr. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business and Basis of Presentation	DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Description of the Business SecureWorks Corp. (individually and collectively with its consolidated subsidiaries, “Secureworks” or the “Company”) is a leading global cybersecurity provider of technology-driven security solutions singularly focused on protecting the Company's customers by outpacing and outmaneuvering adversaries. On April 27, 2016, the Company completed its initial public offering (“IPO”). Upon the closing of the IPO, Dell Technologies Inc. (“Dell Technologies”) owned, indirectly through Dell Inc. and Dell Inc.'s subsidiaries (Dell Inc., individually and collectively with its consolidated subsidiaries, "Dell") all shares of the Company's outstanding Class B common stock, which as of April 30, 2021 represented approximately 83.8% of the Company's total outstanding shares of common stock and approximately 98.1% of the combined voting power of both classes of the Company's outstanding common stock. The Company has one primary business activity, which is to provide customers with technology-driven information security solutions. The Company’s chief operating decision-maker, who is the Chief Executive Officer, makes operating decisions, assesses performance and allocates resources on a consolidated basis. There are no segment managers who are held accountable for operations and operating results below the consolidated unit level. Accordingly, Secureworks operates its business as a single reportable segment. Basis of Presentation and Consolidation The Company's condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make assumptions and estimations that affect the amounts reported in the Company's financial statements and notes. The inputs into certain of the Company's assumptions and estimations considered the economic implications of the coronavirus disease 2019 ("COVID-19") pandemic on the Company's critical and significant accounting estimates. The condensed consolidated financial statements include assets, liabilities, revenue and expenses of all majority-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. For the periods presented, Dell has provided various corporate services to the Company in the ordinary course of business, including finance, tax, human resources, legal, insurance, IT, procurement and facilities-related services. The cost of these services is charged in accordance with a shared services agreement that went into effect on August 1, 2015. For more information regarding the related party transactions, see "Note 10—Related Party Transactions." During the periods presented in the financial statements, Secureworks did not file separate federal tax returns, as the Company is generally included in the tax grouping of other Dell entities within the respective entity’s tax jurisdiction. The income tax benefit has been calculated using the separate return method, modified to apply the benefits for loss approach. Under the benefits for loss approach, net operating losses or other tax attributes are characterized as realized or as realizable by Secureworks when those attributes are utilized or expected to be utilized by other members of the Dell consolidated group. See "Note 9—Income and Other Taxes" for more information. Fiscal Year The Company’s fiscal year is the 52- or 53-week period ending on the Friday closest to January 31. The Company refers to the fiscal year ending January 28, 2022 and the fiscal year ended January 29, 2021 as fiscal 2022 and fiscal 2021, respectively. Both fiscal 2022 and fiscal 2021 have 52 weeks, and each quarter has 13 weeks. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Estimates are revised as additional information becomes available. In the Condensed Consolidated Statements of Operations, estimates are used when accounting for revenue arrangements, determining the cost of revenue, allocating cost and estimating the impact of contingencies. In the Condensed Consolidated Statements of Financial Position, estimates are used in determining the valuation and recoverability of assets, such as accounts receivables, inventories, fixed assets, goodwill and other identifiable intangible assets, and purchase price allocation for business combinations. Estimates are also used in determining the reported amounts of liabilities, such as taxes payable and the impact of contingencies. All estimates also impact the Condensed Consolidated Statements of Operations. Actual results could differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the COVID-19 pandemic. The Company considered the potential impact of the COVID-19 pandemic on its estimates and assumptions and determined there was not a material impact to the Company's condensed consolidated financial statements as of and for the three months ended April 30, 2021. As the COVID-19 pandemic continues to develop, many of the Company's estimates could require increased judgment and be subject to a higher degree of variability and volatility. As the pandemic continues to evolve, the Company's estimates may change materially in future periods. Recently Adopted Accounting Pronouncements The Company adopted Accounting Standard Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” effective February 1, 2021. ASU No. 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and allocation of consolidated income taxes to separate financial statements of entities not subject to income tax. The adoption of the standard had no material impact on the condensed consolidated financial statements. Summary of Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies as of and for the three months ended April 30, 2021, as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2021.

Loss Per Share

Loss Per Share	3 Months Ended
	Apr. 30, 2021
Earnings Per Share [Abstract]
Loss Per Share	LOSS PER SHARE Loss per share is calculated by dividing net loss for the periods presented by the respective weighted-average number of common shares outstanding, and excludes any dilutive effects of share-based awards that may be anti-dilutive. Diluted net loss per common share is computed by giving effect to all potentially dilutive common shares, including common stock issuable upon the exercise of stock options and unvested restricted common stock and restricted stock units. The Company applies the two-class method to calculate earnings per share. Because the Class A common stock and the Class B common stock share the same rights in dividends and earnings, earnings per share (basic and diluted) are the same for both classes. Since losses were incurred in all periods presented, all potential common shares were determined to be anti-dilutive. The following table sets forth the computation of loss per common share (in thousands, except per share amounts): Three Months Ended April 30, 2021 May 1, Numerator: Net loss $ (6,390) $ (7,536) Denominator: Weighted-average number of shares outstanding: Basic and Diluted 81,985 80,938 Loss per common share: Basic and Diluted $ (0.08) $ (0.09) Weighted-average anti-dilutive stock options, non-vested restricted stock and restricted stock units 6,863 5,294

Contract Balances and Contract

Contract Balances and Contract Costs	3 Months Ended
	Apr. 30, 2021
Revenue from Contract with Customer [Abstract]
Contract Balances and Contract Costs	CONTRACT BALANCES AND CONTRACT COSTS The Company derives revenue primarily from three sources: (1) subscription revenue related to managed security services, (2) subscription revenue derived from the Taegis software-as-a-service (“SaaS”) security analytics platform and (3) professional services. Subscription-based managed security service arrangements typically include a suite of security services, up-front installation fees and maintenance, and also may include the provision of an associated hardware appliance. Taegis subscription-based revenue currently includes two applications, Extended Detection and Response, or XDR, and Vulnerability Detection and Response, or VDR, along with the add-on managed service to supplement the XDR SaaS application, referred to as Managed Detection and Response, or ManagedXDR. Professional services typically include incident response and security and risk consulting solutions. The following table presents revenue by service type (in thousands): Three Months Ended April 30, 2021 May 1, Managed Security Services $ 90,110 $ 101,904 Taegis Subscription Solutions 13,960 4,453 Professional Services 35,393 34,824 Total Revenue $ 139,463 $ 141,181 Taegis Subscription Solutions revenue for the three months ended May 1, 2020 has been presented for consistency with current period presentation. The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. The Company invoices its customers based on a variety of billing schedules. During the three months ended April 30, 2021, on average, approximately 57% of the Company's recurring revenue was billed in advance and approximately 43% was billed on either a monthly or a quarterly basis. In addition, many of the Company's professional services engagements are billed in advance of service commencement. The deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration and invoice timing. Changes to the Company's deferred revenue during the three months ended April 30, 2021 and May 1, 2020 are as follows (in thousands): As of January 29, 2021 Upfront payments received and billings during the three months ended April 30, 2021 Revenue recognized during the three months ended April 30, 2021 As of April 30, 2021 Deferred revenue $ 178,027 $ 99,364 $ (102,987) $ 174,404 As of January 31, 2020 Upfront payments received and billings during the three months ended May 1, 2020 Revenue recognized during the three months ended May 1, 2020 As of May 1, 2020 Deferred revenue $ 188,537 $ 95,768 $ (94,375) $ 189,930 Remaining Performance Obligation The remaining performance obligation represents the transaction price allocated to contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancellable contracts that will be invoiced and recognized as revenue in future periods. The remaining performance obligation consists of two elements: (i) the value of remaining services to be provided through the contract term for customers whose services have been activated ("active"); and (ii) the value of subscription-based solutions contracted with customers that have not yet been installed ("backlog"). Backlog is not recorded in revenue, deferred revenue or elsewhere in the consolidated financial statements until the Company establishes a contractual right to invoice, at which point backlog is recorded as revenue or deferred revenue, as appropriate. The Company applies the practical expedient in ASC paragraph 606-10-50-14(a) and does not disclose information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less. The Company expects that the amount of backlog relative to the total value of its contracts will change from year to year due to several factors, including the amount invoiced at the beginning of the contract term, the timing and duration of the Company's customer agreements, varying invoicing cycles of agreements and changes in customer financial circumstances. Accordingly, fluctuations in backlog are not always a reliable indicator of future revenues. As of April 30, 2021, the Company expects to recognize remaining performance obligations as follows (in thousands): Total Expected to be recognized in the next 12 months Expected to be recognized in 12-24 months Expected to be recognized in 24-36 months Expected to be recognized thereafter Performance obligation - active $ 276,913 $ 157,597 $ 80,279 $ 30,200 $ 8,837 Performance obligation - backlog 14,137 5,212 4,995 3,930 — Total $ 291,050 $ 162,809 $ 85,274 $ 34,130 $ 8,837 Deferred Commissions and Fulfillment Costs The Company capitalizes a significant portion of its commission expense and related fringe benefits earned by its sales personnel. Additionally, the Company capitalizes certain costs to install and activate hardware and software used in its managed security services, primarily related to a portion of the compensation for the personnel who perform the installation activities. These deferred costs are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the assets relate. Changes in the balance of total deferred commission and total deferred fulfillment costs during the three months ended April 30, 2021 and May 1, 2020 are as follows (in thousands): As of January 29, 2021 Amount capitalized Amount recognized As of April 30, 2021 Deferred commissions $ 57,888 $ 3,186 $ (5,053) $ 56,021 Deferred fulfillment costs 11,009 1,256 (1,415) 10,850 As of January 31, 2020 Amount capitalized Amount recognized As of May 1, 2020 Deferred commissions $ 62,785 $ 1,436 $ (5,489) $ 58,732 Deferred fulfillment costs 11,366 1,460 (1,395) 11,431

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Apr. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	GOODWILL AND INTANGIBLE ASSETS Goodwill relates to the acquisition of Dell by Dell Technologies and represents the excess of the purchase price attributable to Secureworks over the fair value of the assets acquired and liabilities assumed, as well as subsequent business combinations completed by the Company. Goodwill increased $0.4 million due to foreign currency translation for the three months ended April 30, 2021, as compared to January 29, 2021. Goodwill totaled $426.3 million as of April 30, 2021 and $425.9 million as of January 29, 2021. No triggering events have subsequently transpired that would indicate a potential impairment subsequent to the test date through April 30, 2021. Intangible Assets The Company's intangible assets as of April 30, 2021 and January 29, 2021 were as follows: April 30, 2021 January 29, 2021 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (108,865) $ 80,653 $ 189,518 $ (105,341) $ 84,177 Technology 145,591 (104,115) 41,476 143,821 (100,296) 43,525 Finite-lived intangible assets 335,109 (212,980) 122,129 333,339 (205,637) 127,702 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 365,227 $ (212,980) $ 152,247 $ 363,457 $ (205,637) $ 157,820 Amortization expense related to finite-lived intangible assets was approximately $7.3 million and $7.0 million for each of the three months ended April 30, 2021 and May 1, 2020, respectively. Amortization expense is included within cost of revenue and

Debt

Debt	3 Months Ended
	Apr. 30, 2021
Debt Disclosure [Abstract]
Debt	DEBT Revolving Credit Facility On November 2, 2015, SecureWorks, Inc., a wholly-owned subsidiary of SecureWorks Corp., entered into a revolving credit agreement with a wholly-owned subsidiary of Dell Inc. under which the Company obtained a $30 million senior unsecured revolving credit facility. This facility was initially available for a one-year term beginning on April 21, 2016 and was subsequently extended on the same terms for additional one-year terms. During the three months ended April 30, 2021, the facility was amended and restated to extend the maturity date from March 26, 2021 to March 25, 2022 and to increase the annual rate at which interest accrues to the applicable London interbank offered rate (“LIBOR”) plus 1.54%. Under the amended terms, if LIBOR is no longer published on a current basis and such circumstances are unlikely to be temporary, the facility will be amended to replace LIBOR with an alternate benchmark rate. All other terms remained substantially the same. Under the facility, up to $30 million principal amount of borrowings may be outstanding at any time. Amounts under the facility may be borrowed, repaid, and reborrowed from time to time during the term of the facility. The proceeds from loans made under the facility may be used for general corporate purposes. The credit agreement contains customary representations, warranties, covenants and events of default. The unused portion of the facility is subject to a commitment fee of 0.35%, which is due upon expiration of the facility. There was no outstanding balance under the credit facility as of April 30, 2021 or January 29, 2021. The maximum amount of borrowings may be increased by up to an additional $30 million by mutual agreement of the lender and borrower. The borrower will be required to repay, in full, all of the loans outstanding, including all accrued interest, and the facility will terminate upon a change of control of SecureWorks Corp. or following a transaction in which SecureWorks, Inc. ceases to be a direct or indirect wholly-owned subsidiary of SecureWorks Corp. The facility is not guaranteed by SecureWorks Corp. or its subsidiaries.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Legal Contingencies — From time to time, the Company is involved in claims and legal proceedings that arise in the ordinary course of business. The Company accrues a liability when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews the status of such matters at least quarterly and adjusts its liabilities as necessary to reflect ongoing negotiations, settlements, rulings, advice of legal counsel and other relevant information. Whether the outcome of any claim, suit, assessment, investigation or legal proceeding, individually or collectively, could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows will depend on a number of factors, including the nature, timing and amount of any associated expenses, amounts paid in settlement, damages or other remedies or consequences. To the extent new information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations or legal proceedings change, changes in accrued liabilities would be recorded in the period in which such a determination is made. As of April 30, 2021, the Company does not believe that there were any such matters that, individually or in the aggregate, would have a material adverse effect on its business, financial condition, results of operations or cash flows. Customer-based Taxation Contingencie s — Various government entities ("taxing authorities") require the Company to bill its customers for the taxes they owe based on the services they purchase from the Company. The application of the rules of each taxing authority concerning which services are subject to each tax and how those services should be taxed involves the application of judgment. Taxing authorities periodically perform audits to verify compliance and include all periods that remain open under applicable statutes, which generally range from three to four years. These audits could result in significant assessments of past taxes, fines and interest if the Company were found to be non-compliant. During the course of an audit, a taxing authority may question the Company's application of its rules in a manner that, if the Company were not successful in substantiating its position, could result in a significant financial impact to the Company. In the course of preparing its financial statements and disclosures, the Company considers whether information exists that would warrant disclosure or an accrual with respect to such a contingency. As of April 30, 2021, the Company is under audit with various state taxing authorities in which rulings related to the taxability of certain of our services are in appeals. The Company will continue to appeal these rulings, but should the Company not prevail, there could be obligations to pay additional taxes together with associated penalties and interest for the audited tax period, as well as additional taxes for periods subsequent to the tax audit period, including penalties and interest. An estimated liability in the amount of $6.3 million was accrued in fiscal 2021 and remains as of April 30, 2021. While Dell does provide an indemnification for certain state tax issues for tax periods prior to August 1, 2015, it does not cover a material portion of the current estimated liability. Indemnifications —In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to indemnify its customers from certain losses incurred by the customer as to third-party claims relating to the services performed on behalf of the Company or for certain losses incurred by the customer as to third-party claims arising from certain events as defined within the particular contract. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments related to these indemnifications have been immaterial. Concentrations —The Company sells solutions to customers of all sizes primarily through its direct sales organization, supplemented by sales through channel partners. During the three months ended April 30, 2021 and May 1, 2020, the Company had no customer that represented 10% or more of its net revenue.

Leases

Leases	3 Months Ended
	Apr. 30, 2021
Leases [Abstract]
Leases	LEASES The Company recorded operating lease cost for facilities of approximately $1.4 million and $1.5 million for the three months ended April 30, 2021 and May 1, 2020, respectively. Operating lease cost include expenses in connection with variable lease costs of $0.1 million and $0.2 million for the three months ended April 30, 2021 and May 1, 2020, respectively, which primarily consisted of utilities and common area charges. For the three months ended April 30, 2021 and May 1, 2020, the Company recorded operating lease cost for equipment leases of approximately $0.2 million and $0.7 million, respectively. For the three months ended April 30, 2021 and May 1, 2020, equipment lease cost included short-term lease costs of $0.1 million and $0.6 million, respectively, for short-term leases. Lease expense for equipment was included in cost of revenues. Cash paid for amounts included in the measurement of operating lease liabilities was $1.9 million and $0.9 million during the three months ended April 30, 2021 and May 1, 2020, respectively. Weighted-average information associated with the measurement of the Company’s remaining operating lease obligations is as follows: April 30, 2021 Weighted-average remaining lease term 5.0 years Weighted-average discount rate 5.33 % The following table summarizes the maturity of the Company's operating lease liabilities as of April 30, 2021 (in thousands): Fiscal Years Ending April 30, 2021 2022 $ 5,038 2023 6,451 2024 6,101 2025 5,270 2026 4,616 Thereafter 4,147 Total operating lease payments $ 31,623 Less imputed interest (3,894) Total operating lease liabilities $ 27,729 The Company's leases have remaining lease terms of 2 months to 5.7 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise.

Stock-Based Compensation and Ot

Stock-Based Compensation and Other Long-Term Performance Incentives	3 Months Ended
	Apr. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation And Other Long-Term Performance Incentives	STOCK-BASED COMPENSATION AND OTHER LONG-TERM PERFORMANCE INCENTIVES The SecureWorks Corp. 2016 Long-Term Incentive Plan (the "2016 Plan") was adopted effective April 18, 2016. The 2016 Plan provides for the grant of options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, unrestricted stock, dividend equivalent rights, other equity-based awards, and cash bonus awards. Awards may be granted under the 2016 Plan to individuals who are employees, officers, or non-employee directors of the Company or any of its affiliates, consultants and advisors who perform services for the Company or any of its affiliates, and any other individual whose participation in the 2016 Plan is determined to be in the best interests of the Company by the compensation committee of the board of directors. Under the 2016 Plan, during the three months ended April 30, 2021 and May 1, 2020, the Company granted 1,848,963 and 2,428,357 restricted stock units, respectively, and 484,825 and 454,546 restricted stock awards, respectively. The annual restricted stock unit and restricted stock awards granted during both such periods vest over a three-year period. Approximately 27% and 17% of such awards granted during the three months ended April 30, 2021 and May 1, 2020, respectively, are subject to performance conditions. All 1,848,963 restricted stock unit awards made during the three months ended April 30, 2021 are subject to the approval at the Company’s 2021 annual meeting of stockholders of an amendment to the 2016 Plan to increase the number of shares of Class A common stock issuable under the plan and thus are not deemed granted or outstanding for accounting purposes.

Income and Other Taxes

Income and Other Taxes	3 Months Ended
	Apr. 30, 2021
Income Tax Disclosure [Abstract]
Income and Other Taxes	INCOME AND OTHER TAXES The Company’s loss before income taxes and income tax benefit (in thousands) and effective income tax rate for the three months ended April 30, 2021 and May 1, 2020 was as follows (in thousands, except percentages): Three Months Ended April 30, 2021 May 1, Loss before income taxes $ (8,763) $ (9,776) Income tax benefit $ (2,373) $ (2,240) Effective tax rate 27.1 % 22.9 % During the periods presented in the accompanying Condensed Consolidated Statements of Financial Position, the Company did not file separate federal tax returns as the Company generally was included in the tax grouping of other Dell entities within the respective entity's tax jurisdiction. The income tax benefit has been calculated using the separate return method, modified to apply the benefits-for-loss approach. Under the benefits-for-loss approach, net operating losses or other tax attributes are characterized as realized by the Company when those attributes are utilized by other members of the Dell consolidated group. The Company's effective tax benefit rate was 27.1% for the three months ended April 30, 2021 and 22.9% for the three months ended May 1, 2020. The change in the Company's effective income tax rate between the periods was primarily attributable to the impact of certain discrete adjustments related to stock-based compensation expense for the three months ended April 30, 2021 and May 1, 2020 of approximately $(0.3) million and $0.3 million, respectively. The change related specifically to the impact of the vesting of certain equity awards for which the fair value on the vesting date was higher than the fair value for the three months ended April 30, 2021 and lower than the fair value for the three months ended May 1, 2020 on the date the equity awards were originally granted. The change in fair value, which is measured by the price of the Class A common stock as reported on the Nasdaq Global Select Market, resulted in a higher actual tax deduction for the three months ended April 30, 2021 and a lower actual tax deduction for the three months ended May 1, 2020 than the amounts deducted for financial reporting purposes. As of April 30, 2021 and January 29, 2021, the Company had $5.5 million and $5.3 million, respectively, of deferred tax assets related to net operating loss carryforwards for state tax returns that are not included with those of other Dell entities. These net operating loss carryforwards began expiring in the fiscal year ended January 29, 2021. Due to the uncertainty surrounding the realization of these net operating loss carryforwards, the Company has provided valuation allowances for the full amount as of April 30, 2021 and January 29, 2021. Because the Company is included in the tax filings of other Dell entities, management has determined that it will be able to realize the remainder of its deferred tax assets. If the Company's tax provision had been prepared using the separate return method, the unaudited pro forma pre-tax loss, tax benefit and net loss for the three months ended April 30, 2021 would have been $8.8 million, $1.1 million and $7.7 million, respectively, as a result of the recognition of a valuation allowance that would have been recorded on a significant amount of deferred tax assets as well as certain attributes from the Tax Cuts and Jobs Act of 2017 that would be lost if not utilized by the Dell consolidated group. Net deferred tax balances are included in other non-current assets and other non-current liabilities in the Condensed Consolidated Statements of Financial Position.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Apr. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Allocated Expenses For the periods presented, Dell has provided various corporate services to Secureworks in the ordinary course of business. The costs of services provided to Secureworks by Dell are governed by a shared services agreement between Secureworks and Dell Inc. The total amounts of the charges under the shared services agreement with Dell were $0.9 million and $1.0 million for the three months ended April 30, 2021 and May 1, 2020, respectively. Management believes that the basis on which the expenses have been allocated is a reasonable reflection of the utilization of services provided to or the benefit received by the Company during the periods presented. Related Party Arrangements For the periods presented, related party transactions and activities involving Dell Inc. and its wholly-owned subsidiaries were not always consummated on terms equivalent to those that would prevail in an arm's-length transaction where conditions of competitive, free-market dealing may exist. The Company purchases computer equipment for internal use from Dell that is capitalized within property and equipment in the Condensed Consolidated Statements of Financial Position. These purchases were made at pricing that is intended to approximate arm's-length pricing. Purchases of computer equipment from Dell and EMC Corporation, a wholly-owned subsidiary of Dell ("EMC"), totaled $0.2 million and $0.3 million for the three months ended April 30, 2021 and May 1, 2020, respectively. EMC maintains a majority ownership interest in a subsidiary, VMware, Inc. ("VMware"), that provides cloud and virtualization software and services. The Company's purchases of annual maintenance services, software licenses and hardware systems for internal use from Dell, EMC and VMware totaled $0.6 million and $0.4 million for the three months ended April 30, 2021 and May 1, 2020, respectively. The Company recognized revenue related to solutions provided to VMware that totaled $0.1 million as of April 30, 2021. The Company recognized no such revenue for the three months ended May 1, 2020. In October 2019, VMware acquired Carbon Black Inc., a security business with which the Company had an existing commercial relationship. Purchases by the Company of solutions from Carbon Black totaled $1.0 million and $1.6 million for the three months ended April 30, 2021 and May 1, 2020, respectively. The Company recognized no revenue related to security solutions provided to other subsidiaries of Dell Technologies, consisting of Pivotal Software, Inc. and Boomi, Inc for the three months ended April 30, 2021 and May 1, 2020, respectively. Purchases by the Company from these other subsidiaries totaled $56 thousand and $60 thousand for the three months ended April 30, 2021 and May 1, 2020, respectively. The Company also recognized revenue related to solutions provided to significant beneficial owners of Secureworks common stock, which include Michael S. Dell, Chairman and Chief Executive Officer of Dell Technologies, and affiliates of Mr. Dell. The revenues recognized by the Company from solutions provided to Mr. Dell, MSD Capital, L.P. (a firm founded for the purposes of managing investments of Mr. Dell and his family), DFI Resources LLC, an entity affiliated with Mr. Dell, and the Michael and Susan Dell Foundation totaled $41 thousand and $0.1 million for the three months ended April 30, 2021 and May 1, 2020, respectively. The Company provides solutions to certain customers whose contractual relationships have historically been with Dell rather than Secureworks, although the Company has the primary responsibility to provide the services. Effective August 1, 2015, in connection with the IPO, many of such customer contracts were transferred from Dell to the Company, forming a direct contractual relationship between the Company and the end customer. For customers whose contracts have not yet been transferred and for contracts subsequently originated through Dell under a reseller agreement, the Company recognized revenues of approximately $15.0 million and $14.6 million for the three months ended April 30, 2021 and May 1, 2020, respectively. In addition, as of April 30, 2021, the Company had approximately $1.8 million of contingent obligations to Dell related to outstanding performance bonds for certain customer contracts, which Dell issued on behalf of the Company. As the Company’s customer and on behalf of certain of its own customers, Dell also purchases solutions from the Company. Beginning in the third quarter of the fiscal year ended January 29, 2016, in connection with the effective date of the Company’s commercial agreements with Dell, the Company began charging Dell for these services at pricing that is intended to approximate arm’s-length pricing, in lieu of the prior cost recovery arrangement. Such revenues totaled approximately $3.2 million and $6.0 million for the three months ended April 30, 2021 and May 1, 2020, respectively. As a result of the foregoing related party arrangements beginning in the third quarter of the fiscal year ended January 29, 2016, the Company has recorded the following related party balances in the Condensed Consolidated Statements of Financial Position as of April 30, 2021 and January 29, 2021 (in thousands). April 30, January 29, Related party payable (in accrued and other current liabilities) $ 4,243 $ 13,807 Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net) $ 10,963 $ 15,625 Net operating loss tax sharing (payable)/receivable under agreement with Dell (payable in accrued and other and receivable in other current assets) $ 1,742 $ (667)

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS The Company measures fair value within the guidance of the three-level valuation hierarchy. This hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The categorization of a measurement within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: • Level 1 - Quoted market prices in active markets for identical assets or liabilities • Level 2 - Other observable market-based inputs or unobservable inputs that are corroborated by market data • Level 3 - Significant unobservable inputs Assets and Liabilities Measured at Fair Value on a Recurring Basis The assets and liabilities of the Company that are measured at fair value on a recurring basis using the respective input levels as of April 30, 2021 and January 29, 2021 were as follows (in thousands): April 30, January 29, Level 1 Level 1 Cash equivalents - Money Market Funds $ 45,843 $ 85,841 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The carrying amounts of the Company's accounts receivable, accounts payable and accrued expenses approximate their respective fair value due to their short-term nature.

Description of the Business a_2

Description of the Business and Basis of Presentation (Policies)	3 Months Ended
	Apr. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The Company's condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make assumptions and estimations that affect the amounts reported in the Company's financial statements and notes. The inputs into certain of the Company's assumptions and estimations considered the economic implications of the coronavirus disease 2019 ("COVID-19") pandemic on the Company's critical and significant accounting estimates. The condensed consolidated financial statements include assets, liabilities, revenue and expenses of all majority-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. For the periods presented, Dell has provided various corporate services to the Company in the ordinary course of business, including finance, tax, human resources, legal, insurance, IT, procurement and facilities-related services. The cost of these services is charged in accordance with a shared services agreement that went into effect on August 1, 2015. For more information regarding the related party transactions, see "Note 10—Related Party Transactions." During the periods presented in the financial statements, Secureworks did not file separate federal tax returns, as the Company is generally included in the tax grouping of other Dell entities within the respective entity’s tax jurisdiction. The income tax benefit has been calculated using the separate return method, modified to apply the benefits for loss approach. Under the benefits for loss approach, net operating losses or other tax attributes are characterized as realized or as realizable by Secureworks when those attributes are utilized or expected to be utilized by other members of the Dell consolidated group. See "Note 9—Income and Other Taxes" for more information.
Fiscal Year	Fiscal Year The Company’s fiscal year is the 52- or 53-week period ending on the Friday closest to January 31. The Company refers to the fiscal year ending January 28, 2022 and the fiscal year ended January 29, 2021 as fiscal 2022 and fiscal 2021, respectively. Both fiscal 2022 and fiscal 2021 have 52 weeks, and each quarter has 13 weeks.
Use of Estimates	Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Estimates are revised as additional information becomes available. In the Condensed Consolidated Statements of Operations, estimates are used when accounting for revenue arrangements, determining the cost of revenue, allocating cost and estimating the impact of contingencies. In the Condensed Consolidated Statements of Financial Position, estimates are used in determining the valuation and recoverability of assets, such as accounts receivables, inventories, fixed assets, goodwill and other identifiable intangible assets, and purchase price allocation for business combinations. Estimates are also used in determining the reported amounts of liabilities, such as taxes payable and the impact of contingencies. All estimates also impact the Condensed Consolidated Statements of Operations. Actual results could differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the COVID-19 pandemic. The Company considered the potential impact of the COVID-19 pandemic on its estimates and assumptions and determined there was not a material impact to the Company's condensed consolidated financial statements as of and for the three months ended April 30, 2021. As the COVID-19 pandemic continues to develop, many of the Company's estimates could require increased judgment and be subject to a higher degree of variability and volatility. As the pandemic continues to evolve, the Company's estimates may change materially in future periods.
Recently Adopted/Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements The Company adopted Accounting Standard Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” effective February 1, 2021. ASU No. 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and allocation of consolidated income taxes to separate financial statements of entities not subject to income tax. The adoption of the standard had no material impact on the condensed consolidated financial statements. Summary of Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies as of and for the three months ended April 30, 2021, as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2021.
Fair Value Measurements	The Company measures fair value within the guidance of the three-level valuation hierarchy. This hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The categorization of a measurement within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: • Level 1 - Quoted market prices in active markets for identical assets or liabilities • Level 2 - Other observable market-based inputs or unobservable inputs that are corroborated by market data • Level 3 - Significant unobservable inputs

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Apr. 30, 2021
Earnings Per Share [Abstract]
Schedule of Net Loss Per Common Share, Basic and Diluted	The following table sets forth the computation of loss per common share (in thousands, except per share amounts): Three Months Ended April 30, 2021 May 1, Numerator: Net loss $ (6,390) $ (7,536) Denominator: Weighted-average number of shares outstanding: Basic and Diluted 81,985 80,938 Loss per common share: Basic and Diluted $ (0.08) $ (0.09) Weighted-average anti-dilutive stock options, non-vested restricted stock and restricted stock units 6,863 5,294

Contract Balances and Contrac_2

Contract Balances and Contract Costs (Tables)	3 Months Ended
	Apr. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue by Service Type	The following table presents revenue by service type (in thousands): Three Months Ended April 30, 2021 May 1, Managed Security Services $ 90,110 $ 101,904 Taegis Subscription Solutions 13,960 4,453 Professional Services 35,393 34,824 Total Revenue $ 139,463 $ 141,181 Taegis Subscription Solutions revenue for the three months ended May 1, 2020 has been presented for consistency with current period presentation.
Schedule of Deferred Revenue	Changes to the Company's deferred revenue during the three months ended April 30, 2021 and May 1, 2020 are as follows (in thousands): As of January 29, 2021 Upfront payments received and billings during the three months ended April 30, 2021 Revenue recognized during the three months ended April 30, 2021 As of April 30, 2021 Deferred revenue $ 178,027 $ 99,364 $ (102,987) $ 174,404 As of January 31, 2020 Upfront payments received and billings during the three months ended May 1, 2020 Revenue recognized during the three months ended May 1, 2020 As of May 1, 2020 Deferred revenue $ 188,537 $ 95,768 $ (94,375) $ 189,930
Expected Timing to Recognize Remaining Performance Obligation	As of April 30, 2021, the Company expects to recognize remaining performance obligations as follows (in thousands): Total Expected to be recognized in the next 12 months Expected to be recognized in 12-24 months Expected to be recognized in 24-36 months Expected to be recognized thereafter Performance obligation - active $ 276,913 $ 157,597 $ 80,279 $ 30,200 $ 8,837 Performance obligation - backlog 14,137 5,212 4,995 3,930 — Total $ 291,050 $ 162,809 $ 85,274 $ 34,130 $ 8,837
Schedule of Deferred Commissions and Fulfillment Costs	Changes in the balance of total deferred commission and total deferred fulfillment costs during the three months ended April 30, 2021 and May 1, 2020 are as follows (in thousands): As of January 29, 2021 Amount capitalized Amount recognized As of April 30, 2021 Deferred commissions $ 57,888 $ 3,186 $ (5,053) $ 56,021 Deferred fulfillment costs 11,009 1,256 (1,415) 10,850 As of January 31, 2020 Amount capitalized Amount recognized As of May 1, 2020 Deferred commissions $ 62,785 $ 1,436 $ (5,489) $ 58,732 Deferred fulfillment costs 11,366 1,460 (1,395) 11,431

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Apr. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Indefinite-Lived Intangible Assets	The Company's intangible assets as of April 30, 2021 and January 29, 2021 were as follows: April 30, 2021 January 29, 2021 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (108,865) $ 80,653 $ 189,518 $ (105,341) $ 84,177 Technology 145,591 (104,115) 41,476 143,821 (100,296) 43,525 Finite-lived intangible assets 335,109 (212,980) 122,129 333,339 (205,637) 127,702 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 365,227 $ (212,980) $ 152,247 $ 363,457 $ (205,637) $ 157,820
Schedule of Finite-Lived Intangible Assets	The Company's intangible assets as of April 30, 2021 and January 29, 2021 were as follows: April 30, 2021 January 29, 2021 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (108,865) $ 80,653 $ 189,518 $ (105,341) $ 84,177 Technology 145,591 (104,115) 41,476 143,821 (100,296) 43,525 Finite-lived intangible assets 335,109 (212,980) 122,129 333,339 (205,637) 127,702 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 365,227 $ (212,980) $ 152,247 $ 363,457 $ (205,637) $ 157,820

Leases (Tables)

Leases (Tables)	3 Months Ended
	Apr. 30, 2021
Leases [Abstract]
Weighted-Average Information Associated with Remaining Operating Lease Obligations	Weighted-average information associated with the measurement of the Company’s remaining operating lease obligations is as follows: April 30, 2021 Weighted-average remaining lease term 5.0 years Weighted-average discount rate 5.33 %
Maturities of Operating Lease Liabilities	The following table summarizes the maturity of the Company's operating lease liabilities as of April 30, 2021 (in thousands): Fiscal Years Ending April 30, 2021 2022 $ 5,038 2023 6,451 2024 6,101 2025 5,270 2026 4,616 Thereafter 4,147 Total operating lease payments $ 31,623 Less imputed interest (3,894) Total operating lease liabilities $ 27,729

Income and Other Taxes (Tables)

Income and Other Taxes (Tables)	3 Months Ended
	Apr. 30, 2021
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The Company’s loss before income taxes and income tax benefit (in thousands) and effective income tax rate for the three months ended April 30, 2021 and May 1, 2020 was as follows (in thousands, except percentages): Three Months Ended April 30, 2021 May 1, Loss before income taxes $ (8,763) $ (9,776) Income tax benefit $ (2,373) $ (2,240) Effective tax rate 27.1 % 22.9 %

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Apr. 30, 2021
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	As a result of the foregoing related party arrangements beginning in the third quarter of the fiscal year ended January 29, 2016, the Company has recorded the following related party balances in the Condensed Consolidated Statements of Financial Position as of April 30, 2021 and January 29, 2021 (in thousands). April 30, January 29, Related party payable (in accrued and other current liabilities) $ 4,243 $ 13,807 Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net) $ 10,963 $ 15,625 Net operating loss tax sharing (payable)/receivable under agreement with Dell (payable in accrued and other and receivable in other current assets) $ 1,742 $ (667)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The assets and liabilities of the Company that are measured at fair value on a recurring basis using the respective input levels as of April 30, 2021 and January 29, 2021 were as follows (in thousands): April 30, January 29, Level 1 Level 1 Cash equivalents - Money Market Funds $ 45,843 $ 85,841

Description of the Business a_3

Description of the Business and Basis of Presentation - Narrative (Details)	3 Months Ended
	Apr. 30, 2021segment
Class of Stock [Line Items]
Number of reportable segments	1
IPO | Denali
Class of Stock [Line Items]
Percent of outstanding shares owned	83.80%
Percent of voting interests owned	98.10%

Loss Per Share (Details)

Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Numerator:
Net loss	$ (6,390)	$ (7,536)
Denominator:
Weighted-average common shares outstanding (basic and diluted) (in shares)	81,985	80,938
Loss per common share:
Basic and Diluted (usd per share)	$ (0.08)	$ (0.09)
Weighted-average anti-dilutive stock options, non-vested restricted stock and restricted stock units (in shares)	6,863	5,294

Contract Balances and Contrac_3

Contract Balances and Contract Costs - Disaggregation of Revenue by Service Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Disaggregation of Revenue [Line Items]
Net revenue	$ 139,463	$ 141,181
Managed Security Services
Disaggregation of Revenue [Line Items]
Net revenue	90,110	101,904
Taegis Subscription Solutions
Disaggregation of Revenue [Line Items]
Net revenue	13,960	4,453
Professional Services
Disaggregation of Revenue [Line Items]
Net revenue	$ 35,393	$ 34,824

Contract Balances and Contrac_4

Contract Balances and Contract Costs - Narrative (Details)	3 Months Ended
	Apr. 30, 2021performanceObligationElement
Revenue from Contract with Customer [Abstract]
Deferred revenue billed in advance, percent	57.00%
Deferred revenue billed monthly or quarterly, percent	43.00%
Number of elements performance obligation is comprised of	2

Contract Balances and Contrac_5

Contract Balances and Contract Costs - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Change in Contract with Customer, Liability [Roll Forward]
Deferred Revenue, Beginning of period	$ 178,027	$ 188,537
Deferred revenue, Upfront payments received and billings	99,364	95,768
Deferred revenue, Revenue recognized	(102,987)	(94,375)
Deferred Revenue, End of period	$ 174,404	$ 189,930

Contract Balances and Contrac_6

Contract Balances and Contract Costs - Remaining Performance Obligation Total (Details) $ in Thousands	Apr. 30, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 291,050
Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	276,913
Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 14,137

Contract Balances and Contrac_7

Contract Balances and Contract Costs - Remaining Performance Obligation (Details) $ in Thousands	Apr. 30, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 291,050
Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	276,913
Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	14,137
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	162,809
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	157,597
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	5,212
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	85,274
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-02 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	80,279
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-02 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	4,995
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	34,130
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-05-01 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	30,200
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-05-01 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	3,930
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	8,837
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-29 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	8,837
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-29 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0

Contract Balances and Contrac_8

Contract Balances and Contract Costs - Remaining Performance Obligation Time Period (Details)	Apr. 30, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-02 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-02 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-05-01 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-05-01 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-29 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-29 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period

Contract Balances and Contrac_9

Contract Balances and Contract Costs - Deferred Commissions and Fulfillment Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Deferred commissions
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 57,888	$ 62,785
Amount capitalized	3,186	1,436
Amount recognized	(5,053)	(5,489)
Ending balance	56,021	58,732
Deferred fulfillment costs
Capitalized Contract Cost [Roll Forward]
Beginning balance	11,009	11,366
Amount capitalized	1,256	1,460
Amount recognized	(1,415)	(1,395)
Ending balance	$ 10,850	$ 11,431

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended
	Apr. 30, 2021	May 01, 2020	Jan. 29, 2021
Goodwill [Line Items]
Goodwill	$ 426,278,000		$ 425,861,000
Amortization expense	7,300,000	$ 7,000,000
Impairment charges	0	$ 0
Delve Laboratories, Inc.
Goodwill [Line Items]
Goodwill, foreign currency translation gain (loss)	$ 400,000

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 29, 2021
Finite-Lived Intangible Assets [Line Items]
Gross	$ 335,109	$ 333,339
Accumulated Amortization	(212,980)	(205,637)
Net	122,129	127,702
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross	365,227	363,457
Accumulated Amortization	(212,980)	(205,637)
Net	152,247	157,820
Trade name
Indefinite-lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	30,118	30,118
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	189,518	189,518
Accumulated Amortization	(108,865)	(105,341)
Net	80,653	84,177
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(108,865)	(105,341)
Technology
Finite-Lived Intangible Assets [Line Items]
Gross	145,591	143,821
Accumulated Amortization	(104,115)	(100,296)
Net	41,476	43,525
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ (104,115)	$ (100,296)

Debt (Details)

Debt (Details) - Line of Credit - Revolving Credit Facility - USD ($)	Nov. 02, 2015	Apr. 30, 2021	Jan. 29, 2021
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30,000,000
Debt instrument, term	1 year
Debt instrument, term, extension	1 year
Maximum amount outstanding during period	$ 30,000,000
Commitment fee percentage	0.35%
Line of credit, outstanding balance		$ 0	$ 0
Additional borrowing capacity	$ 30,000,000
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate		1.54%

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Millions	3 Months Ended
	Apr. 30, 2021USD ($)
State and Local Jurisdiction
Other Commitments [Line Items]
Income Tax Examination, Tax Liability Accrued	$ 6.3
Minimum
Other Commitments [Line Items]
Income tax examination, period	three
Maximum
Other Commitments [Line Items]
Income tax examination, period	four years

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Lessee, Lease, Description [Line Items]
Variable lease cost	$ 0.1	$ 0.2
Short-term lease cost	0.1	0.6
Operating lease payments	$ 1.9	0.9
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	2 months
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	5 years 8 months 12 days
Leased Facilities
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 1.4	1.5
Leased Equipment
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 0.2	$ 0.7

Leases - Weighted Average (Deta

Leases - Weighted Average (Details)	Apr. 30, 2021
Leases [Abstract]
Weighted-average remaining lease term	5 years
Weighted-average discount rate	5.33%

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Apr. 30, 2021USD ($)
Operating Leases, After Adoption of 842:
2022	$ 5,038
2023	6,451
2024	6,101
2025	5,270
2026	4,616
Thereafter	4,147
Total operating lease payments	31,623
Less imputed interest	(3,894)
Total operating lease liabilities	$ 27,729

Stock-Based Compensation and _2

Stock-Based Compensation and Other Long-Term Performance Incentives (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards issued (in shares)	1,848,963	2,428,357
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards issued (in shares)	484,825	454,546
Restricted Stock and Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting term	3 years
Percentage of grants issued subject to performance conditions	27.00%	17.00%
Incentive Cash Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting term	3 years
Awards granted	$ 7.5	$ 8.1
Compensation expense	$ 1.6	$ 1.6
Performance-Based Cash Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting term	3 years

Income and Other Taxes - Effect

Income and Other Taxes - Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (8,763)	$ (9,776)
Income tax benefit	$ (2,373)	$ (2,240)
Effective tax rate	27.10%	22.90%

Income and Other Taxes - Narrat

Income and Other Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020	Jan. 29, 2021
Valuation Allowance [Line Items]
Effective tax rate	27.10%	22.90%
Expense relating to vesting of equity awards	$ (300)	$ 300
Loss carryforwards	5,500		$ 5,300
Loss before income taxes	8,763	9,776
Income tax benefit	2,373	2,240
Net loss	6,390	$ 7,536
Unrecognized tax benefits	3,800		3,800
Principal Owner | Dell Inc. | Other Noncurrent Assets | Net Operating Loss Receivable
Valuation Allowance [Line Items]
Net operating loss tax sharing (payable)/receivable under agreement with Dell (payable in accrued and other and receivable in other current assets)	1,700
Principal Owner | Dell Inc. | Other Noncurrent Liabilities | Income Tax Payable
Valuation Allowance [Line Items]
Net operating loss tax sharing (payable)/receivable under agreement with Dell (payable in accrued and other and receivable in other current assets)			$ (700)
Prepared using separate return method
Valuation Allowance [Line Items]
Loss before income taxes	8,800
Income tax benefit	1,100
Net loss	$ 7,700

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	May 01, 2020
Related Party Transaction [Line Items]
Charged under shared services agreement	$ 25,555	$ 27,516
Purchases of computer equipment from Dell	2,294	1,020
Revenues	139,463	141,181
Dell Inc.
Related Party Transaction [Line Items]
Performance bonds, outstanding	1,800
Dell Inc. | Principal Owner
Related Party Transaction [Line Items]
Charged under shared services agreement	900	1,000
Dell Inc. | Principal Owner | Contracts Not Yet Transferred
Related Party Transaction [Line Items]
Revenues	15,000	14,600
Dell Inc. | Principal Owner | Solutions Purchases
Related Party Transaction [Line Items]
Revenues	3,200	6,000
Dell Inc. | Chief Executive Officer
Related Party Transaction [Line Items]
Revenues	41	100
Dell and EMC | Principal Owner
Related Party Transaction [Line Items]
Purchases of computer equipment from Dell	200	300
EMC and VMware | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Purchase of annual maintenance services	600	400
Carbon Black Inc. | Subsidiary of Common Parent | Solutions Purchases
Related Party Transaction [Line Items]
Purchases of solutions from Carbon Black	1,000	1,600
RSA Security LLC and Pivotal Software, Inc. | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Purchase of annual maintenance services	56	60
VMware | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Revenues	$ 100	$ 0

Related Party Transactions - Ba

Related Party Transactions - Balances in Condensed Consolidated Statements of Financial Position (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 29, 2021
Related Party Transaction [Line Items]
Related party payable (in accrued and other current liabilities)	$ 4,243	$ 13,807
Dell Inc. | Principal Owner
Related Party Transaction [Line Items]
Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net)	10,963	15,625
Dell Inc. | Principal Owner | Other Current Assets | Net Operating Loss Receivable
Related Party Transaction [Line Items]
Net operating loss tax sharing (payable)/receivable under agreement with Dell (payable in accrued and other and receivable in other current assets)	$ 1,742
Dell Inc. | Principal Owner | Accrued and Other Current Liabilities | Income Tax Payable
Related Party Transaction [Line Items]
Net operating loss tax sharing (payable)/receivable under agreement with Dell (payable in accrued and other and receivable in other current assets)		$ (667)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 29, 2021
Money Market Funds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents - Money Market Funds	$ 45,843	$ 85,841