SecureWorks (SCWX) 10-Q 1 Sep 22 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jul. 29, 2022	Aug. 26, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 29, 2022
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	false
Entity Shell Company	false
Entity Central Index Key	0001468666
Current Fiscal Year End Date	--02-03
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock - Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		14,970,379
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	Jul. 29, 2022	Jan. 28, 2022
Current assets:
Cash and cash equivalents	$ 167,487	$ 220,655
Accounts receivable, net of allowances of $3,120 and $3,510, respectively	71,339	86,231
Inventories, net	475	505
Other current assets	27,283	26,040
Total current assets	266,584	333,431
Property and equipment, net	6,150	8,426
Operating lease right-of-use assets, net	15,236	17,441
Goodwill	425,878	425,926
Intangible assets, net	121,144	133,732
Other non-current assets	65,589	68,346
Total assets	900,581	987,302
Current liabilities:
Accounts payable	20,883	15,062
Accrued and other current liabilities	64,622	88,122
Short-term deferred revenue	151,026	163,304
Total current liabilities	236,531	266,488
Long-term deferred revenue	8,881	12,764
Operating lease liabilities, non-current	14,346	16,869
Other non-current liabilities	33,230	43,124
Total liabilities	292,988	339,245
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock - $0.01 par value: 200,000 shares authorized; — shares issued	0	0
Additional paid in capital	949,248	939,404
Accumulated deficit	(315,939)	(269,622)
Accumulated other comprehensive loss	(6,670)	(2,672)
Treasury stock, at cost - 1,257 and 1,257 shares, respectively	(19,896)	(19,896)
Total stockholders' equity	607,593	648,057
Total liabilities and stockholders' equity	900,581	987,302
Common Stock - Class A
Stockholders' equity:
Common stock	150	143
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	Jul. 29, 2022	Jan. 28, 2022
Accounts receivable, allowance for doubtful accounts	$ 3,120	$ 3,510
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)	14,970	14,282
Common stock, shares outstanding (in shares)	14,970	14,282
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		6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021	Jul. 29, 2022	Jul. 30, 2021
Total net revenue	$ 116,182	$ 134,172	$ 237,197	$ 273,635
Total cost of revenue	49,579	56,483	99,014	113,690
Gross profit	66,603	77,689	138,183	159,945
Operating expenses:
Research and development	33,638	30,417	66,969	58,569
Sales and marketing	40,940	34,685	80,185	71,090
General and administrative	24,274	26,488	49,634	52,043
Total operating expenses	98,852	91,590	196,788	181,702
Operating loss	(32,249)	(13,901)	(58,605)	(21,757)
Interest and other, net	131	(601)	(566)	(1,508)
Loss before income taxes	(32,118)	(14,502)	(59,171)	(23,265)
Income tax benefit	(7,399)	(2,739)	(12,854)	(5,112)
Net loss	$ (24,719)	$ (11,763)	$ (46,317)	$ (18,153)
Loss per common share (basic) (in shares)	$ (0.29)	$ (0.14)	$ (0.55)	$ (0.22)
Loss per common share (diluted) (in shares)	$ (0.29)	$ (0.14)	$ (0.55)	$ (0.22)
Weighted-average common shares outstanding (basic) (in shares)	84,483	82,979	84,123	82,482
Weighted-average common shares outstanding (diluted) (in shares)	84,483	82,979	84,123	82,482
Subscription
Total net revenue	$ 90,322	$ 102,426	$ 184,735	$ 206,496
Total cost of revenue	34,060	37,058	66,886	74,730
Professional services
Total net revenue	25,860	31,746	52,462	67,139
Total cost of revenue	$ 15,519	$ 19,425	$ 32,128	$ 38,960

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021	Jul. 29, 2022	Jul. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (24,719)	$ (11,763)	$ (46,317)	$ (18,153)
Foreign currency translation adjustments, net of tax	(1,158)	(378)	(3,998)	86
Comprehensive loss	$ (25,877)	$ (12,141)	$ (50,315)	$ (18,067)

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021
Cash flows from operating activities:
Net loss	$ (46,317)	$ (18,153)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	18,515	19,863
Amortization of right of use asset	1,932	2,098
Amortization of costs capitalized to obtain revenue contracts	8,985	9,912
Amortization of costs capitalized to fulfill revenue contracts	2,565	2,738
Stock-based compensation expense	17,938	13,615
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	516	1,344
Income tax benefit	(12,854)	(5,112)
Provision for credit losses	(102)	448
Changes in assets and liabilities:
Accounts receivable	14,329	9,532
Net transactions with Dell	(592)	(8,903)
Inventories	30	(67)
Other assets	(6,933)	(8,232)
Accounts payable	5,685	(1,293)
Deferred revenue	(17,165)	(2,912)
Operating leases, net	(2,801)	(2,970)
Accrued and other liabilities	(25,145)	(25,185)
Net cash used in operating activities	(41,414)	(13,277)
Cash flows from investing activities:
Capital expenditures	(827)	(1,033)
Software development costs	(2,840)	(3,218)
Net cash used in investing activities	(3,667)	(4,251)
Cash flows from financing activities:
Taxes paid on vested restricted shares	(8,087)	(9,945)
Proceeds from stock option exercises	0	4,134
Net cash used in financing activities	(8,087)	(5,811)
Net decrease in cash and cash equivalents	(53,168)	(23,339)
Cash and cash equivalents at beginning of the period	220,655	220,300
Cash and cash equivalents at end of the period	$ 167,487	$ 196,961

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock - Class A	Common Stock - Class B	Common Stock Common Stock - Class A	Common Stock Common Stock - Class B	Additional Paid in Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income	Treasury Stock
Beginning balance (in shares) at Jan. 29, 2021				12,450	70,000
Beginning balance at Jan. 29, 2021	$ 667,781			$ 124	$ 700	$ 917,344	$ (229,831)	$ (660)	$ (19,896)
Statement of Shareholders' Equity
Net loss	(18,153)						(18,153)
Other comprehensive income (loss)	86							86
Vesting of restricted stock units (in shares)				1,197
Vesting of restricted stock units	0			$ 12		(12)
Exercise of stock options (in shares)				1,417
Exercise of stock options	4,134			$ 14		4,120
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)				(1,457)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(9,945)			$ (14)		(9,931)
Stock-based compensation	13,615					13,615
Ending balance (in shares) at Jul. 30, 2021				14,092	70,000
Ending balance at Jul. 30, 2021	657,518			$ 141	$ 700	925,131	(247,984)	(574)	(19,896)
Beginning balance (in shares) at Apr. 30, 2021				13,550	70,000
Beginning balance at Apr. 30, 2021	661,049			$ 135	$ 700	916,527	(236,221)	(196)	(19,896)
Statement of Shareholders' Equity
Net loss	(11,763)						(11,763)
Other comprehensive income (loss)	(378)							(378)
Vesting of restricted stock units (in shares)				57
Vesting of restricted stock units	0			$ 1		(1)
Exercise of stock options (in shares)				1,417
Exercise of stock options	4,134			$ 14		4,120
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)				(932)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(3,104)			$ (9)		(3,095)
Stock-based compensation	7,580					7,580
Ending balance (in shares) at Jul. 30, 2021				14,092	70,000
Ending balance at Jul. 30, 2021	657,518			$ 141	$ 700	925,131	(247,984)	(574)	(19,896)
Beginning balance (in shares) at Jan. 28, 2022		14,282	70,000	14,282	70,000
Beginning balance at Jan. 28, 2022	648,057			$ 143	$ 700	939,404	(269,622)	(2,672)	(19,896)
Statement of Shareholders' Equity
Net loss	(46,317)						(46,317)
Other comprehensive income (loss)	(3,998)							(3,998)
Vesting of restricted stock units (in shares)				1,381
Vesting of restricted stock units	0			$ 14		(14)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)				(693)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(8,087)			$ (7)		(8,080)
Stock-based compensation	17,938					17,938
Ending balance (in shares) at Jul. 29, 2022		14,970	70,000	14,970	70,000
Ending balance at Jul. 29, 2022	607,593			$ 150	$ 700	949,248	(315,939)	(6,670)	(19,896)
Beginning balance (in shares) at Apr. 29, 2022				14,859	70,000
Beginning balance at Apr. 29, 2022	625,303			$ 149	$ 700	941,082	(291,220)	(5,512)	(19,896)
Statement of Shareholders' Equity
Net loss	(24,719)						(24,719)
Other comprehensive income (loss)	(1,158)							(1,158)
Vesting of restricted stock units (in shares)				168
Vesting of restricted stock units	0			$ 2		(2)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)				(57)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(645)			$ (1)		(645)
Stock-based compensation	8,812					8,812
Ending balance (in shares) at Jul. 29, 2022		14,970	70,000	14,970	70,000
Ending balance at Jul. 29, 2022	$ 607,593			$ 150	$ 700	$ 949,248	$ (315,939)	$ (6,670)	$ (19,896)

DESCRIPTION OF THE BUSINESS AND

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	6 Months Ended
	Jul. 29, 2022
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 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 July 29, 2022 represented approximately 82.4% of the Company's total outstanding shares of common stock and approximately 97.9% 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 cybersecurity 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 2019 (“COVID-19”) pandemic, the Ukraine/Russia conflict and inflation concerns 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 this 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 February 3, 2023 and the fiscal year ended January 28, 2022 as fiscal 2023 and fiscal 2022, respectively. Fiscal 2023 has 53 weeks and fiscal 2022 had 52 weeks. In fiscal 2023, each quarter has 13 weeks, except for the fourth quarter, which will have 14 weeks. Unless otherwise indicated, all changes identified for the current-period results represent comparisons to results for the prior corresponding fiscal periods. 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, capitalized software, goodwill and other identifiable intangible assets. 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 Ukraine/Russia conflict and impacts of inflation. The Company considered the potential impact of the COVID-19 pandemic and current economic and geopolitical uncertainty 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 and six months ended July 29, 2022. As the COVID-19 pandemic and current economic environment continue to develop, many of the Company's estimates could require increased judgment and be subject to a higher degree of variability and volatility. As a result, the Company's estimates may change materially in future periods. Recently Adopted Accounting Pronouncements Business Combinations – The Company has adopted Accounting Standard Update (“ASU”) 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The guidance requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers.” ASU 2021-08 was effective for the Company beginning on January 29, 2022. There was no impact to the Company’s condensed consolidated financial statements as a result of adoption of this standard update. Summary of Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies as of and for the three and six months ended July 29, 2022, as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the fiscal year ended January 28, 2022.

LOSS PER SHARE

LOSS PER SHARE	6 Months Ended
	Jul. 29, 2022
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 of common stock. 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 Six Months Ended July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Numerator: Net loss $ (24,719) $ (11,763) $ (46,317) $ (18,153) Denominator: Weighted-average number of shares outstanding: Basic and Diluted 84,483 82,979 84,123 82,482 Loss per common share: Basic and Diluted $ (0.29) $ (0.14) $ (0.55) $ (0.22) Weighted-average anti-dilutive stock options, non-vested restricted stock and restricted stock units 6,057 4,873 5,980 5,449

CONTRACT BALANCES AND CONTRACT

CONTRACT BALANCES AND CONTRACT COSTS	6 Months Ended
	Jul. 29, 2022
Revenue from Contract with Customer [Abstract]
CONTRACT BALANCES AND CONTRACT COSTS	CONTRACT BALANCES AND CONTRACT COSTS The Company derives revenue primarily from subscription revenue and professional services. Subscription revenue is derived from (i) Taegis software-as-a-service (“SaaS”) security platform and (ii) managed security services. Taegis offerings currently include two applications, Extended Detection and Response (“XDR”) and Vulnerability Detection and Response (“VDR”), along with the add-on managed service to supplement the XDR SaaS application, referred to as Managed Detection and Response (“ManagedXDR”). Subscription-based managed security service arrangements typically include a suite of security services, up-front installation fees and maintenance, and they also may include the provision of an associated hardware appliance. 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 Six Months Ended July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Net revenue: Taegis Subscription Solutions $ 42,809 $ 18,503 $ 80,025 $ 32,463 Managed Security Services 47,513 83,923 $ 104,710 $ 174,033 Total Subscription revenue $ 90,322 $ 102,426 184,735 206,496 Professional Services 25,860 31,746 52,462 67,139 Total net revenue $ 116,182 $ 134,172 $ 237,197 $ 273,635 Promises to provide the Company’s subscription-based solutions related to SaaS applications are accounted for as separate performance obligations and managed security services are accounted for as a single performance obligation. Our subscription-based solutions have an average contract term of approximately two years as of July 29, 2022. Performance obligations related to the Company’s security and risk consulting professional service contracts are separate obligations associated with each service. Although the Company has many multi-year customer relationships for its various professional service solutions, the arrangement is typically structured as a separate performance obligation over the contract period and recognized over a duration of less than one year. 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 six months ended July 29, 2022, on average, approximately 62% of the Company's recurring revenue was billed annually in advance and approximately 38% was billed on either a monthly or quarterly basis in advance. 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 six months ended July 29, 2022 and July 30, 2021 are as follows (in thousands): As of January 28, 2022 Upfront payments received and billings during the six months ended July 29, 2022 Revenue recognized during the six months ended July 29, 2022 As of July 29, 2022 Deferred revenue $ 176,068 $ 143,991 $ (160,151) $ 159,908 As of January 29, 2021 Upfront payments received and billings during the six months ended July 30, 2021 Revenue recognized during the six months ended July 30, 2021 As of July 30, 2021 Deferred revenue $ 178,027 $ 176,529 $ (179,137) $ 175,419 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 July 29, 2022, 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 $ 259,274 $ 137,977 $ 86,236 $ 34,228 $ 833 Performance obligation - backlog 11,732 3,932 3,902 3,831 67 Total $ 271,006 $ 141,909 $ 90,138 $ 38,059 $ 900 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 six months ended July 29, 2022 and July 30, 2021 are as follows (in thousands): As of January 28, 2022 Amount capitalized Amount recognized As of July 29, 2022 Deferred commissions $ 53,978 $ 4,994 $ (8,985) $ 49,987 Deferred fulfillment costs 7,597 210 (2,565) 5,242 As of January 29, 2021 Amount capitalized Amount recognized As of July 30, 2021 Deferred commissions $ 57,888 $ 7,516 $ (9,912) $ 55,492 Deferred fulfillment costs 11,009 1,039 (2,700) 9,348

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	6 Months Ended
	Jul. 29, 2022
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 decreased $48 thousand due to foreign currency translation for the six months ended July 29, 2022, compared to January 28, 2022. Goodwill totaled $425.9 million as of July 29, 2022 and January 28, 2022. Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis during the third fiscal quarter of each fiscal year, or earlier if an indicator of impairment occurs. The Company completed the most recent annual impairment test in the third quarter of fiscal 2022 by performing a “Step 0” qualitative assessment of goodwill at the reporting unit level, as well as the Company’s indefinite-lived trade name asset at the individual asset level. The Company has one reporting unit. The qualitative assessment includes the Company’s consideration of the relevant events and circumstances that would affect the Company’s single reporting unit and indefinite-lived assets, including macroeconomic, industry and market conditions, the Company’s overall financial performance, and trends in the market price of the Company’s Class A common stock. After assessing the totality of these events and circumstances, the Company determined it was not more-likely-than not that the fair value of the reporting unit and indefinite-lived intangible asset was less than their respective carrying values as of the annual impairment date. Further, no triggering events have transpired since the performance of the qualitative assessment that would indicate a potential impairment occurred during the period through July 29, 2022. Intangible Assets The Company's intangible assets as of July 29, 2022 and January 28, 2022 were as follows: July 29, 2022 January 28, 2022 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (126,482) $ 63,036 $ 189,518 $ (119,435) $ 70,083 Acquired Technology 141,784 (121,275) 20,509 141,784 (113,937) 27,847 Developed Technology 10,963 (3,482) 7,481 8,123 (2,439) 5,684 Finite-lived intangible assets 342,265 (251,239) 91,026 339,425 (235,811) 103,614 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 372,383 $ (251,239) $ 121,144 $ 369,543 $ (235,811) $ 133,732

DEBT

DEBT	6 Months Ended
	Jul. 29, 2022
Debt Disclosure [Abstract]
DEBT	DEBT Revolving Credit Facility SecureWorks, Inc., a wholly-owned subsidiary of SecureWorks Corp., is a party to 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. Effective March 23, 2022, the revolving credit agreement was amended and restated to extend the maturity date from March 25, 2022 to March 23, 2023 and to decrease the annual rate at which interest accrues to the applicable London Interbank Offered Rate (“LIBOR”) plus 1.23%. 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. The amended and restated revolving credit agreement otherwise has terms substantially similar to those of the facility before the amendment and restatement. 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 July 29, 2022 or January 28, 2022, and there were no amounts borrowed under the credit facility during the three and six months ended July 29, 2022 or July 30, 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	6 Months Ended
	Jul. 29, 2022
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 July 29, 2022, 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 As of July 29, 2022, the Company is under audit with various state taxing authorities in which rulings related to the taxability of certain of its services are pending. The Company has recorded an estimated liability in the amount of $8.7 million related to such matters, of which $0.2 million was accrued during the three months ended July 29, 2022. As of July 29, 2022, $1.6 million of the estimated liability is no longer subject to appeal and $7.1 million remains in appeal. The Company will continue to appeal these rulings, but should the Company not prevail, it could be subject to 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. While Dell does provide an indemnification for certain state tax issues for tax periods prior to August 1, 2015, such indemnification would 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 sales organization, supplemented by sales through partners. During the three and six months ended July 29, 2022 and July 30, 2021, the Company had no customer that represented 10% or more of its net revenue.

LEASES

LEASES	6 Months Ended
	Jul. 29, 2022
Leases [Abstract]
LEASES	LEASES The Company recorded operating lease cost for facilities of approximately $1.3 million and $2.6 million for the three and six months ended July 29, 2022, respectively, and $1.3 million and $2.7 million for the three and six months ended July 30, 2021, respectively. Operating lease cost include expenses in connection with variable lease costs of $0.1 million and $0.2 million for the three and six months ended July 29, 2022, respectively, and $64 thousand and $0.1 million for the three and six months ended July 30, 2021, respectively, which primarily consisted of utilities and common area charges. The Company recorded operating lease cost of equipment leases of approximately $30 thousand and $47 thousand for the three and six months ended July 29, 2022, respectively, and $0.1 million and $0.3 million for the three and six months ended July 30, 2021, respectively. Equipment lease costs included short-term lease costs of $14 thousand and $15 thousand for the three and six months ended July 29, 2022 respectively, and $0.1 million and $0.2 million for the three and six months ended July 30, 2021, respectively. Lease expense for equipment was included in cost of revenues. Cash paid for amounts included in the measurement of operating lease liabilities was $1.5 million and $3.2 million during the three and six months ended July 29, 2022, respectively, and $1.7 million and $3.6 million for the three and six months ended July 30, 2021, respectively. Weighted-average information associated with the measurement of the Company’s remaining operating lease obligations is as follows: July 29, 2022 Weighted-average remaining lease term 4.1 years Weighted-average discount rate 5.38 % The following table summarizes the maturity of the Company's operating lease liabilities as of July 29, 2022 (in thousands): Fiscal Years Ending July 29, 2022 2023 $ 2,861 2024 5,668 2025 5,095 2026 4,526 2027 4,088 Thereafter — Total operating lease payments $ 22,238 Less imputed interest 2,325 Total operating lease liabilities $ 19,913 The Company's leases have remaining lease terms of 2 months to 4.4 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	6 Months Ended
	Jul. 29, 2022
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") 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, the Company granted 332,376 and 3,982,900 restricted stock units during the three and six months ended July 29, 2022, respectively, and 509,839 and 2,358,802 restricted stock units during the three and six months ended July 30, 2021, respectively. The Company granted no restricted stock awards during the three and six months ended July 29, 2022. During the three and six months ended July 30, 2021, the Company granted 0 and 466,644 restricted stock awards, respectively. The annual restricted stock unit and restricted stock awards granted during these periods vest over a three-year period. Approximately 17% and 29% of such awards granted during the six months ended July 29, 2022 and July 30, 2021, respectively, are subject to performance conditions. All restricted stock units granted during the three months ended April 30, 2021 were subject to stockholder approval at the Company’s 2021 annual meeting held on June 21, 2021 of an amendment to the 2016 Plan to increase the number of shares of Class A common stock issuable under the plan by 5,000,000 shares. Such stockholder approval was obtained and those awards were deemed granted and outstanding for accounting purposes during the three months ended July 30, 2021.

INCOME AND OTHER TAXES

INCOME AND OTHER TAXES	6 Months Ended
	Jul. 29, 2022
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 and six months ended July 29, 2022 and July 30, 2021 was as follows (in thousands, except percentages): Three Months Ended Six Months Ended July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Loss before income taxes $ (32,118) $ (14,502) $ (59,171) $ (23,265) Income tax benefit $ (7,399) $ (2,739) $ (12,854) $ (5,112) Effective tax rate 23.0 % 18.9 % 21.7 % 22.0 % 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. Effective for tax years beginning on or after January 1, 2022, the Tax Cuts and Jobs Act of 2017 eliminated the option to deduct research and development (“R&D”) expenses in the year incurred and instead requires taxpayers to capitalize R&D expenses, including software development cost, and subsequently amortize such expenses over five years for R&D activities conducted in the United States and over fifteen years for R&D activities conducted outside of the United States. If Section 174 of the Internal Revenue Code is not modified, repealed or deferred to a future date by the United States Congress, then the Company will have taxable income in the near-term delaying Dell’s utilization of the Company’s net operating losses to future years. The Company's effective tax benefit rate was 23.0% and 21.7% for the three and six months ended July 29, 2022, respectively, and 18.9% and 22.0% for the three and six months ended July 30, 2021, respectively. 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 of approximate ly $0.1 million and $0.6 million fo r the three and six months ended July 29, 2022, respectively, and $0.4 million and $0.1 million for the three and six months ended July 30, 2021, 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 lower than the fair value for both the three and six month periods ended July 29, 2022 and July 30, 2021 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 lower actual tax deduction for both the three and six month periods ended July 29, 2022 and July 30, 2021 than the amounts deducted for financial reporting purposes. As of July 29, 2022 and January 28, 2022, the Company had $5.5 million and $5.5 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 28, 2022. 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 July 29, 2022 and January 28, 2022. 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 six months ended July 29, 2022 would have been $59.2 million, $5.3 million and $53.9 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. As of July 29, 2022 and January 28, 2022, the Company had a net operating loss receivable from Dell of $14.1 million and $10.7 million, respectively. The Company had $4.3 million and $4.2 million of unrecognized tax benefits as of July 29, 2022 and January 28, 2022, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jul. 29, 2022
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 $1.9 million for the three and six months ended July 29, 2022, respectively, and $0.9 million and $1.9 million for the three and six months ended July 30, 2021, 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 Inc. and its subsidiaries that is capitalized within property and equipment in the Condensed Consolidated Statements of Financial Position. Purchases of computer equipment from Dell and EMC Corporation, a wholly-owned subsidiary of Dell that provides enterprise software and storage ("EMC"), totaled $0.2 million and $0.4 million for the three and six months ended July 29, 2022, respectively, and $0.1 million and $0.3 million for the three and six months ended July 30, 2021, respectively. EMC previously maintained a majority ownership interest in VMware, Inc. ("VMware"), a company 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 $0.2 million and $0.5 million for the three and six months ended July 29, 2022, respectively and $0.5 million and $1.1 million for the three and six months ended July 30, 2021, respectively. On November 1, 2021, Dell Technologies completed its spin-off of all shares of common stock of VMware that were beneficially owned by Dell Technologies and its subsidiaries, including EMC, to Dell Technologies’ stockholders. As a result of the spin-off transaction, the businesses of VMware were separated from the remaining businesses of Dell Technologies, although Michael S. Dell, the Chairman, Chief Executive Officer and majority stockholder of Dell Technologies, continues to serve as Chairman of the Board of VMware. The Company recognized revenue related to solutions provided to VMware t hat totaled $0.1 million and $0.3 million for the three and six months ended July 29, 2022, respectively, and $0.2 million and $0.3 million for the three and six months ended July 30, 2021, respectively. 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 $0.4 million and $1.7 million for the three and six months ended July 29, 2022, respectively, and $1.5 million and $2.6 million for the three and six months ended July 30, 2021, respectively. The Company also recognized revenue related to solutions provided to significant beneficial owners of Secureworks common stock, which include Mr. Dell 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 $0.1 million and $0.2 million for the three and six months ended July 29, 2022, respectively, and $51 thousand and $0.1 million for the three and six months ended July 30, 2021, 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 or whose contracts were subsequently originated through Dell under a reseller agreement, the Company recognized revenues of approximately $14.4 million and $30.6 million for the three and six months ended July 29, 2022, respectively, and $15.2 million and $30.2 million for the three and six months ended July 30, 2021, respectively. In addition, as of July 29, 2022, the Company had approximately $0.5 million of contingent obligations to Dell related to outstanding performance bonds for certain customer contracts which Dell issued on behalf of the Company. These contingent obligations are not recognized as liabilities on the Company’s financial statements. As the Company’s customer and on behalf of certain of its own customers, Dell also purchases solutions from the Company. The Company recognized revenues from such purchases of approximately $1.2 million and $2.8 million for the three and six months ended July 29, 2022, respectively, and $2.9 million and $6.2 million for the three and six months ended July 30, 2021, respectively. As a result of the foregoing related party arrangements, the Company has recorded the following related party balances in the Condensed Consolidated Statements of Financial Position as of July 29, 2022 and January 28, 2022 (in thousands). July 29, 2022 January 28, 2022 Related party payable (in accrued and other current liabilities) $ 3,977 $ 3,088 Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net) $ 7,437 $ 7,700 Net operating loss tax sharing receivable under agreement with Dell (payable in accrued and other and receivable in other current assets) $ 14,145 $ 10,693

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jul. 29, 2022
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 July 29, 2022 and January 28, 2022 were as follows (in thousands): July 29, 2022 January 28, 2022 Level 1 Level 1 Cash equivalents - Money Market Funds $ 60,956 $ 115,846 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)	6 Months Ended
	Jul. 29, 2022
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 2019 (“COVID-19”) pandemic, the Ukraine/Russia conflict and inflation concerns 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 this 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 February 3, 2023 and the fiscal year ended January 28, 2022 as fiscal 2023 and fiscal 2022, respectively. Fiscal 2023 has 53 weeks and fiscal 2022 had 52 weeks. In fiscal 2023, each quarter has 13 weeks, except for the fourth quarter, which will have 14 weeks. Unless otherwise indicated, all changes identified for the current-period results represent comparisons to results for the prior corresponding fiscal periods.
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, capitalized software, goodwill and other identifiable intangible assets. 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 Ukraine/Russia conflict and impacts of inflation. The Company considered the potential impact of the COVID-19 pandemic and current economic and geopolitical uncertainty 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 and six months ended July 29, 2022. As the COVID-19 pandemic and current economic environment continue to develop, many of the Company's estimates could require increased judgment and be subject to a higher degree of variability and volatility. As a result, the Company's estimates may change materially in future periods.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Business Combinations – The Company has adopted Accounting Standard Update (“ASU”) 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The guidance requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers.” ASU 2021-08 was effective for the Company beginning on January 29, 2022. There was no impact to the Company’s condensed consolidated financial statements as a result of adoption of this standard update. Summary of Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies as of and for the three and six months ended July 29, 2022, as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the fiscal year ended January 28, 2022.
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)	6 Months Ended
	Jul. 29, 2022
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 Six Months Ended July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Numerator: Net loss $ (24,719) $ (11,763) $ (46,317) $ (18,153) Denominator: Weighted-average number of shares outstanding: Basic and Diluted 84,483 82,979 84,123 82,482 Loss per common share: Basic and Diluted $ (0.29) $ (0.14) $ (0.55) $ (0.22) Weighted-average anti-dilutive stock options, non-vested restricted stock and restricted stock units 6,057 4,873 5,980 5,449

CONTRACT BALANCES AND CONTRAC_2

CONTRACT BALANCES AND CONTRACT COSTS (Tables)	6 Months Ended
	Jul. 29, 2022
Revenue from Contract with Customer [Abstract]
Revenue by Service Type	The following table presents revenue by service type (in thousands): Three Months Ended Six Months Ended July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Net revenue: Taegis Subscription Solutions $ 42,809 $ 18,503 $ 80,025 $ 32,463 Managed Security Services 47,513 83,923 $ 104,710 $ 174,033 Total Subscription revenue $ 90,322 $ 102,426 184,735 206,496 Professional Services 25,860 31,746 52,462 67,139 Total net revenue $ 116,182 $ 134,172 $ 237,197 $ 273,635
Schedule of Deferred Revenue	Changes to the Company's deferred revenue during the six months ended July 29, 2022 and July 30, 2021 are as follows (in thousands): As of January 28, 2022 Upfront payments received and billings during the six months ended July 29, 2022 Revenue recognized during the six months ended July 29, 2022 As of July 29, 2022 Deferred revenue $ 176,068 $ 143,991 $ (160,151) $ 159,908 As of January 29, 2021 Upfront payments received and billings during the six months ended July 30, 2021 Revenue recognized during the six months ended July 30, 2021 As of July 30, 2021 Deferred revenue $ 178,027 $ 176,529 $ (179,137) $ 175,419
Expected Timing to Recognize Remaining Performance Obligation	As of July 29, 2022, 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 $ 259,274 $ 137,977 $ 86,236 $ 34,228 $ 833 Performance obligation - backlog 11,732 3,932 3,902 3,831 67 Total $ 271,006 $ 141,909 $ 90,138 $ 38,059 $ 900
Schedule of Deferred Commissions and Fulfillment Costs	Changes in the balance of total deferred commission and total deferred fulfillment costs during the six months ended July 29, 2022 and July 30, 2021 are as follows (in thousands): As of January 28, 2022 Amount capitalized Amount recognized As of July 29, 2022 Deferred commissions $ 53,978 $ 4,994 $ (8,985) $ 49,987 Deferred fulfillment costs 7,597 210 (2,565) 5,242 As of January 29, 2021 Amount capitalized Amount recognized As of July 30, 2021 Deferred commissions $ 57,888 $ 7,516 $ (9,912) $ 55,492 Deferred fulfillment costs 11,009 1,039 (2,700) 9,348

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jul. 29, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Indefinite-Lived Intangible Assets	The Company's intangible assets as of July 29, 2022 and January 28, 2022 were as follows: July 29, 2022 January 28, 2022 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (126,482) $ 63,036 $ 189,518 $ (119,435) $ 70,083 Acquired Technology 141,784 (121,275) 20,509 141,784 (113,937) 27,847 Developed Technology 10,963 (3,482) 7,481 8,123 (2,439) 5,684 Finite-lived intangible assets 342,265 (251,239) 91,026 339,425 (235,811) 103,614 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 372,383 $ (251,239) $ 121,144 $ 369,543 $ (235,811) $ 133,732
Schedule of Finite-Lived Intangible Assets	The Company's intangible assets as of July 29, 2022 and January 28, 2022 were as follows: July 29, 2022 January 28, 2022 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (126,482) $ 63,036 $ 189,518 $ (119,435) $ 70,083 Acquired Technology 141,784 (121,275) 20,509 141,784 (113,937) 27,847 Developed Technology 10,963 (3,482) 7,481 8,123 (2,439) 5,684 Finite-lived intangible assets 342,265 (251,239) 91,026 339,425 (235,811) 103,614 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 372,383 $ (251,239) $ 121,144 $ 369,543 $ (235,811) $ 133,732

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jul. 29, 2022
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: July 29, 2022 Weighted-average remaining lease term 4.1 years Weighted-average discount rate 5.38 %
Maturities of Operating Lease Liabilities	The following table summarizes the maturity of the Company's operating lease liabilities as of July 29, 2022 (in thousands): Fiscal Years Ending July 29, 2022 2023 $ 2,861 2024 5,668 2025 5,095 2026 4,526 2027 4,088 Thereafter — Total operating lease payments $ 22,238 Less imputed interest 2,325 Total operating lease liabilities $ 19,913

INCOME AND OTHER TAXES (Tables)

INCOME AND OTHER TAXES (Tables)	6 Months Ended
	Jul. 29, 2022
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 and six months ended July 29, 2022 and July 30, 2021 was as follows (in thousands, except percentages): Three Months Ended Six Months Ended July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Loss before income taxes $ (32,118) $ (14,502) $ (59,171) $ (23,265) Income tax benefit $ (7,399) $ (2,739) $ (12,854) $ (5,112) Effective tax rate 23.0 % 18.9 % 21.7 % 22.0 %

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jul. 29, 2022
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	As a result of the foregoing related party arrangements, the Company has recorded the following related party balances in the Condensed Consolidated Statements of Financial Position as of July 29, 2022 and January 28, 2022 (in thousands). July 29, 2022 January 28, 2022 Related party payable (in accrued and other current liabilities) $ 3,977 $ 3,088 Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net) $ 7,437 $ 7,700 Net operating loss tax sharing receivable under agreement with Dell (payable in accrued and other and receivable in other current assets) $ 14,145 $ 10,693

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jul. 29, 2022
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 July 29, 2022 and January 28, 2022 were as follows (in thousands): July 29, 2022 January 28, 2022 Level 1 Level 1 Cash equivalents - Money Market Funds $ 60,956 $ 115,846

DESCRIPTION OF THE BUSINESS A_3

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details)	6 Months Ended
	Jul. 29, 2022 segment
Class of Stock [Line Items]
Number of reportable segments	1
IPO | Denali
Class of Stock [Line Items]
Percent of outstanding shares owned	82.40%
Percent of voting interests owned	97.90%

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021	Jul. 29, 2022	Jul. 30, 2021
Numerator:
Net loss	$ (24,719)	$ (11,763)	$ (46,317)	$ (18,153)
Denominator:
Weighted-average common shares outstanding (basic) (in shares)	84,483	82,979	84,123	82,482
Weighted-average common shares outstanding (diluted) (in shares)	84,483	82,979	84,123	82,482
Loss per common share:
Loss per common share (basic) (in shares)	$ (0.29)	$ (0.14)	$ (0.55)	$ (0.22)
Loss per common share (diluted) (in shares)	$ (0.29)	$ (0.14)	$ (0.55)	$ (0.22)
Weighted-average anti-dilutive stock options, non-vested restricted stock and restricted stock units (in shares)	6,057	4,873	5,980	5,449

CONTRACT BALANCES AND CONTRAC_3

CONTRACT BALANCES AND CONTRACT COSTS - Disaggregation of Revenue by Service Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021	Jul. 29, 2022	Jul. 30, 2021
Disaggregation of Revenue [Line Items]
Total net revenue	$ 116,182	$ 134,172	$ 237,197	$ 273,635
Taegis Subscription Solutions
Disaggregation of Revenue [Line Items]
Total net revenue	42,809	18,503	80,025	32,463
Managed Security Services
Disaggregation of Revenue [Line Items]
Total net revenue	47,513	83,923	104,710	174,033
Subscription
Disaggregation of Revenue [Line Items]
Total net revenue	90,322	102,426	184,735	206,496
Professional services
Disaggregation of Revenue [Line Items]
Total net revenue	$ 25,860	$ 31,746	$ 52,462	$ 67,139

CONTRACT BALANCES AND CONTRAC_4

CONTRACT BALANCES AND CONTRACT COSTS - Narrative (Details)	6 Months Ended
	Jul. 29, 2022 USD ($) performanceObligationElement	Jul. 30, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Deferred revenue billed in advance, percent	62%
Deferred revenue billed monthly or quarterly, percent	38%
Number of elements performance obligation is comprised of | performanceObligationElement	2
Impairment losses on deferred commissions and deferred fulfillment costs | $	$ 0	$ 0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-30
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-30 | Managed Security Services
Disaggregation of Revenue [Line Items]
Performance obligation period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-30 | Professional services
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-29
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-28
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-26
Disaggregation of Revenue [Line Items]
Performance obligation period

CONTRACT BALANCES AND CONTRAC_5

CONTRACT BALANCES AND CONTRACT COSTS - Deferred Revenue (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021
Change in Contract with Customer, Liability [Roll Forward]
Deferred revenue, Beginning of period	$ 176,068	$ 178,027
Deferred revenue, Upfront payments received and billings	143,991	176,529
Deferred revenue, Revenue recognized	(160,151)	(179,137)
Deferred revenue, End of period	$ 159,908	$ 175,419

CONTRACT BALANCES AND CONTRAC_6

CONTRACT BALANCES AND CONTRACT COSTS - Remaining Performance Obligation and Timing (Details) $ in Thousands	Jul. 29, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 271,006
Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	259,274
Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	11,732
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 141,909
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-30 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 137,977
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-30 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,932
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 90,138
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-29 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 86,236
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-29 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,902
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 38,059
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-28 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 34,228
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-28 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,831
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 900
Performance obligation period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-26 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 833
Performance obligation period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-26 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 67
Performance obligation period

CONTRACT BALANCES AND CONTRAC_7

CONTRACT BALANCES AND CONTRACT COSTS - Deferred Commissions and Fulfillment Costs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021
Deferred commissions
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 53,978	$ 57,888
Amount capitalized	4,994	7,516
Amount recognized	(8,985)	(9,912)
Ending balance	49,987	55,492
Deferred fulfillment costs
Capitalized Contract Cost [Roll Forward]
Beginning balance	7,597	11,009
Amount capitalized	210	1,039
Amount recognized	(2,565)	(2,700)
Ending balance	$ 5,242	$ 9,348

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details)	3 Months Ended		6 Months Ended
	Jul. 29, 2022 USD ($)	Jul. 30, 2021 USD ($)	Jul. 29, 2022 USD ($) reportingUnit	Jul. 30, 2021 USD ($)	Jan. 28, 2022 USD ($)
Goodwill [Line Items]
Goodwill	$ 425,878,000		$ 425,878,000		$ 425,926,000
Number of reporting units | reportingUnit			1
Amortization expense	7,600,000	$ 7,600,000	$ 15,400,000	$ 14,900,000
Impairment charges	$ 0	$ 0	0	$ 0
Delve Laboratories, Inc.
Goodwill [Line Items]
Goodwill, foreign currency translation gain (loss)			$ (48,000)

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 29, 2022	Jan. 28, 2022
Finite-Lived Intangible Assets [Line Items]
Gross	$ 342,265	$ 339,425
Accumulated Amortization	(251,239)	(235,811)
Net	91,026	103,614
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross	372,383	369,543
Accumulated Amortization	(251,239)	(235,811)
Net	121,144	133,732
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	(126,482)	(119,435)
Net	63,036	70,083
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(126,482)	(119,435)
Acquired Technology
Finite-Lived Intangible Assets [Line Items]
Gross	141,784	141,784
Accumulated Amortization	(121,275)	(113,937)
Net	20,509	27,847
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(121,275)	(113,937)
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Gross	10,963	8,123
Accumulated Amortization	(3,482)	(2,439)
Net	7,481	5,684
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ (3,482)	$ (2,439)

DEBT (Details)

DEBT (Details) - Line of Credit - Revolving Credit Facility - USD ($)	6 Months Ended	12 Months Ended
	Jul. 29, 2022	Mar. 23, 2023	Jan. 28, 2022
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30,000,000
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) | Forecast
Debt Instrument [Line Items]
Basis spread on variable rate		1.23%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 29, 2022 USD ($)	Jul. 29, 2022 USD ($)
State and Local Jurisdiction
Other Commitments [Line Items]
Income tax examination, tax liability accrued	$ 8.7	$ 8.7
Income tax examination, tax liability accrued during period	0.2
State and Local Jurisdiction | No Longer Subject To Appeal
Other Commitments [Line Items]
Income tax examination, tax liability accrued	1.6	1.6
State and Local Jurisdiction | In Appeal
Other Commitments [Line Items]
Income tax examination, tax liability accrued	$ 7.1	$ 7.1
Minimum
Other Commitments [Line Items]
Income tax examination, period		3 years
Maximum
Other Commitments [Line Items]
Income tax examination, period		4 years

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021	Jul. 29, 2022	Jul. 30, 2021
Lessee, Lease, Description [Line Items]
Variable lease cost	$ 100	$ 64	$ 200	$ 100
Short-term lease cost	14	100	15	200
Operating lease payments	$ 1,500	1,700	$ 3,200	3,600
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	2 months		2 months
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	4 years 4 months 24 days		4 years 4 months 24 days
Leased Facilities
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 1,300	1,300	$ 2,600	2,700
Leased Equipment
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 30	$ 100	$ 47	$ 300

LEASES - Weighted Average (Deta

LEASES - Weighted Average (Details)	Jul. 29, 2022
Leases [Abstract]
Weighted-average remaining lease term	4 years 1 month 6 days
Weighted-average discount rate	5.38%

LEASES - Maturities of Operatin

LEASES - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Jul. 29, 2022 USD ($)
Operating Leases, After Adoption of 842:
2023	$ 2,861
2024	5,668
2025	5,095
2026	4,526
2027	4,088
Thereafter	0
Total operating lease payments	22,238
Less imputed interest	2,325
Total operating lease liabilities	$ 19,913

STOCK-BASED COMPENSATION AND _2

STOCK-BASED COMPENSATION AND OTHER LONG-TERM PERFORMANCE INCENTIVES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021	Jul. 29, 2022	Jul. 30, 2021
2016 Long-Term Incentive Plan | Common Stock - Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized			5,000,000
Restricted Stock Units (RSUs) | 2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards issued (in shares)	332,376	509,839	3,982,900	2,358,802
Restricted Stock | 2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards issued (in shares)	0	0	0	466,644
Restricted Stock and Restricted Stock Units | 2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting term	3 years
Percentage of grants issued subject to performance conditions	17%	29%
Performance-Based Cash Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting term	3 years	3 years
Incentive Cash Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted	$ 0	$ 1,500,000	$ 0	$ 9,000,000
Compensation expense	$ 1,100,000	$ 1,600,000	$ 2,500,000	$ 3,200,000

INCOME AND OTHER TAXES - Effect

INCOME AND OTHER TAXES - Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021	Jul. 29, 2022	Jul. 30, 2021
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (32,118)	$ (14,502)	$ (59,171)	$ (23,265)
Income tax benefit	$ (7,399)	$ (2,739)	$ (12,854)	$ (5,112)
Effective tax rate	23%	18.90%	21.70%	22%

INCOME AND OTHER TAXES - Narrat

INCOME AND OTHER TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021	Jul. 29, 2022	Jul. 30, 2021	Jan. 28, 2022
Valuation Allowance [Line Items]
Effective tax rate	23%	18.90%	21.70%	22%
Expense relating to vesting of equity awards	$ 100	$ 400	$ 600	$ 100
Loss carryforwards	5,500		5,500		$ 5,500
Loss before income taxes	32,118	14,502	59,171	23,265
Income tax benefit	7,399	2,739	12,854	5,112
Net loss	24,719	$ 11,763	46,317	$ 18,153
Unrecognized tax benefits	4,300		4,300		4,200
Principal Owner | Dell Inc. | Other Noncurrent Assets | Net Operating Loss Receivable
Valuation Allowance [Line Items]
Net operating loss receivable	$ 14,100		14,100		$ 10,700
Prepared using separate return method
Valuation Allowance [Line Items]
Loss before income taxes			59,200
Income tax benefit			5,300
Net loss			$ 53,900

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2022	Jul. 30, 2021	Jul. 29, 2022	Jul. 30, 2021
Related Party Transaction [Line Items]
Charged under shared services agreement	$ 24,274	$ 26,488	$ 49,634	$ 52,043
Purchases of computer equipment from Dell			827	1,033
Revenues	116,182	134,172	237,197	273,635
Dell Inc.
Related Party Transaction [Line Items]
Performance bonds, outstanding	500		500
Dell Inc. | Principal Owner
Related Party Transaction [Line Items]
Charged under shared services agreement	900	900	1,900	1,900
Dell Inc. | Principal Owner | Contracts Not Yet Transferred
Related Party Transaction [Line Items]
Revenues	14,400	15,200	30,600	30,200
Dell Inc. | Principal Owner | Solutions Purchases
Related Party Transaction [Line Items]
Revenues	1,200	2,900	2,800	6,200
Dell Inc. | Chief Executive Officer
Related Party Transaction [Line Items]
Revenues	100	51	200	100
Dell and EMC | Principal Owner
Related Party Transaction [Line Items]
Purchases of computer equipment from Dell	200	100	400	300
EMC and VMware | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Purchase of annual maintenance services	200	500	500	1,100
VMware | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Revenues	100	200	300	300
Carbon Black Inc. | Subsidiary of Common Parent | Solutions Purchases
Related Party Transaction [Line Items]
Purchases of solutions from Carbon Black	$ 400	$ 1,500	$ 1,700	$ 2,600

RELATED PARTY TRANSACTIONS - Ba

RELATED PARTY TRANSACTIONS - Balances in Condensed Consolidated Statements of Financial Position (Details) - USD ($) $ in Thousands	Jul. 29, 2022	Jan. 28, 2022
Related Party Transaction [Line Items]
Related party payable (in accrued and other current liabilities)	$ 3,977	$ 3,088
Dell Inc. | Principal Owner
Related Party Transaction [Line Items]
Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net)	7,437	7,700
Dell Inc. | Principal Owner | Other Current Assets | Net Operating Loss Receivable
Related Party Transaction [Line Items]
Net operating loss tax sharing receivable under agreement with Dell (payable in accrued and other and receivable in other current assets)	$ 14,145	$ 10,693

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jul. 29, 2022	Jan. 28, 2022
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	$ 60,956	$ 115,846