SecureWorks (SCWX) 10-Q 1 Dec 22 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Oct. 28, 2022	Nov. 28, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 28, 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	Q3
Amendment Flag	false
Common Stock - Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		14,650,470
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	Oct. 28, 2022	Jan. 28, 2022
Current assets:
Cash and cash equivalents	$ 139,032	$ 220,655
Accounts receivable, net of allowances of $2,426 and $3,510, respectively	64,054	86,231
Inventories, net	683	505
Other current assets	26,174	26,040
Total current assets	229,943	333,431
Property and equipment, net	5,426	8,426
Operating lease right-of-use assets, net	14,245	17,441
Goodwill	425,353	425,926
Intangible assets, net	113,762	133,732
Other non-current assets	62,124	68,346
Total assets	850,853	987,302
Current liabilities:
Accounts payable	19,682	15,062
Accrued and other current liabilities	65,240	88,122
Short-term deferred revenue	136,950	163,304
Total current liabilities	221,872	266,488
Long-term deferred revenue	7,566	12,764
Operating lease liabilities, non-current	13,125	16,869
Other non-current liabilities	22,391	43,124
Total liabilities	264,954	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	958,420	939,404
Accumulated deficit	(344,085)	(269,622)
Accumulated other comprehensive loss	(9,387)	(2,672)
Treasury stock, at cost - 1,257 and 1,257 shares, respectively	(19,896)	(19,896)
Total stockholders' equity	585,899	648,057
Total liabilities and stockholders' equity	850,853	987,302
Common Stock - Class A
Stockholders' equity:
Common stock	147	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	Oct. 28, 2022	Jan. 28, 2022
Accounts receivable, allowance for doubtful accounts	$ 2,426	$ 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)	14,650	14,282
Common stock, shares outstanding (in shares)	14,650	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		9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021	Oct. 28, 2022	Oct. 29, 2021
Total net revenue	$ 110,942	$ 133,699	$ 348,139	$ 407,334
Total cost of revenue	45,580	52,890	144,594	166,580
Gross profit	65,362	80,809	203,545	240,754
Operating expenses:
Research and development	35,263	32,767	102,232	91,336
Sales and marketing	41,380	35,008	121,565	106,098
General and administrative	24,725	28,404	74,359	80,447
Total operating expenses	101,368	96,179	298,156	277,881
Operating loss	(36,006)	(15,370)	(94,611)	(37,127)
Interest and other, net	(661)	(762)	(1,227)	(2,270)
Loss before income taxes	(36,667)	(16,132)	(95,838)	(39,397)
Income tax benefit	(8,521)	(3,269)	(21,375)	(8,381)
Net loss	$ (28,146)	$ (12,863)	$ (74,463)	$ (31,016)
Loss per common share (basic) (in shares)	$ (0.33)	$ (0.15)	$ (0.88)	$ (0.37)
Loss per common share (diluted) (in shares)	$ (0.33)	$ (0.15)	$ (0.88)	$ (0.37)
Weighted-average common shares outstanding (basic) (in shares)	84,584	83,297	84,277	82,754
Weighted-average common shares outstanding (diluted) (in shares)	84,584	83,297	84,277	82,754
Subscription
Total net revenue	$ 87,191	$ 102,992	$ 271,926	$ 309,488
Total cost of revenue	32,136	34,888	99,022	109,423
Professional services
Total net revenue	23,751	30,707	76,213	97,846
Total cost of revenue	$ 13,444	$ 18,002	$ 45,572	$ 57,157

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021	Oct. 28, 2022	Oct. 29, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (28,146)	$ (12,863)	$ (74,463)	$ (31,016)
Foreign currency translation adjustments, net of tax	(2,717)	(621)	(6,715)	(535)
Comprehensive loss	$ (30,863)	$ (13,484)	$ (81,178)	$ (31,551)

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021
Cash flows from operating activities:
Net loss	$ (74,463)	$ (31,016)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	27,728	29,914
Amortization of right of use asset	2,853	3,081
Amortization of costs capitalized to obtain revenue contracts	13,319	14,693
Amortization of costs capitalized to fulfill revenue contracts	3,635	4,002
Stock-based compensation expense	27,504	23,677
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	1,386	2,374
Income tax benefit	(21,375)	(8,381)
Provision for credit losses	(552)	73
Changes in assets and liabilities:
Accounts receivable	21,584	12,460
Net transactions with Dell	(3,741)	(6,794)
Inventories	(178)	45
Other assets	(9,709)	(10,588)
Accounts payable	4,550	(3,814)
Deferred revenue	(33,171)	(8,830)
Operating leases, net	(4,086)	(4,266)
Accrued and other liabilities	(23,462)	(18,403)
Net cash used in operating activities	(68,178)	(1,773)
Cash flows from investing activities:
Capital expenditures	(1,609)	(1,248)
Software development costs	(3,352)	(4,574)
Net cash used in investing activities	(4,961)	(5,822)
Cash flows from financing activities:
Taxes paid on vested restricted shares	(8,484)	(11,710)
Proceeds from stock option exercises	0	4,134
Net cash used in financing activities	(8,484)	(7,576)
Net decrease in cash and cash equivalents	(81,623)	(15,171)
Cash and cash equivalents at beginning of the period	220,655	220,300
Cash and cash equivalents at end of the period	$ 139,032	$ 205,129

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	(31,016)						(31,016)
Other comprehensive loss	(535)							(535)
Vesting of restricted stock units (in shares)				1,380
Vesting of restricted stock units	0			$ 14		(14)
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 and forfeitures of restricted stock awards	0			$ 5		(5)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)				(1,530)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(11,710)			$ (15)		(11,695)
Stock-based compensation	23,677					23,677
Ending balance (in shares) at Oct. 29, 2021				14,202	70,000
Ending balance at Oct. 29, 2021	652,331			$ 142	$ 700	933,427	(260,847)	(1,195)	(19,896)
Beginning balance (in shares) at Jul. 30, 2021				14,092	70,000
Beginning balance at Jul. 30, 2021	657,518			$ 141	$ 700	925,131	(247,984)	(574)	(19,896)
Statement of Shareholders' Equity
Net loss	(12,863)						(12,863)
Other comprehensive loss	(621)							(621)
Vesting of restricted stock units (in shares)				183
Vesting of restricted stock units	0			$ 2		(2)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)				(73)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(1,765)			$ (1)		(1,764)
Stock-based compensation	10,062					10,062
Ending balance (in shares) at Oct. 29, 2021				14,202	70,000
Ending balance at Oct. 29, 2021	652,331			$ 142	$ 700	933,427	(260,847)	(1,195)	(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	(74,463)						(74,463)
Other comprehensive loss	(6,715)							(6,715)
Vesting of restricted stock units (in shares)				1,549
Vesting of restricted stock units	0			$ 15		(15)
Grant of restricted stock awards (in shares)				(423)
Grant and forfeitures of restricted stock awards	0			$ (4)		4
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)				(758)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(8,484)			$ (8)		(8,477)
Stock-based compensation	27,504					27,504
Ending balance (in shares) at Oct. 28, 2022		14,650	70,000	14,650	70,000
Ending balance at Oct. 28, 2022	585,899			$ 147	$ 700	958,420	(344,085)	(9,387)	(19,896)
Beginning balance (in shares) at Jul. 29, 2022				14,970	70,000
Beginning balance at Jul. 29, 2022	607,593			$ 150	$ 700	949,248	(315,939)	(6,670)	(19,896)
Statement of Shareholders' Equity
Net loss	(28,146)						(28,146)
Other comprehensive loss	(2,717)							(2,717)
Vesting of restricted stock units (in shares)				168
Vesting of restricted stock units	0			$ 2		(2)
Grant of restricted stock awards (in shares)				(423)
Grant and forfeitures of restricted stock awards	0			$ (4)		4
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)				(65)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(397)			$ (1)		(396)
Stock-based compensation	9,566					9,566
Ending balance (in shares) at Oct. 28, 2022		14,650	70,000	14,650	70,000
Ending balance at Oct. 28, 2022	$ 585,899			$ 147	$ 700	$ 958,420	$ (344,085)	$ (9,387)	$ (19,896)

DESCRIPTION OF THE BUSINESS AND

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Oct. 28, 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 October 28, 2022 represented approximately 82.7% 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 consists of 53 weeks and fiscal 2022 consisted of 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 nine months ended October 28, 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 nine months ended October 28, 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	9 Months Ended
	Oct. 28, 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 Nine Months Ended October 28, 2022 October 29, 2021 October 28, 2022 October 29, 2021 Numerator: Net loss $ (28,146) $ (12,863) $ (74,463) $ (31,016) Denominator: Weighted-average number of shares outstanding: Basic and Diluted 84,584 83,297 84,277 82,754 Loss per common share: Basic and Diluted $ (0.33) $ (0.15) $ (0.88) $ (0.37) Weighted-average anti-dilutive stock options, non-vested restricted stock and restricted stock units 6,099 4,699 6,020 5,199

CONTRACT BALANCES AND CONTRACT

CONTRACT BALANCES AND CONTRACT COSTS	9 Months Ended
	Oct. 28, 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 Nine Months Ended October 28, 2022 October 29, 2021 October 28, 2022 October 29, 2021 Net revenue: Taegis Subscription Solutions $ 47,888 $ 23,929 $ 127,913 $ 56,392 Managed Security Services 39,303 79,063 $ 144,013 $ 253,096 Total Subscription revenue $ 87,191 $ 102,992 271,926 309,488 Professional Services 23,751 30,707 76,213 97,846 Total net revenue $ 110,942 $ 133,699 $ 348,139 $ 407,334 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 October 28, 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 nine months ended October 28, 2022, on average, approximately 64% of the Company's recurring revenue was billed annually in advance and approximately 36% 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 nine months ended October 28, 2022 and October 29, 2021 are as follows (in thousands): As of January 28, 2022 Upfront payments received and billings during the nine months ended October 28, 2022 Revenue recognized during the nine months ended October 28, 2022 As of October 28, 2022 Deferred revenue $ 176,068 $ 175,301 $ (206,853) $ 144,516 As of January 29, 2021 Upfront payments received and billings during the nine months ended October 29, 2021 Revenue recognized during the nine months ended October 29, 2021 As of October 29, 2021 Deferred revenue $ 178,027 $ 224,152 $ (232,420) $ 169,759 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 October 28, 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 $ 253,298 $ 133,478 $ 85,863 $ 33,014 $ 943 Performance obligation - backlog 10,400 3,649 3,438 3,313 — Total $ 263,698 $ 137,127 $ 89,301 $ 36,327 $ 943 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 nine months ended October 28, 2022 and October 29, 2021 are as follows (in thousands): As of January 28, 2022 Amount capitalized Amount recognized As of October 28, 2022 Deferred commissions $ 53,978 $ 8,319 $ (13,319) $ 48,978 Deferred fulfillment costs 7,597 241 (3,635) 4,203 As of January 29, 2021 Amount capitalized Amount recognized As of October 29, 2021 Deferred commissions $ 57,888 $ 10,914 $ (14,694) $ 54,108 Deferred fulfillment costs 11,009 1,641 (4,001) 8,649

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
	Oct. 28, 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 $0.5 million due to foreign currency translation for the nine months ended October 28, 2022, compared to January 28, 2022. Goodwill totaled $425.4 million and $425.9 million as of October 28, 2022 and January 28, 2022, respectively. 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 2023 by assessing 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. For the annual impairment review in the third quarter of Fiscal 2023, the Company elected to bypass the assessment of qualitative factors to determine whether it was more likely than not that the fair value of its reporting unit was less than its carrying amount, including goodwill. In electing to bypass the qualitative assessment, the Company proceeded directly to performing a quantitative goodwill impairment test to measure the fair value of its reporting unit relative to its carrying amount, and to determine the amount of goodwill impairment loss to be recognized, if any. The fair value of the goodwill reporting unit is generally estimated using a combination of public company multiples and discounted cash flow methodologies. The discounted cash flow and public company multiples methodologies require significant judgment, including estimation of future revenues, gross margins, and operating expenses, which are dependent on internal forecasts, current and anticipated economic conditions and trends, selection of market multiples through assessment of the reporting unit’s performance relative to peer competitors, the estimation of the long-term revenue growth rate and discount rate of the Company’s business, and the determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the fair value of the goodwill reporting unit, potentially resulting in a non-cash impairment charge. The fair value of the indefinite-lived trade names is generally estimated using discounted cash flow methodologies. The discounted cash flow methodology requires significant judgment, including estimation of future revenue, the estimation of the long-term revenue growth rate of the Company’s business and the determination of the Company’s weighted average cost of capital and royalty rates. Changes in these estimates and assumptions could materially affect the fair value of the indefinite-lived intangible assets, potentially resulting in a non-cash impairment charge. Based on the results of the annual impairment test, the Company determined that the derived fair values of the reporting unit and indefinite-lived intangible asset exceeded their respective carrying values, which indicates no impairment as of October 28, 2022. Intangible Assets The Company's intangible assets as of October 28, 2022 and January 28, 2022 were as follows: October 28, 2022 January 28, 2022 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (130,006) $ 59,512 $ 189,518 $ (119,435) $ 70,083 Acquired Technology 141,784 (124,944) 16,840 141,784 (113,937) 27,847 Developed Technology 11,475 (4,183) 7,292 8,123 (2,439) 5,684 Finite-lived intangible assets 342,777 (259,133) 83,644 339,425 (235,811) 103,614 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 372,895 $ (259,133) $ 113,762 $ 369,543 $ (235,811) $ 133,732

DEBT

DEBT	9 Months Ended
	Oct. 28, 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 October 28, 2022 or January 28, 2022, and there were no amounts borrowed under the credit facility during the three and nine months ended October 28, 2022 or October 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	9 Months Ended
	Oct. 28, 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 October 28, 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 October 28, 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. During the three months ended October 28, 2022, t he Company paid $2.6 million relating to such matters. As of October 28, 2022, the Company has recorded an estimated liability of $6.2 million related to such matters. 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 nine months ended October 28, 2022 and October 29, 2021, the Company had no customer that represented 10% or more of its net revenue.

LEASES

LEASES	9 Months Ended
	Oct. 28, 2022
Leases [Abstract]
LEASES	LEASES The Company recorded operating lease cost for facilities of approximately $1.3 million and $3.9 million for the three and nine months ended October 28, 2022, respectively, and $1.4 million and $4.1 million for the three and nine months ended October 29, 2021, respectively. Operating lease cost include expenses in connection with variable lease costs of $0.1 million and $0.3 million for the three and nine months ended October 28, 2022, respectively, and $0.1 million and $0.2 million for the three and nine months ended October 29, 2021, respectively, which primarily consisted of utilities and common area charges. The Company recorded operating lease cost of equipment leases of approximately $40 thousand and $87 thousand for the three and nine months ended October 28, 2022, respectively, and $0.1 million and $0.3 million for the three and nine months ended October 29, 2021, respectively. Equipment lease costs included short-term lease costs of $24 thousand and $39 thousand for the three and nine months ended October 28, 2022 respectively, and $0.1 million and $0.3 million for the three and nine months ended October 29, 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 $1.4 million and $4.6 million during the three and nine months ended October 28, 2022, respectively, and $1.6 million and $5.2 million for the three and nine months ended October 29, 2021, respectively. Weighted-average information associated with the measurement of the Company’s remaining operating lease obligations is as follows: October 28, 2022 Weighted-average remaining lease term 3.9 years Weighted-average discount rate 5.39 % The following table summarizes the maturity of the Company's operating lease liabilities as of October 28, 2022 (in thousands): Fiscal Years Ending October 28, 2022 2023 $ 1,421 2024 5,668 2025 5,095 2026 4,526 2027 4,088 Thereafter — Total operating lease payments $ 20,798 Less imputed interest 2,151 Total operating lease liabilities $ 18,647 The Company's leases have remaining lease terms of 1.1 years to 4.2 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	9 Months Ended
	Oct. 28, 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 200,736 and 4,183,636 restricted stock units during the three and nine months ended October 28, 2022, respectively, and 53,586 and 2,415,174 restricted stock units during the three and nine months ended October 29, 2021, respectively. The Company granted no restricted stock awards during the three and nine months ended October 28, 2022. During the three and nine months ended October 29, 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 nine months ended October 28, 2022 and October 29, 2021, respectively, are subject to performance conditions.

INCOME AND OTHER TAXES

INCOME AND OTHER TAXES	9 Months Ended
	Oct. 28, 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 nine months ended October 28, 2022 and October 29, 2021 was as follows (in thousands, except percentages): Three Months Ended Nine Months Ended October 28, 2022 October 29, 2021 October 28, 2022 October 29, 2021 Loss before income taxes $ (36,667) $ (16,132) $ (95,838) $ (39,397) Income tax benefit $ (8,521) $ (3,269) $ (21,375) $ (8,381) Effective tax rate 23.2 % 20.3 % 22.3 % 21.3 % 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 23.2% and 22.3% for the three and nine months ended October 28, 2022, respectively, and 20.3% and 21.3% for the three and nine months ended October 29, 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 $0.7 million fo r the three and nine months ended October 28, 2022, respectively, and $(0.5) million and $(0.4) million for the three and nine months ended October 29, 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 nine month periods ended October 28, 2022 and higher than the fair value for both the three and nine month periods ended October 29, 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 nine month periods ended October 28, 2022 and a higher actual tax deduction for both the three and nine months ended October 29, 2021 than the amounts deducted for financial reporting purposes. As of each of October 28, 2022 and January 28, 2022, the Company had $5.5 million 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 October 28, 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 nine months ended October 28, 2022 would have been $95.8 million, $4.3 million and $91.5 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 October 28, 2022 and January 28, 2022, the Company had a net operating loss receivable from Dell of $12.6 million and $10.7 million, respectively. The Company had $4.4 million and $4.2 million of unrecognized tax benefits as of October 28, 2022 and January 28, 2022, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Oct. 28, 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 $2.8 million for the three and nine months ended October 28, 2022, respectively, and $1.0 million and $3.0 million for the three and nine months ended October 29, 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 $0.6 million for the three and nine months ended October 28, 2022, respectively, and $0.2 million and $0.5 million for the three and nine months ended October 29, 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 $0.5 million and $1.0 million for the three and nine months ended October 28, 2022, respectively and $0.1 million and $1.2 million for the three and nine months ended October 29, 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 $0.4 million for the three and nine months ended October 28, 2022, respectively, and $0.1 million and $0.4 million for the three and nine months ended October 29, 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 $0.8 million and $2.5 million for the three and nine months ended October 28, 2022, respectively, and $1.7 million and $4.3 million for the three and nine months ended October 29, 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 $35 thousand and $0.2 million for the three and nine months ended October 28, 2022, respectively, and $41 thousand and $0.1 million for the three and nine months ended October 29, 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 $14.0 million and $44.6 million for the three and nine months ended October 28, 2022, respectively, and $15.1 million and $45.3 million for the three and nine months ended October 29, 2021, respectively. In addition, as of October 28, 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 $4.0 million for the three and nine months ended October 28, 2022, respectively, and $2.7 million and $8.9 million for the three and nine months ended October 29, 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 October 28, 2022 and January 28, 2022 (in thousands). October 28, 2022 January 28, 2022 Related party payable (in accrued and other current liabilities) $ 1,783 $ 3,088 Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net) $ 5,401 $ 7,700 Net operating loss tax sharing receivable under agreement with Dell (payable in accrued and other and receivable in other current assets) $ 12,621 $ 10,693

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Oct. 28, 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 October 28, 2022 and January 28, 2022 were as follows (in thousands): October 28, 2022 January 28, 2022 Level 1 Level 1 Cash equivalents - Money Market Funds $ 31,182 $ 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)	9 Months Ended
	Oct. 28, 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 consists of 53 weeks and fiscal 2022 consisted of 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 nine months ended October 28, 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 nine months ended October 28, 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)	9 Months Ended
	Oct. 28, 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 Nine Months Ended October 28, 2022 October 29, 2021 October 28, 2022 October 29, 2021 Numerator: Net loss $ (28,146) $ (12,863) $ (74,463) $ (31,016) Denominator: Weighted-average number of shares outstanding: Basic and Diluted 84,584 83,297 84,277 82,754 Loss per common share: Basic and Diluted $ (0.33) $ (0.15) $ (0.88) $ (0.37) Weighted-average anti-dilutive stock options, non-vested restricted stock and restricted stock units 6,099 4,699 6,020 5,199

CONTRACT BALANCES AND CONTRAC_2

CONTRACT BALANCES AND CONTRACT COSTS (Tables)	9 Months Ended
	Oct. 28, 2022
Revenue from Contract with Customer [Abstract]
Revenue by Service Type	The following table presents revenue by service type (in thousands): Three Months Ended Nine Months Ended October 28, 2022 October 29, 2021 October 28, 2022 October 29, 2021 Net revenue: Taegis Subscription Solutions $ 47,888 $ 23,929 $ 127,913 $ 56,392 Managed Security Services 39,303 79,063 $ 144,013 $ 253,096 Total Subscription revenue $ 87,191 $ 102,992 271,926 309,488 Professional Services 23,751 30,707 76,213 97,846 Total net revenue $ 110,942 $ 133,699 $ 348,139 $ 407,334
Schedule of Deferred Revenue	Changes to the Company's deferred revenue during the nine months ended October 28, 2022 and October 29, 2021 are as follows (in thousands): As of January 28, 2022 Upfront payments received and billings during the nine months ended October 28, 2022 Revenue recognized during the nine months ended October 28, 2022 As of October 28, 2022 Deferred revenue $ 176,068 $ 175,301 $ (206,853) $ 144,516 As of January 29, 2021 Upfront payments received and billings during the nine months ended October 29, 2021 Revenue recognized during the nine months ended October 29, 2021 As of October 29, 2021 Deferred revenue $ 178,027 $ 224,152 $ (232,420) $ 169,759
Expected Timing to Recognize Remaining Performance Obligation	As of October 28, 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 $ 253,298 $ 133,478 $ 85,863 $ 33,014 $ 943 Performance obligation - backlog 10,400 3,649 3,438 3,313 — Total $ 263,698 $ 137,127 $ 89,301 $ 36,327 $ 943
Schedule of Deferred Commissions and Fulfillment Costs	Changes in the balance of total deferred commission and total deferred fulfillment costs during the nine months ended October 28, 2022 and October 29, 2021 are as follows (in thousands): As of January 28, 2022 Amount capitalized Amount recognized As of October 28, 2022 Deferred commissions $ 53,978 $ 8,319 $ (13,319) $ 48,978 Deferred fulfillment costs 7,597 241 (3,635) 4,203 As of January 29, 2021 Amount capitalized Amount recognized As of October 29, 2021 Deferred commissions $ 57,888 $ 10,914 $ (14,694) $ 54,108 Deferred fulfillment costs 11,009 1,641 (4,001) 8,649

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
	Oct. 28, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Indefinite-Lived Intangible Assets	The Company's intangible assets as of October 28, 2022 and January 28, 2022 were as follows: October 28, 2022 January 28, 2022 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (130,006) $ 59,512 $ 189,518 $ (119,435) $ 70,083 Acquired Technology 141,784 (124,944) 16,840 141,784 (113,937) 27,847 Developed Technology 11,475 (4,183) 7,292 8,123 (2,439) 5,684 Finite-lived intangible assets 342,777 (259,133) 83,644 339,425 (235,811) 103,614 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 372,895 $ (259,133) $ 113,762 $ 369,543 $ (235,811) $ 133,732
Schedule of Finite-Lived Intangible Assets	The Company's intangible assets as of October 28, 2022 and January 28, 2022 were as follows: October 28, 2022 January 28, 2022 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (130,006) $ 59,512 $ 189,518 $ (119,435) $ 70,083 Acquired Technology 141,784 (124,944) 16,840 141,784 (113,937) 27,847 Developed Technology 11,475 (4,183) 7,292 8,123 (2,439) 5,684 Finite-lived intangible assets 342,777 (259,133) 83,644 339,425 (235,811) 103,614 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 372,895 $ (259,133) $ 113,762 $ 369,543 $ (235,811) $ 133,732

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Oct. 28, 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: October 28, 2022 Weighted-average remaining lease term 3.9 years Weighted-average discount rate 5.39 %
Maturities of Operating Lease Liabilities	The following table summarizes the maturity of the Company's operating lease liabilities as of October 28, 2022 (in thousands): Fiscal Years Ending October 28, 2022 2023 $ 1,421 2024 5,668 2025 5,095 2026 4,526 2027 4,088 Thereafter — Total operating lease payments $ 20,798 Less imputed interest 2,151 Total operating lease liabilities $ 18,647

INCOME AND OTHER TAXES (Tables)

INCOME AND OTHER TAXES (Tables)	9 Months Ended
	Oct. 28, 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 nine months ended October 28, 2022 and October 29, 2021 was as follows (in thousands, except percentages): Three Months Ended Nine Months Ended October 28, 2022 October 29, 2021 October 28, 2022 October 29, 2021 Loss before income taxes $ (36,667) $ (16,132) $ (95,838) $ (39,397) Income tax benefit $ (8,521) $ (3,269) $ (21,375) $ (8,381) Effective tax rate 23.2 % 20.3 % 22.3 % 21.3 %

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Oct. 28, 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 October 28, 2022 and January 28, 2022 (in thousands). October 28, 2022 January 28, 2022 Related party payable (in accrued and other current liabilities) $ 1,783 $ 3,088 Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net) $ 5,401 $ 7,700 Net operating loss tax sharing receivable under agreement with Dell (payable in accrued and other and receivable in other current assets) $ 12,621 $ 10,693

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Oct. 28, 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 October 28, 2022 and January 28, 2022 were as follows (in thousands): October 28, 2022 January 28, 2022 Level 1 Level 1 Cash equivalents - Money Market Funds $ 31,182 $ 115,846

DESCRIPTION OF THE BUSINESS A_3

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details)	9 Months Ended
	Oct. 28, 2022 segment
Class of Stock [Line Items]
Number of reportable segments	1
IPO | Denali
Class of Stock [Line Items]
Percent of outstanding shares owned	82.70%
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		9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021	Oct. 28, 2022	Oct. 29, 2021
Numerator:
Net loss	$ (28,146)	$ (12,863)	$ (74,463)	$ (31,016)
Denominator:
Weighted-average common shares outstanding (basic) (in shares)	84,584	83,297	84,277	82,754
Weighted-average common shares outstanding (diluted) (in shares)	84,584	83,297	84,277	82,754
Loss per common share:
Loss per common share (basic) (in shares)	$ (0.33)	$ (0.15)	$ (0.88)	$ (0.37)
Loss per common share (diluted) (in shares)	$ (0.33)	$ (0.15)	$ (0.88)	$ (0.37)
Weighted-average anti-dilutive stock options, non-vested restricted stock and restricted stock units (in shares)	6,099	4,699	6,020	5,199

CONTRACT BALANCES AND CONTRAC_3

CONTRACT BALANCES AND CONTRACT COSTS - Disaggregation of Revenue by Service Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021	Oct. 28, 2022	Oct. 29, 2021
Disaggregation of Revenue [Line Items]
Total net revenue	$ 110,942	$ 133,699	$ 348,139	$ 407,334
Taegis Subscription Solutions
Disaggregation of Revenue [Line Items]
Total net revenue	47,888	23,929	127,913	56,392
Managed Security Services
Disaggregation of Revenue [Line Items]
Total net revenue	39,303	79,063	144,013	253,096
Subscription
Disaggregation of Revenue [Line Items]
Total net revenue	87,191	102,992	271,926	309,488
Professional services
Disaggregation of Revenue [Line Items]
Total net revenue	$ 23,751	$ 30,707	$ 76,213	$ 97,846

CONTRACT BALANCES AND CONTRAC_4

CONTRACT BALANCES AND CONTRACT COSTS - Narrative (Details)	9 Months Ended
	Oct. 28, 2022 USD ($) performanceObligationElement	Oct. 29, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Deferred revenue billed in advance, percent	64%
Deferred revenue billed monthly or quarterly, percent	36%
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]: 2022-10-29
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-29 | Managed Security Services
Disaggregation of Revenue [Line Items]
Performance obligation period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-29 | Professional services
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-28
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-27
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-29
Disaggregation of Revenue [Line Items]
Performance obligation period

CONTRACT BALANCES AND CONTRAC_5

CONTRACT BALANCES AND CONTRACT COSTS - Deferred Revenue (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 28, 2022	Oct. 29, 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	175,301	224,152
Deferred revenue, Revenue recognized	(206,853)	(232,420)
Deferred revenue, End of period	$ 144,516	$ 169,759

CONTRACT BALANCES AND CONTRAC_6

CONTRACT BALANCES AND CONTRACT COSTS - Remaining Performance Obligation and Timing (Details) $ in Thousands	Oct. 28, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 263,698
Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	253,298
Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	10,400
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 137,127
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-29 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 133,478
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-29 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,649
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 89,301
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-28 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 85,863
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-28 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,438
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-27
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 36,327
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-27 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 33,014
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-27 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,313
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 943
Performance obligation period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-29 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 943
Performance obligation period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-29 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0
Performance obligation period

CONTRACT BALANCES AND CONTRAC_7

CONTRACT BALANCES AND CONTRACT COSTS - Deferred Commissions and Fulfillment Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021
Deferred commissions
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 53,978	$ 57,888
Amount capitalized	8,319	10,914
Amount recognized	(13,319)	(14,694)
Ending balance	48,978	54,108
Deferred fulfillment costs
Capitalized Contract Cost [Roll Forward]
Beginning balance	7,597	11,009
Amount capitalized	241	1,641
Amount recognized	(3,635)	(4,001)
Ending balance	$ 4,203	$ 8,649

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details)	3 Months Ended		9 Months Ended
	Oct. 28, 2022 USD ($)	Oct. 29, 2021 USD ($)	Oct. 28, 2022 USD ($) reportingUnit	Oct. 29, 2021 USD ($)	Jan. 28, 2022 USD ($)
Goodwill [Line Items]
Goodwill	$ 425,353,000		$ 425,353,000		$ 425,926,000
Number of reporting units | reportingUnit			1
Amortization expense	7,900,000	$ 7,600,000	$ 23,300,000	$ 22,500,000
Impairment charges	$ 0	$ 0	0	$ 0
Delve Laboratories, Inc.
Goodwill [Line Items]
Goodwill, foreign currency translation gain (loss)			$ (500,000)

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	Oct. 28, 2022	Jan. 28, 2022
Finite-Lived Intangible Assets [Line Items]
Gross	$ 342,777	$ 339,425
Accumulated Amortization	(259,133)	(235,811)
Net	83,644	103,614
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross	372,895	369,543
Accumulated Amortization	(259,133)	(235,811)
Net	113,762	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	(130,006)	(119,435)
Net	59,512	70,083
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(130,006)	(119,435)
Acquired Technology
Finite-Lived Intangible Assets [Line Items]
Gross	141,784	141,784
Accumulated Amortization	(124,944)	(113,937)
Net	16,840	27,847
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(124,944)	(113,937)
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Gross	11,475	8,123
Accumulated Amortization	(4,183)	(2,439)
Net	7,292	5,684
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ (4,183)	$ (2,439)

DEBT (Details)

DEBT (Details) - Line of Credit - Revolving Credit Facility - USD ($)	9 Months Ended	12 Months Ended
	Oct. 28, 2022	Mar. 23, 2023	Jan. 28, 2022	Oct. 29, 2021
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	$ 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 (Details) $ in Millions	3 Months Ended	9 Months Ended
	Oct. 28, 2022 USD ($)	Oct. 28, 2022 USD ($)
State and Local Jurisdiction
Other Commitments [Line Items]
Income tax examination, tax liability paid during period	$ 2.6
Income tax examination, tax liability accrued	$ 6.2	$ 6.2
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		9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021	Oct. 28, 2022	Oct. 29, 2021
Lessee, Lease, Description [Line Items]
Variable lease cost	$ 100	$ 100	$ 300	$ 200
Short-term lease cost	24	100	39	300
Operating lease payments	$ 1,400	1,600	$ 4,600	5,200
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year 1 month 6 days		1 year 1 month 6 days
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	4 years 2 months 12 days		4 years 2 months 12 days
Leased Facilities
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 1,300	1,400	$ 3,900	4,100
Leased Equipment
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 40	$ 100	$ 87	$ 300

LEASES - Weighted Average (Deta

LEASES - Weighted Average (Details)	Oct. 28, 2022
Leases [Abstract]
Weighted-average remaining lease term	3 years 10 months 24 days
Weighted-average discount rate	5.39%

LEASES - Maturities of Operatin

LEASES - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Oct. 28, 2022 USD ($)
Operating Leases, After Adoption of 842:
2023	$ 1,421
2024	5,668
2025	5,095
2026	4,526
2027	4,088
Thereafter	0
Total operating lease payments	20,798
Less imputed interest	2,151
Total operating lease liabilities	$ 18,647

STOCK-BASED COMPENSATION AND _2

STOCK-BASED COMPENSATION AND OTHER LONG-TERM PERFORMANCE INCENTIVES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021	Oct. 28, 2022	Oct. 29, 2021
Restricted Stock Units (RSUs) | 2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards issued (in shares)	200,736	53,586	4,183,636	2,415,174
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	$ 100,000	$ 100,000	$ 100,000	$ 9,100,000
Compensation expense	$ 1,000,000	$ 1,600,000	$ 3,500,000	$ 4,800,000

INCOME AND OTHER TAXES - Effect

INCOME AND OTHER TAXES - Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021	Oct. 28, 2022	Oct. 29, 2021
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (36,667)	$ (16,132)	$ (95,838)	$ (39,397)
Income tax benefit	$ (8,521)	$ (3,269)	$ (21,375)	$ (8,381)
Effective tax rate	23.20%	20.30%	22.30%	21.30%

INCOME AND OTHER TAXES - Narrat

INCOME AND OTHER TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021	Oct. 28, 2022	Oct. 29, 2021	Jan. 28, 2022
Valuation Allowance [Line Items]
Effective tax rate	23.20%	20.30%	22.30%	21.30%
Expense relating to vesting of equity awards	$ 100	$ (500)	$ 700	$ (400)
Loss carryforwards	5,500		5,500		$ 5,500
Loss before income taxes	36,667	16,132	95,838	39,397
Income tax benefit	8,521	3,269	21,375	8,381
Net loss	28,146	$ 12,863	74,463	$ 31,016
Unrecognized tax benefits	4,400		4,400		4,200
Principal Owner | Dell Inc. | Other Noncurrent Assets | Net Operating Loss Receivable
Valuation Allowance [Line Items]
Net operating loss receivable	$ 12,600		12,600		$ 10,700
Prepared using separate return method
Valuation Allowance [Line Items]
Loss before income taxes			95,800
Income tax benefit			4,300
Net loss			$ 91,500

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 28, 2022	Oct. 29, 2021	Oct. 28, 2022	Oct. 29, 2021
Related Party Transaction [Line Items]
Charged under shared services agreement	$ 24,725	$ 28,404	$ 74,359	$ 80,447
Purchases of computer equipment from Dell			1,609	1,248
Revenues	110,942	133,699	348,139	407,334
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	1,000	2,800	3,000
Dell Inc. | Principal Owner | Contracts Not Yet Transferred
Related Party Transaction [Line Items]
Revenues	14,000	15,100	44,600	45,300
Dell Inc. | Principal Owner | Solutions Purchases
Related Party Transaction [Line Items]
Revenues	1,200	2,700	4,000	8,900
Dell Inc. | Chief Executive Officer
Related Party Transaction [Line Items]
Revenues	35	41	200	100
Dell and EMC | Principal Owner
Related Party Transaction [Line Items]
Purchases of computer equipment from Dell	200	200	600	500
EMC and VMware | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Purchase of annual maintenance services	500	100	1,000	1,200
VMware | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Revenues	100	100	400	400
Carbon Black Inc. | Subsidiary of Common Parent | Solutions Purchases
Related Party Transaction [Line Items]
Purchases of solutions from Carbon Black	$ 800	$ 1,700	$ 2,500	$ 4,300

RELATED PARTY TRANSACTIONS - Ba

RELATED PARTY TRANSACTIONS - Balances in Condensed Consolidated Statements of Financial Position (Details) - USD ($) $ in Thousands	Oct. 28, 2022	Jan. 28, 2022
Related Party Transaction [Line Items]
Related party payable (in accrued and other current liabilities)	$ 1,783	$ 3,088
Dell Inc. | Principal Owner
Related Party Transaction [Line Items]
Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net)	5,401	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)	$ 12,621	$ 10,693

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Oct. 28, 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	$ 31,182	$ 115,846