SecureWorks (SCWX) 10-Q 8 Dec 23 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Nov. 03, 2023	Dec. 05, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 03, 2023
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	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock - Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		16,329,480
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	Nov. 03, 2023	Feb. 03, 2023
Current assets:
Cash and cash equivalents	$ 58,105	$ 143,517
Accounts receivable, net of allowances of $2,017 and $2,402, respectively	55,914	72,627
Inventories, net	759	620
Other current assets	12,865	17,526
Total current assets	127,643	234,290
Property and equipment, net	2,626	4,632
Operating lease right-of-use assets, net	5,262	9,256
Goodwill	425,241	425,519
Intangible assets, net	86,942	106,208
Other non-current assets	72,236	60,965
Total assets	719,950	840,870
Current liabilities:
Accounts payable	11,675	18,847
Accrued and other current liabilities	60,890	81,566
Short-term deferred revenue	126,198	145,170
Total current liabilities	198,763	245,583
Long-term deferred revenue	6,988	11,162
Operating lease liabilities, non-current	8,800	12,141
Other non-current liabilities	7,662	14,023
Total liabilities	222,213	282,909
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	986,257	967,367
Accumulated deficit	(461,871)	(384,121)
Accumulated other comprehensive loss	(7,616)	(6,237)
Treasury stock, at cost - 1,257 shares	(19,896)	(19,896)
Total stockholders' equity	497,737	557,961
Total liabilities and stockholders' equity	719,950	840,870
Common Stock - Class A
Stockholders' equity:
Common stock	163	147
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	Nov. 03, 2023	Feb. 03, 2023
Accounts receivable, allowance for doubtful accounts	$ 2,017	$ 2,402
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)	16,329	14,749
Common stock, shares outstanding (in shares)	16,329	14,749
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
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Total net revenue	$ 89,364	$ 110,942	$ 276,725	$ 348,139
Total cost of revenue	34,615	45,580	117,458	144,594
Gross profit	54,749	65,362	159,267	203,545
Operating expenses:
Research and development	26,358	35,263	85,766	102,232
Sales and marketing	27,079	41,380	92,842	121,565
General and administrative	20,565	24,725	63,194	74,359
Reorganization and other related charges	0	0	14,232	0
Total operating expenses	74,002	101,368	256,034	298,156
Operating loss	(19,253)	(36,006)	(96,767)	(94,611)
Interest and other (expense) income, net	684	(661)	(1,698)	(1,227)
Loss before income taxes	(18,569)	(36,667)	(98,465)	(95,838)
Income tax benefit	(4,148)	(8,521)	(20,715)	(21,375)
Net loss	$ (14,421)	$ (28,146)	$ (77,750)	$ (74,463)
Loss per common share (basic in usd per share)	$ (0.17)	$ (0.33)	$ (0.90)	$ (0.88)
Loss per common share (diluted in usd per share)	$ (0.17)	$ (0.33)	$ (0.90)	$ (0.88)
Weighted-average common shares outstanding (basic in shares)	86,278	84,584	85,943	84,277
Weighted-average common shares outstanding (diluted in shares)	86,278	84,584	85,943	84,277
Subscription
Total net revenue	$ 75,212	$ 87,191	$ 229,296	$ 271,926
Total cost of revenue	25,986	32,136	87,089	99,022
Professional services
Total net revenue	14,152	23,751	47,429	76,213
Total cost of revenue	$ 8,629	$ 13,444	$ 30,369	$ 45,572

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (14,421)	$ (28,146)	$ (77,750)	$ (74,463)
Foreign currency translation adjustments, net of tax	(2,038)	(2,717)	(1,379)	(6,715)
Comprehensive loss	$ (16,459)	$ (30,863)	$ (79,129)	$ (81,178)

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022
Cash flows from operating activities:
Net loss	$ (77,750)	$ (74,463)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	26,028	27,728
Amortization of right of use asset	1,686	2,853
Reorganization and other related charges	3,272	0
Amortization of costs capitalized to obtain revenue contracts	12,964	13,319
Amortization of costs capitalized to fulfill revenue contracts	2,562	3,635
Stock-based compensation expense	24,852	27,504
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	1,575	1,386
Income tax benefit	(20,715)	(21,375)
Provision for credit losses	232	(552)
Changes in assets and liabilities:
Accounts receivable	15,951	21,584
Net transactions with Dell	2,028	(3,741)
Inventories	(139)	(178)
Other assets	(1,237)	(9,709)
Accounts payable	(7,462)	4,550
Deferred revenue	(24,011)	(33,171)
Operating leases, net	(4,031)	(4,086)
Accrued and other liabilities	(30,299)	(23,462)
Net cash used in operating activities	(74,494)	(68,178)
Cash flows from investing activities:
Capital expenditures	(865)	(1,609)
Software development costs	(4,106)	(3,352)
Net cash used in investing activities	(4,971)	(4,961)
Cash flows from financing activities:
Taxes paid on vested restricted shares	(5,947)	(8,484)
Net cash used in financing activities	(5,947)	(8,484)
Net decrease in cash and cash equivalents	(85,412)	(81,623)
Cash and cash equivalents at beginning of the period	143,517	220,655
Cash and cash equivalents at end of the period	$ 58,105	$ 139,032

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. 28, 2022				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 and forfeitures 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)			$ (7)		(8,477)
Stock-based compensation	27,504					27,504
Ending balance (in shares) at Oct. 28, 2022				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 and forfeitures 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
Ending balance at Oct. 28, 2022	585,899			$ 147	$ 700	958,420	(344,085)	(9,387)	(19,896)
Beginning balance (in shares) at Feb. 03, 2023		14,749	70,000	14,749	70,000
Beginning balance at Feb. 03, 2023	557,961			$ 147	$ 700	967,367	(384,121)	(6,237)	(19,896)
Statement of Shareholders' Equity
Net loss	(77,750)						(77,750)
Other comprehensive loss	(1,379)							(1,379)
Vesting of restricted stock units (in shares)				2,355
Vesting of restricted stock units	0			$ 24		(24)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)				(775)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(5,947)			$ (8)		(5,938)
Stock-based compensation	24,852					24,852
Ending balance (in shares) at Nov. 03, 2023		16,329	70,000	16,329	70,000
Ending balance at Nov. 03, 2023	497,737			$ 163	$ 700	986,257	(461,871)	(7,616)	(19,896)
Beginning balance (in shares) at Aug. 04, 2023				16,235	70,000
Beginning balance at Aug. 04, 2023	504,470			$ 162	$ 700	976,532	(447,450)	(5,578)	(19,896)
Statement of Shareholders' Equity
Net loss	(14,421)						(14,421)
Other comprehensive loss	(2,038)							(2,038)
Vesting of restricted stock units (in shares)				142
Vesting of restricted stock units	0			$ 1		(1)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares (in shares)				(48)
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	(236)					(236)
Stock-based compensation	9,962					9,962
Ending balance (in shares) at Nov. 03, 2023		16,329	70,000	16,329	70,000
Ending balance at Nov. 03, 2023	$ 497,737			$ 163	$ 700	$ 986,257	$ (461,871)	$ (7,616)	$ (19,896)

DESCRIPTION OF THE BUSINESS AND

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Nov. 03, 2023
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. is a leading global cybersecurity provider of technology-driven solutions singularly focused on protecting the Company’s customers. Except where the context otherwise requires or where otherwise indicated, all references in this report to “Secureworks,” “we,” “us,” “our” and “Company” refer to SecureWorks Corp. and our subsidiaries on a consolidated basis. References to “Dell” refer to Dell Inc. and its subsidiaries on a consolidated basis. 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. On April 27, 2016, the Company completed its initial public offering, or IPO. Upon the closing of the IPO, Dell Technologies Inc., or Dell Technologies, owned, indirectly through Dell and its subsidiaries, all shares of the Company’s outstanding Class B common stock, which as of November 3, 2023, represented approximately 81.1% of the Company's total outstanding shares of common stock and approximately 97.7% of the combined voting power of both classes of the Company's outstanding common stock. 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, or 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 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 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 2, 2024 and the fiscal year ended February 3, 2023 as fiscal 2024 and fiscal 2023, respectively. Fiscal 2024 consists of 52 weeks and fiscal 2023 consisted of 53 weeks. In fiscal 2024, each quarter has 13 weeks. In fiscal 2023, each quarter consisted of 13 weeks except for the fourth quarter, which consisted of 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, estimating the impact of contingencies, and evaluating long-lived asset impairment. 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 Ukraine/Russia conflict and impacts of inflation. The Company considered the potential impact of the 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 November 3, 2023. As the current economic environment continues to develop, many of the Company’s estimates could require increased judgment and be subject to a higher degree of variability and volatility. As a result, the Company’s estimates may change materially in future periods. Liquidity In recent periods, the Company has incurred losses from operations and operating cash outflows and, as of the Balance Sheet date, the Company has reported a deficit in working capital. During the second quarter of fiscal 2024, the Company completed reorganization actions which are expected to result in significant cost savings as the Company completes a transition to higher value, higher margin Taegis solutions. These efforts are expected to optimize the organizational structure and increase scalability to better position the Company for continued growth with improving operating margins over time. In the event that the Company’s financial results are below our expectations as a result of these or other factors, the Company may need to take additional actions to preserve existing cash reserves. As of November 3, 2023, the Company held $58.1 million of cash and cash equivalents. There were no amounts drawn on the $50 million Revolving Credit Facility with Dell as of November 3, 2023. We believe that our cash and cash equivalents and access to the Revolving Credit Facility will provide us with sufficient liquidity to meet our material cash requirements, including to fund our business and meet our obligations for at least 12 months from the filing date of this report. Recently Adopted Accounting Pronouncements None. 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 November 3, 2023, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2023.

LOSS PER SHARE

LOSS PER SHARE	9 Months Ended
	Nov. 03, 2023
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 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 November 3, October 28, November 3, October 28, Numerator: Net loss $ (14,421) $ (28,146) $ (77,750) $ (74,463) Denominator: Weighted-average number of shares outstanding: Basic and Diluted 86,278 84,584 85,943 84,277 Loss per common share: Basic and Diluted $ (0.17) $ (0.33) $ (0.90) $ (0.88) Weighted-average anti-dilutive share-based awards 8,845 6,099 7,693 6,020

CONTRACT BALANCES AND CONTRACT

CONTRACT BALANCES AND CONTRACT COSTS	9 Months Ended
	Nov. 03, 2023
Revenue from Contract with Customer [Abstract]
CONTRACT BALANCES AND CONTRACT COSTS	CONTRACT BALANCES AND CONTRACT COSTS The Company derives revenue primarily from subscriptions and professional services. Subscription revenue is derived from (i) Taegis software-as-a-service, or SaaS, security platform and supplemental Managed Detection and Response, or MDR, services, and (ii) Managed Security Services. Taegis’ core offerings are the security platform, Taegis Extended Detection and Response, or XDR, and the MDR service, ManagedXDR. Managed Security Services are subscription-based arrangements that typically include a suite of security services utilizing the legacy platform. Professional services typically include incident response, adversarial testing services and other security consulting arrangements. The following table presents revenue by service type (in thousands): Three Months Ended Nine Months Ended November 3, October 28, November 3, October 28, Net revenue: Taegis Subscription Solutions $ 67,346 $ 47,888 $ 196,368 $ 127,913 Managed Security Services 7,866 39,303 32,928 144,013 Total Subscription revenue $ 75,212 $ 87,191 $ 229,296 $ 271,926 Professional Services 14,152 23,751 47,429 76,213 Total net revenue $ 89,364 $ 110,942 $ 276,725 $ 348,139 Promises to provide the Company’s subscription-based SaaS solutions 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 November 3, 2023. Performance obligations related to the Company’s professional services contracts are separate obligations associated with each service. Although the Company has multi-year customer relationships for 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 November 3, 2023, on average, approximately 65% of the Company’s recurring revenue was billed annually in advance and approximately 35% 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, billing frequency and invoice timing. Changes to the Company’s deferred revenue during the nine months ended November 3, 2023 and October 28, 2022 are as follows (in thousands): As of February 3, 2023 Upfront payments received and billings during the nine months ended November 3, 2023 Revenue recognized during the nine months ended November 3, 2023 As of November 3, 2023 Deferred revenue $ 156,332 $ 150,135 $ (173,281) $ 133,186 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 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 are expected to 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, or active; and (ii) the value of subscription-based solutions contracted with customers that have not yet been installed, or 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 Accounting Standards Codification 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 November 3, 2023, 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 $ 210,557 $ 129,595 $ 66,976 $ 13,837 $ 149 Performance obligation - backlog 2,901 1,003 1,002 896 — Total $ 213,458 $ 130,598 $ 67,978 $ 14,733 $ 149 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 November 3, 2023 and October 28, 2022 are as follows (in thousands): As of February 3, 2023 Amount capitalized Amount recognized As of November 3, 2023 Deferred commissions $ 49,565 $ 6,155 $ (12,964) $ 42,756 Deferred fulfillment costs 3,232 — (2,562) 670 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

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
	Nov. 03, 2023
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 $0.3 million due to foreign currency translation for the nine months ended November 3, 2023, compared to February 3, 2023. Goodwill totaled $425.2 million and $425.5 million as of November 3, 2023 and February 3, 2023, 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 2024 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, including macroeconomic, industry and market conditions, the Company's overall financial performance including changes to its cost structure during calendar 2023 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 is less than their respective carrying values. No triggering events have transpired since the performance of the qualitative assessment that would indicate a potential impairment occurred during the period through November 3, 2023. The Company did not recognize any impairment charges on goodwill or trade name asset during the period through November 3, 2023. Intangible Assets The Company ’ s intangible assets as of November 3, 2023 and February 3, 2023 were as follows: November 3, 2023 February 3, 2023 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (144,101) $ 45,417 $ 189,518 $ (133,530) $ 55,988 Acquired Technology 141,784 (138,783) 3,001 141,784 (128,612) 13,172 Developed Technology 15,933 (7,527) 8,406 11,827 (4,897) 6,930 Finite-lived intangible assets 347,235 (290,411) 56,824 343,129 (267,039) 76,090 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 377,353 $ (290,411) $ 86,942 $ 373,247 $ (267,039) $ 106,208

DEBT

DEBT	9 Months Ended
	Nov. 03, 2023
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 under which the Company obtained a $50 million senior, unsecured revolving credit facility. Effective September 6, 2023, the Company executed an amendment to the revolving credit agreement that was effectuated on March 23, 2023. This amended agreement: (1) increased the maximum principal amount of borrowings outstanding under the revolving credit facility to $50 million, (2) removed the one-time increase of up to an additional $30 million in borrowings upon mutual agreement by lender and borrower, (3) extended the commitment and required repayment date under the revolving credit agreement to March 23, 2026, and (4) modified the rate at which interest accrues on funds drawn against the revolving credit agreement to SOFR plus 2.00%. 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, and the Company was in compliance with all covenants as of November 3, 2023 or February 3, 2023. Additionally, there were no amounts borrowed under the credit facility during the three and nine months ended November 3, 2023. 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
	Nov. 03, 2023
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 November 3, 2023, 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, or 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 November 3, 2023, the Company is under audit with various state taxing authorities in which rulings related to the taxability of certain of its services are pending; t he Company has recorded an estimated liability of $8.9 million related to such matters. The Company expects to continue to appeal certain of 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 through a combination of partners and its sales organization. During the three and nine months ended November 3, 2023 and October 28, 2022, the Company had no customer that represented 10% or more of its net revenue.

LEASES

LEASES	9 Months Ended
	Nov. 03, 2023
Leases [Abstract]
LEASES	LEASES The Company’s leases primarily relate to office facilities that have remaining lease terms of 0.8 years to 3.2 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The components of lease expense were as follows: Three Months Ended Nine Months Ended November 3, October 28, November 3, October 28, (in thousands) Operating lease cost $ 1,079 $ 1,161 $ 3,243 $ 3,543 Variable lease costs 98 121 249 326 Short term lease costs — 40 — 87 Total lease costs $ 1,177 $ 1,322 $ 3,492 $ 3,956 Supplemental cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,352 $ 1,419 $ 4,013 $ 4,575 Weighted-average information associated with the measurement of remaining operating lease obligations is as follows: November 3, 2023 Weighted-average remaining lease term 3.0 years Weighted-average discount rate 5.4 % The following table summarizes the maturity of the Company’s operating lease liabilities as of November 3, 2023 (in thousands): Fiscal Years Ending November 3, 2023 2024 $ 1,350 2025 5,095 2026 4,526 2027 4,088 2028 — Thereafter — Total operating lease payments $ 15,059 Less imputed interest 1,072 Total operating lease liabilities $ 13,987

STOCK-BASED COMPENSATION AND OT

STOCK-BASED COMPENSATION AND OTHER LONG-TERM PERFORMANCE INCENTIVES	9 Months Ended
	Nov. 03, 2023
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, or the 2016 Plan, provides for the grant of options, stock appreciation rights, restricted stock, restricted stock units, whether time-based, performance-based or time- and performance-based, 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 222,185 and 8,276,147 restricted stock units during the three and nine months ended November 3, 2023, respectively, and 200,736 and 4,183,636 restricted stock units during the three and nine months ended October 28, 2022, respectively. The majority of the restricted stock units granted during these periods vest over a three-year period. Approximately 17% of such awards granted during each of the nine months ended November 3, 2023 and October 28, 2022 are subject to performance conditions. The majority of the 7,142,257 restricted stock unit awards made during the three months ended May 5, 2023 were subject to stockholder approval of an amendment to the 2016 Plan to increase the number of shares of Class A common stock issuable under the plan by 7,500,000 shares at the Company’s 2023 annual meeting on June 27, 2023. Such stockholder approval was obtained at the annual meeting, and those awards were deemed granted and outstanding for accounting purposes as of the approval date. The Company grants long-term cash awards to certain employees under the 2016 Plan. The Company granted zero and $0.1 million of cash awards during the three and nine months ended November 3, 2023, respectively, compared to $0.1 million cash awards granted during the three and nine months ended October 28, 2022. The Company recognized $0.4 million and $1.5 million of related compensation expense for the three and nine months ended November 3, 2023, respectively, and $1.0 million and $3.5 million of related compensation expense for the three and nine months ended October 28, 2022, respectively.

INCOME AND OTHER TAXES

INCOME AND OTHER TAXES	9 Months Ended
	Nov. 03, 2023
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 November 3, 2023 and October 28, 2022 was as follows (in thousands, except percentages): Three Months Ended Nine Months Ended November 3, October 28, November 3, October 28, Loss before income taxes $ (18,569) $ (36,667) $ (98,465) $ (95,838) Income tax benefit $ (4,148) $ (8,521) $ (20,715) $ (21,375) Effective tax rate 22.3 % 23.2 % 21.0 % 22.3 % 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, or 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. The Company’s effective tax benefit rate was 22.3% and 21.0% for the three and nine months ended November 3, 2023, respectively, and 23.2% and 22.3% for the three and nine months ended October 28, 2022, respectively. The changes 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 $0.2 million and $1.8 million fo r the three and nine months ended November 3, 2023, respectively, and $0.1 million and $0.7 million for the three and nine months ended October 28, 2022, respectively. The changes 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 November 3, 2023 and higher than the fair value for both the three and nine month periods ended October 28, 2022 in comparison to the fair value on the dates the equity awards were originally granted. The changes 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 than the amounts deducted for financial reporting purposes for both the three and nine month periods ended November 3, 2023 and October 28, 2022. As of each of November 3, 2023 and February 3, 2023, respectively, the Company had $5.8 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 February 3, 2023. 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 November 3, 2023 and February 3, 2023, respectively. Because the Company is included in the tax filings of other Dell entities, management has determined that it will be able to realize its deferred tax assets. If Dell's ownership percentage were to fall below 80%, the Company would become ineligible for inclusion in the Dell Technologies consolidated tax group. The Company's ability to benefit from its losses and other tax attributes may be impaired resulting from the need to file its own Federal and State tax returns without the ability to offset its losses against the profits from the parent. The Company may be required to record a valuation allowance against its deferred tax assets that are currently recorded based on the tax sharing agreement with Dell. Currently, net deferred tax assets are approximately $21.3 million. If the Company’s tax provision had been prepared using the separate return method, the unaudited pro forma pre-tax loss, tax expense and net loss for the nine months ended November 3, 2023 would have been $(98.5) million, $1.2 million and $(99.7) million, respectively, as a result of the recognition of a valuation allowance that would have been recorded on a significant amount of deferred tax assets as well as certain attributes from the Tax Cuts and Jobs Act of 2017 that would be lost if not utilized by the Dell consolidated group. Net deferred tax balances are included in other non-current assets and other non-current liabilities in the Condensed Consolidated Statements of Financial Position. As of November 3, 2023 and February 3, 2023, the Company had a net operating loss receivable from Dell of $7.6 million and $3.5 million, respectively. The Company had $4.7 million and $4.5 million of unrecognized tax benefits as of November 3, 2023 and February 3, 2023, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Nov. 03, 2023
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 $0.7 million and $2.3 million for the three and nine months ended November 3, 2023, respectively, and $0.9 million and $2.8 million for the three and nine months ended October 28, 2022, 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, or EMC, an indirect, wholly-owned subsidiary of Dell that provides enterprise software and storage, totaled $7 thousand and $0.4 million for the three and nine months ended November 3, 2023, respectively, and $0.2 million and $0.6 million for the three and nine months ended October 28, 2022, respectively. EMC previously maintained a majority ownership interest in VMware, Inc., or 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 $23 thousand and $0.7 million for the three and nine months ended November 3, 2023, respectively and $0.5 million and $1.0 million for the three and nine months ended October 28, 2022, 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, as of November 3, 2023, Michael S. Dell, the Chairman, Chief Executive Officer and majority stockholder of Dell Technologies, continued to serve as Chairman of the Board of VMware. The Company recognized revenue related to solutions provided to VMware t hat totaled $0.2 million and $0.4 million for the three and nine months ended November 3, 2023, respectively, and $0.1 million and $0.4 million for the three and nine months ended October 28, 2022, 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 $0.3 million and $1.9 million for the three and nine months ended November 3, 2023, respectively, and $0.8 million and $2.5 million for the three and nine months ended October 28, 2022, 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 $34 thousand and $0.2 million for the three and nine months ended November 3, 2023, respectively, and $35 thousand and $0.2 million for the three and nine months ended October 28, 2022, 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 $13.6 million and $42.9 million for the three and nine months ended November 3, 2023, respectively, and $14.0 million and $44.6 million for the three and nine months ended October 28, 2022, respectively. In addition, as of November 3, 2023, the Company had approximately $2.9 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 $0.2 million and $0.6 million for the three and nine months ended November 3, 2023, respectively, and $1.2 million and $4.0 million for the three and nine months ended October 28, 2022, 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 November 3, 2023 and February 3, 2023 (in thousands). November 3, February 3, Related party payable (in accrued and other current liabilities) $ 3,530 $ 1,141 Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net) $ 4,521 $ 5,584 Net operating loss tax sharing receivable under agreement with Dell $ 7,641 $ 3,472

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Nov. 03, 2023
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 November 3, 2023 and February 3, 2023 were as follows (in thousands): November 3, February 3, Level 1 Level 1 Cash equivalents - Money Market Funds $ 1,669 $ 16,451 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.

REORGANIZATION AND OTHER RELATE

REORGANIZATION AND OTHER RELATED COSTS	9 Months Ended
	Nov. 03, 2023
Restructuring and Related Activities [Abstract]
REORGANIZATION AND OTHER RELATED COSTS	REORGANIZATION AND OTHER RELATED COSTS During the fiscal year ended February 3, 2023, the Company committed to a plan to align its investments more closely with its strategic priorities to meet the expected future needs of the business by reducing the Company’s workforce and implementing certain real estate‑related and other cost optimization actions. Under this plan, the Company began rebalancing investments cross-functionally in alignment with the Company’s current strategy and growth opportunities, such as focusing on the higher value, higher margin Taegis solutions, optimizing the Company’s organizational structure to increase its scalability, and other priorities, to better position the Company for continued growth with improving operating margins over time. The Company incurred expenses associated with the plan of approximately $15.5 million and $14.2 million for the fiscal year ended February 3, 2023, and the nine months ended November 3, 2023, respectively. These expenses consisted primarily of severance and other termination benefits, real estate-related expenses, and various other cost saving measures. The following table summarizes the liability associated with these charges that is included in accrued and other current liabilities on the accompanying Condensed Consolidated Statement of Financial Position (in thousands): Workforce Real estate-related Other Total Balance as of January 28, 2022 $ — $ — $ — $ — Reorganization charge 7,550 4,570 3,351 15,471 Charges settled in cash — (90) (325) (415) Charges settled in non-cash — (4,480) (1,632) (6,112) Balance as of February 3, 2023 $ 7,550 $ — $ 1,394 $ 8,944 Reorganization charge 10,960 3,272 — 14,232 Charges settled in cash (14,735) — (1,394) (16,129) Charges settled in non-cash — (3,272) — (3,272) Balance as of November 3, 2023 $ 3,775 $ — $ — $ 3,775

DESCRIPTION OF THE BUSINESS A_2

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Nov. 03, 2023
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, or 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 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 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 2, 2024 and the fiscal year ended February 3, 2023 as fiscal 2024 and fiscal 2023, respectively. Fiscal 2024 consists of 52 weeks and fiscal 2023 consisted of 53 weeks. In fiscal 2024, each quarter has 13 weeks. In fiscal 2023, each quarter consisted of 13 weeks except for the fourth quarter, which consisted of 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 Estimates
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements None.
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
	Nov. 03, 2023
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 November 3, October 28, November 3, October 28, Numerator: Net loss $ (14,421) $ (28,146) $ (77,750) $ (74,463) Denominator: Weighted-average number of shares outstanding: Basic and Diluted 86,278 84,584 85,943 84,277 Loss per common share: Basic and Diluted $ (0.17) $ (0.33) $ (0.90) $ (0.88) Weighted-average anti-dilutive share-based awards 8,845 6,099 7,693 6,020

CONTRACT BALANCES AND CONTRAC_2

CONTRACT BALANCES AND CONTRACT COSTS (Tables)	9 Months Ended
	Nov. 03, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Revenue by Service Type	The following table presents revenue by service type (in thousands): Three Months Ended Nine Months Ended November 3, October 28, November 3, October 28, Net revenue: Taegis Subscription Solutions $ 67,346 $ 47,888 $ 196,368 $ 127,913 Managed Security Services 7,866 39,303 32,928 144,013 Total Subscription revenue $ 75,212 $ 87,191 $ 229,296 $ 271,926 Professional Services 14,152 23,751 47,429 76,213 Total net revenue $ 89,364 $ 110,942 $ 276,725 $ 348,139
Schedule of Deferred Revenue	Changes to the Company’s deferred revenue during the nine months ended November 3, 2023 and October 28, 2022 are as follows (in thousands): As of February 3, 2023 Upfront payments received and billings during the nine months ended November 3, 2023 Revenue recognized during the nine months ended November 3, 2023 As of November 3, 2023 Deferred revenue $ 156,332 $ 150,135 $ (173,281) $ 133,186 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
Schedule of Expected Timing to Recognize Remaining Performance Obligation	As of November 3, 2023, 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 $ 210,557 $ 129,595 $ 66,976 $ 13,837 $ 149 Performance obligation - backlog 2,901 1,003 1,002 896 — Total $ 213,458 $ 130,598 $ 67,978 $ 14,733 $ 149
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 November 3, 2023 and October 28, 2022 are as follows (in thousands): As of February 3, 2023 Amount capitalized Amount recognized As of November 3, 2023 Deferred commissions $ 49,565 $ 6,155 $ (12,964) $ 42,756 Deferred fulfillment costs 3,232 — (2,562) 670 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

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
	Nov. 03, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Indefinite-Lived Intangible Assets	The Company ’ s intangible assets as of November 3, 2023 and February 3, 2023 were as follows: November 3, 2023 February 3, 2023 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (144,101) $ 45,417 $ 189,518 $ (133,530) $ 55,988 Acquired Technology 141,784 (138,783) 3,001 141,784 (128,612) 13,172 Developed Technology 15,933 (7,527) 8,406 11,827 (4,897) 6,930 Finite-lived intangible assets 347,235 (290,411) 56,824 343,129 (267,039) 76,090 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 377,353 $ (290,411) $ 86,942 $ 373,247 $ (267,039) $ 106,208
Schedule of Finite-Lived Intangible Assets	The Company ’ s intangible assets as of November 3, 2023 and February 3, 2023 were as follows: November 3, 2023 February 3, 2023 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 189,518 $ (144,101) $ 45,417 $ 189,518 $ (133,530) $ 55,988 Acquired Technology 141,784 (138,783) 3,001 141,784 (128,612) 13,172 Developed Technology 15,933 (7,527) 8,406 11,827 (4,897) 6,930 Finite-lived intangible assets 347,235 (290,411) 56,824 343,129 (267,039) 76,090 Trade name 30,118 — 30,118 30,118 — 30,118 Total intangible assets $ 377,353 $ (290,411) $ 86,942 $ 373,247 $ (267,039) $ 106,208

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Nov. 03, 2023
Leases [Abstract]
Components of Lease Cost	The components of lease expense were as follows: Three Months Ended Nine Months Ended November 3, October 28, November 3, October 28, (in thousands) Operating lease cost $ 1,079 $ 1,161 $ 3,243 $ 3,543 Variable lease costs 98 121 249 326 Short term lease costs — 40 — 87 Total lease costs $ 1,177 $ 1,322 $ 3,492 $ 3,956 Supplemental cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,352 $ 1,419 $ 4,013 $ 4,575 Weighted-average information associated with the measurement of remaining operating lease obligations is as follows: November 3, 2023 Weighted-average remaining lease term 3.0 years Weighted-average discount rate 5.4 %
Maturities of Operating Lease Liabilities	The following table summarizes the maturity of the Company’s operating lease liabilities as of November 3, 2023 (in thousands): Fiscal Years Ending November 3, 2023 2024 $ 1,350 2025 5,095 2026 4,526 2027 4,088 2028 — Thereafter — Total operating lease payments $ 15,059 Less imputed interest 1,072 Total operating lease liabilities $ 13,987

INCOME AND OTHER TAXES (Tables)

INCOME AND OTHER TAXES (Tables)	9 Months Ended
	Nov. 03, 2023
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 November 3, 2023 and October 28, 2022 was as follows (in thousands, except percentages): Three Months Ended Nine Months Ended November 3, October 28, November 3, October 28, Loss before income taxes $ (18,569) $ (36,667) $ (98,465) $ (95,838) Income tax benefit $ (4,148) $ (8,521) $ (20,715) $ (21,375) Effective tax rate 22.3 % 23.2 % 21.0 % 22.3 %

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Nov. 03, 2023
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 November 3, 2023 and February 3, 2023 (in thousands). November 3, February 3, Related party payable (in accrued and other current liabilities) $ 3,530 $ 1,141 Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net) $ 4,521 $ 5,584 Net operating loss tax sharing receivable under agreement with Dell $ 7,641 $ 3,472

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Nov. 03, 2023
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 November 3, 2023 and February 3, 2023 were as follows (in thousands): November 3, February 3, Level 1 Level 1 Cash equivalents - Money Market Funds $ 1,669 $ 16,451

REORGANIZATION AND OTHER RELA_2

REORGANIZATION AND OTHER RELATED COSTS (Tables)	9 Months Ended
	Nov. 03, 2023
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Cost	The following table summarizes the liability associated with these charges that is included in accrued and other current liabilities on the accompanying Condensed Consolidated Statement of Financial Position (in thousands): Workforce Real estate-related Other Total Balance as of January 28, 2022 $ — $ — $ — $ — Reorganization charge 7,550 4,570 3,351 15,471 Charges settled in cash — (90) (325) (415) Charges settled in non-cash — (4,480) (1,632) (6,112) Balance as of February 3, 2023 $ 7,550 $ — $ 1,394 $ 8,944 Reorganization charge 10,960 3,272 — 14,232 Charges settled in cash (14,735) — (1,394) (16,129) Charges settled in non-cash — (3,272) — (3,272) Balance as of November 3, 2023 $ 3,775 $ — $ — $ 3,775

DESCRIPTION OF THE BUSINESS A_3

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) - USD ($)	9 Months Ended
	Nov. 03, 2023	Feb. 03, 2023	Oct. 28, 2022
Class of Stock [Line Items]
Cash and cash equivalents	$ 58,105,000	$ 143,517,000
Revolving Credit Facility | Line of Credit
Class of Stock [Line Items]
Line of credit, outstanding balance	0	$ 0	$ 0
Maximum borrowing capacity	$ 50,000,000
IPO | Denali
Class of Stock [Line Items]
Percent of outstanding shares owned	81.10%
Percent of voting interests owned	97.70%

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Numerator:
Net loss	$ (14,421)	$ (28,146)	$ (77,750)	$ (74,463)
Denominator:
Weighted-average common shares outstanding (basic in shares)	86,278	84,584	85,943	84,277
Weighted-average common shares outstanding (diluted in shares)	86,278	84,584	85,943	84,277
Loss per common share:
Loss per common share (basic in usd per share)	$ (0.17)	$ (0.33)	$ (0.90)	$ (0.88)
Loss per common share (diluted in usd per share)	$ (0.17)	$ (0.33)	$ (0.90)	$ (0.88)
Weighted-average anti-dilutive share-based awards (in shares)	8,845	6,099	7,693	6,020

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
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Disaggregation of Revenue [Line Items]
Total net revenue	$ 89,364	$ 110,942	$ 276,725	$ 348,139
Taegis Subscription Solutions
Disaggregation of Revenue [Line Items]
Total net revenue	67,346	47,888	196,368	127,913
Managed Security Services
Disaggregation of Revenue [Line Items]
Total net revenue	7,866	39,303	32,928	144,013
Subscription
Disaggregation of Revenue [Line Items]
Total net revenue	75,212	87,191	229,296	271,926
Professional services
Disaggregation of Revenue [Line Items]
Total net revenue	$ 14,152	$ 23,751	$ 47,429	$ 76,213

CONTRACT BALANCES AND CONTRAC_4

CONTRACT BALANCES AND CONTRACT COSTS - Narrative (Details)	9 Months Ended
	Nov. 03, 2023 USD ($) performanceObligationElement	Oct. 28, 2022 USD ($)
Disaggregation of Revenue [Line Items]
Deferred revenue billed in advance, percent	65%
Deferred revenue billed monthly or quarterly, percent	35%
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]: 2023-11-04
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-04 | Subscription-Based Solutions
Disaggregation of Revenue [Line Items]
Performance obligation period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-04 | Professional services
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-03
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-11-02
Disaggregation of Revenue [Line Items]
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-11-01
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
	Nov. 03, 2023	Oct. 28, 2022
Change in Contract with Customer, Liability [Roll Forward]
Deferred revenue, Beginning of period	$ 156,332	$ 176,068
Deferred revenue, Upfront payments received and billings	150,135	175,301
Deferred revenue, Revenue recognized	(173,281)	(206,853)
Deferred revenue, End of period	$ 133,186	$ 144,516

CONTRACT BALANCES AND CONTRAC_6

CONTRACT BALANCES AND CONTRACT COSTS - Remaining Performance Obligation and Timing (Details) $ in Thousands	Nov. 03, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 213,458
Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	210,557
Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	2,901
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 130,598
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-04 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 129,595
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-04 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,003
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 67,978
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-03 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 66,976
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-03 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,002
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-11-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 14,733
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-11-02 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 13,837
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-11-02 | Performance obligation - backlog
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 896
Performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 149
Performance obligation period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-11-01 | Performance obligation - active
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 149
Performance obligation period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-11-01 | 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
	Nov. 03, 2023	Oct. 28, 2022
Deferred commissions
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 49,565	$ 53,978
Amount capitalized	6,155	8,319
Amount recognized	(12,964)	(13,319)
Ending balance	42,756	48,978
Deferred fulfillment costs
Capitalized Contract Cost [Roll Forward]
Beginning balance	3,232	7,597
Amount capitalized	0	241
Amount recognized	(2,562)	(3,635)
Ending balance	$ 670	$ 4,203

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details)	3 Months Ended		9 Months Ended
	Nov. 03, 2023 USD ($)	Oct. 28, 2022 USD ($)	Nov. 03, 2023 USD ($) reportingUnit	Oct. 28, 2022 USD ($)	Feb. 03, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, period increase (decrease)			$ (300,000)
Goodwill	$ 425,241,000		$ 425,241,000		$ 425,519,000
Number of reporting units | reportingUnit			1
Amortization expense	7,300,000	$ 7,900,000	$ 23,400,000	$ 23,300,000
Impairment charges	$ 0	$ 0	$ 0	$ 0

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	Nov. 03, 2023	Feb. 03, 2023
Finite-Lived Intangible Assets [Line Items]
Gross	$ 347,235	$ 343,129
Accumulated Amortization	(290,411)	(267,039)
Net	56,824	76,090
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross	377,353	373,247
Accumulated Amortization	(290,411)	(267,039)
Net	86,942	106,208
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	(144,101)	(133,530)
Net	45,417	55,988
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(144,101)	(133,530)
Acquired Technology
Finite-Lived Intangible Assets [Line Items]
Gross	141,784	141,784
Accumulated Amortization	(138,783)	(128,612)
Net	3,001	13,172
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(138,783)	(128,612)
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Gross	15,933	11,827
Accumulated Amortization	(7,527)	(4,897)
Net	8,406	6,930
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ (7,527)	$ (4,897)

DEBT (Details)

DEBT (Details) - Revolving Credit Facility - Line of Credit - USD ($)	9 Months Ended
	Nov. 03, 2023	Feb. 03, 2023	Oct. 28, 2022
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 50,000,000
Additional borrowing capacity	$ 30,000,000
Commitment fee percentage	0.35%
Line of credit, outstanding balance	$ 0	$ 0	$ 0
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	2%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	9 Months Ended
	Nov. 03, 2023 USD ($)
State and Local Jurisdiction
Other Commitments [Line Items]
Income tax examination, tax liability accrued	$ 8.9
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 Millions	3 Months Ended
	Aug. 04, 2023	Nov. 03, 2023
Lessee, Lease, Description [Line Items]
Impairment loss	$ 2.9
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term		9 months 18 days
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term		3 years 2 months 12 days

LEASES - Components of Lease Ex

LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Leases [Abstract]
Operating lease cost	$ 1,079	$ 1,161	$ 3,243	$ 3,543
Variable lease costs	98	121	249	326
Short term lease costs	0	40	0	87
Total lease costs	1,177	1,322	3,492	3,956
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$ 1,352	$ 1,419	$ 4,013	$ 4,575

LEASES - Weighted Average (Deta

LEASES - Weighted Average (Details)	Nov. 03, 2023
Leases [Abstract]
Weighted-average remaining lease term	3 years
Weighted-average discount rate	5.40%

LEASES - Maturities of Operatin

LEASES - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Nov. 03, 2023 USD ($)
Operating Leases, After Adoption of 842:
2024	$ 1,350
2025	5,095
2026	4,526
2027	4,088
2028	0
Thereafter	0
Total operating lease payments	15,059
Less imputed interest	1,072
Total operating lease liabilities	$ 13,987

STOCK-BASED COMPENSATION AND _2

STOCK-BASED COMPENSATION AND OTHER LONG-TERM PERFORMANCE INCENTIVES (Details) - USD ($)	3 Months Ended			9 Months Ended
	Nov. 03, 2023	Aug. 04, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
2016 Long-Term Incentive Plan | Common Class A [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized	7,500,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting term				3 years
Restricted Stock Units (RSUs) | 2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards issued (in shares)	222,185	7,142,257	200,736	8,276,147	4,183,636
Restricted Stock and Restricted Stock Units | 2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of grants issued subject to performance conditions				17%
Incentive Cash Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted	$ 0		$ 100,000	$ 100,000	$ 100,000
Compensation expense	$ 400,000		$ 1,000,000	$ 1,500,000	$ 3,500,000

INCOME AND OTHER TAXES - Effect

INCOME AND OTHER TAXES - Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (18,569)	$ (36,667)	$ (98,465)	$ (95,838)
Income tax benefit	$ (4,148)	$ (8,521)	$ (20,715)	$ (21,375)
Effective tax rate	22.30%	23.20%	21%	22.30%

INCOME AND OTHER TAXES - Narrat

INCOME AND OTHER TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022	Feb. 03, 2023
Valuation Allowance [Line Items]
Effective tax rate	22.30%	23.20%	21%	22.30%
Expense relating to vesting of equity awards	$ 200	$ 100	$ 1,800	$ 700
Loss carryforwards	5,800		5,800		$ 5,800
Net deferred tax assets	21,300		21,300
Loss before income taxes	(18,569)	(36,667)	(98,465)	(95,838)
Income tax expense	(4,148)	(8,521)	(20,715)	(21,375)
Net loss	(14,421)	$ (28,146)	(77,750)	$ (74,463)
Other current assets	12,865		12,865		17,526
Unrecognized tax benefits	4,700		4,700		4,500
Dell Inc. | Net Operating Loss Receivable | Principal Owner
Valuation Allowance [Line Items]
Other current assets	7,641		7,641		3,472
Dell Inc. | Other Noncurrent Assets | Net Operating Loss Receivable | Principal Owner
Valuation Allowance [Line Items]
Other current assets	$ 7,600		7,600		$ 3,500
Prepared using separate return method
Valuation Allowance [Line Items]
Loss before income taxes			(98,500)
Income tax expense			1,200
Net loss			$ (99,700)

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Related Party Transaction [Line Items]
Charged under shared services agreement	$ 20,565	$ 24,725	$ 63,194	$ 74,359
Purchases of computer equipment from Dell			865	1,609
Revenues	89,364	110,942	276,725	348,139
Dell Inc. | Principal Owner
Related Party Transaction [Line Items]
Charged under shared services agreement	700	900	2,300	2,800
Dell Inc. | Principal Owner | Contracts Not Yet Transferred
Related Party Transaction [Line Items]
Revenues	13,600	14,000	42,900	44,600
Performance bonds, outstanding	2,900		2,900
Dell Inc. | Principal Owner | Solutions Purchases
Related Party Transaction [Line Items]
Revenues	200	1,200	600	4,000
Dell Inc. | Chief Executive Officer
Related Party Transaction [Line Items]
Revenues	34	35	200	200
Dell and EMC | Principal Owner
Related Party Transaction [Line Items]
Purchases of computer equipment from Dell	7	200	400	600
EMC and VMware | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Purchase of annual maintenance services	23	500	700	1,000
VMware | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Revenues	200	100	400	400
Carbon Black Inc. | Subsidiary of Common Parent | Solutions Purchases
Related Party Transaction [Line Items]
Purchases of solutions from Carbon Black	$ 300	$ 800	$ 1,900	$ 2,500

RELATED PARTY TRANSACTIONS - Ba

RELATED PARTY TRANSACTIONS - Balances in Condensed Consolidated Statements of Financial Position (Details) - USD ($) $ in Thousands	Nov. 03, 2023	Feb. 03, 2023
Related Party Transaction [Line Items]
Accrued and other current liabilities	$ 60,890	$ 81,566
Other current assets	12,865	17,526
Principal Owner | Dell Inc.
Related Party Transaction [Line Items]
Accounts receivable from customers under reseller agreements with Dell (in accounts receivable, net)	4,521	5,584
Related Party Payable | Related Party
Related Party Transaction [Line Items]
Accrued and other current liabilities	3,530	1,141
Net Operating Loss Receivable | Principal Owner | Dell Inc.
Related Party Transaction [Line Items]
Other current assets	$ 7,641	$ 3,472

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Nov. 03, 2023	Feb. 03, 2023
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	$ 1,669	$ 16,451,000

REORGANIZATION AND OTHER RELA_3

REORGANIZATION AND OTHER RELATED COSTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022	Feb. 03, 2023
Restructuring and Related Activities [Abstract]
Reorganization and other related charges	$ 0	$ 0	$ 14,232	$ 0	$ 15,500

REORGANIZATION AND OTHER RELA_4

REORGANIZATION AND OTHER RELATED COSTS - Reorganization and Other Related Costs Activity (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Nov. 03, 2023	Feb. 03, 2023
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 8,944	$ 0
Reorganization charge	14,232	15,471
Charges settled in cash	(16,129)	(415)
Charges settled in non-cash	(3,272)	(6,112)
Ending balance	3,775	8,944
Workforce
Restructuring Cost and Reserve [Line Items]
Beginning balance	7,550	0
Reorganization charge	10,960	7,550
Charges settled in cash	(14,735)	0
Charges settled in non-cash	0	0
Ending balance	3,775	7,550
Real estate-related
Restructuring Cost and Reserve [Line Items]
Beginning balance	0	0
Reorganization charge	3,272	4,570
Charges settled in cash	0	(90)
Charges settled in non-cash	(3,272)	(4,480)
Ending balance	0	0
Other
Restructuring Cost and Reserve [Line Items]
Beginning balance	1,394	0
Reorganization charge	0	3,351
Charges settled in cash	(1,394)	(325)
Charges settled in non-cash	0	(1,632)
Ending balance	$ 0	$ 1,394