Highly diversified customer base with low customer concentration Above-average EBITDA margins Large recurring revenue base Smaller scale in fragmented industry with larger competitors Adjusted leverage in the low 8x area at March 31, 2016 Strong free operating cash flow Cash balance around $53 million after the LOGICnow transaction Financial sponsor ownership The negative outlook reflects our view of SolarWinds' high leverage and the potential for leverage to stay at this level should the company fail to execute on planned revenue growth, cost synergies, or debt reductions. We could revise the outlook to stable if the company is able to delever through higher EBITDA resulting from continued revenue growth and planned synergies, or from debt reduction, such that leveraged is sustained
