So coincident with that, we launched node-based license pricing as nicely. The means I would characterize that is simplicity is certainly one of our, call it, brand guarantees. And it isn’t simply in regards to the simplicity of the product, but in addition the simplicity as it relates to the licensing and consumption mannequin. The node-based licensing or pricing model has already been implemented. I mentioned in my ready remarks in regards to the launch of our hybrid Observability solution. I was hoping you would drill down a little bit in your overall view of the well being of SMB spending on a worldwide level and broaden on that.
With the typical variety of certificates increasing within the enterprise space, instruments like Let’s Encrypt’s certbot, Lemur, and Venafi will roll out in higher numbers. Unmitigated vulnerabilities trigger breaches, the unfold of malware like ransomware, and permit for the expansion of bots that at the moment are debilitating the Internet with assault site visitors. The Internet’s arteries are clogged with malicious assault traffic—depending on the sensitivity of the goal, 50% to 90% of all application visitors consists of malicious attacks. If we value a stable Internet, we have to do one thing drastic about vulnerable software program. One of the issues that stands out to us is the utilization of a novel, domestically hosted command-and-control domain to help avoid detection—just as we predicted when the U.S. government’s exploitation strategies have been first stolen. For the second quarter, Microsoft forecast revenues of $39.5-$40.four billion.
And each time we have a new arrangement, we recognize typically acknowledge round 70% of that arrangement upfront after which defer 30% of that deal to upkeep revenue after which acknowledge that over the upkeep interval. And during times of year-over-year declines in license income, we’re including much less to that upkeep base as we transfer via the year. That occurred to us in 2020 due to COVID after which in 2021 because of the SUNBURST incident. And then just rapidly on the acquisition you guys did in quarter, Monalytic.
Solar wind is the product of a magnetic field pushing towards a photo voltaic panel. The energy that is being generated is getting used to power our personal houses and businesses. Azure is a cloud service that Microsoft has to offer as a result of it competes with Microsoft’s cloud providers. Microsoft cloud providers are built on Azure, and Azure is a cloud service that Microsoft has to supply because it competes with Microsoft’s cloud services.
While it might be good to be bleeding edge update-wise in relation to safety, the reality that custom packages and apps begin to break too quick to keep up with is certainly a factor. I guess the cloud providers want you to intestine your small dev team and simply spend all that and extra on their apps, that don’t do quite what you want it to. Without additional ado, listed beneath jared isaacman father are my five safety predictions for the 12 months ahead. Once again, I wish to start by thanking our employees, prospects, companions, and our shareholders for their ongoing dedication to SolarWinds. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps tens of millions of people attain financial freedom by way of our website, podcasts, books, newspaper column, radio show, and premium investing providers.
Dollar exchange fee in 2021 was 1.2, then our income can be $4 million higher. So that may convey the the underside finish of closer to flat and we’d have nearer to like 2% to 3% development on a continuing currency basis, assuming the same FX price as the prior 12 months, and that is specifically because it pertains to Q2. For the full 12 months, the speed only recently dropped from about 1.09 down to 1.05.
Net leverage on March 31, 2022 was roughly three.9 times our trailing 12-month adjusted EBITDA. As a reminder, we retain the complete amount of the $1.9 billion in term debt that we had prior to the spinoff of N-able. Our cash stability with $751 million at the end of the primary quarter, bringing our net debt to roughly $1.2 billion. We imagine we now have favorable terms on our debt, so we intend to take care of that flexibility as it relates to the money on our stability sheet. With that, I’ll turn it over to Bart to provide more details on our monetary performance and outlook. Therefore, the financial outcomes offered on this name replicate SolarWinds as a stand-alone enterprise and do not embrace any contribution from the N-able enterprise.
I’m happy with our robust Q1 performance exceeding our outlook in both complete revenue and adjusted EBITDA margins. We are executing our mission to help prospects speed up their business transformation through a easy, highly effective and safe solution for multi-cloud environments. Our disciplined strategy to portfolio and go-to-market enlargement, mixed with intense customer centricity, enabled us to return to our historic in-quarter renewal price in Q1, earlier than we had previously instructed.
