As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at cybersecurity stocks, starting with SentinelOne (NYSE:S).
Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location.
The 9 cybersecurity stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.8% since the latest earnings results.
SentinelOne (NYSE:S)
With roots in the Israeli cyber intelligence community, SentinelOne (NYSE:S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks.
SentinelOne reported revenues of $225.5 million, up 29.5% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ billings estimates and full-year guidance of slowing revenue growth.
“Our strong finish to the fiscal year reflects solid execution and the accelerating adoption of our platform solutions,” said Tomer Weingarten, CEO of SentinelOne.
SentinelOne scored the fastest revenue growth of the whole group. The company added 101 enterprise customers paying more than $100,000 annually to reach a total of 1,411. Still, the market seems discontent with the results. The stock is down 2.3% since reporting and currently trades at $18.30.
Is now the time to buy SentinelOne? Access our full analysis of the earnings results here, it’s free.
Best Q4: Zscaler (NASDAQ:ZS)
After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry's fifth venture, Zscaler (NASDAQ:ZS) offers software-as-a-service that helps companies securely connect to applications and networks in the cloud.
Zscaler reported revenues of $647.9 million, up 23.4% year on year, outperforming analysts’ expectations by 2.1%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA and annual recurring revenue estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2.3% since reporting. It currently trades at $192.02.
Is now the time to buy Zscaler? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Varonis (NASDAQ:VRNS)
Founded by a duo of former Israeli Defense Forces cyber warfare engineers, Varonis (NASDAQ:VRNS) offers software-as-service that helps customers protect data from cyber threats and gain visibility into how enterprise data is being used.
Varonis reported revenues of $158.5 million, up 2.9% year on year, falling short of analysts’ expectations by 4.2%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations.
Varonis delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 14.7% since the results and currently trades at $40.
Read our full analysis of Varonis’s results here.
CrowdStrike (NASDAQ:CRWD)
Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ:CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.
CrowdStrike reported revenues of $1.06 billion, up 25.2% year on year. This result beat analysts’ expectations by 2.4%. It was a strong quarter as it also recorded a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
CrowdStrike pulled off the biggest analyst estimates beat among its peers. The stock is down 13.3% since reporting and currently trades at $338.19.
Read our full, actionable report on CrowdStrike here, it’s free.
Rapid7 (NASDAQ:RPD)
Founded in 2000 with the idea that network security comes before endpoint security, Rapid7 (NASDAQ:RPD) provides software as a service that helps companies understand where they are exposed to cyber security risks, quickly detect breaches and respond to them.
Rapid7 reported revenues of $216.3 million, up 5.4% year on year. This print topped analysts’ expectations by 1.9%. Aside from that, it was a slower quarter as it produced full-year guidance of slowing revenue growth.
Rapid7 had the weakest full-year guidance update among its peers. The company added 108 customers to reach a total of 11,727. The stock is down 24.7% since reporting and currently trades at $27.69.
Read our full, actionable report on Rapid7 here, it’s free.
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