Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at CrowdStrike (NASDAQ:CRWD), and the best and worst performers in the cybersecurity group.
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 10 cybersecurity stocks we track reported a strong Q4; on average, revenues beat analyst consensus estimates by 5.66%, while on average next quarter revenue guidance was 3.48% above consensus. Tech stocks have been under pressure since the end of last year, but cybersecurity stocks held their ground better than others, with the share price up 12.1% since earnings, on average.
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 $431 million, up 62.6% year on year, beating analyst expectations by 4.51%. It was a strong quarter for the company, with an exceptional revenue growth and a full year guidance beating analysts' expectations.
CrowdStrike achieved the highest full year guidance raise of the whole group. The company added 1,638 customers to a total of 16,325. The stock is up 34% since the results and currently trades at $227.85.
Best Q4: SailPoint (NYSE:SAIL)
Started by Mark McClain after his previous identity management company got acquired by Sun Microsystems, SailPoint (NYSE:SAIL) provides software for organizations to manage the digital identity of employees, customers, and partners.
SailPoint reported revenues of $135.5 million, up 31.2% year on year, beating analyst expectations by 19.1%. It was an exceptional quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.
SailPoint scored the strongest analyst estimates beat among its peers. The stock is up 21.9% since the results and currently trades at $50.42.
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Weakest Q4: ForgeRock (NYSE:FORG)
Founded in Norway by former Sun Microsystems engineers, ForgeRock (NYSE:FORG) offers software as a service that helps companies secure and manage the identity of their customers and employees.
ForgeRock reported revenues of $47.9 million, up 19.3% year on year, beating analyst expectations by 1.69%. It was a weak quarter for the company, with a decline in gross margin and underwhelming revenue guidance for the next quarter.
ForgeRock had the weakest full year guidance update in the group. The stock is up 24.3% since the results and currently trades at $20.60.
Founded in 1999 as one of the first subscription security companies, Qualys (NASDAQ:QLYS) provides organizations with software to assess their exposure to cyber-attacks.
Qualys reported revenues of $109.7 million, up 15.8% year on year, beating analyst expectations by 1.2%. It was a decent quarter for the company, with an impressive guidance for the next year.
Qualys had the weakest performance against analyst estimates and slowest revenue growth among the peers. The stock is up 9.75% since the results and currently trades at $147.80.
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 $255.5 million, up 62.7% year on year, beating analyst expectations by 5.66%. It was an impressive quarter for the company, with an exceptional revenue growth.
The stock is down 11.6% since the results and currently trades at $232.85.
The author has no position in any of the stocks mentioned