The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the cybersecurity stocks have fared in Q2, starting with CrowdStrike (NASDAQ:CRWD).
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 Q2; on average, revenues beat analyst consensus estimates by 2.88%, while on average next quarter revenue guidance was 0.32% under consensus. Tech stocks have been under pressure since the end of last year and while some of the cybersecurity stocks have fared somewhat better, they have not been spared, with share price declining 12.4% 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 $535.1 million, up 58.4% year on year, beating analyst expectations by 3.62%. It was a solid quarter for the company, with an exceptional revenue growth and a decent beat of analyst estimates.
The stock is down 4.1% since the results and currently trades at $185.42.
Best Q2: 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 $102.5 million, up 124% year on year, beating analyst expectations by 7.15%. It was a very strong quarter for the company, with an exceptional revenue growth and a significant improvement in net revenue retention rate.
SentinelOne scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 164 enterprise customers paying more than $100,000 annually to a total of 755. The stock is up 1.61% since the results and currently trades at $27.74.
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Weakest Q2: 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 $47.6 million, up 8.47% year on year, beating analyst expectations by 1.05%. It was a weak quarter for the company, with guidance for both the next quarter and the full year missing analysts' expectations.
ForgeRock had the slowest revenue growth and weakest full year guidance update in the group. The stock is down 23.9% since the results and currently trades at $16.93.
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 $119.8 million, up 20.2% year on year, beating analyst expectations by 2%. It was a decent quarter for the company, with a beat of analyst estimates and guidance for the next quarter above analysts' estimates.
The stock is up 23.6% since the results and currently trades at $157.65.
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 $167.4 million, up 32.4% year on year, beating analyst expectations by 2.03%. It was a mixed quarter for the company, with accelerating customer growth but underwhelming revenue guidance for the next quarter.
The company added 217 customers to a total of 10,624. The stock is down 22.7% since the results and currently trades at $55.46.
The author has no position in any of the stocks mentioned