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 Q1. Today we are looking at the cybersecurity stocks, starting with Okta (NASDAQ:OKTA).
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 weaker Q1; on average, revenues beat analyst consensus estimates by 0.65%, while on average next quarter revenue guidance was 1.16% under consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but cybersecurity stocks held their ground better than others, with the share prices up 3.44% since the previous earnings results, on average.
Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ:OKTA) is a cloud-based software as a service platform that helps companies manage identity for their employees and customers.
Okta reported revenues of $518 million, up 24.8% year on year, beating analyst expectations by 1.43%. It was a decent quarter for the company, with optimistic revenue guidance for the next quarter.
“We started the new fiscal year with strong non-GAAP operating profit and record cash flow, which is a testament to the actions we’ve taken to increase efficiency and profitability,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta.
The stock is down 16.1% since the results and currently trades at $76.31.
Is now the time to buy Okta? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $692.6 million, up 42% year on year, beating analyst expectations by 2.42%. Despite the stock dropping on the results, it was a decent quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter ahead of expectations.
CrowdStrike scored the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 3.46% since the results and currently trades at $154.49.
Is now the time to buy CrowdStrike? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $133.4 million, up 70.5% year on year, missing analyst expectations by 2.36%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
SentinelOne achieved the fastest revenue growth but had the weakest performance against analyst estimates and weakest performance against analyst estimates in the group. The company added 12 enterprise customers paying more than $100,000 annually to a total of 917. The stock is down 22.8% since the results and currently trades at $16.
Founded in 2002 by three cybersecurity veterans, Tenable (NASDAQ:TENB) provides software as a service that helps companies understand where they are exposed to cyber security risk and how to reduce it.
Tenable reported revenues of $188.8 million, up 18.5% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
The stock is down 6.49% since the results and currently trades at $42.5.
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 $183.2 million, up 16.4% year on year, beating analyst expectations by 1.05%. It was a slower quarter for the company, with decelerating customer growth and underwhelming revenue guidance for the next quarter.
The company added 105 customers to a total of 11,034. The stock is up 3.46% since the results and currently trades at $45.78.
The author has no position in any of the stocks mentioned