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A Look Back at Cybersecurity Stocks' Q3 Earnings: Tenable (NASDAQ:TENB) Vs The Rest Of The Pack


Adam Hejl /
2022/01/21 6:33 am EST
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Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q3 now behind us, let’s have a look at Tenable (NASDAQ:TENB) and its peers.

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 11 cybersecurity stocks we track reported a strong Q3; on average, revenues beat analyst consensus estimates by 6.26%, while on average next quarter revenue guidance was 2.62% above consensus. Technology stocks have been hit hard on fears of higher interest rates and while some of the cybersecurity stocks have fared somewhat better, they have not been spared, with share price declining 14.4% since earnings, on average.

Tenable (NASDAQ:TENB)

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 $138.6 million, up 23.4% year on year, beating analyst expectations by 3.01%. It was a strong quarter for the company, with a decent beat of analyst estimates.

"We delivered outstanding top- and bottom-line results driven by unprecedented demand for our enterprise offerings, as we added a record number of new enterprise platform customers in the quarter," said Amit Yoran, Chairman and CEO of Tenable.

Tenable Total Revenue

The stock is down 4.13% since the results and currently trades at $49.60.

Is now the time to buy Tenable? Access our full analysis of the earnings results here, it's free.

Best Q3: 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 $56 million, up 128% year on year, beating analyst expectations by 12.9%. It was a stunning quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.

SentinelOne Total Revenue

SentinelOne delivered the fastest revenue growth and highest full year guidance raise among its peers. The company added 71 enterprise customers paying more than $100,000 annually to a total of 416. The stock is down 19.5% since the results and currently trades at $41.18.

Is now the time to buy SentinelOne? Access our full analysis of the earnings results here, it's free.

Slowest Q3: 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 $110.1 million, up 17.1% year on year, beating analyst expectations by 5.98%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a decline in gross margin.

The stock is down 16.8% since the results and currently trades at $40.08.

Read our full analysis of SailPoint's results here.

Palo Alto Networks (NYSE:PANW)

Founded in 2005 by a cybersecurity engineer Nir Zuk, Palo Alto Networks (NYSE:PANW) makes hardware and software cybersecurity products that protect companies from cyberattacks, breaches and malware threats.

Palo Alto Networks reported revenues of $1.24 billion, up 31.8% year on year, beating analyst expectations by 3.58%. It was a decent quarter for the company, with a strong top line growth but a decline in gross margin.

The stock is down 0.23% since the results and currently trades at $518.79.

Read our full, actionable report on Palo Alto Networks 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 $139.8 million, up 33.1% year on year, beating analyst expectations by 4.28%. It was a strong quarter for the company, with accelerating customer growth.

The company added 594 customers to a total of 9,909. The stock is down 26.9% since the results and currently trades at $93.79.

Read our full, actionable report on Rapid7 here, it's free.

The author has no position in any of the stocks mentioned