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Spotting Winners: Tenable (NASDAQ:TENB) And Cybersecurity Stocks In Q2


Jabin Bastian /
2021/10/08 8:06 am EDT
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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 Tenable (NASDAQ:TENB).

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 cybersecurity risks. Businesses have been accelerating adoption of software, moving data and applications into the cloud to save costs and improve performance. This migration has opened them to 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 explosion of access points to sensitive data has also brought about an increase in bad behavior from nation states to cyber criminals to who introduce malware and create data breaches for profit.

The 9 cybersecurity stocks we track reported a a solid Q2; on average, revenues beat analyst consensus estimates by 4.76%, while on average next quarter revenue guidance was 2.73% above consensus. The market rewarded the results with the average return the day after earnings coming in at 1.73%.

Tenable (NASDAQ:TENB)

Founded in 2002, 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 $130.2 million, up 21.5% year on year, beating analyst expectations by 3.77%. It was a decent quarter for the company, with a solid beat of analyst estimates but a decline in gross margin.

“We are pleased with results for the second quarter as calculated current billings and revenue growth accelerated from strong customer adds and large deals,” said Amit Yoran, Chairman and CEO of Tenable.

Tenable Total Revenue

The stock is up 9.79% since the results and currently trades at $49.

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

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 $45.7 million, up 121% year on year, beating analyst expectations by 13.3%. It was a stunning quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

SentinelOne Total Revenue

SentinelOne delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers.

The stock is down 15.7% since the results and currently trades at $57.40.

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

Weakest Q2: SailPoint (NYSE:SAIL)

Founded in 2005 by Kevin Cunningham and Mark McClain, SailPoint (NYSE:SAIL) provides software for organizations to manage the digital identity of employees, customers, and partners.

SailPoint reported revenues of $102.4 million, up 10.8% year on year, beating analyst expectations by 3.2%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

SailPoint had the slowest revenue growth and weakest full year guidance update in the group.

The stock is down 13% since the results and currently trades at $43.07.

Read our full analysis of SailPoint's results here.

Palo Alto Networks (NYSE:PANW)

Founded in 2005, Palo Alto Networks makes hardware and software cybersecurity products that protect companies from cyberattacks, breaches and malware threats.

Palo Alto Networks reported revenues of $1.21 billion, up 28.2% year on year, beating analyst expectations by 3.95%. It was an impressive quarter for the company, with a very strong guidance for the next year.

The stock is up 32.9% since the results and currently trades at $495.50.

Read our full, actionable report on Palo Alto Networks here, it's free.

Rapid7 (NASDAQ:RPD)

Founded in 2000, 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 $126.4 million, up 27.8% year on year, beating analyst expectations by 2.7%. It was a very strong quarter for the company, with accelerating customer growth.

The stock is up 0.63% since the results and currently trades at $117.20.

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

The author has no position in any of the stocks mentioned