Looking back on cybersecurity stocks' Q2 earnings, we examine this quarter’s best and worst performers, including 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 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 0.31% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and cybersecurity stocks have not been spared, with share prices down 28.6% since the previous earnings results, on average.
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 $164.3 million, up 26.1% year on year, in line with analyst expectations. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter.
"We are very pleased with results this quarter despite a difficult macro environment,” said Amit Yoran, Chairman and CEO of Tenable.
The stock is down 35.3% since the results and currently trades at $28.93.
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 $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 down 24.5% since the results and currently trades at $20.60.
Is now the time to buy SentinelOne? Access our full analysis of the earnings results here, it's free.
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 revenue 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 up 0.94% since the results and currently trades at $22.46.
Read our full analysis of ForgeRock's results here.
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.
The company added 1,741 customers to a total of 19,686. The stock is down 25% since the results and currently trades at $145.00.
Read our full, actionable report on CrowdStrike here, it's free.
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 very good quarter for the company, with a decent beat of analyst estimates.
The stock is down 0.17% since the results and currently trades at $127.23.
Read our full, actionable report on Qualys here, it's free.
The author has no position in any of the stocks mentioned