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Q4 Earnings Roundup: Tenable (NASDAQ:TENB) And The Rest Of The Cybersecurity Segment


Radek Strnad /
2023/04/12 4:35 am EDT

Wrapping up Q4 earnings, we look at the numbers and key takeaways for the cybersecurity stocks, 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 slower Q4; on average, revenues beat analyst consensus estimates by 2.22%, while on average next quarter revenue guidance was 0.07% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but cybersecurity stocks held their ground better than others, with the share prices up 1.89% since the previous earnings results, 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 $184.6 million, up 23.9% year on year, beating analyst expectations by 1.79%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.

“We are very pleased with our Q4 results as we exceeded our expectations on the top and bottom line,” said Amit Yoran, Chairman and CEO of Tenable.

Tenable Total Revenue

The stock is up 4.33% since the results and currently trades at $45.3.

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

Best Q4: Zscaler (NASDAQ:ZS)

After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry's fifth venture, Zscaler (NASDAQ:ZS) offers software as a service that helps companies securely connect to applications and networks in the cloud.

Zscaler reported revenues of $387.6 million, up 51.7% year on year, beating analyst expectations by 6.26%. Despite the stock dropping on the results, it was a very strong quarter for the company, with exceptional revenue growth and a solid beat of analyst estimates.

Zscaler Total Revenue

Zscaler scored the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 20.6% since the results and currently trades at $106.46.

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

Qualys (NASDAQ:QLYS)

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 $130.8 million, up 19.2% 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 up 4% since the results and currently trades at $127.16.

Read our full analysis of Qualys's results here.

Varonis (NASDAQ:VRNS)

Founded by a duo of former Israeli Defense Forces cyber warfare engineers, Varonis (NASDAQ:VRNS) offers software-as-service that helps customers protect data from cyber threats and gain visibility into how enterprise data is being used.

Varonis reported revenues of $142.6 million, up 12.7% year on year, beating analyst expectations by 1.33%. It was a weaker quarter for the company, with underwhelming guidance for the next year and slow revenue growth.

Varonis had the slowest revenue growth among the peers. The stock is down 4.99% since the results and currently trades at $24.92.

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

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 $126.1 million, up 92.1% year on year, beating analyst expectations by 1.13%. It was a mixed quarter for the company, with a full year guidance missing analysts' expectations but a strong improvement in gross margin.

SentinelOne pulled off the fastest revenue growth but had the weakest full year guidance update among the peers. The company added 78 enterprise customers paying more than $100,000 annually to a total of 905. The stock is up 14.9% since the results and currently trades at $16.61.

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

The author has no position in any of the stocks mentioned