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Q1 Earnings Outperformers: ForgeRock (NYSE:FORG) And The Rest Of The Cybersecurity Stocks


Jabin Bastian /
2022/07/04 4:27 am EDT
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As Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers amongst the cybersecurity stocks, including ForgeRock (NYSE:FORG) 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 10 cybersecurity stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 3.72%, while on average next quarter revenue guidance was 2.04% above consensus. The technology sell-off has been putting pressure on stocks since November, but cybersecurity stocks held their ground better than others, with the share price up 2.99% since earnings, on average.

Slowest Q1: 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 $48 million, up 13.4% year on year, beating analyst expectations by 3.35%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

“We had a fantastic start to 2022, once again achieving the higher bar we set for ourselves by delivering 35% ARR growth year-over-year for the second consecutive quarter,” said Fran Rosch, CEO of ForgeRock.

ForgeRock Total Revenue

ForgeRock delivered the slowest revenue growth and weakest full year guidance update of the whole group. The stock is up 55.6% since the results and currently trades at $22.28.

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

Best 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 $78.2 million, up 109% year on year, beating analyst expectations by 4.83%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

SentinelOne Total Revenue

SentinelOne achieved 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 591. The stock is down 4.54% since the results and currently trades at $23.51.

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

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 $115.4 million, up 27.1% year on year, beating analyst expectations by 3.2%. It was a mixed quarter for the company, with a decent beat of topline results, but a decline in gross margin.

SailPoint has previously entered into a definitive agreement to be acquired by Thoma Bravo, a leading software investment firm, in an all-cash transaction that values SailPoint at approximately $6.9 billion.

The stock is down 1.25% since the results and currently trades at $63.05.

Read our full analysis of SailPoint's results here.

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 $286.8 million, up 62.5% year on year, beating analyst expectations by 5.66%. It was a very strong quarter for the company, with an exceptional revenue growth and a very optimistic guidance for the next quarter.

The stock is up 9.2% since the results and currently trades at $155.21.

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

Okta (NASDAQ:OKTA)

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 $414.9 million, up 65.3% year on year, beating analyst expectations by 6.72%. It was a very strong quarter for the company, with an exceptional revenue growth.

Okta delivered the strongest analyst estimates beat among the peers. The stock is up 2.41% since the results and currently trades at $95.98.

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

The author has no position in any of the stocks mentioned