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Cybersecurity Stocks Q3 Earnings: SentinelOne (NYSE:S) Best of the Bunch


Adam Hejl /
2022/01/18 6:06 am EST
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As cybersecurity stocks’ Q3 earnings season wraps, let's dig into this quarters’ best and worst performers, including SentinelOne (NYSE:S) 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 12.8% since earnings, on average.

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.

“Customers continue to choose Singularity XDR because of our protection, detection, response, and automation capabilities. Our business is performing extremely well. Q3 marks the third consecutive quarter of triple digit ARR growth,” said Tomer Weingarten, CEO of SentinelOne.

SentinelOne Total Revenue

SentinelOne pulled off the fastest revenue growth and highest full year guidance raise of the whole group. The company added 71 enterprise customers paying more than $100,000 annually to a total of 416. The stock is down 15.4% since the results and currently trades at $43.24.

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

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 $44.2 million, up 37.6% year on year, beating analyst expectations by 15%. It was a good quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.

ForgeRock Total Revenue

ForgeRock pulled off the strongest analyst estimates beat among its peers. The stock is down 52.2% since the results and currently trades at $16.25.

Is now the time to buy ForgeRock? 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 11.8% since the results and currently trades at $42.48.

Read our full analysis of SailPoint's results here.

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 $104.9 million, up 12.7% year on year, in line with analyst expectations. It was a decent quarter for the company, with a strong sales guidance for the next quarter but a slow revenue growth.

Qualys had the weakest performance against analyst estimates, slowest revenue growth, and weakest full year guidance update among the peers. The stock is up 1.01% since the results and currently trades at $126.35.

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

CrowdStrike (NASDAQ:CRWD)

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 $380 million, up 63.4% year on year, beating analyst expectations by 4.35%. It was a strong quarter for the company, with an exceptional revenue growth.

The company added 1,607 customers to a total of 14,687. The stock is down 12.2% since the results and currently trades at $176.83.

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

The author has no position in any of the stocks mentioned