Earnings results often give us a good indication what direction will the company will take in the months ahead. With Q2 now behind us, let’s have a look at 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 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. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows and cybersecurity stocks have not been spared, with share price down 17.8% since the previous earnings results, on average.
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.
“We delivered hyper growth and outperformance across all aspects of our business in Q2 - ARR, revenue, customer growth, net retention, and margins,” said Tomer Weingarten, CEO of SentinelOne.
SentinelOne achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The company added 164 enterprise customers paying more than $100,000 annually to a total of 755. The stock is down 2.3% since the results and currently trades at $26.67.
Is now the time to buy SentinelOne? Access our full analysis of the earnings results 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 $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 and a decent beat of analyst estimates.
The stock is down 10.4% since the results and currently trades at $173.21.
Is now the time to buy CrowdStrike? 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 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 down 31.1% since the results and currently trades at $15.33.
Read our full analysis of ForgeRock'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 $318 million, up 61.3% year on year, beating analyst expectations by 4.09%. It was a solid quarter for the company, with an exceptional revenue growth.
The stock is up 11.6% since the results and currently trades at $172.50.
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 $451.8 million, up 43.2% year on year, beating analyst expectations by 4.91%. Despite the stock dropping on the fears of Auth0 integration challenges, it was a good quarter for the company, with an exceptional revenue growth and a decent beat of analyst estimates.
The stock is down 35.8% since the results and currently trades at $58.71.
Read our full, actionable report on Okta here, it's free.
The author has no position in any of the stocks mentioned