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Cybersecurity Stocks Q4 Results: Benchmarking SentinelOne (NYSE:S)


Adam Hejl /
2022/04/15 7:49 am EDT
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As cybersecurity stocks’ Q4 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 10 cybersecurity stocks we track reported a strong Q4; on average, revenues beat analyst consensus estimates by 5.66%, while on average next quarter revenue guidance was 3.48% above consensus. There has been a stampede out of high valuation technology stocks , but cybersecurity stocks held their ground better than others, with the share price up 19.2% since earnings, on average.

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 $65.6 million, up 119% year on year, beating analyst expectations by 8.15%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

“We delivered ARR growth in the triple digits for a fourth consecutive quarter. Our extraordinary performance was driven by the strength of our XDR platform coupled with relentless focus on innovation and execution,” said Tomer Weingarten, CEO of SentinelOne.

SentinelOne Total Revenue

SentinelOne scored the fastest revenue growth of the whole group. The company added 104 enterprise customers paying more than $100,000 annually to a total of 520. The stock is up 22.8% since the results and currently trades at $37.90.

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

Best Q4: 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 $135.5 million, up 31.2% year on year, beating analyst expectations by 19.1%. It was an exceptional quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.

SailPoint Total Revenue

SailPoint achieved the strongest analyst estimates beat among its peers. The stock is up 55.1% since the results and currently trades at $64.16, partly on the announcement that it has entered into a definitive agreement to be acquired by Thoma Bravo.

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

Weakest Q4: 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 $47.9 million, up 19.3% year on year, beating analyst expectations by 1.69%. It was a weak quarter for the company, with a decline in gross margin and an underwhelming revenue guidance for the next quarter.

ForgeRock had the weakest full year guidance update in the group. The stock is up 34.3% since the results and currently trades at $22.27.

Read our full analysis of ForgeRock'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 $109.7 million, up 15.8% year on year, beating analyst expectations by 1.2%. It was a decent quarter for the company, with a very strong guidance for the next year.

Qualys had the weakest performance against analyst estimates and slowest revenue growth among the peers. The stock is up 9.54% since the results and currently trades at $147.51.

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 $431 million, up 62.6% year on year, beating analyst expectations by 4.51%. It was a strong quarter for the company, with an exceptional revenue growth and a full year guidance beating analysts' expectations.

CrowdStrike scored the highest full year guidance raise among the peers. The company added 1,638 customers to a total of 16,325. The stock is up 38.6% since the results and currently trades at $235.73.

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

The author has no position in any of the stocks mentioned