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Cybersecurity Stocks Q2 Highlights: SailPoint (NYSE:SAIL)


Radek Strnad /
2021/10/01 7:30 am EDT
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Earnings results often give us a good indicated what direction will the company will take in the months ahead. With Q2 now behind us, let’s have a look at SailPoint (NYSE:SAIL) and its peers.

As software penetrates corporate life, employees are using more apps every day, on more devices, in more locations. This in effect drives the need for identity and access management platforms that help companies efficiently manage who has access to what, and ensure that access privileges are secure from cyber criminals.

The 10 cybersecurity stocks we track reported a strong Q2; on average, revenues beat analyst consensus estimates by 5.27%, while on average next quarter revenue guidance was 3.77% above consensus. The market rewarded the results with the average return the day after earnings coming in at 1.52%.

Weakest Q2: SailPoint (NYSE:SAIL)

Founded in 2005 by Kevin Cunningham and Mark McClain, SailPoint (NYSE:SAIL) provides software for organizations to manage the digital identity of employees, customers, and partners.

Sailpoint reported revenues of $102.4 million, up 10.8% year on year, beating analyst expectations by 3.2%. It was weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

“SailPoint finished another strong quarter, exceeding prior revenue and ARR guidance with Total ARR up 43% year-over-year. The outperformance this quarter was driven by our team’s relentless focus on customer satisfaction and the demonstrated value our identity security platform has on addressing the sophisticated needs of the modern enterprise,” said Mark McClain, SailPoint CEO and Founder.

Sailpoint Total Revenue

Sailpoint delivered the slowest revenue growth and weakest full year guidance update of the whole group. The stock is down 8.92% since the results and currently trades at $40.94.

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

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 $45.7 million, up 121% year on year, beating analyst expectations by 13.3%. It was exceptional quarter for the company, with an impressive beat of analyst estimates and a strong revenue growth.

SentinelOne Total Revenue

SentinelOne achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is down 3.11% since the results and currently trades at $54.18.

Is now the time to buy SentinelOne? 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 $99.7 million, up 12.2% year on year, in line with analyst expectations. It was decent quarter for the company, with an optimistic revenue guidance for the next quarter but a slow revenue growth.

Qualys had the weakest performance against analyst estimates in the group. The stock is up 4.4% since the results and currently trades at $111.29.

Read our full analysis of Qualys's results here.

Palo Alto Networks (NYSE:PANW)

Founded in 2005, Palo Alto Networks makes hardware and software cybersecurity products that protect companies from cyberattacks, breaches and malware threats.

Palo Alto Networks reported revenues of $1.21 billion, up 28.2% year on year, beating analyst expectations by 3.95%. It was impressive quarter for the company, with a very strong guidance for the next year.

The stock is up 18.6% since the results and currently trades at $479.

Read our full, actionable report on Palo Alto Networks here, it's free.

Zscaler (NASDAQ:ZS)

Founded in 2007 by Jay Chaudhry, Zscaler (NASDAQ:ZS) offers software as a service that helps companies securely connect to applications and networks in the cloud.

Zscaler reported revenues of $197 million, up 56.5% year on year, beating analyst expectations by 5.13%. It was very strong quarter for the company, with an exceptional revenue growth.

The stock is down 3.35% since the results and currently trades at $262.22.

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

The author has no position in any of the stocks mentioned