Identity governance software company SailPoint (NYSE:SAIL) will be reporting earnings today after market close. Here's what to expect.
Last quarter SailPoint reported revenues of $110.1 million, up 17.1% year on year, beating analyst revenue expectations by 5.98%. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter and a decline in gross margin.
Is SailPoint buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting SailPoint's revenue to grow 10% year on year to $113.7 million, slowing down from the 16.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing 1 upward and 1 downward revision over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 9.68%.
Looking at SailPoint's peers in the cybersecurity segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Rapid7 (NASDAQ:RPD) delivered top-line growth of 34% year on year, beating analyst estimates by 3.94% and Palo Alto Networks (NYSE:PANW) reported revenues up 29.5% year on year, exceeding estimates by 2.74%. Rapid7 traded down 0.54% on the results, Palo Alto Networks was up 0.31%. Read our full analysis of Rapid7's results here and Palo Alto Networks's results here.
Technology stocks have been hit hard on fears of higher interest rates and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.13% over the last month. SailPoint is up 4.41% during the same time, and is heading into the earnings with analyst price target of $67.7, compared to share price of $40.4.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.