As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the cybersecurity industry, including CrowdStrike (NASDAQ: CRWD) 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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.8% since the latest earnings results.
CrowdStrike (NASDAQ: CRWD)
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
CrowdStrike reported revenues of $1.23 billion, up 22.2% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is down 10% since reporting and currently trades at $465.50.
Best Q3: Qualys (NASDAQ: QLYS)
Originally developed to address the growing complexity of IT security in the cloud era, Qualys (NASDAQ: QLYS) provides a cloud-based platform that helps organizations identify, manage, and protect their IT assets from cyber threats across on-premises, cloud, and mobile environments.
Qualys reported revenues of $169.9 million, up 10.4% year on year, outperforming analysts’ expectations by 2.2%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Qualys pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.5% since reporting. It currently trades at $135.17.
Is now the time to buy Qualys? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Varonis Systems (NASDAQ: VRNS)
Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems (NASDAQ: VRNS) provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.
Varonis Systems reported revenues of $161.6 million, up 9.1% year on year, falling short of analysts’ expectations by 2.7%. It was a softer quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and revenue guidance for next quarter slightly missing analysts’ expectations.
Varonis Systems delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 44.4% since the results and currently trades at $35.06.
Read our full analysis of Varonis Systems’s results here.
SentinelOne (NYSE: S)
Built on the principle of "fighting machine with machine," SentinelOne (NYSE: S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.
SentinelOne reported revenues of $258.9 million, up 22.9% year on year. This print beat analysts’ expectations by 1.1%. It was a strong quarter as it also put up a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
SentinelOne achieved the highest full-year guidance raise among its peers. The company added 59 enterprise customers paying more than $100,000 annually to reach a total of 1,572. The stock is down 11.9% since reporting and currently trades at $15.07.
Read our full, actionable report on SentinelOne here, it’s free.
Zscaler (NASDAQ: ZS)
Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.
Zscaler reported revenues of $788.1 million, up 25.5% year on year. This number surpassed analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ billings estimates and full-year EPS guidance exceeding analysts’ expectations.
Zscaler pulled off the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is down 25.6% since reporting and currently trades at $216.17.
Read our full, actionable report on Zscaler here, it’s free.
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