Looking back on cybersecurity stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Tenable (NASDAQ:TENB) 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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results.
Tenable (NASDAQ:TENB)
Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ:TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.
Tenable reported revenues of $262.1 million, up 9.6% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
“We delivered better-than-expected results in Q1, driven by the strong adoption of Tenable One and the growing market realization that exposure management is essential in an AI-accelerated threat landscape,” said Steve Vintz, Co-CEO of Tenable.
Interestingly, the stock is up 32.7% since reporting and currently trades at $28.50.
Is now the time to buy Tenable? Access our full analysis of the earnings results here, it’s free.
Best Q1: Palo Alto Networks (NASDAQ:PANW)
Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ:PANW) provides AI-powered cybersecurity platforms that protect organizations’ networks, clouds, and endpoints from sophisticated threats.
Palo Alto Networks reported revenues of $3.00 billion, up 31.1% year on year, outperforming analysts’ expectations by 2%. The business had a very strong quarter with an impressive beat of analysts’ billings and EBITDA estimates.
