Technology

Report by Veritas Investment Research

Last October the SEC charged SolarWinds and its chief information security officer with fraud. This report looks at other companies in the cybersecurity industry that may have similar risks to an SEC investigation. Based on Veritas' Freedom of Information Act work, they received confirmations from the SEC pertaining to 15 publicly-listed cybersecurity stocks. Out of the 15 issuers confirmed, 2 attracted SEC scrutiny. Stocks mentioned: Palo Alto, CrowdStrike, Fortinet, Zscaler, Cloudflare, Check Point, Okta, Gen Digital, CyberArk, SentinelOne, Qualys, Tenable, Varonis, Rapid7 and SecureWorks.

Technology

Economic woes impacting cybersecurity vendors - security projects are being delayed / cancelled at a rate not seen for several years. Following recent earnings, IPR questions whether Tenable will be able to sustain its surprisingly impressive momentum over the next couple quarters. Varonis’ lowered guidance is consistent with IPR’s belief that their offering has shifted to being a like-to-have technology. Qualys and Rapid7’s reliance on vulnerability management must be considered a negative. Meanwhile, Check Point's results underscore IRP's hypothesis that vendor consolidation trends are strong and becoming stronger.

Technology

Report by Summit Insights Group

Beating expectations - investments in R&D and S&M paying off as the revenue acceleration continues for the fourth consecutive quarter. Srini Nandury expects this outperformance to continue for the rest of this year and into 2023. He likes the aggressiveness of management and expects QLYS to continue to make tuck-in acquisitions to round out its product offerings. Following 2Q22 results, Srini has significantly increased his EPS estimates for FY22 and FY23 (which were already materially ahead of consensus) to $3.59 and $4.11 respectively.