- Though Imperva (NASDAQ:IMPV -27.2%) beat Q1 EPS estimates and posted roughly in-line revenue, it's guiding for Q2 revenue of $65.5M-$66.5M and EPS of -$0.02 to -$0.04 vs. a consensus of $70.3M and -$0.04.
- Full-year guidance is for revenue of $304M-$307M and EPS of $0.23-$0.29 vs. a consensus of $305.3M and $0.21.
- On the earnings call, CFO Terrence Schmid said the Q2 outlook "reflects our belief that the underperformance in Europe will continue at least through Q2." He adds Imperva thinks "engaging with our key channel partners to drive higher [web application firewall] sales will also not yield a significant improvement until the second half of 2016." CEO Anthony Bettencourt says the European problems are due to leadership issues that have been addressed.
- Product revenue rose 22% Y/Y in Q1 to $20.8M, and service/subscription revenue 41% to $38.9M. $100K+ deals rose by 30% to 118, and GAAP operating expenses rose 29% to $71M. The deferred revenue balance rose by 29% to $108.1M. Imperva ended Q1 with $259M in cash and no debt.
- Needham's Scott Zeller has downgraded Imperva to Hold. "two issues blunted [Q1] and are pressuring CY16, (a) the 'ease of sale' of Database and Incapsula distracted sales from Web App Firewall deals, and (b) EMEA sales disappointed, leading to a mgmt. change. While we do not believe IMPV is seeing tougher competition, we are concerned that license growth is anemic." He adds full-year guidance is now back-end loaded.
- Imperva's Q1 results, earnings release