Mon, Apr. 27, 7:15 PM
- In addition to slightly beating FQ4 estimates, Barrcauda Networks (NYSE:CUDA) has guided on its CC for FQ1 revenue of $76M-$78M and EPS of $0.08-$0.09 (favorable to a consensus of $76M and $0.08), and FY16 (ends Feb. '16) revenue of $325M-$330M and EPS of $0.36-$0.41 (above a consensus of $322.1M and $0.35).
- The firewall/application delivery controller vendor's shares have nonetheless fallen to $41.50 AH. They went into earnings up over 80% from their fall lows, thanks in part to a broader rally in security tech plays.
- FQ4 results, PR
Tue, Apr. 21, 1:35 PM
- Security tech firms are rallying once again (HACK +2.3%) after unified threat management (UTM) hardware leader Fortinet (FTNT +9.6%) beat Q1 estimates on the back of 36% Y/Y billings growth, and provided strong Q2 and full-year sales/billings guidance. At least 8 firms have hiked their Fortinet targets in response to the numbers, which followed a Q1 beat and in-line guidance from firewall vendor Check Point.
- In addition to FireEye, which announced an HP partnership this morning (follows a Check Point partnership), gainers include Palo Alto Networks (PANW +4.8%), CyberArk (CYBR +5.1%), Barracuda Networks (CUDA +5.1%), Qualys (QLYS +4.7%), Imperva (IMPV +2.2%), Proofpoint (PFPT +2.6%), and Zix (ZIXI +3.5%). Proofpoint and Zix report after the close, Barracuda on April 27, Qualys and Imperva on May 5, and CyberArk on May 7.
- "Fortinet is ... benefiting from a favorable security environment and increasing opportunity to sell to organizations that are building a multilayered approach to security," observes William Blair in remarks that also have implications for peers. "U.S. enterprise growth was 70% year-over-year with the company adding a total of 8,000 new customers, suggesting increasing traction." FBR (a long-time security tech bull) sees profit growth (currently pressured by heavy spending) improving as sales/marketing investments pay off.
- On the CC (transcript), CEO Ken Xie asserted Fortinet's ability to offer an integrated security platform covering "internal, data center, perimeter, and endpoint security plus advanced threat protection" was a differentiator. CFO Andrew Del Matto claimed FortiGate UTM/next-gen firewall appliance deals were over Palo Alto, Check Point, Cisco, and Juniper; those companies, of course, might claim wins of their own.
Mon, Apr. 13, 4:44 PM
- A Q1 Piper survey of security resellers found of 54% of Palo Alto Networks (NYSE:PANW) resellers stating their sales were above plan during the quarter, the highest figure among 10 covered firms. 19% were below plan, and 27% in-line.
- Piper notes Palo Alto's above-plan reading was its highest since Q4 2013, and that it also "had the highest percent of resellers expecting above normal seasonality in Q2 (June) with 60 percent."
- FireEye (NASDAQ:FEYE) had the second-best numbers: 43% of resellers were above plan, 21% below, and 36% in-line. 20% expect Q2 to be above normal seasonality. Barracuda (NYSE:CUDA) was third on Piper's list with 25% above plan, 13% below, and 63% in-line.
- ProofPoint (NASDAQ:PFPT) was a laggard: 56% of resellers were below plan, 44% in-line, and none above. Moreover, the net difference between above-plan and below-plan resellers (-56%) represented a sharp reversal from Q4's +20%. A silver line: 33% of resellers expect above-normal Q2 seasonality.
- Fortinet (NASDAQ:FTNT) was also soft: 13% of resellers were above plan vs. 38% below and 50% in-line. Its net difference fell to -25% from Q4's +6%. Imperva (NYSE:IMPV) had 29% below plan, 71% in-line, and none above; however, its net difference (-29%) was only a little worse than Q4's -20%.
- ProofPoint fell 6.6% today, and Fortinet fell 3.8%. But other security tech plays also sold off. FireEye fell 3.2%, giving back some of the Friday gains seen in anticipation of a 60 Minutes appearance. Symantec (-25% net difference in Piper's survey) fell 5.7% as more details emerged about the company's reported efforts to sell its storage software unit (led shares to spike on Friday).
- Palo Alto fell 1.9%, giving back some of its recent gains. Imperva avoided the selloff, closing down just 0.2%.
- ETF: HACK
Fri, Feb. 20, 4:42 PM
- With the help of strong earnings reports, government initiatives, and ongoing hacking scandals bolstering broader corporate interest in cybersecurity, security tech plays are refusing to take a breather. CyberArk (CYBR +9.4%), FireEye (FEYE +4.2%), Imperva (IMPV +8%), Palo Alto Networks (PANW +2.7%), Barracuda (CUDA +3.9%), and Vasco (VDSI +3.6%) were all standouts today.
- CyberArk is now up 93% since Feb. 9, thanks in no small part to its Q4 numbers. FireEye is up 29% since beating Q4 estimates and reporting strong billings on Feb. 11.
- The PureFunds ISE Cyber Security ETF (NYSEARCA:HACK) is up 17% in February.
Fri, Feb. 13, 2:50 AM
- President Obama is poised to sign an executive order today aimed at encouraging companies to share more information about cybersecurity threats with the government and each other.
- The order will set the stage for new private-sector led information sharing and analysis organizations, called ISAOs, where companies share cyber threat data with each other and the Department of Homeland Security.
- The move comes as big Silicon Valley companies prove hesitant to fully support more mandated cybersecurity information sharing without reforms to government surveillance practices.
- KEYW, CUDA, PFPT, FEYE +0.5%, PANW +1.3%, QLYS +3% CYBR +18.5% AH
- ETFs: HACK +4.7% AH
Thu, Feb. 5, 11:46 AM
- A major data breach at #2 U.S. health insurer Anthem - it involves a database containing personal info about 80M customers/employees - has put cybersecurity back in the spotlight ... along with the companies providing hardware, software, and services to protect against external attacks.
- FireEye (FEYE +5.6%), whose Mandiant endpoint protection/incident response unit has been hired by Anthem to investigate the breach, is among today's gainers. Mandiant was also hired by Sony following its breach; JPMorgan writes today FireEye/Mandiant has become the "go-to" for probing high-profile attacks.
- Other security tech plays rallying today include CyberArk (CYBR +6.5%), Vasco (VDSI +6.1%), Fortinet (FTNT +2.3%), Proofpoint (PFPT +2.6%), Imperva (IMPV +3%), Qualys (QLYS +2.7%), and Barracuda (CUDA +2.5%). The Nasdaq is up 0.7%.
- ETF: HACK
- Previously: Wilson predicts cybersecurity budgets will "explode" in 2015
- Update (3:40PM): Bloomberg reports investigators probing the Anthem breach are "pursuing evidence that points to Chinese state-sponsored hackers who are stealing personal information from health-care companies for purposes other than pure profit."
Thu, Jan. 15, 2:34 PM
- As was the case yesterday, many tech stocks are posting outsized losses amid a market selloff. The Nasdaq is currently down 1.1%.
- Twitter (TWTR -5.7%) is among the guilty parties. The microblogging platform has given back a large chunk of the gains it saw last week following Carl Icahn rumors (since denied by Icahn) and Yahoo deal speculation. Its Q4 report arrives on Feb. 5.
- Many other Internet companies are also off sharply. The list includes jobs site Monster (MWW -6.4%), local services marketplace Angie's List (ANGI -5.9%), online textbook rental leader Chegg (CHGG -5.7%), grocery coupon site Coupons.com (COUP -7.1%), flash deals provider Zulily (ZU -4.7%), and Chinese online real estate plays SouFun (SFUN -8.1%), E-House (EJ -6.3%), and Leju (LEJU -5.6%). Previously covered: Zillow and Trulia.
- Other tech names posting major declines: M2M hardware provider Sierra Wireless (SWIR -6.2%), ultracapacitor maker Maxwell (MXWL -5.2%), RFID tech provider SuperCom (SPCB -7.1%), VoIP service provider magicJack (CALL -6.1%), NFC reader maker On Track (OTIV -7.1%), haptic tech developer Immersion (IMMR -5.3%), and security tech plays Barracuda (CUDA -6.4%), Vasco (VDSI -7.3%), and Imperva (IMPV -7.8%).
Mon, Jan. 12, 1:33 PM
- The White House has disclosed Pres. Obama will outline this week "a series of legislative proposals and executive actions that will be in his [Jan. 20] State of the Union that will tackle identity theft and privacy issues, cybersecurity, and access to the Internet."
- Several security tech plays, some of whom received a lift last month from the Sony hack and its fallout, are higher in spite of a 0.9% Nasdaq drop. FEYE +4.5%. CUDA +6.9%. PANW +1.2%. CYBR +1.7%. PFPT +1.3%.
- The gains come on a day in which the U.S. Central Command's (CENTCOM) Twitter and YouTube accounts have been hacked by ISIS supporters.
- ETFs: HACK
Wed, Jan. 7, 3:55 PM
- Stephens has launched coverage on Barracuda Networks (NYSE:CUDA) with an Overweight rating and $44 target. In addition, Pac Crest (Outperform) has predicted the security appliance/application delivery controller hardware vendor will deliver a beat-and-raise quarter when it reports tomorrow.
- Shares have rallied to their highest levels since last March.
Nov. 25, 2014, 2:30 PM
- At least nine firms have hiked their Palo Alto Networks (NYSE:PANW) targets in response to the company's FQ1 beat, above-consensus FQ2 guidance, and strong billings print. Shares have rallied to fresh highs after trading lower AH yesterday.
- "In a market that's growing at a 5%-10% clip, PANW's 50% revenue growth and 52% billings growth don’t imply any slowdown in the pace of market share gains," writes Deutsche ($125 PT). The firm observes Palo Alto's WildFire malware-detection service now has 4K paid customers, up from 3K a quarter ago and representing 19% of Palo Alto's total base.
- Likewise, Credit Suisse ($135 PT) thinks the FQ1 report highlights "Palo Alto's ability to upsell into its installed base." It's also happy with growing success in landing major enterprise accounts.
- Stifel ($120 PT) expects "“continued runway for both product revenue, driven by the growing adoption of the company's high-end data center appliances such as PA-7050, as well as recurring revenue, with growth in this arena coming from an improving attach rate and healthy maintenance renewal trends.”
- Needham ($123 PT): "We believe PANW continues to benefit from news about corporate data breaches, and as a mindshare leader in “next gen firewall” PANW is likely being short-listed on most large network security deals." It thinks FQ2 guidance is conservative.
- Peer Barracuda Networks (CUDA +3.1%) is also rallying.
Nov. 11, 2014, 12:27 PM
- As part of a broader coverage launch for enterprise security and software stocks, Macquarie has launched coverage on Barracuda Networks (NYSE:CUDA) with an Outperform rating and $35 target.
- Analyst Aaron Schwartz, discussing his bullish stance on security names in general: "Events have been catalysts to elevate cyber security to a board-level concern, increasing the relevancy of security within the overall IT spectrum. The long term bullish security thesis involves an increasing share of IT spend where, despite the relevancy and cost of attach, security remains stuck at only 4 percent of total IT spend."
- Barracuda is at its highest levels since July.
Nov. 4, 2014, 4:27 PM
- In addition to missing Q3 revenue estimates (while beating on EPS), FireEye (NASDAQ:FEYE) is guiding for Q4 revenue of $135M-$147M, below a $144.2M consensus at the midpoint. EPS guidance is at -$0.46 to -$0.50 vs. a -$0.50 consensus.
- In spite of the revenue miss, Q3 billings totaled $165.1M, +45% Q/Q and above guidance of $150M-$155M. Q4 billings guidance is at $195M-$210M, and full-year guidance has been hiked to $573M-$588M from $560M-$580M.
- Q3 product revenue +104% Y/Y to $48.4M; subscription/services revenue +248% to $65.8M. Both figures were boosted by the Mandiant acquisition.
- Spending remains aggressive: Excluding restructuring charges, GAAP opex (also boosted by Mandiant) rose 157% to $196.5M.
- Peers are also off: PANW -3.5% AH. CUDA -1.9%.
- Q3 results, PR
Oct. 9, 2014, 4:08 PM| Comment!
Oct. 3, 2014, 10:56 AM
- Fortinet (FTNT +2.9%), Imperva (IMPV +2.9%), Qualys (QLYS +3.5%), Barracuda Networks (CUDA +6.4%), and newly-public CyberArk (CYBR +4.8%) are all rallying after JPMorgan disclosed contact info for 83M accounts was exposed by a data breach. Palo Alto Networks is also up, aided by a bullish Piper note.
- On the other hand, FireEye (FEYE -2.7%) is slumping in response to a downgrade to Underperform from Northland Securities. The firm is worried FireEye will be hurt by intensifying competition from the likes of Palo Alto, Proofpoint, and private Cyphort. Many others on the sell-side have argued FireEye's threat-prevention hardware/software has a technology edge over rivals.
- Several security stocks also rallied following news of Apple's iCloud hack.
Jul. 24, 2014, 1:57 PM
- Fortinet (FTNT +6.7%) beat Q2 estimates with the help of 33% Y/Y billings growth (exceeded rev. growth of 25%) and a 95% Y/Y increase in $500K+ deals.
- The company guided in its CC slides (.pdf) for Q3 revenue of $182M-$185M and EPS of $0.11 vs. a consensus of $177.3M and $0.13. Full-year guidance is for revenue of $735M-$740M and EPS of $0.47-$0.48 vs. a consensus of $714M and $0.50. Billings are expected to grow ~22% to $835M-$840M.
- On its CC (transcript), the UTM hardware leader suggested its light EPS guidance is due to a heavy investment pace, including aggressive sales hiring. It also mentioned Americas sales were up 40% Y/Y, fueled by a 73% increase for U.S. enterprise.
- Meanwhile, Vasco Data (VDSI +16.9%) trounced Q2 estimates and hiked its guidance for 2014 revenue from traditional businesses to $175M-$180M from $168M-$172M. The company notes adoption of new productions leveraging its Cronto visual authentication tech (acquired last year) has been strong.
- FireEye (FEYE +3%), Palo Alto Networks (PANW +2.8%), Proofpoint (PFPT +3.6%), and Check Point (CHKP +1.7%) are trading higher. Proofpoint reports after the bell; Check Point provided a Q2 beat and healthy top-line guidance yesterday.
- On the other hand, Barracuda (CUDA -5.9%) is selling off. JPMorgan attributes the decline to Fortinet's CC remarks about rapidly growing sales to mid-sized businesses - Barracuda depends heavily on them - with the help of new resellers. The firm argues the concerns are overblown, particularly since Fortinet is more focused on larger mid-sized businesses.
Jul. 10, 2014, 4:32 PM
- Barracuda (CUDA) had FQ1 billings of $87.6M, +17% Y/Y and well above revenue of $66.2M. Its deferred revenue balance rose by $15.3M Q/Q to $328.5M.
- Subscription revenue +17% Y/Y to $45.4M (69% of total), hardware revenue +19% to $20.8M. 8.9K new active customers were added, raising the total base to 214K. 7.9K were added in FQ4.
- Gross margin rose to 78.2% from 76.7% a year ago. Opex +10% Y/Y to $51M.
- FQ1 results, PR
CUDA vs. ETF Alternatives
Barracuda Networks, Inc. designs and delivers security and storage solutions. It offers cloud-connected solutions that help customers address security threats, improve network performance and protect and store data.
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