Thu, Aug. 6, 3:56 PM
- Security tech names are among the big decliners (HACK -2.7%) on a day the Nasdaq is off 1.6%. Various other high-beta tech names are also hard-hit.
- Major decliners include Palo Alto Networks (PANW -8.1%), Fortinet (FTNT -4.5%), AVG (AVG -8.1%), Proofpoint (PFPT -4.1%), and newly-public incident-detection/threat-response software firm Rapid7 (RPD -5.7%). Qualys is down 13.5% today after filing its Q2 10-Q.
- Rapid7 is now down 25% from its July 17 opening trade of $26.75, albeit still up 25% from its $16 IPO price. AVG is adding to the 2.5% decline seen yesterday after the company posted a slight Q2 EPS beat, hiked full-year revenue guidance by $10M to $420M-$440M, and reiterated EPS guidance of $1.80-$1.90.
- An afternoon report that the Pentagon has been the victim of a "sophisticated cyberattack" launched by Russia hasn't done much to lift the group. NBC News reports the attack "relied on some kind of automated system that rapidly gathered massive amounts of data and within a minute distributed all the information to thousands of accounts on the Internet." Officials believe it to be "the work of a state actor."
Wed, Aug. 5, 10:34 AM
Tue, Aug. 4, 5:35 PM
- ABX, ACAS, ACXM, AEGR, AGU, ALB, AMTG, ANDE, AREX, ARNA, ATO, ATSG, AVG, AWK, AXLL, BEE, BGC, BREW, BRKR, BWXT, CBS, CCRN, CF, CJES, CLNE, CLR, CNAT, CODI, CORT, COUP, CPE, CSII, CSLT, CTL, CUTR, CXW, DCO, DNB, DPM, DXCM, ECHO, ECOL, ENS, EQC, ETE, ETP, FANG, FLT, FMC, FNGN, FOXA, FRT, FTD, FUEL, GBDC, GDDY, GMCR, GPOR, HABT, HDP, HI, HIVE, HLF, HR, IAG, ICPT, IL, IRWD, ITRI, JACK, JAZZ, JONE, KND, KW, LGCY, LHCG, LNT, MCHX, MED, MELI, MG, MITT, MNTX, MRIN, MRO, MUSA, NHI, NKTR, NLY, NOG, NP, OME, OPK, OSUR, PACB, PDLI, PFMT, PGTI, PHH, PMT, PNNT, POWR, PRI, PRU, PRXL, PSIX, RAIL, REG, RGLD, RIG, RLD, RP, RST, RYN, SBY, SD, SGI, SGMO, SGY, SHOR, SLF, SQNM, SSNI, STR, SUN, SWM, SXL, TCAP, TLLP, TRNX, TRQ, TS, TSLA, TSO, TTEC, TTMI, TTPH, TUMI, UHAL, UIL, VVC, WGL, WPX, WSR, WTI, WTW, XNPT, XPO, ZU
Thu, Jul. 23, 11:27 AM
- As was the case 3 months ago, security tech plays are up strongly (HACK +3.6%) after Fortinet (FTNT +12%) beat estimates, reported strong billings, and delivered above-consensus top-line guidance. The Nasdaq is up 0.3%.
- In addition to FireEye, Palo Alto Networks, and CyberArk (previously covered), gainers include Barracuda Networks (CUDA +6.4%), KEYW Holding (KEYW +4.5%), Symantec (SYMC +1.9%), Imperva (IMPV +7.6%), Proofpoint (PFPT +3.6%), Vasco (VDSI +4.5%), AVG (AVG +3.1%), and Qualys (QLYS +5.7%). AVG is benefiting a bullish JPMorgan coverage launch; Proofpoint reports after the close.
- JPMorgan's Sterling Auty has upgraded Fortinet to Overweight, and a slew of firms have hiked their targets. Auty argues Fortinet's numbers suggest its efforts to grow its high-end presence (aided by major sales investments in recent years), and forecasts free cash flow will rise 43% this year.
- On Fortinet's earnings call (transcript), CFO Drew Del Matto mentioned $100K+ deals rose 53% Y/Y and $1M+ deal 133% (compares with 40% total billings growth). He also mentioned the company's high-end FortiGate UTM/next-gen firewall appliances made up 45% of billings (a new high), and that U.S. enterprise sales (benefiting from strong cybersecurity spend) rose 90%. Major deals were struck with "two of the most recognizable technology brands in the world," as well as two large i-banks.
Thu, Jun. 11, 3:00 PM
- JMP's Patrick Walravens has hiked his AVG target by $14 to $47, while arguing the company's Zen cross-device security software/service platform acting as a growth driver.
- Walravens: "We expect AVG to begin to monetize Zen using a subscription model and think it could drive upside to the financial model. About eight months ago, AVG began to apply the Zen user interface to each new download, now the key is to monetize it based on certain triggers, such as the number of devices covered. A key milestone in this process will be the completion of a subscription billing engine that AVG has been working on and which may be complete in 3Q15."
- He forecasts 20% and 15% 2016 and 2017 revenue growth, above consensus estimates of 16% and 10%, and believes competition is limited following Symantec's efforts to de-emphasize its consumer security ops. Walravens also notes the Location Labs acquisition expands AVG's reach with international mobile carriers.
- Shares have made fresh 52-week highs. They're up 40% YTD.
Wed, Jun. 3, 6:39 PM
- The PureFunds ISE Cyber Security ETF (NYSEARCA:HACK) rose 2.5% today to $31.13, making new highs in the process. The media attention given to a Tuesday Senate hearing about a recent IRS breach, along with the IRS' promise to upgrade its security systems in response, may have helped.
- Major security tech gainers included KEYW Holding (KEYW +7.6%) and Vasco (VDSI +5.4%), each of whom have healthy government exposure. Others included Qualys (QLYS +3.8%), AVG (AVG +3.5%), Imperva (IMPV +3.3%), and Proofpoint (PFPT +2.9%).
- After the bell, FireEye announced a partnership with Visa to provide a joint threat-intelligence service to Visa merchants and card issuers.
Wed, May 6, 2:23 PM
- AVG (AVG +1.2%) has bought Privax, a provider of subscription-based VPN services that allow consumers to browse the Web anonymously on PCs and mobile devices, and avoid location blocks on content. The company is paying $40M in cash up-front + up to $20M in earn-outs a year after closing.
- Privax relies on servers in 182 countries to enable its services, which cost $6.55-$11.33/month. The company has 250K+ global paid subscribers to go with 8M+ monthly unique visitors for its free browser proxy service. AVG states the deal will expand its mobile security lineup, and that it will integrate Privax's offerings with AVG Zen and other products.
- The acquisition follows AVG's 2014 purchase of mobile security service provider Location Labs, and comes ahead of the company's May 12 analyst day.
- Separately, AVG has launched updates for its PC TuneUp and Cleaner apps that it promises will deliver further performance gains. The updates cover Windows, Mac, and Android apps.
- Last week: AVG soars on Q4 beat, subscription growth
Tue, May 5, 10:32 AM
- Though Qualys (QLYS -28.8%) beat Q1 EPS estimates and only slightly missed on revenue, it's guiding for Q2 revenue of $39.5M-$40M and EPS of $0.09-$0.11, below a consensus of $40.7M and $0.13. Full-year guidance is for revenue of $165M-$166.5M and EPS of $0.50-$0.55 vs. a consensus of $168.4M and $0.53.
- Security tech peers are underperforming (HACK -2.9%) amid a 0.8% drop for the Nasdaq. Decliners include CyberArk (CYBR -3.6%), FireEye (FEYE -2.5%), Palo Alto Networks (PANW -2.9%), Proofpoint (PFPT -3.8%), and AVG (AVG -2.3%).
- Discussing its light full-year outlook, Qualys says it now expects "a lower growth rate for our Vulnerability Management business than we did at the beginning of 2015" The growth rate for other products is said to be unchanged.
- On the CC (transcript), Qualys noted Vulnerability Management (provides cloud-based tools for detecting and fixing IT vulnerabilities) still accounts for nearly 80% of revenue, and that business' Y/Y sales growth slipped to 19% in Q1 from 20% in Q4 thanks to "the timing of a few large enterprise deals." With shares up over 3x from their 52-week lows going into earnings, there was little margin for error.
- Baird has gone contrarian and upgraded Qualys to Outperform following the rout. Baird, which maintains a $50 target, sees new products/services will boost growth. Qualys launched a cloud-based IT asset monitoring service last month, as well as a service for securing Web apps.
- FireEye and CyberArk are giving back some of the big Friday gains seen following FireEye's Q1 beat and full-year guidance hike.
Thu, Apr. 30, 12:48 PM
- A 21% Y/Y increase in subscription revenue to $81.6M (now 79% of total revenue) helped AVG beat Q1 estimates in spite of its ongoing search toolbar revenue decline. Shares have rallied to new 52-week highs.
- AVG's monthly active user count topped 200M (it was at 197M at the end of Q4), and its mobile user base grew 4% Q/Q and 29% Y/Y to 104M. On the CC (transcript), CEO Gary Kovacs stated mobile revenue (boosted by the Location Labs deal) totaled $13.9M (14% of total revenue), and declared AVG is on its way to hitting a 2015 mobile revenue target range of $60M-$70M. The user base for AVG's Zen cross-device security platform is up to 9M.
- Forex had a $2.1M impact on Q1 revenue. GAAP operating expenses rose 25% Y/Y to $69.2M. For now, the security software vendor is maintaining full-year guidance for revenue of $410M-$430M and EPS of $1.80-$1.90 (consensus is at $421.2M and $1.87).
- Q1 results, PR
Wed, Apr. 29, 4:16 PM
Tue, Apr. 28, 5:35 PM
- AEL, AFFX, AR, ARII, ARRS, ASGN, ASH, ATRC, ATW, AVG, AXS, BIDU, BLKB, BVN, CACI, CAVM, CBT, CHMT, CMO, CMPR, CNO, CNW, COHR, CRL, CSGP, CSII, CW, CWT, DOX, DRE, DXCM, DYAX, ECOL, ELGX, EQIX, EQY, ES, ESV, EXL, EXR, FLEX, FOE, FORM, FORR, GLUU, HOLX, HOS, HY, IPCM, ISIL, KAMN, KEG, KEX, KRA, LNC, LOCK, LOPE, LXRX, MAA, MAC, MANT, MAR, MDAS, MEOH, MEP, MMLP, MTGE, MTW, MUR, NE, NSR, NXPI, O, OGS, OIS, PDM, PPC, PRXL, PTC, QEP, QUIK, RKT, ROG, RRTS, SAM, SCI, SFLY, SGI, SPOK, SPRT, SSS, STAA, STR, SU, TAL, TCO, TEX, TILE, TTEK, TTMI, TX, UNM, VAR, VRTX, WLL, WMB, WMGI, WTS, XL, YELP
Thu, Feb. 19, 10:26 AM
- AVG's subscription revenue rose 15% Y/Y in Q4 to $77.4M, helping offset a 34% drop in platform-derived revenue caused by Google search toolbar policy changes and AVG's ongoing exit from its 3rd-party search toolbar distribution business. Both consumer and SMB demand drove the subscription growth.
- AVG's mobile user base rose 12% Q/Q and 48% Y/Y to 101M, helping bring its total user count to 197M. Paid user count rose by 5M Q/Q to 19M, thanks to the addition of 5M Location Labs users.
- With the toolbar business still rapidly declining and investments in subscription services growing, 2015 guidance is conservative: Revenue of $410M-$430M and EPS of $1.80-$1.90 vs. a consensus of $420.5M and $1.92. AVG is still aiming for a 30% op. margin both in 2015, and long-term.
- GAAP operating expenses rose 23% Y/Y in Q4 to $73.6M, and the deferred revenue balance rose 2% to $200.8M. $35.3M was spent to buy back 1.9M shares over the whole of 2014.
- Shares have rallied to fresh 52-week highs.
- Q4 results, PR, CC transcript
Wed, Feb. 18, 4:18 PM
Tue, Feb. 17, 5:35 PM
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Thu, Jan. 29, 1:06 PM| Thu, Jan. 29, 1:06 PM | Comment!
Nov. 25, 2014, 9:15 AM
AVG vs. ETF Alternatives
AVG Technologies NV provides antivirus and Internet security products. It develops and manufactures software products for threat detection, threat prevention and risk analysis. It provides real-time defenses against real-time threats.
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