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, 11:07 AM
- With shares having nearly tripled from a 52-week low of $18.00 going into today, Baird has downgraded Qualys (NASDAQ:QLYS) to Neutral. The firm's target is at $50.
- The cloud security/compliance software vendor trades for 10.4x 2015E sales; this year's revenue growth consensus is at $168.4M. As is the case with other cloud software firms, price/billings multiples are lower than price/sales multiples, given subscription billings are recognized over an extended period of time.
- Shares soared in February thanks to a Q4 beat and strong guidance, and have benefited from a broader rally in security tech plays.
Wed, Apr. 8, 10:30 AM
- Believing new product launches will boost margins, Topeka Capital has upgraded Qualys (NASDAQ:QLYS) to Buy, and hiked its target by $15 to $61.
- The cloud security/compliance software vendor has rallied to new highs. Shares soared in February thanks to a Q4 beat and strong guidance, and have benefited from investor enthusiasm towards cybersecurity plays in general.
Thu, Mar. 26, 2:44 PM
- Though the Nasdaq is nearly flat today, many security tech plays are rallying. CyberArk (CYBR +4.6%) is a standout, adding to Monday's post-lockup gains. So are Qualys (QLYS +4.7%), Vasco (VDSI +3.8%), and Proofpoint (PFPT +4.3%). Palo Alto Networks (PANW +1.8%), Fortinet (FTNT +1.9%), and Imperva (IMPV +2.2%) are up more moderately.
- Possibly helping the group: The House Intelligence Committee has unanimously passed a cybersecurity bill that will make it easier for companies to share information about attacks without risking lawsuits. A full House vote could happen by late April, and the Senate is working on a similar bill. The White House recently floated its own cybersecurity initiatives.
- Yesterday, FBR's Daniel Ives (bullish on the space for some time) forecast spending on "next-generation" security solutions will rise 25% this year, up from a prior 20% estimate. He thinks less than 10% of companies have fully invested in next-gen offerings, and sees evidence of a "surge in deal flow with a major upgrade cycle underway in 2015, as enterprises and governments 'fast track' cybersecurity initiatives across the board."
- Ives expects FireEye (FEYE +0.7%), Palo Alto, Fortinet, and Proofpoint to benefit from the trend, which he isn't sqeamish about hyping. "This once-in-a-multi-decade upgrade opportunity is poised to be a rising tide for all security boats ... with legacy security solutions no longer 'good enough' and next-generation products well positioned to replace traditional firewall and endpoint vendors over the coming years."
- ETF: HACK
- Previously: Three cybersecurity companies reportedly planning $1B+ IPOs
Fri, Mar. 6, 2:54 PM
- With the Nasdaq down 1.1%, major tech decliners are outpacing major gainers by a sound margin.
- Notable gainers include gaming headset maker Turtle Beach (HEAR +6.8%), Chinese data center owner 21Vianet (VNET +3.6%), wireless charging tech developer Energous (WATT +2.7%), Chinese online retailer LightInTheBox (LITB +5.6%), and solar microinverter maker Enphase (ENPH +5.9%).
- Notable decliners include ultracapacitor maker Maxwell (MXWL -6.6%), healthcare IT giant Cerner (CERN -3.8%), enterprise storage hardware vendor Quantum (QTM -6%), cloud SMB marketing software vendor Constant Contact (CTCT -4.6%), 3D measurement/imaging system maker FARO Technologies (FARO -5.4%), PC/mobile peripherals giant Logitech (LOGI -4.6%), and cloud security/compliance software vendor Qualys (QLYS -4.2%).
- Energous is up 12% over the last two trading days; its Q4 report arrives on Monday afternoon. Maxwell was up sharply yesterday on an insider buy. Cerner closed yesterday near an all-time high of $73.24.
- Previously covered: YY, Finisar/JDS Uniphase, Violin Memory, Crossroads, Skullcandy, Neustar, Synacor, CyberArk, Autohome/Bitauto, Wave Systems
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
Tue, Feb. 10, 12:45 PM
Tue, Feb. 10, 12:16 PM
- In addition to handily beating Q4 EPS estimates (and slightly beating on revenue), Qualys (NASDAQ:QLYS) is guiding for Q1 revenue of $37.6M-$38.1M and EPS of $0.10-$0.12 (above a consensus of $37M and $0.09), and full-year revenue of $167.3M-$169.3M and EPS of $0.50-$0.55 (almost entirely above a consensus of $160.6M and $0.50).
- Qualys attributes its 24% Y/Y Q4 sales growth to "the accelerated adoption of Qualys' new services, namely Web Application Scanning, Policy Compliance, Continuous Monitoring and Private Cloud Platform, as well as continued growth of Qualys' market-leading Vulnerability Management solution."
- The deferred revenue balance rose 20% to $91.2M. That helped 2014 free cash flow total $27.4M, up from 2013's $11.5M and above net income of $17.1M. Q4 customer adds included Halliburton, Netflix, and Tyco.
- GAAP operating expenses rose a moderate 11% Y/Y in Q4 to $24.8M. Sales/marketing spend totaled $11.9M, R&D $7M, and G&A $5.9M.
- Fellow security software/cloud services provider Imperva (NYSE:IMPV) is also rallying. Its shares sold off last Friday due to the light guidance provided with a Q4 revenue beat.
- Qualys' Q4 results, PR, CC transcript
Mon, Feb. 9, 4:04 PM
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."
Nov. 5, 2014, 3:18 PM
- Threat-prevention hardware/software/services upstart FireEye is down 14.9% after missing Q3 revenue estimates and offering slightly soft Q4 revenue guidance. The company's billings figures were better.
- Security tech peers Qualys (QLYS -2.5%), Proofpoint (PFPT -2.5%), CyberArk (CYBR -6.7%), and KEYW Holding (KEYW -2.2%) have joined the list of names selling off in sympathy. Palo Alto Networks and Barracuda Networks are also lower.
Oct. 23, 2014, 12:03 PM
- Check Point (CHKP +4.2%) beat Q3 estimates and offered healthy Q4 guidance: Revenue of $395M-$430M and EPS of $0.99-$1.09 vs. a consensus of $410.3M and $1.03.
- Fortinet (FTNT -0.1%) posted a Q3 beat, reported strong billings growth, and issued above-consensus Q4 revenue guidance. EPS guidance was light due to aggressive spending.
- Several security tech peers are outperforming on a day the Nasdaq is up 1.7%. PANW +4.4%. FEYE +4.5%. PFPT +4.9%. QLYS +2.7%. The numbers follow downbeat guidance from IBM, SAP, and VMware, and arguably highlight security's growing share of IT spend.
- Oppenheimer is reiterating an Outperform and $30 target on Fortinet, and notes the company's new billings guidance implies 26% 2014 growth at the midpoint (up from 22%). It thinks the UTM hardware vendor's performance is being driven by strong high-end appliance sales, product refreshes, and the fruits of major sales/marketing investments.
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.
Aug. 14, 2014, 9:31 AM
Aug. 5, 2014, 12:47 PM
May. 30, 2014, 1:49 PM
- High-beta enterprise tech names are particularly well-represented in a momentum stock selloff as Splunk, Nimble Storage, Violin Memory, and (especially) Infoblox fall post-earnings.
- Analytics/data visualization software vendors Tableau (DATA -6.5%) and Qlik (QLIK -4.1%), often hyped (like Splunk) as big data plays, are among the decliners. As is flash storage vendor Fusion-io (FIO -5.4%), which competes with Violin and (to a lesser extent) Nimble. But they're far from the only ones.
- Security decliners: FEYE -6.5%. CUDA -8.4%. IMPV -7.4%. PFPT -5.7%. VDSI -4%. QLYS -4.5%.
- Cloud software decliners: WDAY -4.1%. JIVE -4.3%. MKTO -7.4%. NOW -4.9%. TNGO -5.1%. CSLT -6.9%. TXTR -6.7%. RALY -11.6%.
QLYS vs. ETF Alternatives
Qualys Inc provides cloud security & compliance solutions to organizations identifying security risks to their IT infrastructures, to protect their IT systems from cyber-attacks & achieve compliance with internal policies & external regulations.
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