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Amid economic concerns and layoffs, Cloudflare, Qualys and CyberArk report mixed earnings

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Amid broad concerns for the global economy and tech layoffs, earnings reports today from Cloudflare Inc., Qualys Inc. and CyberArk Software Ltd. saw a spread of different results.

Cloudflare led the pack, reporting non-generally accepted accounting principles income of $21.6 million or six cents per share in its fiscal fourth quarter compared to $100,000 or break even in the same quarter of 2021. Revenue came in at $274.7 million, up 42% year-over-year. Cloudflare surprised analysts who had been expecting earnings per share of four cents and revenue of $274.4 million.

“In the fourth quarter, we delivered record operating profit, operating margin and free cash flow,” Matthew Prince, co-founder and chief executive officer of Cloudflare, said in a statement. “We also surpassed more than 2,000 large customers paying us over $100,000 per year and signed a record number of deals greater than $500,000.”

For the full year 2022, Cloudflare reported non-GAAP net income per share of 13 cents on revenue of $875.2 million, up 49% year-over-year.

Looking forward, Cloudflare said it expected non-GAAP EPS of three cents to four cents in the first quarter of 2023 on revenue of $290 million to $291 million. For the full year 2023, the company expected non-GAAP EPS of 15 cents to 16 cents and revenue of $1.33 billion to $1.324 billion.

Amid a sea of gloom in the sector, investors loved the numbers, with Cloudflare stock up 10.61% in late trading. By comparison, Qualys shares were flat despite reporting some decent results.

For its fourth quarter, Qualys reported non-GAAP earnings of $38.9 million or $1.01 per share, up from $33.8 million or 84 cents per share the year prior. Revenue was up 19% to $130.8 million. Analysts had expected EPS of 90 cents and revenue of $130.85 million.

“We are pleased to report another quarter of strong revenue growth, profitability and cash flow generation,” Sumedh Thakar, president and CEO of Qualys, said in the company’s earnings release. “In 2022, we continued to innovate, introducing new applications as well as enhancing existing applications to further strengthen our market position in the cybersecurity space.”

Rounding out the three, Cyberark’s shares were down after it reported mixed results and a lower-than-expect outlook.

For the quarter that ended Dec. 31, Cyberark reported non-GAAP net income of $7.2 million or 16 cents per share on revenue of $169.2 million, up 12% year-over-year. Analysts had expected EPS of 12 cents and revenue of $174.25 million.

“Our results in the fourth quarter and full year 2022 demonstrate the durability of demand for our solutions and strong execution,” Udi Mokady, CyberArk chairman and CEO, said in a media release. “With our leadership position, durable demand trends and our strong execution, we believe we are positioned to navigate the current economic uncertainty and continue to capitalize on our massive opportunity and deliver long-term profitable growth.”

While Mokady may believe the company is heading to long-term profitable growth, the predicted numbers were below analysts’ expectations. CyberArk said it expects a non-GAAP EPS loss of 23 cents to 30 cents in the first quarter versus a predicted loss of 11 cents. Revenue is predicted to be $160 million to $164 million – analysts had been expecting $163.63 million.

CyberArk, which released its earnings at the beginning of trading, saw its share price close down 2.63% to $145.30.

Photo: Wikimedia Commons

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