Shares in four cybersecurity-related companies — Cloudflare Inc., SailPoint Technologies Holdings Inc., NortonLifeLock Inc. and Netscout Systems Inc. — all dropped in extended trading today despite delivering mostly strong earnings reports.

Red ink on share prices was the story of the day, with the Nasdaq dropping by 5% and the Dow down by 1,000 points in today’s session, one of the worst days of trading since 2000, according to CNBC.

For the quarter ended March 31, Cloudflare reported a profit before costs such as stock compensation of $3.5 million, or one cent per share, compared with a loss of $9.3 million, or three cents per share, in the same quarter of 2021. Revenue jumped 54%, to $212.2 million. Analysts had expected breakeven on revenue of $205.7 million.

“Cloudflare had a terrific first quarter of 2022, beating expectations with revenue growth up 54% year-over-year and adding more than 14,000 new paying customers—a quarterly record,” Matthew Prince, co-founder and chief executive officer of Cloudflare, said in a statement. “Our largest customers continue to get larger, with those spending over $1 million a year growing 72% year-over-year.”

Looking forward, Cloudflare predicts adjusted earnings of breakeven to a loss of a penny a share in the second quarter on revenue of $226.5 million to $227.5 million. Analysts were expecting breakeven on revenue of $217.9 million.

Despite solid figures, Cloudflare shares, which had already dropped 14% in regular trading, fell more than 9% more after the bell.

SailPoint, in what could be one of its last public earnings reports after Thoma Bravo LLC announced in April it plans to acquire the company for $6.9 billion, reported an adjusted profit of $10 million, or nine cents per share, on revenue of $135.6 million. Analysts had expected a loss of one cent per share on revenue of $118 million.

The company predicted an adjusted loss per share of 10 to 11 cents on revenue of $110.5 million to $112.5 million in the coming quarter. SailPoint shares were mostly flat because of the impending takeover but still managed to drop a fraction of a point in regular trading, to $63.82.

NortonLifeLock, meanwhile, reported adjusted earnings of 46 cents for the quarter ended April 1, up 15% year-over-year on revenue of $717 million, up from $672 million year-over-year. Analysts had expected an adjusted profit of 45 cents a share on revenue of $716 million.

For its fiscal first quarter of 2023, NortonLifeLock predicted an adjusted profit of 42 to 44 cents on revenue of $705 million to $715 million. NortonLifeLock’s shares fell a fraction in late trading.

Finally, Netscout reported an adjusted profit of $21.6 million, or 29 cents per share, compared with a profit of $36.5 million, or 49 cents per share, this time last year. Revenue came in at $191.2 million, down from $213.4 million year-over-year. Analysts had expected an adjusted profit of 21 cents per share on revenue of $189.5 million.

Netscout did not give a forecast for the quarter ahead but did provide the full fiscal year 2023 forecast. For the year, the company predicts an adjusted profit of $1.97 to $2.03 a share on revenue of $895 million to $925 million.

Netscout, which delivered its earnings report at the start of trading, saw its share price drop a fraction in regular trading.

Image: Space Coast Daily