As cybersecurity daily becomes a more critical business concern, security-related companies logged another solid day as Cloudflare Inc., CyberArk Software Ltd. and Qualys Inc. all reported better-than-expected quarterly earnings results today.

Cloudflare

For the quarter ended Dec. 31, Cloudflare breakeven results before costs such as stock compensation, improving on a loss of two cents per share in the same quarter a year ago. Revenue jumped 54%, to $193.6 million. Analysts had been expecting breakeven on revenue of $185.2 million.

For the full year 2021, Cloudflare reported an adjusted loss per share of 83 cents, more than doubling a loss of 40 cents per share in 2020. Revenue rose 53%, to $656.4 million.

Highlights in the quarter included Cloudflare adding 156 new large customers, those that spend more than $100,000 per year, ending 2021 with 1,416 large customers, up 71% year-over-year. The company also achieved record operating cash flow and positive free cash flow for the fourth quarter. Operating cash flow was $40.6 million, or 21% of revenue, and free cash flow was $8.6 million, or 4% of revenue.

“Our continued success is fueled by a culture of relentless innovation on top of a highly scalable platform,” Matthew Prince, co-founder and chief executive officer of Cloudflare, said in a statement. “That’s why we’re uniquely positioned to extend our network, introduce new zero trust capabilities, and grow our total addressable market.”

Looking forward, Cloudflare predicted adjusted earnings of breakeven to a penny a share in the first quarter on revenue of $205 million to $206 million. For the full year, Cloudflare is predicting adjusted income per share of three to four cents on revenue of $927 million to $931 million. Analysts had predicted quarterly revenue of $196.2 million and yearly revenue of $891 million.

Investors liked the numbers, as Cloudflare stock rose more than 4% in after-hours trading.

In addition, Cloudflare today acquired Vectrix Security Inc., a company that provides security scans for cloud and software-as-a-service apps. Cloudflare said Vectrix will add to Cloudflare One, its zero-trust security platform, to help security teams detect and fix issues such as inappropriate file-sharing.

CyberArk

CyberArk reported an adjusted fourth-quarter profit of $11.8 million, or 28 cents per share, on revenue of $151.3 million, up 6% year-over-year. Analysts had been predicting 17 cents a share on revenue of $144.5 million.

For the full year 2021, CyberArk reported adjusted earnings of 33 cents per share on revenue of $502.9 million, up 8% from 2020.

Annual recurring revenue hit $393 million as of Dec. 31, an increase of 44% from a year ago, while recurring revenue was $102.9 million in the fourth quarter, up 48% year-over-year.

For the quarter ahead, CyberArk predicted an adjusted loss per share of between 25 and 42 cents on revenue of between $125 million and $133 million. Its outlook on earnings per share is the only metric on which CyberArk missed, with analysts have predicted a loss of nine cents per share. The revenue outlook was roughly in line with what analysts had been anticipating.

“Given our performance in 2021, we are confident we will hit our subscription transition target goal of reaching about 85% bookings mix in the second quarter of 2022,” Udi Mokady, CyberArk chairman and CEO, said in a statement. “With the acceleration in our business in 2021, our excellence in execution and strong competitive stance, we are in a great position to deliver long-term profitable growth and increase shareholder value.”

CyberArk released its earnings at the beginning of regular trading. Despite missing on outlook, the company’s shares rose nearly 9% today.

Qualys

Meanwhile for its fourth quarter, Qualsys reported an adjusted profit of 84 cents per share on revenue of $109.78 million. Analysts had been expecting 80 cents per share on revenue of $108.41 million.

Qualys reported an adjusted profit of $3.22 per share for the full year, up from $2.87 in 2020. Revenue came in at 411.2 million, up 13% year-over-year.

“We delivered strong operating results for the fourth quarter, reflecting a year of early progress advancing our go-to-market initiatives, significant platform innovation, and strong momentum heading into 2022,” Sumedh Thakar, president and CEO of Qualys, said in a statement. “As we continue to invest and innovate, enterprises of all sizes are adopting the Qualys Cloud Platform to secure their environments, eliminate siloed solutions, and reduce legacy IT costs.”

For the quarter ahead, Qualsys predicted adjusted earnings of 51 to 53 cents on revenue of $112.5 million to $113.5 million. For the full year, the company predicted adjusted earnings of $2.87 to $2.97 on revenue of $482 million to $485 million.

Investors were not that interested in the results, with Qualys remaining at $134.69 per share after the bell, the same price as of the close of regular trading.

Image: Space Coast Daily