Core Insights - Zscaler's shares are down 2.9% to $266.49 despite surpassing earnings and revenue estimates with $0.89 per share and $719.23 million in revenue, indicating strong fourth-quarter performance driven by its AI-powered model, although a recent data breach may be affecting post-earnings momentum [1] Group 1: Stock Performance - If the current dip persists, it would mark three consecutive sessions of decline and the third post-earnings slump in the last five reports, representing the worst single-day performance in nearly a month, with an overall decline of 11% over the past three months [2] - The stock is currently facing a downtrend that began in early July, but the 120-day moving average and the $260 level may help contain losses as the stock attempts to regain earlier optimism [2] Group 2: Analyst Sentiment - Despite the decline, Zscaler received upgrades and price-target increases from at least nine firms, including JP Morgan and Barclays Securities, while Scotiabank Securities was among the few to issue a price cut; prior to the recent dip, 32 out of 43 analysts were bullish on the stock [3] Group 3: Options Market Activity - Options traders appear skeptical about a rebound, as the equity's 10-day and 50-day put/call volume ratios rank in the 83rd and 96th percentiles, respectively [4] - There has been significant activity in the options market, with 19,000 puts traded today, which is 14 times the usual amount, indicating heightened bearish sentiment; the most popular contract is the weekly 9/5 250-strike put [5]

Q2 FY26 Investor Presentation August 26, 2025 © Okta and/or its affiliates. All rights reserved. © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Recipient's Internal Use Only. Safe Harbor This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, business strategy and plans, market trends a ...

Netskope Inc., a cloud security provider, filed for a US initial public offering, disclosing growing revenue and shrinking losses https://t.co/QuL2dsS2bO ...

Core Insights - Datadog, Inc. has achieved 'In Process' status for GovRAMP High Authorization, emphasizing its commitment to secure observability for the public sector [1][2] - This status allows Datadog for Government to support mission-critical workloads and sensitive data in regulated environments, facilitating digital transformation for state, local, and educational IT teams [2][3] Company Overview - Datadog is a monitoring and security platform for cloud applications, providing a unified, real-time observability and security solution across various technology stacks [5] - The platform integrates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, and cloud security [5] Industry Context - Modern state, local, and educational organizations are navigating complex hybrid, multi-cloud, and edge environments while aiming to enhance public service delivery [4] - GovRAMP provides a standardized security framework for public sector organizations to evaluate cloud services against NIST 800-53 Rev. 5 controls, ensuring enhanced security and continuous monitoring [3]

Core Insights - Fortinet (FTNT) is experiencing strong momentum, with billings growing 15% year-over-year in Q2 to $1.78 billion, following a 13.5% increase in Q1, indicating a robust demand pipeline and positive outlook for future quarters [1][9] - Unified SASE and Security Operations (SecOps) solutions are key contributors to this growth, expanding 21% and 31% year-over-year, respectively, and now accounting for approximately 35% of total billings [2][9] - Management has raised the full-year billings outlook for fiscal 2025 to a range of $7.325-$7.475 billion, reflecting confidence in ongoing demand driven by cloud security and enterprise adoption [3][4][9] Financial Performance - For fiscal 2025, Fortinet's billings guidance suggests a 13.3% growth at the midpoint, supported by strong cloud security demand and a healthy renewal cycle [4] - Services billings increased by 17% year-over-year, marking the strongest growth in six quarters, which enhances the long-term revenue base [3] Competitive Landscape - Fortinet faces significant competition from Palo Alto Networks (PANW), which is enhancing its market position with advanced security solutions, reporting a 34% increase in cloud ARR to $5.09 billion [5] - Check Point Software (CHKP) is also solidifying its position in network security, experiencing double-digit growth in product and license revenues due to strong demand for its solutions [6] Valuation and Market Performance - Year-to-date, Fortinet shares have declined by 14.6%, underperforming the Zacks Security industry's 7.2% gain and the Zacks Computer and Technology sector's 13.7% rise [7] - Fortinet's current Price/Book ratio is 30X, which is higher than the industry average of 20.15X, indicating potential overvaluation [10] - The consensus estimate for fiscal 2025 earnings is $2.51 per share, reflecting a 5.91% year-over-year growth [12]

Core Insights - Alphabet is significantly increasing its investment in artificial intelligence, planning to spend $85 billion on capital expenditures in 2023, with two-thirds allocated for servers to support large language models [1][2] - CapitalG, Alphabet's independent growth fund, has $7 billion in assets and has been an early investor in several major companies, with 36 publicly traded stocks as of Q2 2023 [2][3] - The fund divested from CrowdStrike, a major AI stock, and instead, Alphabet is acquiring cloud security company Wiz for $32 billion, indicating a strategic shift in investment focus [3][5][11] Investment Strategy - CapitalG sold its remaining shares of CrowdStrike, which accounted for 15% of its marketable equity portfolio, as the stock's valuation became a concern [5][6] - CrowdStrike is recovering from a significant outage that impacted its operating margin, which fell to 18% from 23% year-over-year, but revenue is growing rapidly at 42% year-over-year [7][8] - The company is enhancing its offerings with agentic AI capabilities through its new Charlotte platform, which aims to improve security threat responses [10] Competitive Landscape - Google Cloud is the third-largest public cloud platform, with a Q2 run rate of $54.5 billion, but it lags behind Microsoft's Azure, which has a revenue run rate of $75 billion [12] - The integration of Wiz's cloud security solutions into Google Cloud could enhance revenue and customer retention, but Alphabet must balance this to avoid alienating existing customers [13][15] - The acquisition of Wiz, while costly at $32 billion, is seen as a strategic move to strengthen Google Cloud's position in the market, especially given Alphabet's substantial cash reserves of $95 billion [15][16]

Core Insights - Fortinet has announced a significant expansion of its FortiCloud infrastructure, introducing new services aimed at enhancing identity management, secure file storage, and communication for hybrid teams [1][2] - The new services, FortiIdentity, FortiDrive, and FortiConnect, are designed to integrate seamlessly into the Fortinet Security Fabric, providing organizations with security-native alternatives to traditional point products [1][6] Service Overview - **FortiIdentity**: A cloud-native identity and access management solution that offers secure single sign-on (SSO), multifactor authentication (MFA), and identity federation across applications, enhancing identity administration and scaling for enterprise needs [5][6] - **FortiDrive**: A secure file storage and collaboration solution that protects sensitive data with advanced encryption and access controls, enabling real-time collaboration and compliance enforcement [5][6] - **FortiConnect**: A unified communication platform that integrates with FortiDrive, providing secure calling, messaging, and meetings, supported by AI-powered threat intelligence [5][6] Infrastructure and Investment - Fortinet continues to invest in its global hybrid-cloud infrastructure, with data centers located in major cities such as Atlanta, Chicago, and Frankfurt, designed to deliver low-latency services and meet regional demand [3][4] - The company leverages over 160 points of presence (POPs) through partnerships with providers like Google Cloud and AWS to ensure high-performance delivery of edge services [4][7] Strategic Goals - The expansion of FortiCloud aligns with Fortinet's strategy to simplify security operations, reduce vendor sprawl, and empower hybrid work environments [2][8] - The unified platform approach aims to optimize costs, reduce operational complexity, and enhance visibility and protection across distributed environments [8]

Core Insights - Qualys, Inc. reported a revenue growth of 10% year-over-year for Q2 2025, with revenues reaching $164.1 million compared to $148.7 million in Q2 2024 [3][6] - The company raised its revenue guidance for the full year 2025 to a range of $656 million to $662 million, reflecting an expected growth of 8% to 9% over 2024 [12] Financial Performance - **Revenue**: Q2 2025 revenues increased by 10% to $164.1 million from $148.7 million in Q2 2024 [3] - **Gross Profit**: GAAP gross profit rose by 11% to $135.2 million, maintaining a gross margin of 82% [4] - **Operating Income**: GAAP operating income increased by 7% to $51.4 million, representing 31% of revenues [5] - **Net Income**: GAAP net income grew by 8% to $47.3 million, or $1.29 per diluted share, consistent with a 29% net income margin [6] - **Adjusted EBITDA**: Adjusted EBITDA increased by 5% to $73.4 million, accounting for 45% of revenues [7] - **Operating Cash Flow**: Operating cash flow decreased by 32% to $33.8 million, representing 21% of revenues [8] Business Highlights - The company launched its inaugural managed Risk Operations Center (mROC) Alliance Partners, enhancing its risk management capabilities [9] - Qualys expanded its TotalAI solution with advanced AI security features, reinforcing its commitment to cybersecurity [16] - The company was recognized as a leader in various cybersecurity categories by KuppingerCole and SC Awards Europe, highlighting its innovative solutions [16] Future Guidance - **Third Quarter 2025 Guidance**: Expected revenues between $164.5 million and $167.5 million, indicating a growth of 7% to 9% year-over-year [11] - **Full Year 2025 Guidance**: Revised revenue expectations to $656 million to $662 million, with GAAP net income per diluted share projected between $4.47 and $4.77 [12]

Financial Data and Key Metrics Changes - Revenue increased by 10% year over year to $74 million, marking the fourth consecutive quarter of double-digit revenue growth [5][15] - Non-GAAP earnings per share rose by 39% year over year to $0.28, reflecting the scalability and efficiency of the business model [5][20] - Cash flow from operations was $14.5 million, down from $23 million in the same quarter last year [20] - Net income increased by 43% year over year to $12.6 million compared to $8.8 million in Q2 2024 [20] Business Line Data and Key Metrics Changes - Cloud ARR growth accelerated from 19% to 21% year over year, reaching $85 million [6][16] - Total ARR increased by 8% year over year to $235 million, with recurring revenue now representing 84% of total revenue, up from 82% in Q2 2024 [16] - Operating income grew more than 50% year over year to $9.5 million [18] Market Data and Key Metrics Changes - Americas revenue remained stable year over year at $30.1 million, accounting for 41% of total revenue [16] - EMEA revenue increased by 22% year over year to $27.8 million, representing 37% of total revenue [16] - APAC revenue grew by 30% year over year to $16.3 million, contributing 22% of total revenue [17] Company Strategy and Development Direction - The company focuses on three strategic pillars: gaining market share in cloud security, leading with AI-driven innovation, and expanding market presence [6][14] - The cloud security business is identified as the primary growth engine, with significant wins in API protection solutions and partnerships with major organizations [7][13] - Continued investment in sales, marketing, and R&D is planned to capitalize on robust demand for security offerings [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current momentum and strategic focus, anticipating long-term growth opportunities [14][21] - The operating environment is characterized by budget constraints and long sales cycles, particularly in the enterprise market [40] - The company expects total revenue for 2025 to be in the range of $74.5 million to $75.5 million [21] Other Important Information - The company has been recognized as a leader in application and API security by GigaOM, highlighting its competitive position [8] - The effective tax rate for the quarter was 15.4%, consistent with the previous year [20] Q&A Session Summary Question: Early returns from sales and marketing investments - Management noted that investments in North America are paying off, with stronger pipeline and better customer engagement [26][28] Question: Progress on DefensePro X - All on-premise DDoS mitigation sales are now from DefensePro X, which is expected to drive subscription revenue [33] Question: Dynamics in the carrier segment - Management observed opportunities in the carrier segment, particularly in MSSP business partnerships [39] Question: Changes in MSSP business models - There is a shift in MSSP portfolios to meet increasing customer compliance demands [46] Question: Competitive environment - Management reported an increase in win ratios and confidence in their competitive position, with no significant new entrants noted [48][50]

Core Insights - Amazon Web Services (AWS) provides a comprehensive suite of security services aimed at protecting data, applications, and infrastructure, addressing areas such as threat detection, identity management, application security, network protection, data encryption, and compliance monitoring [1][3]. Security Services and Tools - AWS offers tools like GuardDuty, Security Hub, and AWS Shield that enable early risk detection, automated responses, and control over cloud environments. Additionally, AWS Marketplace provides access to numerous third-party tools, enhancing flexibility for customers to meet specific security needs [2][10]. Market Growth and Positioning - The global cloud security software market is expected to grow from $50.11 billion in 2025 to $95.03 billion by 2030, with a compound annual growth rate (CAGR) of 13.7%. AWS is well-positioned to capture a significant share of this expanding market due to its integrated tools and extensive partner ecosystem [3]. Continuous Improvement - AWS is enhancing its offerings to address evolving threats, including updates to GuardDuty, Security Hub, and Shield to support organizations utilizing generative AI. The expansion of AWS Marketplace offerings is also aimed at meeting a broader range of customer security requirements [4][10]. Financial Performance - AWS reported revenues of $29.3 billion for Q1 2025, reflecting a 17% year-over-year increase and contributing 20.4% to Amazon's total revenues. The estimated revenue for AWS in fiscal 2025 is projected at $126 billion, indicating a year-over-year growth of 17.2% [5]. Competitive Landscape - AWS faces significant competition in cloud security from Microsoft and Oracle. Microsoft has initiated a collaboration with the Cybersecurity and Infrastructure Security Agency to standardize threat actor naming, while Oracle has launched a National Security Defense ecosystem to enhance cybersecurity capabilities [6][7][10]. Stock Performance and Valuation - Amazon's stock has decreased by 4.4% year-to-date, underperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector, which grew by 2.1% and 0.8%, respectively. The current forward 12-month Price/Sales ratio for Amazon is 3.07X, compared to the industry's 2.01X [8][12]. Earnings Estimates - The Zacks Consensus Estimate for Q2 2025 earnings is $1.31 per share, indicating a 6.5% year-over-year growth. The consensus for 2025 earnings is $6.22 per share, revised upward by 4 cents, reflecting a year-over-year growth of 12.48% [14].