Financial Data and Key Metrics Changes - The company reported revenue of $229 million for Q1 2026, representing a 23% year-over-year growth [25] - Total Annual Recurring Revenue (ARR) grew 24% to $948 million [26] - The gross margin maintained at 79%, with an operating margin improvement to negative 2% [28] - Free cash flow margin reached a record 20% for the quarter, with cash and investments increasing to $1.2 billion [35][36] Business Line Data and Key Metrics Changes - The data solutions segment surpassed $100 million in ARR during Q1 [9] - The attach rate for AI solutions exceeded 25% across subscriptions sold in the quarter, indicating strong customer adoption [8][85] - Customers with ARR of $100,000 or more grew 22% to 1,459 [27] Market Data and Key Metrics Changes - Revenue from international markets grew 27%, accounting for 38% of total quarterly revenue [26] - Remaining performance obligations increased by 33% to $1.2 billion, indicating strong future revenue visibility [27] Company Strategy and Development Direction - The company is focusing on a platform sales strategy rather than a product-centric approach, aiming to enhance customer engagement and adoption [21][72] - Recent innovations include the unified cloud security suite and advancements in AI capabilities, which are expected to drive future growth [8][20] - The company aims to simplify security through AI, positioning itself as a leader in the evolving cybersecurity landscape [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty impacted Q1 net new ARR, but trends improved in May, leading to expectations of better performance in Q2 [18][42] - The company remains confident in its growth trajectory, expecting revenue of approximately $242 million for Q2, reflecting a 22% growth [30] - Management emphasized the importance of operational discipline and efficiency to navigate market challenges while continuing to invest in innovation [32][81] Other Important Information - The company achieved FedRAMP high authorization for several products, enhancing its competitive position in the public sector [12][13] - A $200 million open-ended share repurchase authorization was announced, reflecting confidence in the company's long-term prospects [36] Q&A Session Summary Question: Can you discuss the incremental ARR in the quarter? - Management indicated that improved trends were observed in May and expects year-over-year net ARR growth in Q2 to improve relative to Q1, attributing Q1 challenges to slip deals rather than elevated churn [40][41] Question: What are the guidance assumptions for the year? - Management acknowledged that the guidance reflects underlying new business growth and noted improved trends in May, while also being cautious about potential external disruptions [45][46] Question: What impact did the macro environment have on existing versus new customers? - Management clarified that the macro dynamics were more pronounced with new logos, while existing customer upsell and cross-sell remained strong [97] Question: How is the company approaching hiring plans for fiscal 2026? - Management stated that hiring is primarily focused on R&D, with adjustments made based on market needs and growth areas [102] Question: What is the outlook for the federal side of the business? - Management expressed optimism about growth opportunities in the federal sector, despite longer sales cycles and evolving procurement processes [107]

CyberArk Software (CYBR) FY 2025 Conference May 28, 2025 01:50 PM ET Speaker0 That has been my room all day long. Speaker1 You've been sitting here? Speaker0 Yeah. Very good. All the great cybersecurity companies. Good afternoon, everybody. Thank you for joining us. My name is Shaul Real. I'm TD Cowen, cybersecurity research analyst. And we are delighted to host Eduardo, CyberArk's COO. Pleasure to have you. Speaker1 Good afternoon. Pleasure to be here. Thank you, Sean. Speaker0 So before touching on strate ...

Cognyte Software (CGNT) FY 2025 Conference May 28, 2025 10:15 AM ET Speaker0 Good morning, everybody. Thank you for joining us. My name is Shaul Eyal. I'm a TD Cowen's research analyst covering the cybersecurity universe. We are joined this morning and delighted to host Alexeyron, CEO of Cognite. We also have David Abadi, the CFO, sitting here in the front. Halek, thank you so much for joining us this morning. Thank you for hosting us. Maybe for the benefit of the audience slightly less familiar with Cognit ...

Core Insights - The Q1/2025 Gen Threat Report reveals significant increases in cyber threats, including a 186% rise in breached personal information and a 466% increase in phishing reports [2][4][5] - The report highlights the evolution of online threats, with attackers utilizing AI and personalized tactics to enhance deception [3][7] - Gen has successfully protected over 4 million users from Scam-Yourself Attacks, which involve individuals being manipulated into compromising their own devices [7][8] Data Breaches - There was a 36% increase in the number of data breaches faced by companies compared to the previous quarter, with individual breached records rising by over 186% [4] - Attackers are employing advanced infostealers, making data compromise faster and harder to detect [4] Phishing Scams - Phishing reports surged by 466%, now accounting for nearly 32% of all scam submissions to the Norton Genie scam detector [5] - Phishing is identified as the fastest-growing threat, with generic scams making up 51% of reports [5] - Attackers are using dynamic DNS services and subdomain providers to create deceptive login pages, making phishing attempts harder to detect [6] Scam-Yourself Attacks - Gen protected over 4 million users from Scam-Yourself Attacks, where individuals are tricked into infecting their own devices [7] - Attackers are utilizing AI-generated personas and deepfake influencers to deliver malicious campaigns [7] - Fake browser update scams have increased to over 17 times the previous quarter's levels, tricking users into installing malware [8] Financial Threats - Mobile financial threats are on the rise, with malware exploiting accessibility features to steal sensitive data [10] - Digital currencies are increasingly targeted, with one campaign linked to the US presidential inauguration resulting in nearly $4 million stolen through over 2,000 transactions [11] Company Overview - Gen is a global leader in Cyber Safety, providing solutions through trusted brands like Norton, Avast, and LifeLock [1][13] - The company aims to empower individuals to live their digital lives safely and confidently, serving nearly 500 million users in over 150 countries [13]

Core Insights - Integrated Cyber Solutions has been accepted into the NVIDIA Connect program, which will aid in the development and scaling of its IC360 threat detection and response platform [1][2][3] - The partnership with NVIDIA will enhance IC360's real-time analytics, machine learning capabilities, and operational efficiency, positioning it for robust cybersecurity solutions [1][3] - Integrated Cyber focuses on transforming cybersecurity into a people-driven solution, addressing vulnerabilities rooted in human behavior [4][6] Company Overview - Integrated Cyber Solutions is a global managed security service provider (MSSP) that emphasizes human-centered cybersecurity, particularly for small-to-medium businesses (SMBs) and enterprises (SMEs) [4][5] - The company integrates behavioral intelligence with advanced technology to empower employees as the first line of defense against cyber threats [4][5] - Through its IC360 platform, Integrated Cyber consolidates complex cybersecurity data into actionable insights, combining AI-driven threat detection with behavior-based training [5] Strategic Development - The company is expanding its operations in the Middle East, Africa, and South Asia, with recent partnerships in the UAE, India, and Sri Lanka [5] - Integrated Cyber aims to tailor its solutions to diverse cultural, regulatory, and threat landscapes, establishing itself as a first-to-market provider of behavior-focused cybersecurity in emerging regions [5]

Market Overview - U.S. stock markets have faced a setback in 2025 following a significant bull run in 2023 and 2024, attributed to overstretched valuations, sticky inflation, weak economic data, geopolitical conflicts, and concerns over the Trump administration's trade policies [1] - The technology sector has been the most affected, particularly AI-focused stocks, due to the Federal Reserve's uncertainty regarding rate cuts, recession fears, and competition from low-cost Chinese AI platforms [2] Nasdaq Composite Performance - The tech-heavy Nasdaq Composite is down 0.4% year to date, although some technology stocks listed on the Nasdaq have achieved double-digit returns [3] Stock Picks - Selected stocks with potential for double-digit returns include CyberArk Software Ltd. (CYBR), Lam Research Corp. (LRCX), and monday.com Ltd. (MNDY), all carrying favorable Zacks Ranks [3][4] CyberArk Software Ltd. (CYBR) - CyberArk is benefiting from rising demand for cybersecurity solutions due to increasing data breaches and digital transformation strategies [7] - The company has a strong presence across various sectors, which helps mitigate the impact of softening IT spending, and is shifting towards software-as-a-service and subscription models to drive growth [8] - CyberArk's expected revenue and earnings growth rates are 31.9% and 25.1%, respectively, with a short-term price target indicating a potential upside of 30.6% from its last closing price of $382.81 [11][12] Lam Research Corp. (LRCX) - Lam Research is capitalizing on strengths in 3D DRAM and advanced packaging technologies, with a rebound in its System business due to improving memory spending [13] - The company is well-positioned to benefit from an expected $100 billion in wafer fab equipment spending in 2025, driven by increased investments in foundry/logic, DRAM, and NAND [14] - Lam Research's expected revenue and earnings growth rates are 22.2% and 33.4%, respectively, with a price target suggesting a maximum upside of 48.8% from its last closing price of $83.94 [15] monday.com Ltd. (MNDY) - monday.com develops cloud-based software applications and provides various work management solutions across multiple sectors [16][17] - The company has an expected revenue growth rate of 25.6% and earnings growth rate of 6.3%, with a price target indicating a potential upside of 50.5% from its last closing price of $299.11 [17][18]

Group 1: Duquesne Family Office's Investment Activity - Duquesne Family Office's chief, Stanley Druckenmiller, completely exited his stake in Palo Alto Networks, a prominent stock-split stock, during the March-ended quarter [7][12] - Druckenmiller sold all 87,424 shares of Palo Alto Networks, which had completed a 2-for-1 stock split in December [12] - The decision to sell may have been influenced by Palo Alto's high valuation at 60 times forecast earnings per share in 2025, despite its strong growth [13] Group 2: Palo Alto Networks Performance - Palo Alto Networks reported a 34% increase in annual recurring revenue for its next-generation security solutions, reaching $5.1 billion [14] - The company's total backlog of remaining performance obligations grew by 19% to $13.5 billion year-over-year [14] - The shift to a cloud-based cybersecurity model has resulted in 80% of net sales coming from higher-margin subscriptions and support services [15] Group 3: Teva Pharmaceutical Industries Investment - Druckenmiller has consistently increased his stake in Teva Pharmaceutical, purchasing 5,882,350 shares in the March-ended quarter, following previous purchases of 1,427,950 and 7,569,450 shares [18] - Teva has shifted focus towards novel-drug development, with the tardive dyskinesia drug Austedo showing 39% constant-currency sales growth in the latest quarter [21] - Teva's net debt has significantly decreased from over $35 billion post-Actavis acquisition to less than $15 billion as of March 2025 [22] Group 4: Teva's Legal and Financial Recovery - Teva resolved its opioid litigation issues with a $4.25 billion settlement approved by 48 of the 50 U.S. states, allowing for improved financial stability [23] - The stock is currently valued at just 6.6 times forecast earnings per share in 2025, indicating a deep-discount valuation compared to the broader market [24] - Teva has achieved year-over-year sales growth for nine consecutive quarters, reflecting a positive trend in its brand-name therapies [25]

Core Viewpoint - Alphabet has significantly reduced its stake in CrowdStrike by 83%, indicating a strategic shift in its investment approach within the cybersecurity sector [2][4]. Group 1: Alphabet's Investment Actions - Alphabet sold 83% of its shares in CrowdStrike, decreasing its holdings from 855,789 shares to 74,230 shares over the course of a year [4]. - The decision to sell comes after a period of stability in its investment, as Alphabet had not altered its position in CrowdStrike for three consecutive quarters prior to this sale [4]. Group 2: Performance of CrowdStrike - CrowdStrike's stock has increased by 43% since the end of Q1 2024, outperforming the S&P 500 and Nasdaq Composite, as well as many of its peers in the cybersecurity industry [6]. - Despite a public relations crisis last summer due to software bugs, CrowdStrike's stock has shown resilience and recovered from significant sell-offs [8]. Group 3: Reasons for Alphabet's Decision - Alphabet's decision to sell may be influenced by its recent acquisition of Wiz, which could enhance its competitive position in the cybersecurity market [9][10]. - The current financial guidance from CrowdStrike has not impressed investors, suggesting that Alphabet's timing in selling could be strategic [9]. Group 4: Valuation Insights - CrowdStrike's price-to-sales (P/S) ratio stands at 28.77, making it one of the most expensive stocks in its peer group, trailing only Cloudflare [12][14]. - The valuation of CrowdStrike appears to be stabilizing, with its P/S levels rebounding to pre-sell-off levels from last summer [15]. Group 5: Future Outlook - CrowdStrike is viewed as a compelling opportunity at the intersection of AI and cybersecurity, which are both expanding markets [17].

Core Insights - Zscaler has announced a definitive agreement to acquire Red Canary, enhancing its capabilities in Managed Detection and Response (MDR) and threat intelligence [1][2] - The acquisition aims to integrate Zscaler's AI-driven workflows with Red Canary's expertise, creating a unified Security Operations Center (SOC) [1][3] - Zscaler protects nearly 45% of Fortune 500 organizations and processes over 500 billion daily transactions, establishing itself as a leader in cloud security [2][4] Company Overview - Zscaler operates the world's largest cloud security platform, leveraging a massive data lake to develop advanced AI-driven solutions [2][4] - Red Canary has over 10 years of experience in security operations, recognized as a leader in the Forrester Wave™ for MDR for three consecutive years [2][4] - The integration of both companies is expected to enhance threat detection and response capabilities, addressing common operator pain points [3][4] Strategic Goals - The acquisition is seen as a natural expansion of Zscaler's capabilities, aiming to accelerate the vision of an AI-powered SOC of the future [2][3] - By combining resources, the companies aim to improve the speed and efficiency of threat detection and response, helping organizations tackle modern security challenges [3][4] - The transaction is subject to customary closing conditions and is expected to close in August 2025 [4]

Industry Overview - The cybersecurity market is projected to witness a CAGR of 12.9% from 2025 to 2030, driven by increasing digital threats and the need for advanced cybersecurity solutions [3] - The rise in cloud deployment, digital transformation, and the proliferation of smart and IoT devices has led to more sophisticated cyberattacks, necessitating enhanced cybersecurity measures [2] Company Analysis: BlackBerry Limited (BB) - BlackBerry has shifted its focus from smartphones to cybersecurity and IoT solutions, with its Secure Communications division including products like Unified Endpoint Management (UEM) and SecuSUITE [4] - In fiscal Q4, BlackBerry's Secure Communications revenue reached $67.3 million, exceeding forecasts, driven by strong performance in AtHoc and UEM solutions [5] - The company has established strong relationships with government agencies, securing a stable revenue stream and credibility in high-trust sectors [6] - BlackBerry has successfully cut approximately $150 million from its run rate and reported an adjusted EBITDA of $39.3 million for fiscal 2025, marking a significant improvement [8] - The expansion of contracts with the Malaysian government enhances BlackBerry's revenue potential and positions its Secure Communications division as a key contributor to overall EBITDA [7] Company Analysis: CrowdStrike Holdings, Inc. (CRWD) - CrowdStrike is a leader in next-generation endpoint protection and has introduced new solutions like Falcon Data Protection to address data security concerns [9] - The company's subscription revenues reached $1.01 billion, reflecting a 27% increase year-over-year, aided by the Falcon Flex Subscription Model [10] - Despite strong growth, CrowdStrike faces challenges due to customer sentiment issues following a global IT outage and has implemented a Customer Commitment Package to retain clients [11] - The company has significantly increased its sales and marketing expenses, which rose nearly ninefold to $1.52 billion in fiscal 2025, alongside a focus on R&D [12][13] Performance Comparison - Over the past month, BlackBerry and CrowdStrike have seen stock gains of 10.5% and 7.6%, respectively [16] - BlackBerry's forward 12-month Price/Sales ratio is 4.21X, significantly lower than CrowdStrike's 22.17X, indicating a more favorable valuation for BlackBerry [17] - Analysts have raised BlackBerry's earnings estimates for the current fiscal year, while CrowdStrike has seen only marginal upward revisions [19][21] Investment Outlook - Both companies are well-positioned to benefit from the growing cybersecurity market, but BlackBerry currently holds a Zacks Rank 1 (Strong Buy), while CrowdStrike has a Zacks Rank 4 (Sell), suggesting BlackBerry may be the better investment choice at this time [22]