Digital transformation drives another wave of growth for these companies

The COVID-19 pandemic brought about a digital transformation as well as a security transformation across the corporate world this year. This trend helped software and cybersecurity companies deliver another set of strong quarterly results and position themselves to drive growth over the coming months. Here are a few of them:

CrowdStrike

Cybersecurity company CrowdStrike Holdings Inc. (NASDAQ: CRWD) reported a year-over-year increase of 86% in revenues to $232.5 million for the third quarter of 2021. Subscription revenue increased 87% while professional services revenue grew 74%. Annual recurring revenue rose 81%. The company reported adjusted EPS of $0.08 versus a loss of $0.07 in the same period last year.

For the fourth quarter of 2021, CrowdStrike expects revenues of $245.5-250.5 million and adjusted EPS of $0.08-0.09. For the full year of 2021, revenues are estimated to range between $855-860 million while adjusted EPS is projected to be $0.21-0.22.

CrowdStrike’s stock has gained 234% since the beginning of this year.

Zscaler

Zscaler Inc. (NASDAQ: ZS), another provider of cybersecurity services, reported a 52% growth in revenue for the first quarter of 2021 compared to the same period a year ago. Revenues totaled $142.6 million. Calculated billings rose 64% while deferred revenue increased 51%. Adjusted EPS jumped 250% to $0.14.

For the second quarter of 2021, Zscaler expects total revenue of $146-148 million and adjusted EPS of $0.07-0.08. For full year 2021, total revenue is expected to be $608-612 million while adjusted EPS is estimated to be $0.37-0.38.

Both CrowdStrike and Zscaler benefited from an increased demand for workload protection and cybersecurity solutions due to the digital transformation and rapid shift to a remote work environment.

Zscaler’s stock has jumped 290% since the beginning of this year.

DocuSign

DocuSign Inc. (NASDAQ: DOCU), which provides electronic contract management services, delivered a 53% year-over-year growth in revenues to $383 million for the third quarter of 2021. Subscription revenues rose 54% while professional services revenues climbed 43%. Billings increased 63% year-over-year. Adjusted EPS doubled to $0.22 from last year.

As business travel came to a halt, the need to conduct operations virtually and manage agreements electronically boosted demand for the company’s services.

DocuSign expects revenues to range from $404-408 million in the fourth quarter of 2021 and from $1.42-1.43 billion for the full year of 2021.

DocuSign’s stock has climbed 229% since the start of this year.

Cloudera

Data analytics company Cloudera Inc. (NYSE: CLDR) reported revenues of around $218 million for the third quarter of 2021, up 10% year-over-year, with an 18% growth in subscription revenue. Annualized recurring revenue rose 12% year-over-year. Adjusted EPS was $0.15 compared to a loss of $0.03 per share last year.

Cloudera sees vast potential in the data management and analytics market for hybrid multi-cloud solutions and believes it is well-positioned to take advantage of this opportunity.  

For the fourth quarter of 2021, the company expects revenues of $219-222 million and adjusted EPS of $0.10-0.12. For FY2021, total revenue is expected to be $862-865 million while adjusted EPS is estimated to be $0.40-0.42.

Cloudera’s stock has gained 20% over the past one month.

Click here to read the full transcripts of these companies’ latest earnings conference calls