Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of enterprise data security and support solutions company Imperva
So what: For the quarter, Imperva used a 30% increase in revenue to $24.6 million to reduce its loss per share to just $0.02. Wall Street expectations for the quarter had called for Imperva to lose $0.05 per share on revenue of $23.57 million. In addition to these strong results, Imperva guided its third-quarter loss expectations to a narrower range than analysts had been looking for, expecting EPS losses of $0.02-$0.03 versus the loss of $0.04 forecast by the Street.
Now what: High-margin service revenue was the notable bright spot, rising 41% with subscription revenue more than tripling. But when push comes to shove, Imperva isn't profitable as of yet and it's trading at more than 100 times forward earnings. In the past couple of weeks, I've highlighted plenty of data and firewall security companies that could alternatively be purchased for a fraction of the valuation that Imperva is trading at.
For instance, Check Point Software Technologies
The point is, Imperva may not be a "bad" company, but there are definitely better choices out there in data security.
Craving more input? Start by adding Imperva to your free and personalized watchlist so you can keep up on the latest news with the company.