Cybersecurity solutions provider IronNet Inc. (IRNT) will report its third-quarter earnings results for the Fiscal Year 2022 on Wednesday after market close. Sales dipped during the most recent quarter, but Wall Street analysts covering IRNT stock currently expect revenue to almost double this time around.
IronNet, through its Collective Defense Platform, provides organizations with capabilities for real-time exchange of cyber event information and online collaboration for radically improved defense systems.
I’m bullish on IRNT stock. (See Analysts’ Top Stocks on TipRanks)
Quarterly sales declined by 22.8% year-over-year during the most recent period to $6.1 million. However, annual recurring revenue still expanded, and the market expects further improvements in Wednesday’s report.
What to Expect in IronNet’s Q3 Earnings Results?
In September, the company provided revenue guidance of $43-45 million for the Fiscal Year 2022, which ends on January 31, 2022. Management also guided for an ARR (annual recurring revenue) print of $75 million for the year.
Given IRNT’s previously reported quarterly sales for the first two quarters of the current year ($6.4 million and $6.1 million, respectively), the company’s guidance looks very bullish for the two remaining quarters of the year.
Strong Revenue Growth Loading
To attain annual revenue of $43-45 million for Fiscal Year 2022, the business must generate more than $16 million in each of the two outstanding quarters. Management at IronNet is upbeat about the company’s current performance, with strong revenue growth to be expected for the remaining two quarters.
Likewise, Wall Street Analysts covering IronNet stock project quarterly revenue for $11.79 million in Wednesday’s upcoming report – a strong 90% growth year-over-year.
The consensus earnings estimate for the third quarter of 2022 is a loss of $0.15 per diluted share, which could show a significant improvement from a $0.31 loss per share reported in September.
IronNet’s revenue generation and earnings capacity are improving handsomely. Interestingly, IRNT stock surged over 65% a day after September’s earnings release.
See IronNet Inc.’s Earnings History on TipRanks >>
Revenue Growth Drivers for IRNT Stock
IronNet’s business growth emanates from increased cyber-crimes, rampant hacking, and skyrocketing incidents of cybersecurity breaches across the globe affecting both public and private networks and establishments.
“The explosive increase in adversary activity that we are seeing spanning industries and geographies is unprecedented, and IronNet’s Collective Defense technology gives organizations the platform for real-time exchange of cyber event information and online collaboration for a radically improved defense”, said GEN (Ret.) Keith Alexander, founder and co-CEO of IronNet.
Key Partnerships and Recent Business Highlights
IRNT stock recently went public in August this year after a successful merger with LGL Systems Acquisition Corp, a special-purpose acquisition company (SPAC).
This year, the company’s cybersecurity platform got certified as an integration partner in the Microsoft Intelligent Security Association (MISA). The partnership comprises independent software vendors and managed security service providers that have combined their solutions with Microsoft (MSFT) to better defend against the world of increasing threats.
To improve its cyber defense service offering, IronNet also entered into a strategic partnership with Mandiant (MNDT), formerly known as FireEye.
Wall Street’s Take on IRNT Stock
Turning to Wall Street, IronNet stock earns a Moderate Buy rating based on one Buy and two Holds assigned during the past three months.
The average IronNet price target of $19.50 implies 189.3% upside potential.
Disclosure: At the time of publication, Brian Paradza did not have a position in any of the securities mentioned in this article.
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