BofA says contribution from new customers slowing across cybersecurity
BofA analyst Tai Liani on recent trends in cybersecurity: "We note that while the results were solid, and management teams maintained an upbeat tone, sales cycles have deteriorated, and macro conditions impacted the composition of overall sales. We continue to see lower deal close rates, greater prevalence of one-year deals, smaller deal sizes, and a notable slowdown in the contribution of new customers, as evidenced by the results of CrowdStrike, SentinelOne, and Zscaler. Nevertheless, cloud-based vendors are offsetting weak trends with strong expansion efforts of add-on solutions, pointing to solid trends overall. We remain constructive on CrowdStrike and Zscaler given the long-term growth opportunities yet flag the risk from new customer growth across vendors and note elevated near-term risk to SentinelOne given its smaller installed base and fewer modules."
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