D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com -- Barclays expects Fortinet (NASDAQ:FTNT), Varonis Systems (NASDAQ:VRNS), and Procore Technologies (NYSE:PCOR) to report solid second-quarter results on stronger demand signals and manageable comparisons, while downgrading Intapp to Underweight on concerns about slower revenue growth.
The brokerage downgraded Intapp given expectations for a slowdown in recurring revenue growth.
Barclays (LON:BARC) sees fewer multi-year on-premise renewals and believes annual recurring revenue could decelerate into the mid-teens range next fiscal year.
Fortinet is likely to benefit from improving large-deal activity and progress in its firewall upgrade cycle, which the firm estimates is about 20% complete.
Barclays expects a pickup in billings growth and believes results could exceed guidance, with room for full-year estimates to rise.
The brokerage said investors will watch for further updates on the upgrade rollout during the earnings call.
Varonis is also seen on track to beat expectations, supported by what Barclays described as prudent guidance and continued progress toward its long-term goal of 20% annual recurring revenue growth.
Procore may show stronger-than-expected growth in remaining performance obligations, helped by pooled contract structures and a pickup in construction activity. Barclays noted that project indicators improved steadily through the quarter.
Barclays is also cautious on Check Point Software (NASDAQ:CHKP), which faces a tougher comparison on billings but is expected to maintain its full-year guidance and strong profitability.
The firm projects 4% billings growth for the quarter and noted positive feedback on its Quantum Force product line.