SentinelOne Stock Falls As Revenue Outlook Underwhelms Investors

Cybersecurity firm SentinelOne (S) on Wednesday reported fourth-quarter earnings and revenue that topped Wall Street estimates, though the size of the beat may have underwhelmed investors. Guidance for SentinelOne stock came in below expectations, driving shares down.




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The company reported January quarter earnings after the market close on Tuesday. SentinelOne recorded an adjusted loss of 2 cents a share vs. a 13-cent loss a year earlier.

SentinelOne posted revenue of $174.2 million, up 38%. Further, SentinelOne stock analysts expected the Mountain View, Calif.-based company to report revenue of $169.4 million and a loss of 4 cents a share.

Also, SentinelOne said annualized recurring revenue from subscription-based services increased 39% to $724.4 million vs. estimates of $722.5 million.

For the current quarter ending in April, SentinelOne predicted revenue of $181 million, in-line with estimates. Full-year fiscal revenue guidance of $815 million was slightly below estimates of $817 million.

 SentinelOne Stock In IBD 50

On the stock market today, SentinelOne stock retreated more than 9% to 25.25 in extended trading.  SentinelOne stock ranked No. 16 in the IBD 50 roster of growth stocks.

Further, SentinelOne stock was up 2% this year prior to the earnings report. But SentinelOne stock has advanced 100% over the past year. It traded 9% below its 52-week high heading into the SentinelOne earnings report.

SentinelOne’s software detects malware on laptops, mobile phones and other “endpoints” that access corporate networks. Also, it’s building a broad, threat-detection cybersecurity platform.

Rivals include CrowdStrike Holdings (CRWD) and Microsoft (MSFT).

SentinelOne stock owns a Relative Strength Rating of 93 out of a best-possible 94, according to IBD Stock Check-up.

Follow Reinhardt Krause on X, formerly Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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