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.


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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