SentinelOne stock falls on quarterly earnings, fiscal 2023 guidance

SentinelOne shares tumbled Wednesday after the cybersecurity company posted earnings and earnings for its January quarter that increased by estimates and made a big acquisition.


Mountain View, California guard one (s) reported earnings after the market closed on Tuesday. S stock initially declined on the earnings statement. But SentinelOne stock rebounded 7.6% to 33.25 in stock market today The Nasdaq Stock Exchange has also emerged.

“SentinelOne posted good results in the fourth quarter, with revenue exceeding the upper bound of guidance by 8%, despite the shares falling,” Wells Fargo analyst Andrew Nowinsky said in a report. “There weren’t really any downsides to highlight, as all key metrics came in better than expected. First quarter guidance was definitely better than expected for revenue, although operating losses were a bit higher than Street was expecting.”

Also on Tuesday, SentinelOne acquired Attivo Networks in a cash and stock transaction worth $616.5 million. The company said Ativo was not included in its fiscal year 2023 guidance.

SentinelOne reported an adjusted loss of 17 cents per share versus a loss of 84 cents a year earlier. Revenue rose 120% to $65.6 million, up 120%. Analysts had expected SentinelOne to report revenue of $60.7 million and a loss of 18 cents per share. The results were for the fourth quarter ended January 31.

SentinelOne Stock: Revenue Guidance Higher Estimates

For fiscal year 2023, SentinelOne forecast revenue of $368 million in the middle of the company’s forecast. Analysts had expected a loss of 69 cents a share on revenue of $346.1 million.

“We ended the fourth quarter with a double-digit annual improvement in both non-GAAP operating and gross margin,” SentinelOne management said in a letter to shareholders. “Given the significant market opportunities ahead, we remain committed to investing in the growth of our business in a disciplined manner. In fiscal year 2023, we expect to continue to make progress toward our long-term profitability goals.”

Heading to SentinelOne’s earnings report, the stock is down 37% in 2022. SentinelOne stock has a relative strength rating of just 18 out of the possible top 99, according to IBD stock check.

Annual recurring revenue from subscription-based services increased 123% to $292 million, outstripping ARR growth estimates of 60%.

SentinelOne’s cybersecurity software detects malware on laptops, mobile phones, and other “endpoints” that access corporate networks. SentinelOne competes with CrowdStrike Holdings (CRWD) and others.

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