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SentinelOne shares lose over 7% as Q1 earnings disappoint

EditorRachael Rajan
Published 05/30/2024, 04:36 PM
© SentinelOne PR
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MOUNTAIN VIEW, Calif. - SentinelOne , Inc. (NYNYSE:SE: S) reported its first-quarter financial results, revealing a GAAP EPS of -$0.23, which fell short of the analyst estimates by $0.18.

The cybersecurity company's revenue, however, saw a significant year-over-year (YoY) increase of 40%, reaching $186.4 million for the quarter, surpassing the consensus estimate of $181.11 million.

Despite the strong revenue growth, SentinelOne's stock price plummeted by 7.8% following the earnings announcement.

The company's CEO, Tomer Weingarten (NYSE:WRI), highlighted the quarter's success, stating, "We delivered an extraordinary 40% revenue growth and our first ever quarter of positive free cash flow, a significant milestone in our growth journey." Weingarten also emphasized the advancements in AI as a key factor in redefining cybersecurity standards.

Looking ahead, SentinelOne provided guidance for the second quarter of fiscal year 2025, expecting revenue to be around $197 million, which is slightly below the analyst consensus of $197.7 million. For the full fiscal year 2025, the company anticipates revenue to be between $808 million and $815 million, with the midpoint falling below the consensus estimate of $817.3 million.

The company's CFO, Dave Bernhardt, expressed confidence in maintaining best-in-class growth, citing the 11th consecutive quarter of over 25 points of operating margin expansion and substantial positive free cash flow. Bernhardt's statement reflects the company's expectation of continued financial improvement and market leadership.

As of April 30, 2024, SentinelOne reported cash, cash equivalents, and investments totaling $1.1 billion. The company's annualized recurring revenue (ARR) also grew by 35% to $762 million, and the number of customers with ARR of $100,000 or more increased by 30% to 1,193.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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