SentinelOne Stock Falls On Quarterly Earnings, Fiscal 2023 Guidance

Cybersecurity firm SentinelOne (S) on Tuesday reported January-quarter earnings and revenue that edged by estimates. SentinelOne stock fell even though its revenue forecast for the current fiscal year came in about 6% above expectations, as the company completed a sizable acquisition earlier in the day.

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Mountain View, Calif.-based SentinelOne reported earnings after the market close. S stock fell 6.6% to 28.84 during after-hours trading on the stock market today.

Also on Tuesday, SentinelOne acquired Attivo Networks in a cash-and-stock deal valued at $616.5 million. Attivo was not included in fiscal 2023 guidance, the company said.

SentinelOne reported an adjusted loss of 17 cents a share vs. a 84-cent loss a year earlier. Revenue rose 120% to $65.6 million, up 120%. Analysts expected SentinelOne to report revenue of $60.7 million and a loss of 18 cents a share. Results were for the fourth quarter ended Jan. 31.

SentinelOne Stock: Revenue Guidance Tops Estimates

For fiscal 2023, SentinelOne forecast revenue of $368 million at the midpoint of the company’s forecast. Analysts were projecting a loss of 69 cents a share on revenue of $346.1 million.

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

Heading into the SentinelOne earnings report, the stock had dropped 37% in 2022. SentinelOne stock owned a Relative Strength Rating of only 18 out of a best-possible 99, according to IBD Stock Checkup.

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

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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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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