SECURITY
SECURITY
SECURITY
SentinelOne shares drop on mixed results in first post-IPO earnings report
Shares in cybersecurity provider SentinelOne Inc. dropped in after-hours trading today after the company reported mixed results in its first earnings report after going public in June.
For the quarter ended July 31, SentinelOne reported revenue jumped 121% from a year ago, to $45.8 million. The company logged a loss before costs such as stock compensation of $45 million, or 38 cents per share.
Analysts had been predicting revenue of $40.37 million and a loss of 20 cents per share.
The company’s annual recurring revenue also leaped 127%, to $198 million in the quarter. And total customer count rose 75% over the same period, to 5,400 customers. The adjusted gross margin was 62%, down slightly from 64% a year ago.
Highlights in the quarter included the addition of more than 600 customers, while the number of customers with ARR of more than $100,000 grew 140% year-over-year, to 345. SentinelOne’s dollar-based net revenue retention rate reached a new high, exceeding 125%.
On the security side, the company’s SentinelLabs advanced threat research division uncovered several security threats and attacks. These include a vulnerability in computers from Dell Technologies Inc. and an attack on the Iranian railway system in July.
“We’re devoted to protecting our customers and our way of life from cyberattacks in an increasingly digital society,” Tomer Weingarten, co-founder and chief executive officer of SentinelOne, said in a statement. “Cybersecurity must be autonomous – that’s what we’ve built. It must perform at a faster speed, greater scale and higher accuracy than what exists today.”
Looking forward, SentinelOne said that it expects revenue of between $49 million and $50 million in its third quarter and revenue of between $188 million and $190 million for its full fiscal year 2022. Analysts had been predicting $45.78 million and $176.01 million, respectively.
Although the company may have missed on earnings, the revenue and outlook were slightly above expectations. SentinelOne’s share price fell about 1.73% after the bell, though it’s still well over its closing price of $38 per share on the first day it went public on the New York Stock Exchange.
Photo: SentinelOne
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