Shares in SentinelOne Inc. rose in after-hours trading today after the cybersecurity company topped expectations in its most recent quarter.

For the quarter that ended July 31, SentinelOne reported an adjusted loss eight cents per share, up from a loss of 20 cents per share in the same quarter of last year, on revenue of $149.4 million, up 46% year-over-year. Analysts had expected a loss of 14 cents on revenue of $140.97 million.

SentinelOne’s strong figures were driven by customer growth, with the company’s number of customers growing 30% year-over-year, to more than 11,000 as of the end of July. Annual recurring revenue jumped 47%, to $612.2 million. The number of customers with annual recurring revenue of more than $100,000 grew 37%, to 994, and SentinelOne’s dollar-based net retention rate exceeded 115%, meaning existing customers are spending more.

Like many companies in 2023, artificial intelligence has been a focus of SentinelOne. Chief Executive Tomer Weingarten, said in the company’s earnings release that “from the beginning, we designed our AI-powered Singularity platform to deliver autonomous enterprise security.”

SentinelOne said it expects revenue of $156 million in its fiscal third quarter and $605 million for the full fiscal 2024. Analysts were expecting $154.2 million and $594.77 million.

The biggest news regarding SentinelOne recently was a report on Aug. 21 that claims that the company has hired Qatalyst Partners L.P., a San Francisco-based bank that specializes in mergers and acquisitions, to “explore options.” The company has also reportedly held discussions with potential buyers, including private equity firms.

SentinelOne went public in June 2021 at a valuation of $8.9 billion, but as of today, its market capitalization sits at $4.75 billion, nearly down by half from its float valuation and down by over half on its market capitalization of $10.5 billion at the end of its first day of trading.

Founded in 2013, SentinelOne offers a cybersecurity platform called Singularity that assists companies in protecting cloud workloads and employee devices from hacking. The platform can also secure deployments on Microsoft Corp.’s Active Directory, a tool used in the enterprise to manage how workers access business applications.

Image: SentinelOne