Shares in SentinelOne Inc. fell more than 10% in after-hours trading today after the cybersecurity company reported earnings and revenue beats in its fiscal 2024 fourth quarter but fell short at the midpoint with its outlook for fiscal year 2025.

For the quarter that ended on Jan. 31, SentinelOne reported an adjusted loss of two cents per share, up from a loss of 13 cents per share in the same quarter of the previous year, on revenue of $172.4 million, up 38% year-over-year. Both figures were ahead of the four-cents-per-share loss on revenue of $169.31 million expected by analysts.

SentinelOne’s strong figures were driven by customer growth, with the company’s annual recurring revenue growing 39%, to $724.4 million, as of the end of January. SentinelOne saw customers with annual recurring revenue of $100,000 or more a year growing 30% year-over-year, to 1,133, and the company’s dollar-based retention rate was approximately 115%. The company had $1.1 billion in cash, cash equivalents and investments on hand as of Jan. 31.

Recent business highlights include SentinelOne announcing on Jan. 3 that it had agreed to buy cloud-native application protection platform startup PingSafe Pte Ltd. for an undisclosed price.

PingSafe offers a CNAPP solution that delivers dynamic, real-time monitoring of multicloud workloads, simple setup and configuration and low false positive rates. SentinelOne plans to integrate PingSafe’s CNAPP into its Singularity Platform, delivering what is claimed to be a “paradigm shift in cloud security.”

At the end of January, SentinelOne announced the general availability of WatchTower and WatchTower Pro, managed threat-hunting services designed to help support security teams in anticipating and countering threats in the enterprise. WatchTower delivers intelligence-driven threat hunting, backed by expert human analysis, to identify emergent attackers and maximize threat visibility across every part of the business.

For its full fiscal year 2024, SentinelOne reported an adjusted loss of 28 cents per share, down from a loss of 70 cents in fiscal 2023, on revenue of $621.1. million, up 47% year-over-year.

“Once again, we delivered strong top-line growth and margin expansion, showcasing the scale and breadth of our Singularity Platform,” Chief Financial Officer Dave Bernhardt said in the company’s earnings release. “We achieved our 10th consecutive quarter of over 25 percentage points of year-over-year operating margin improvement. Building on our fiscal year 2024 outperformance, we aim to maintain our industry-leading growth profile while turning the page on profitability by the end of the year.”

For its fiscal 2025 first quarter, SentinelOne expects revenue of $181 million and, for the full fiscal year, revenue of $812 million to $818 million. Analysts were expecting $181.5 million and $817.5 million. The latter figure was notably higher than the midpoint of $815 million forecast by SentinelOne and was seemingly enough to buoy investors in late trading.

Image: SentinelOne