SECURITY
SECURITY
SECURITY
SentinelOne achieves second-quarter profitability thanks to strong customer growth
Shares in SentinelOne Inc. rose only slightly in after-hours trading today after the cybersecurity company reported modest earnings and revenue beats in its fiscal 2025 second quarter and forecast a better-than-expected outlook for the full year.
For the quarter that ended on July 31, SentinelOne reported adjusted earnings of a penny per share, reversing a loss of eight cents per share in the same quarter of the previous year, on revenue of $198.9 million, up 33% year-over-year. Both figures beat analysts’ expectations of a break-even bottom line and revenue of $197.31 million.
annual recurring revenue of $100,000 or more growing 24% year-over-year, to 1,233 as of the end of July. Overall annual recurring revenue also grew, up 32%, to $806 million, as of the end of the quarter.
Notable among the results was SentinelOne reporting an operating cash flow margin of 1%. Though not huge by any stretch, it contrasts with a negative 8% margin in the same quarter of last year. Put simply, SentinelOne has shifted from losing money to making money. SentinelOne ended the quarter with $1.1 billion in cash, cash equivalents and investments on hand.
Business highlights in the quarter included SentinelOne expanding its partnership with Google LLC to become a strategic endpoint vendor for Mandiant Consulting. The partnership makes SentinelOne a “partner of choice” across the majority of the incident response ecosystem.
The company also announced a Risk Assurance Initiative, in partnership with a network of cyber insurers, that helps small and medium enterprises improve security at preferred rates while extending its reach and scale.
“Based on strong execution and broad-based demand, SentinelOne delivered exceptional results with industry-leading growth and our first-ever quarter of positive net income and earnings per share,” Chief Executive Tomer Weingarten said in the company’s earnings release. “We’re seeing a distinct rise in customer interest and appreciation for the advantages of our patented AI-powered Singularity Platform to help build higher quality and more durable cyber defense.”
For its fiscal third quarter, SentinelOne expects to see revenue of $209.5 million, the exact figure expected by analysts, while for the full year, it expects revenue of $815 million, ahead of the $813 million forecast by analysts.
Photo: SentinelOne
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