SentinelOne, Inc. (S) reported its second-quarter financial results on Tuesday after the market closed, showcasing strong growth and a significant milestone. The company exceeded analysts’ expectations on both revenue and earnings, demonstrating its continued momentum in the cybersecurity market.
Here’s a breakdown of the key financial highlights:
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Revenue:
SentinelOne generated $198.9 million in revenue for the quarter, surpassing the analyst consensus estimate of $197.45 million. This represents a 33.11% increase compared to the same period last year.*
Earnings:
SentinelOne reported a GAAP loss of 22 cents per share, in line with analyst estimates. Importantly, this quarter marked the company’s first ever period of positive net income and earnings per share, signifying a turning point in its financial performance.*
Annualized Recurring Revenue (ARR):
ARR increased by 32% to $806 million for the quarter, reflecting the growing adoption of SentinelOne’s solutions by businesses.*
Customer Growth:
Customers with ARR of $100,000 or more grew by 24% to 1,233 as of July 31, 2024. This indicates a strong demand for SentinelOne’s advanced cybersecurity offerings from larger enterprises.*
Margins:
Non-GAAP gross margin stood at 80%, compared to 77% in the previous year. However, the non-GAAP operating margin was negative 3%, compared to negative 22% in the prior quarter.Tomer Weingarten, CEO of SentinelOne, expressed his satisfaction with the company’s performance, highlighting the strong demand for its Singularity Platform, which utilizes AI to enhance cybersecurity capabilities. He emphasized the company’s commitment to building a robust and open ecosystem, providing superior technology, and earning customer trust through transparency.
Looking ahead, SentinelOne anticipates revenue of $209.5 million for the third quarter, exceeding analyst estimates of $197.44 million. For the full fiscal year 2025, the company projects revenue of $815 million, slightly higher than the consensus estimate of $813.03 million.
Following the earnings announcement, SentinelOne’s stock price declined by 2.04% after-hours, trading at $24.25 per share. Despite this initial dip, the company’s strong financial results and optimistic outlook suggest continued growth in the future.
