SentinelOne raises guidance after earnings beat; CEO says company not for sale

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SentinelOne raises guidance after earnings beat; CEO says company not for sale

SentinelOne (NYSE: S ) shares rose about 6% in premarket Friday after the cybersecurity company delivered results ahead of the analyst views.

The company reported FQ2 revenue of $149.4 million, exceeding the estimated revenue of $141.1M. SentinelOne also reported an adjusted loss per share of 8 cents, which was better than the estimated loss per share of 14 cents.

“Our second quarter performance exceeded our expectations across the board. I’m proud of the resilience, dedication, and execution of our teams. We’re delivering industry-leading margin improvement while maintaining strong growth, and steadily approaching positive free cash flow generation,” said Tomer Weingarten, CEO of SentinelOne.

Moreover, the company's adjusted gross margin was 77%, outperforming the estimated margin of 74.5%

For the third quarter of 2024, SentinelOne anticipates revenue of $156.00M, which slightly surpasses the analyst consensus estimate of $154.20M.

Looking at the full fiscal year 2024, SentinelOne raised revenue forecast and now expects sales to reach $605.00M. This projection exceeds the analyst consensus estimate of $594.77M.

Speaking to CNBC after the earnings release, CEO Tomer Weingarten said the company is committed to its independent path in response to questions about a possible sale.

“The best way to do that is to remain a publicly traded independent company,” he said.

Weingarten highlighted the company's achievements, including margin improvement and strong growth. He expressed the company's dedication to driving innovation and ensuring the protection of its customers.

JMP analysts said the results showed a “solid rebound.”

“SentinelOne’s top-line growth is still above that of the peer group mean. Further, product expansion into high-growth markets and its unique architecture emphasizing a cloud-based, AI-driven approach in a core cybersecurity market are reasons we like the name,” the analysts said.

BofA analysts added that Q2 results were “impressive across the board, but 2H looks muted.”

“While we are positive on the improvements in 2Q, looking ahead to 2H, we believe the level of improvements will be more muted, keeping us on the sidelines."

 
 
 

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