Participate in The guard is one (s) on Friday after the cybersecurity firm reported a smaller-than-expected first-quarter loss, but revenue fell short of Wall Street targets. The cybersecurity company’s sales forecasts also fell short of opinions, sending SentinelOne stock lower.
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S stock fell 35.1% to close at 13.44 on the stock market today. SentinelOne’s earnings were released after the market closed on Thursday.
“SentinelOne reported disappointing first-quarter results, with revenue falling 3% below guidance,” Wells Fargo analyst Andrew Nowinski said in a note to clients. He added, “Management said it is seeing smaller deal sizes, longer sales cycles, lower pipeline conversion rates, as well as lower utilization and consumption trends.”
For the quarter ended April 30, SentinelOne, based in Mountain View, California, reported an adjusted loss of 15 cents per share, versus a loss of 21 cents in the prior year. Also, SentinelOne’s earnings report showed revenue up 70% to $133.4 million. Analysts had expected SentinelOne to report revenue of $136.6 million and a loss of 17 cents per share.
Annual recurring revenue from subscriptions increased 75% to $563.6 million, beating estimates of $592.3 million.
For the current quarter ending in July, SentinelOne expected revenue of $141 million versus estimates of $152.1 million.
SentinelOne stock is up 40% for the year
Shares rose 40% in 2023 before the earnings report.
SentinelOne stock ranks #34 on the IBD 50 growth companies list.
Heading to SentinelOne’s earnings report, the cybersecurity stock has a relative strength rating of only 91 out of the best possible 99, according to IBD stock check.
A cybersecurity company’s software detects malware on laptops, mobile phones, and other “endpoints” that access company networks. It is also building a broad cyber security platform to detect threats.
Follow Reinhardt Krause on Twitter @employee For updates on 5G wireless networks, artificial intelligence, cybersecurity, and cloud computing.
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