SentinelOne stock plunges on missed first-quarter revenue and weak sales guidance

SentinelOne (S) reported a lower-than-expected first-quarter loss on Thursday, but revenue missed Wall Street targets. The cybersecurity company’s revenue outlook also fell short of views and SentinelOne stock slumped.




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Shares fell 35% to 13.36 in extended trading in the stock market today.

For the quarter ended April 30, Mountain View, Calif.-based SentinelOne posted an adjusted loss of 15 cents per share compared to a loss of 21 cents a year earlier. Additionally, SentinelOne’s revenue report showed revenue increased 70% to $133.4 million.

Analysts had expected SentinelOne to post revenue of $136.6 million and a loss of 17 cents per share.

Annualized recurring revenue from subscriptions rose 75% to $563.6 million, missing estimates of $592.3 million.

For the current quarter ending July, SentinelOne forecast revenue of $141 million versus estimates of $152.1 million.

SentinelOne stock is up 40% for the year

SentinelOne’s results were released after market close. The shares had gained 40% in 2023 before the earnings report.

SentinelOne stock ranks 34th in the IBD 50 list of growth companies.

Heading into SentinelOne’s earnings report, the cybersecurity stock had a relative strength rating of just 91 out of the best possible 99, according to IBD Stock Checkup.

The cybersecurity company’s software detects malware on laptops, cell phones and other “endpoints” that access corporate networks. Also, it builds a broad threat detection cybersecurity platform.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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