Earnings To Watch: SentinelOne (S) Reports Q2 Results Tomorrow

Kayode Omotosho 2022/08/30 5:23 am EDT

Cyber security company SentinelOne (NYSE:S) will be announcing earnings results tomorrow after market hours. Here's what you need to know.

Last quarter SentinelOne reported revenues of $78.2 million, up 109% year on year, beating analyst revenue expectations by 4.83%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth. The company added 71 enterprise customers paying more than $100,000 annually to a total of 591.

Is SentinelOne buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting SentinelOne's revenue to grow 109% year on year to $95.6 million, slowing down from the 121% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.25 per share.

SentinelOne Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 9.82%.

Looking at SentinelOne's peers in the cybersecurity segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Qualys delivered top-line growth of 20.2% year on year, beating analyst estimates by 2% and Palo Alto Networks reported revenues up 27.1% year on year, exceeding estimates by 0.41%. Qualys traded up 3.14% on the results, and Palo Alto Networks was up 6.15%. Read our full analysis of Qualys's results here and Palo Alto Networks's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.08% over the last month. SentinelOne is up 12.8% during the same time, and is heading into the earnings with analyst price target of $36.8, compared to share price of $28.01.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.