SentinelOne (S) Q1 Earnings: What To Expect

Petr Huřťák /
2024/05/29 3:02 am EDT

Cyber security company SentinelOne (NYSE:S) will be reporting results tomorrow afternoon. Here's what you need to know.

SentinelOne beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $174.2 million, up 38.1% year on year. It was a decent quarter for the company, with an impressive beat of analysts' billings estimates but management forecasting growth to slow. It added 73 enterprise customers paying more than $100,000 annually to reach a total of 1,133.

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

This quarter, analysts are expecting SentinelOne's revenue to grow 35.7% year on year to $181.1 million, slowing from the 70.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.

SentinelOne Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SentinelOne has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3.6% on average.

Looking at SentinelOne's peers in the cybersecurity segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Varonis delivered year-on-year revenue growth of 6.2%, meeting analysts' expectations, and Palo Alto Networks reported revenues up 15.3%, in line with consensus estimates. Varonis's stock price was unchanged after the results, while Palo Alto Networks was down 3.8%.

Read our full analysis of Varonis's results here and Palo Alto Networks's results here.

Investors in the cybersecurity segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. SentinelOne's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $29.6 (compared to the current share price of $21.01).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.