Cyber security company SentinelOne (NYSE:S) will be reporting results tomorrow after market hours. Here's what investors should know.
Last quarter SentinelOne reported revenues of $133.4 million, up 70.5% year on year, missing analyst expectations by 2.36%. It was a weak quarter for the company, with revenue guidance for the next quarter and full-year missing analysts' expectations. The company added 12 enterprise customers paying more than $100,000 annually to a total of 917.
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 37.5% year on year to $141 million, slowing down from the 124% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share.
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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 6.14%.
Looking at SentinelOne's peers in the cybersecurity segment, some of them have already reported Q2 earnings results, giving us a hint what we can expect. Varonis delivered top-line growth of 3.56% year on year, missing analyst estimates by 3.23% and Tenable reported revenues up 18.7% year on year, exceeding estimates by 2.52%. Varonis traded up 6.23% on the results, Tenable was up 10.5%.
Read our full analysis of Varonis's results here and Tenable's results here.
The whole tech sector has been facing a sell-off since late last year and while some of the cybersecurity stocks have fared somewhat better, they have not been spared, with share price declining 8.86% over the last month. SentinelOne is down 2.3% during the same time, and is heading into the earnings with analysts' average price target of $17.8, compared to share price of $16.56.
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.