SentinelOne (S) Q4 Earnings Report Preview: What To Look For

Jabin Bastian /
2024/03/12 3:00 am EDT

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

Last quarter SentinelOne reported revenues of $164.2 million, up 42.4% year on year, beating analyst revenue expectations by 5%. It was a decent quarter for the company, with a significant improvement in its gross margin. The company added 66 enterprise customers paying more than $100,000 annually to a total of 1,060.

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 34.3% year on year to $169.4 million, slowing down from the 92.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.2%.

Looking at SentinelOne's peers in the cybersecurity segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Varonis delivered top-line growth of 8.1% year on year, beating analyst estimates by 1.6% and CrowdStrike reported revenues up 32.6% year on year, exceeding estimates by 0.6%. Varonis traded up 2.7% on the results, and CrowdStrike was up 16.5%.

Read our full analysis of Varonis's results here and CrowdStrike's results here.

Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and while some of the cybersecurity stocks have fared somewhat better, they have not been spared, with share price declining 3.7% over the last month. SentinelOne is down 7.9% during the same time, and is heading into the earnings with analyst price target of $29, compared to share price of $27.4.

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