SentinelOne (S) Reports Q1: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/05/31 7:07 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 $65.6 million, up 119% year on year, beating analyst revenue expectations by 8.15%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth. The company added 104 enterprise customers paying more than $100,000 annually to a total of 520.

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 99.6% year on year to $74.6 million, in line with the 108% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 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 11.4%.

Looking at SentinelOne's peers in the cybersecurity segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Tenable delivered top-line growth of 29.3% year on year, beating analyst estimates by 3.82% and Palo Alto Networks reported revenues up 29.1% year on year, exceeding estimates by 2.03%. Tenable traded down 0.9% on the results, Palo Alto Networks was up 11.7%. Read our full analysis of Tenable's results here and Palo Alto Networks's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 10.9% over the last month. SentinelOne is down 19.8% during the same time, and is heading into the earnings with analyst price target of $42.7, compared to share price of $27.09.

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.