Cyber security company SentinelOne (NYSE:S) will be announcing earnings results tomorrow after the bell. Here's what to expect.
Last quarter SentinelOne reported revenues of $126.1 million, up 92.1% year on year, beating analyst revenue expectations by 1.13%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations and underwhelming guidance for the next year. The company added 78 enterprise customers paying more than $100,000 annually to a total of 905.
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 74.6% year on year to $136.6 million, slowing down from the 109% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.17 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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7.36%.
Looking at SentinelOne's peers in the cybersecurity segment, only Tenable has so far reported results, delivering top-line growth of 18.5% year on year, and beating analyst estimates by 0.91%. The stock was down 19.2% on the results. Read our full analysis of Tenable's earnings results here.
There has been positive sentiment among investors in the cybersecurity segment, with the stocks up on average 15.4% over the last month. SentinelOne is up 34.5% during the same time, and is heading into the earnings with with analyst price target of $22.1, compared to share price of $21.15.
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.