SentinelOne (S) Reports Q3: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/12/05 4:46 am EST

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

Last quarter SentinelOne reported revenues of $102.5 million, up 124% year on year, beating analyst revenue expectations by 7.15%. It was a very strong quarter for the company, with exceptional revenue growth and a significant improvement in net revenue retention rate. The company added 164 enterprise customers paying more than $100,000 annually to a total of 755.

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 98.1% year on year to $111 million, slowing down from the 128% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.22 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 over the past two years on average by 9.29%.

Looking at SentinelOne's peers in the cybersecurity segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. CrowdStrike delivered top-line growth of 52.8% year on year, beating analyst estimates by 1.01% and Zscaler reported revenues up 54.2% year on year, exceeding estimates by 4.33%. CrowdStrike traded down 16.5% on the results, Zscaler was down 11.8%. Read our full analysis of CrowdStrike's results here and Zscaler's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 14.1% over the last month. SentinelOne is down 11.1% during the same time, and is heading into the earnings with analyst price target of $32.90, compared to share price of $14.78.

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.