What To Expect From SentinelOne's (S) Q4 Earnings

Adam Hejl /
2022/03/14 7:47 am EDT

Cyber security company SentinelOne (NYSE:S) will be reporting results tomorrow afternoon. Here's what investors should know.

Last quarter SentinelOne reported revenues of $56 million, up 128% year on year, beating analyst revenue expectations by 12.9%. It was a stunning quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates. The company added 71 enterprise customers paying more than $100,000 annually to a total of 416.

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 103% year on year to $60.6 million, in line with the 96.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 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 13.1%.

Looking at SentinelOne's peers in the cybersecurity segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. CrowdStrike delivered top-line growth of 62.6% year on year, beating analyst estimates by 4.51% and Zscaler reported revenues up 62.7% year on year, exceeding estimates by 5.66%. CrowdStrike traded up 12.6% on the results, Zscaler was down 16.6%. Read our full analysis of CrowdStrike's results here and Zscaler's results here.

Tech stocks have been under pressure since the end of last year and cybersecurity stocks have not been spared, with share price down on average 18% over the last month. SentinelOne is down 25.1% during the same time, and is heading into the earnings with analyst price target of $63.4, compared to share price of $33.1.

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.