SentinelOne (S) To Report Earnings Tomorrow: Here Is What To Expect

Radek Strnad /
2023/03/13 5:27 am EDT
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Cyber security company SentinelOne (NYSE:S) will be reporting earnings tomorrow after the bell. Here's what investors should know.

Last quarter SentinelOne reported revenues of $115.3 million, up 106% year on year, beating analyst revenue expectations by 3.89%. It was a decent quarter for the company, with exceptional revenue growth but a decline in net revenue retention rate. The company added 72 enterprise customers paying more than $100,000 annually to a total of 827.

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 90% year on year to $124.7 million, slowing down from the 120% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 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 8.39%.

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. CrowdStrike delivered top-line growth of 47.9% year on year, beating analyst estimates by 1.68% and Palo Alto Networks reported revenues up 25.7% year on year, exceeding estimates by 0.34%. CrowdStrike traded up 7.71% on the results, Palo Alto Networks was up 5.44%. Read our full analysis of CrowdStrike'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 9.76% over the last month. SentinelOne is down 9.47% during the same time, and is heading into the earnings with analyst price target of $20.8, compared to share price of $14.

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.