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SentinelOne (S) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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SentinelOne (S - Free Report) reported fourth-quarter fiscal 2022 adjusted loss of 17 cents per share, beating the Zacks Consensus Estimate by 5.6%. The company had reported a loss of 84 cents in the year-ago quarter.
SentinelOne reported revenues of $65.6 million, which surged 119.8% year over year, beating the consensus mark by 7.94%.
International revenues accounted for 31% of total revenues, reflecting growth of 140% year over year. SentinelOne’s go-to-market expansion initiatives in Europe, the Middle East, Africa, and Asia Pacific, as well as its growing brand awareness, contributed to strong growth across all major international geographies.
SentinelOne shares were down 1.26% in pre-market trading. SentinelOne shares have underperformed the Zacks Computer and Technology sector, as well as its competitor CrowdStrike (CRWD - Free Report) , year to date.
While SentinelOne shares declined 38.8%, the Computer and Technology sector has been down 20.8%. CrowdStrike has returned 7.9% on a year-to-date basis.
SentinelOne, Inc. Price, Consensus and EPS Surprise
As of Jan 31, 2022, SentinelOne’s annualized recurring revenue (“ARR”) increased 123% year over year to $292.3 million. The strong performance was driven by robust demand for SentinelOne’s offerings from new and existing customers as well as large and mid-sized enterprises seeking to modernize and automate their cybersecurity technology.
SentinelOne’s top-line growth benefited from an expanding customer base. Customer count grew more than 70% year over year to over 6,700 customers as of Jan 31, 2022.
Customers with ARR over $100K grew 137% year over year to 520. Dollar-based net revenue retention rate was 129% as of Jan 31, 2022.
SentinelOne is riding on a strong partner base. In fiscal 2022, the company’s strategic partners grew to more than 20% of its business, including Managed Security Service Providers, Incident Response (“IR”) firms, and Managed Detection and Response providers.
In the reported quarter, Mandiant selected SentinelOne as a global go-to-market partner.
Mandiant is one of the world’s leading IR firms. The partnership helps top incident response consultants leverage SentinelOne’s XDR platform.
Operating Details
Non-GAAP gross margin was 65.7%, significantly up from 54% reported in the year-ago quarter.
Research & development expenses, as a percentage of revenues, plunged 820 basis points (bps) on a year-over-year basis to 49%.
General & administrative expenses, as a percentage of revenues, were 27.5%, up 30 bps year over year.
Sales and marketing expenses, as a percentage of revenues, were 55.3%, significantly down from 73.4% reported in the year-ago quarter.
Total operating expenses were up 83.6% year over year to $86.5 million.
SentinelOne reported operating loss of $43.4 million in the reported quarter compared with an operating loss of $31 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2022, SentinelOne had cash, cash equivalents and short-term investments of $1.67 billion, unchanged as of Oct 31, 2021.
Free cash outflow was $7.1 million in the reported quarter.
Guidance
For first-quarter fiscal 2023, SentinelOne expects revenues in the range of $74-$75 million.
Non-GAAP gross margin is expected in the range of 63-64%.
For fiscal 2023, SentinelOne expects total revenues in the band of $366-$370 million.
Non-GAAP gross margin is expected within 65-67%.
Zacks Rank & A Key Stock to Consider
SentinelOne currently has a Zacks Rank #3 (Hold).
Micron (MU - Free Report) is a better-ranked stock in the Computer & Technology sector.
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SentinelOne (S) Q4 Earnings Beat Estimates, Revenues Up Y/Y
SentinelOne (S - Free Report) reported fourth-quarter fiscal 2022 adjusted loss of 17 cents per share, beating the Zacks Consensus Estimate by 5.6%. The company had reported a loss of 84 cents in the year-ago quarter.
SentinelOne reported revenues of $65.6 million, which surged 119.8% year over year, beating the consensus mark by 7.94%.
International revenues accounted for 31% of total revenues, reflecting growth of 140% year over year. SentinelOne’s go-to-market expansion initiatives in Europe, the Middle East, Africa, and Asia Pacific, as well as its growing brand awareness, contributed to strong growth across all major international geographies.
SentinelOne shares were down 1.26% in pre-market trading. SentinelOne shares have underperformed the Zacks Computer and Technology sector, as well as its competitor CrowdStrike (CRWD - Free Report) , year to date.
While SentinelOne shares declined 38.8%, the Computer and Technology sector has been down 20.8%. CrowdStrike has returned 7.9% on a year-to-date basis.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. Quote
Top-Line Details
As of Jan 31, 2022, SentinelOne’s annualized recurring revenue (“ARR”) increased 123% year over year to $292.3 million. The strong performance was driven by robust demand for SentinelOne’s offerings from new and existing customers as well as large and mid-sized enterprises seeking to modernize and automate their cybersecurity technology.
SentinelOne’s top-line growth benefited from an expanding customer base. Customer count grew more than 70% year over year to over 6,700 customers as of Jan 31, 2022.
Customers with ARR over $100K grew 137% year over year to 520. Dollar-based net revenue retention rate was 129% as of Jan 31, 2022.
SentinelOne is riding on a strong partner base. In fiscal 2022, the company’s strategic partners grew to more than 20% of its business, including Managed Security Service Providers, Incident Response (“IR”) firms, and Managed Detection and Response providers.
In the reported quarter, Mandiant selected SentinelOne as a global go-to-market partner.
Mandiant is one of the world’s leading IR firms. The partnership helps top incident response consultants leverage SentinelOne’s XDR platform.
Operating Details
Non-GAAP gross margin was 65.7%, significantly up from 54% reported in the year-ago quarter.
Research & development expenses, as a percentage of revenues, plunged 820 basis points (bps) on a year-over-year basis to 49%.
General & administrative expenses, as a percentage of revenues, were 27.5%, up 30 bps year over year.
Sales and marketing expenses, as a percentage of revenues, were 55.3%, significantly down from 73.4% reported in the year-ago quarter.
Total operating expenses were up 83.6% year over year to $86.5 million.
SentinelOne reported operating loss of $43.4 million in the reported quarter compared with an operating loss of $31 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2022, SentinelOne had cash, cash equivalents and short-term investments of $1.67 billion, unchanged as of Oct 31, 2021.
Free cash outflow was $7.1 million in the reported quarter.
Guidance
For first-quarter fiscal 2023, SentinelOne expects revenues in the range of $74-$75 million.
Non-GAAP gross margin is expected in the range of 63-64%.
For fiscal 2023, SentinelOne expects total revenues in the band of $366-$370 million.
Non-GAAP gross margin is expected within 65-67%.
Zacks Rank & A Key Stock to Consider
SentinelOne currently has a Zacks Rank #3 (Hold).
Micron (MU - Free Report) is a better-ranked stock in the Computer & Technology sector.
Currently, Micron has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Micron is set to report fiscal second-quarter 2022 results on Mar 29, 2022.