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It expects total revenues of $197 million for the quarter to be reported. The Zacks Consensus Estimate for revenues is pegged at $197 million, suggesting growth of 31.84% from the figure reported in the year-ago quarter.
The consensus mark for loss remained at 1 cent per share in the past 30 days. S reported a loss of 8 cents per share in the year-ago quarter.
SentinelOne's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an earnings surprise of 64.79%, on average.
Let’s see how things have shaped up for this announcement.
SentinelOne’s fiscal second-quarter performance is likely to have suffered from a challenging macroeconomic environment and tighter financial conditions, which continue to impact customer buying behavior. High interest rates and persistent inflation continue to negatively impact enterprise spending. These factors, along with a revamp of SentinelOne’s go-to-market strategy, are expected to hurt Annualized Recurring Revenue (ARR) growth in the to-be-reported quarter.
Annualized Recurring Revenue grew 35% year over year to $762 million in the first quarter of fiscal 2024. The rate was lower than the ARR growth of 39%, 42% and 47% reported in the fourth quarter of fiscal 2024, third-quarter fiscal 2024 and second-quarter fiscal 2024, respectively.
However, momentum with large enterprise customers is expected to have continued in the second quarter of fiscal 2025. Customers with more than $100,000 in ARR grew 30% year over year to 1,193 in the fiscal first quarter. ARR per customer increased by double digits year over year, driven by strong platform adoption and success with larger enterprises.
In the first quarter of fiscal 2025, Singularity Data Lake was its fastest-growing solution (up triple-digits), followed by Cloud, Identity and others. These factors are expected to have driven top-line growth in the to-be-reported quarter.
SentinelOne Shares Underperform Sector
SentinelOne shares have declined 10.5%, underperforming the Zacks Computer & Technology sector’s return of 22.7% and the S&P 500’s 17.9%.
Year-to-Date Performance Chart
Image Source: Zacks Investment Research
S stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
The stock is trading at a premium with a forward 12-month P/S of 8.25X compared with the Zacks Computer and Technology sector’s 6.33X.
P/S Ratio (F12M)
Image Source: Zacks Investment Research
SentinelOne’s Portfolio Strength Aids Long-term Prospects
SentinelOne’s long-term growth trajectory remains intact, driven by an innovative portfolio and strong partner base that includes the likes of Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) and ServiceNow (NOW - Free Report) . These factors have been helping it to win customers.
SentinelOne’s latest solution, Singularity Cloud Native Security, which is built on the company’s acquisition of PingSafe in February 2024, expanded its portfolio. It recently announced the availability of the solution in both the United States and Europe.
Singularity Cloud Native Security, which is an agentless cloud native application protection platform, has been rated as the best in the industry by real users as part of the 2024 G2 Summer Grid Reports.
Singularity Cloud Workload Security for Serverless Containers provides real-time, AI-powered protection for containerized workloads running on Amazon Web Service Fargate for Amazon ECS and Amazon EKS. The SentinelOne App seamlessly syncs threats into ServiceNow Incident Response for security operations and incident response.
The Singularity Platform is enhanced by Purple AI, SentinelOne’s advanced generative AI security analyst. Purple AI significantly accelerates threat hunting and investigations, reduces Mean Time to Response and provides comprehensive end-to-end enterprise security. This integration enables security teams to automate threat detection, triage and investigation processes using natural language translation, summarization and guided hunting capabilities.
Apart from access to SentinelOne’s threat intelligence source, Purple also has access to Google’s trusted and world-leading threat intelligence by Mandiant, which is available on the Singularity platform. It recently expanded collaboration with Google Cloud to enable stronger enterprise cyber defense.
SentinelOne is also strengthening its footprint in the small and medium-sized business space with its new Singularity Control offering.
Conclusion
SentinelOne is a risky bet in the near term, given its modest growth prospect and a stretched valuation.
SentinelOne currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for more favorable entry points in the stock. However, investors who already own the stock might expect the company's growth prospects to be rewarding over a longer term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image: Bigstock
SentinelOne (S) to Report Q2 Earnings: To Buy or Not to Buy?
SentinelOne (S - Free Report) is set to release second-quarter fiscal 2025 results on Aug 27.
It expects total revenues of $197 million for the quarter to be reported. The Zacks Consensus Estimate for revenues is pegged at $197 million, suggesting growth of 31.84% from the figure reported in the year-ago quarter.
The consensus mark for loss remained at 1 cent per share in the past 30 days. S reported a loss of 8 cents per share in the year-ago quarter.
SentinelOne's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an earnings surprise of 64.79%, on average.
Let’s see how things have shaped up for this announcement.
SentinelOne, Inc. Price and EPS Surprise
SentinelOne, Inc. price-eps-surprise | SentinelOne, Inc. Quote
Factors to Note
SentinelOne’s fiscal second-quarter performance is likely to have suffered from a challenging macroeconomic environment and tighter financial conditions, which continue to impact customer buying behavior. High interest rates and persistent inflation continue to negatively impact enterprise spending. These factors, along with a revamp of SentinelOne’s go-to-market strategy, are expected to hurt Annualized Recurring Revenue (ARR) growth in the to-be-reported quarter.
Annualized Recurring Revenue grew 35% year over year to $762 million in the first quarter of fiscal 2024. The rate was lower than the ARR growth of 39%, 42% and 47% reported in the fourth quarter of fiscal 2024, third-quarter fiscal 2024 and second-quarter fiscal 2024, respectively.
However, momentum with large enterprise customers is expected to have continued in the second quarter of fiscal 2025. Customers with more than $100,000 in ARR grew 30% year over year to 1,193 in the fiscal first quarter. ARR per customer increased by double digits year over year, driven by strong platform adoption and success with larger enterprises.
In the first quarter of fiscal 2025, Singularity Data Lake was its fastest-growing solution (up triple-digits), followed by Cloud, Identity and others. These factors are expected to have driven top-line growth in the to-be-reported quarter.
SentinelOne Shares Underperform Sector
SentinelOne shares have declined 10.5%, underperforming the Zacks Computer & Technology sector’s return of 22.7% and the S&P 500’s 17.9%.
Year-to-Date Performance Chart
Image Source: Zacks Investment Research
S stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
The stock is trading at a premium with a forward 12-month P/S of 8.25X compared with the Zacks Computer and Technology sector’s 6.33X.
P/S Ratio (F12M)
Image Source: Zacks Investment Research
SentinelOne’s Portfolio Strength Aids Long-term Prospects
SentinelOne’s long-term growth trajectory remains intact, driven by an innovative portfolio and strong partner base that includes the likes of Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) and ServiceNow (NOW - Free Report) . These factors have been helping it to win customers.
SentinelOne’s latest solution, Singularity Cloud Native Security, which is built on the company’s acquisition of PingSafe in February 2024, expanded its portfolio. It recently announced the availability of the solution in both the United States and Europe.
Singularity Cloud Native Security, which is an agentless cloud native application protection platform, has been rated as the best in the industry by real users as part of the 2024 G2 Summer Grid Reports.
Singularity Cloud Workload Security for Serverless Containers provides real-time, AI-powered protection for containerized workloads running on Amazon Web Service Fargate for Amazon ECS and Amazon EKS. The SentinelOne App seamlessly syncs threats into ServiceNow Incident Response for security operations and incident response.
The Singularity Platform is enhanced by Purple AI, SentinelOne’s advanced generative AI security analyst. Purple AI significantly accelerates threat hunting and investigations, reduces Mean Time to Response and provides comprehensive end-to-end enterprise security. This integration enables security teams to automate threat detection, triage and investigation processes using natural language translation, summarization and guided hunting capabilities.
Apart from access to SentinelOne’s threat intelligence source, Purple also has access to Google’s trusted and world-leading threat intelligence by Mandiant, which is available on the Singularity platform. It recently expanded collaboration with Google Cloud to enable stronger enterprise cyber defense.
SentinelOne is also strengthening its footprint in the small and medium-sized business space with its new Singularity Control offering.
Conclusion
SentinelOne is a risky bet in the near term, given its modest growth prospect and a stretched valuation.
SentinelOne currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for more favorable entry points in the stock. However, investors who already own the stock might expect the company's growth prospects to be rewarding over a longer term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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