We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SentinelOne Beats Q2 Earnings Estimates: Guidance Raise to Lift Shares?
Read MoreHide Full Article
SentinelOne (S - Free Report) reported earnings of 1 cent per share in second-quarter fiscal 2025, comfortably beating the Zacks Consensus Estimate of a loss of 1 cent. The company reported a loss of 8 cents in the year-ago quarter.
Revenues were $199 million, up 33% year over year and beating the consensus mark by 0.98%. The upside can be attributed to the continued adoption of its AI-powered security solutions.
SentinelOne raised its top-line guidance for fiscal 2025 based on the strong second-quarter results and go-to-market momentum.
SentinelOne’s shares have declined 9.8% year to date compared to the Zacks Computer & Technology sector’s rise of 21.3%. We expect strong second quarter results and raised guidance to help SentinelOne shares recover in the near term.
SentinelOne, Inc. Price, Consensus and EPS Surprise
At the end of second-quarter fiscal 2025, SentinelOne’s annualized recurring revenues (ARR) increased 32% year over year to $806 million. The upside was driven by a mix of new customer acquisitions and expansion within existing customer accounts.
Net new ARR increased by 16% sequentially, driven by stronger new business generation.
SentinelOne experienced strong momentum among large enterprises, with customers generating Annual Recurring Revenue (ARR) of more than $100K that rose 24% year over year to 1,233.
The company is riding on strong demand for its Cloud Security and Data Lake solutions, with Singularity Cloud emerging as its most rapidly-expanding solution.
SentinelOne’s Singularity platform continued to gain traction, with significant growth in customer adoption and a high attach rate for new solutions like Purple AI and (Cloud-Native Application Protection Platform) CNAPP.
S’ portfolio is helping it to expand its clientele. It is enhancing end-to-end threat detection and automated response solutions through partnerships with Alphabet’s (GOOGL - Free Report) cloud business Google Cloud.
In the second quarter, SentinelOne and Alphabet’s Google Cloud announced a strengthened partnership. Per the terms, GOOGL integrated SentinelOne’s AI-driven endpoint protection with Google Cloud’s threat intelligence to enhance enterprise cyber defense.
SentinelOne’s Operating Details
In second-quarter fiscal 2025, the non-GAAP gross margin was 80%, significantly up from the 77% reported in the year-ago quarter.
Research & development expenses, as a percentage of revenues, were 21% compared with 25.6% reported in the year-ago quarter.
General & administrative expenses, as a percentage of revenues, were 12.4%, contracting 620 basis points (bps) year over year.
Sales and marketing expenses, as a percentage of revenues, were 49.3% compared with 55% reported in the year-ago quarter.
Total operating expenses increased 10.9% year over year to $164.5 million.
SentinelOne reported an operating loss of $6.4 million in the reported quarter, narrower than an operating loss of $33.4 million reported in the year-ago quarter.
SentinelOne’s Balance Sheet & Cash Flow
As of Jul. 31, 2024, SentinelOne had cash, cash equivalents and short-term investments of $ 1.1 billion, in line with the previous quarter’s reported figure.
Free cash outflow was $5.4 million in the reported quarter compared with cash flow of $33.7 million reported in the previous quarter. The free cash outflow margin was 3%.
S Raises Fiscal 2025 Guidance
For third-quarter fiscal 2025, SentinelOne expects revenues to be $209.5 million, indicating growth of nearly 28% year over year.
Non-GAAP gross margin is expected to be 79%.
For the fiscal 2025, the company expects total revenues to be $815 million, suggesting growth of 31% from fiscal 2023 levels.
Non-GAAP gross margin is expected to be 79%.
Zacks Rank & Stocks to Consider
Currently, SentinelOne has a Zacks Rank #3 (Hold).
ADOBE (ADBE - Free Report) and Smartsheet (SMAR - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
Image: Bigstock
SentinelOne Beats Q2 Earnings Estimates: Guidance Raise to Lift Shares?
SentinelOne (S - Free Report) reported earnings of 1 cent per share in second-quarter fiscal 2025, comfortably beating the Zacks Consensus Estimate of a loss of 1 cent. The company reported a loss of 8 cents in the year-ago quarter.
Revenues were $199 million, up 33% year over year and beating the consensus mark by 0.98%. The upside can be attributed to the continued adoption of its AI-powered security solutions.
SentinelOne raised its top-line guidance for fiscal 2025 based on the strong second-quarter results and go-to-market momentum.
SentinelOne’s shares have declined 9.8% year to date compared to the Zacks Computer & Technology sector’s rise of 21.3%. We expect strong second quarter results and raised guidance to help SentinelOne shares recover in the near term.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. Quote
SentinelOne’s Q2 Top-Line Details
At the end of second-quarter fiscal 2025, SentinelOne’s annualized recurring revenues (ARR) increased 32% year over year to $806 million. The upside was driven by a mix of new customer acquisitions and expansion within existing customer accounts.
Net new ARR increased by 16% sequentially, driven by stronger new business generation.
SentinelOne experienced strong momentum among large enterprises, with customers generating Annual Recurring Revenue (ARR) of more than $100K that rose 24% year over year to 1,233.
The company is riding on strong demand for its Cloud Security and Data Lake solutions, with Singularity Cloud emerging as its most rapidly-expanding solution.
SentinelOne’s Singularity platform continued to gain traction, with significant growth in customer adoption and a high attach rate for new solutions like Purple AI and (Cloud-Native Application Protection Platform) CNAPP.
S’ portfolio is helping it to expand its clientele. It is enhancing end-to-end threat detection and automated response solutions through partnerships with Alphabet’s (GOOGL - Free Report) cloud business Google Cloud.
In the second quarter, SentinelOne and Alphabet’s Google Cloud announced a strengthened partnership. Per the terms, GOOGL integrated SentinelOne’s AI-driven endpoint protection with Google Cloud’s threat intelligence to enhance enterprise cyber defense.
SentinelOne’s Operating Details
In second-quarter fiscal 2025, the non-GAAP gross margin was 80%, significantly up from the 77% reported in the year-ago quarter.
Research & development expenses, as a percentage of revenues, were 21% compared with 25.6% reported in the year-ago quarter.
General & administrative expenses, as a percentage of revenues, were 12.4%, contracting 620 basis points (bps) year over year.
Sales and marketing expenses, as a percentage of revenues, were 49.3% compared with 55% reported in the year-ago quarter.
Total operating expenses increased 10.9% year over year to $164.5 million.
SentinelOne reported an operating loss of $6.4 million in the reported quarter, narrower than an operating loss of $33.4 million reported in the year-ago quarter.
SentinelOne’s Balance Sheet & Cash Flow
As of Jul. 31, 2024, SentinelOne had cash, cash equivalents and short-term investments of $ 1.1 billion, in line with the previous quarter’s reported figure.
Free cash outflow was $5.4 million in the reported quarter compared with cash flow of $33.7 million reported in the previous quarter. The free cash outflow margin was 3%.
S Raises Fiscal 2025 Guidance
For third-quarter fiscal 2025, SentinelOne expects revenues to be $209.5 million, indicating growth of nearly 28% year over year.
Non-GAAP gross margin is expected to be 79%.
For the fiscal 2025, the company expects total revenues to be $815 million, suggesting growth of 31% from fiscal 2023 levels.
Non-GAAP gross margin is expected to be 79%.
Zacks Rank & Stocks to Consider
Currently, SentinelOne has a Zacks Rank #3 (Hold).
ADOBE (ADBE - Free Report) and Smartsheet (SMAR - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
ADOBE and Smartsheet carry a Zacks Rank 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Adobe’s shares have declined 5.7% year to date. ADBE is scheduled to release third-quarter fiscal 2024 results on Sep. 12.
Smartsheet shares have surged 44.8% year to date. SMAR is scheduled to release second-quarter fiscal 2025 results on Sep 5.