SentinelOne (S) reported second-quarter earnings and revenue on Tuesday that topped Wall Street estimates. The cybersecurity firm’s guidance for SentinelOne shares only missed expectations amid insights it can get from rival CrowdStrike Holdings‘ (CRWD) recent setback.
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Meanwhile, SentinelOne outperformed on a key financial metric based on subscriptions.
The company reported SentinelOne earnings for the July quarter after the market closed. SentinelOne said it earned 1 cent on an adjusted basis, compared with a loss of 8 cents a year earlier.
The cybersecurity company posted revenue of $199 million, up 33 percent. SentinelOne stock analysts had expected the Mountain View, Calif.-based company to report revenue of $197.3 million and break even.
SentinelOne Stock: Key Growth Measure
Additionally, SentinelOne reported that annual recurring revenue from subscription-based services increased 32% to $806 million, above estimates of $801.8 million.
For the current quarter ending October, SentinelOne forecast revenue of $209.5 million, in line with estimates of $209.4 million.
On the stock exchange today, SentinelOne shares fell by more than 1% to 24.34 during the extended trading day.
In 2024, SentinelOne stock fell nearly 10%. However, SentinelOne stock rebounded after the global IT outage on July 19 with a CrowdStrike software update.
CrowdStrike earnings are expected after the market close on Wednesday. Many analysts are expecting a full-year guidance cut from CrowdStrike.
SentinelOne’s software detects malware on laptops, mobile phones and other “endpoints” that access corporate networks, and builds a broad cybersecurity threat detection platform.
SentinelOne Stock Technical Ratings
There are also competitors of SentinelOne: Microsoft (MSFT) and Palo Alto Networks (PANW sign).
Meanwhile, SentinelOne stock has a Relative Strength Rating of 85 out of a possible 99, according to IBD Stock Check-up.
In April, the company lowered its full-year revenue guidance, triggering a sell-off.
SentinelOne is also one of the cybersecurity stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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