Shares in cybersecurity firm SentinelOne jumped on third-quarter earnings and revenue that topped Wall Street estimates while guidance for SentinelOne stock came in above expectations.
The company reported October quarter earnings after the market close on Tuesday. SentinelOne recorded an adjusted loss of 3 cents a share for the quarter ended Oct. 31 vs. a 16-cent loss a year earlier.
SentinelOne posted revenue of $164.2 million, up 42%. Further, SentinelOne stock analysts expected the Mountain View, Calif.-based company to report revenue of $156.1 million and a loss of 8 cents a share.
Also, SentinelOne said annualized recurring revenue from subscription-based services increased 43% to $663.9 million.
For the current quarter ending in January, SentinelOne predicted revenue of $169 million vs. estimates of $166.5 million. For fiscal 2024, SentinelOne guided to revenue of $616 million, up 46% year-over-year, versus consensus estimates of $605 million.
"SentinelOne reported solid Q3 results, exceeding expectations across most metrics," said Wells Fargo analyst Andrew Nowinski in a report. "The company appears to be on the road to recovery following the miss in Q1, though management is not expecting to reach operating profitability until fiscal 2026."
SentinelOne Stock In IBD 50
On the stock market today, SentinelOne stock jumped 16.6% to close at 23.32. S stock ranks No. 30 in the IBD 50 roster of growth stocks.
Further, SentinelOne stock is up 37% this year prior to the earnings report.
SentinelOne's software detects malware on laptops, mobile phones and other "endpoints" that access corporate networks. Also, it's building a broad, threat-detection cybersecurity platform.
Rivals include CrowdStrike Holdings and Microsoft.
S stock owns a Relative Strength Rating of 93 out of a best-possible 99, according to IBD Stock Check-up.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
