SentinelOne stock tumbled after the cybersecurity firm reported third quarter revenue that edged by Wall Street estimates while guidance came in slightly above views.
The company reported October-ended quarter SentinelOne earnings after the market close on Wednesday. SentinelOne said it broke even on an adjusted basis vs. an 3-cent loss a year earlier.
The cybersecurity company posted revenue of $210.6 million, up 28%. SentinelOne stock analysts expected the Mountain View, Calif.-based company to report revenue of $209.7 million and a 1-cent loss.
SentinelOne Stock: Key Metric
SentinelOne said annualized recurring revenue from subscription-based services increased 29% to $859.7 million, just above estimates of $857 million.
For the current quarter ending in January, SentinelOne predicted revenue of $222 million, just above estimates of $220.6 million.
"Although Q3 results on net new ARR, revenue were a tad above consensus, we think the buy-side was expecting a significantly stronger print, also with respect to the 2025 outlook, which saw only minor upward revisions," said TD Cowen analyst Shaul Eyal in a report. "But as win rates and new logo momentum remain strong, we see early signs that SentinelOne can potentially take share in the endpoint upmarket long term."
On the stock market today, SentinelOne stock tumbled over 14% to 24.60 in early trading.
CrowdStrike IT Outage
In 2024, SentinelOne stock had gained nearly 4%. The company'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.
Also, SentinelOne rivals include CrowdStrike Holding, Microsoft and Palo Alto Networks .
Analysts still expect upside for SentinelOne from the CrowdStrike IT outage in July.
"In our view, management was signaling that displacement conversations are typically taking longer than expected, but they sound encouraged that they will take their fair share of business," said UBS analyst Roger Boyd in a report.
Meanwhile, SentinelOne stock owns a Relative Strength Rating of 85 out of a best-possible 99, according to IBD Stock Checkup.
Further, SentinelOne is among cybersecurity stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
