Shares in SentinelOne crashed on Friday after the cybersecurity firm reported a smaller-than-expected loss for the first quarter, but revenue missed Wall Street targets. The cybersecurity firm's sales outlook also fell short of views, sending SentinelOne stock down.
S stock plummeted 35.1% to close at 13.44 on the stock market today. SentinelOne earnings were released after the market close on Thursday.
"SentinelOne reported disappointing Q1 results, with revenue missing guidance by 3%," Wells Fargo analyst Andrew Nowinski said in a note to clients. He added: "Management said they are seeing smaller deal sizes, longer sales cycles, and lower pipeline conversion rates, in addition to lower usage and consumption trends."
For the quarter ended April 30, Mountain View, Calif.-based SentinelOne reported an adjusted loss of 15 cents a share vs. a 21-cent loss a year earlier. Also, the SentinelOne earnings report showed revenue rose 70% to $133.4 million. Analysts expected SentinelOne to report revenue of $136.6 million and a loss of 17 cents a share.
Annualized recurring revenue from subscriptions increased 75% to $563.6 million, missing estimates of $592.3 million.
For the current quarter ending in July, SentinelOne predicted revenue of $141 million vs. estimates of $152.1 million.
SentinelOne Stock Was Up 40% For Year
Shares had gained 40% in 2023 prior to the earnings report.
SentinelOne stock ranks No. 34 in the IBD 50 roster of growth companies.
Heading into the SentinelOne earnings report, the cybersecurity stock owned a Relative Strength Rating of only 91 out of a best-possible 99, according to IBD Stock Checkup.
The cybersecurity firm'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.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
