SentinelOne stock climbed after the cybersecurity firm reported a smaller-than-expected loss for the April-quarter while revenue topped Wall Street targets.
Mountain View, Calif.-based SentinelOne reported an adjusted loss of 21 cents a share vs. a $1.06 loss a year earlier. In the SentinelOne earnings report, revenue rose 109% to $78.3 million.
Analysts expected SentinelOne to report revenue of $74.7 million and a loss of 24 cents a share. Results were for the quarter ended April 30.
Annual recurring revenue from subscription-based services rose 110% to $339 million, topping estimates of $327.8 million.
"SentinelOne reported a relatively strong quarter, exceeding the high-end of guidance by 4.3%," said Wells Fargo analyst Andrew Nowinski in a report. "Total ARR increased 110% and management highlighted a large multi-million dollar deal with a U.S. federal agency. Gross margin also improved to 68.4%, though it still significantly lags peers. Management did guide the operating margin lower than expected in Q2."
SentinelOne Stock: Guidance Tops Views
For the current quarter ending in July, SentinelOne forecast revenue of $95.5 million at the midpoint of the company's forecast. Analysts were projecting revenue of $84.8 million.
"We're raising our revenue guidance to nearly triple-digit growth again this fiscal year, which now includes our acquisition of Attivo Networks," said Chief Executive Tomer Weingarten, in the earnings release.
SentinelOne reported earnings after the market close on Wednesday. SentinelOne stock initially dipped on the earnings release.
But S stock reversed up on Thursday. SentinelOne stock climbed 2.2% to close at 25.18 on the stock market today.
Heading into the SentinelOne earnings report, the stock owned a Relative Strength Rating of only 10 out of a best-possible 99, according to IBD Stock Checkup.
Competing With CrowdStrike
Meanwhile, SentinelOne competes with CrowdStrike Holdings and others. Earnings for CRWD stock are due Thursday.
SentinelOne's cybersecurity software detects malware on laptops, mobile phones and other "endpoints" that access corporate networks. Also, it's building a broad, threat-detection cybersecurity platform.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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