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SentinelOne (S) Q3 Earnings Beat Estimates, Revenues Up Y/Y
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SentinelOne (S - Free Report) reported a third-quarter fiscal 2024 adjusted loss of 3 cents per share, beating the Zacks Consensus Estimate by 62.5%. The company reported a loss of 16 cents in the year-ago quarter.
Revenues amounted to $164.2 million, up 42.4% year over year and beating the consensus mark by 5.13%.
The stock moved up 19% in pre-market trading. SentinelOne’s shares have surged 37.1% year to date compared with the Zacks Computers - IT Services industry’s rally of 32.1%.
Top-Line Details
In the third quarter of fiscal 2024, SentinelOne’s annualized recurring revenues (ARR) increased 43% year over year to $663.9 million.
SentinelOne, Inc. Price, Consensus and EPS Surprise
The company’s top line benefited from an expanding customer base. The customer count grew to more than 11,500 customers at the end of the third quarter of fiscal 2024.
Customers with ARR of more than $100K rose 33% year over year. The dollar-based net revenue retention rate was 150% at the end of the fiscal third quarter.
The company is riding on the increasing demand for its Cloud Security and Data Lake solutions. Singularity Cloud remained the company’s fastest-growing solution in the fourth third quarter of 2024.
Non-GAAP gross margin was 79%, significantly up from the 71% reported in the year-ago quarter.
Research & development expenses, as a percentage of revenues, were 22.1% compared with 32.8% reported in the year-ago quarter.
General & administrative expenses, as a percentage of revenues, were 18.4%, down 350 basis points (bps) year over year.
Sales and marketing expenses, as a percentage of revenues, were 49.9% compared with 59.8% reported in the year-ago quarter.
Total operating expenses increased 12.3% year over year to $148.3 million.
SentinelOne reported an operating loss of $18.2 million in the reported quarter, narrower than an operating loss of $132 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Oct 31, 2023, SentinelOne had cash, cash equivalents and short-term investments of $1.1 billion.
Free cash outflow was $26.4 million in the reported quarter.
Guidance
For the fourth quarter of fiscal 2024, SentinelOne expects revenues to be $169 million, indicating growth of nearly 25.4% year over year.
Non-GAAP gross margin is expected to be 77.5%.
For the fiscal 2024, the company expects total revenues to be $616 million, indicating growth of 31.5% from fiscal 2023 levels.
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SentinelOne (S) Q3 Earnings Beat Estimates, Revenues Up Y/Y
SentinelOne (S - Free Report) reported a third-quarter fiscal 2024 adjusted loss of 3 cents per share, beating the Zacks Consensus Estimate by 62.5%. The company reported a loss of 16 cents in the year-ago quarter.
Revenues amounted to $164.2 million, up 42.4% year over year and beating the consensus mark by 5.13%.
The stock moved up 19% in pre-market trading. SentinelOne’s shares have surged 37.1% year to date compared with the Zacks Computers - IT Services industry’s rally of 32.1%.
Top-Line Details
In the third quarter of fiscal 2024, SentinelOne’s annualized recurring revenues (ARR) increased 43% year over year to $663.9 million.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. Quote
The company’s top line benefited from an expanding customer base. The customer count grew to more than 11,500 customers at the end of the third quarter of fiscal 2024.
Customers with ARR of more than $100K rose 33% year over year. The dollar-based net revenue retention rate was 150% at the end of the fiscal third quarter.
The company is riding on the increasing demand for its Cloud Security and Data Lake solutions. Singularity Cloud remained the company’s fastest-growing solution in the fourth third quarter of 2024.
Non-GAAP gross margin was 79%, significantly up from the 71% reported in the year-ago quarter.
Research & development expenses, as a percentage of revenues, were 22.1% compared with 32.8% reported in the year-ago quarter.
General & administrative expenses, as a percentage of revenues, were 18.4%, down 350 basis points (bps) year over year.
Sales and marketing expenses, as a percentage of revenues, were 49.9% compared with 59.8% reported in the year-ago quarter.
Total operating expenses increased 12.3% year over year to $148.3 million.
SentinelOne reported an operating loss of $18.2 million in the reported quarter, narrower than an operating loss of $132 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Oct 31, 2023, SentinelOne had cash, cash equivalents and short-term investments of $1.1 billion.
Free cash outflow was $26.4 million in the reported quarter.
Guidance
For the fourth quarter of fiscal 2024, SentinelOne expects revenues to be $169 million, indicating growth of nearly 25.4% year over year.
Non-GAAP gross margin is expected to be 77.5%.
For the fiscal 2024, the company expects total revenues to be $616 million, indicating growth of 31.5% from fiscal 2023 levels.
Non-GAAP gross margin is expected to be 77%.
Zacks Rank & Stocks to Consider
SentinelOne currently has a Zacks Rank #3 (Hold).
NetEase (NTES - Free Report) , Intel (INTC - Free Report) and Pinterest (PINS - Free Report) are better-ranked stocks that investors can consider from the broader sector. NetEase and Intel each sport a Zacks Rank #1 (Strong Buy), while Pinterest carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NTES, INTC and PINS shares have returned 41.4%, 58.5% and 40.4%, respectively, on a year-to-date basis.
Long-term earnings growth rates for Pinterest, NetEase, and Intel are pegged at 35.87%,15.98%, and 14.18%, respectively.