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SentinelOne (S) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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SentinelOne (S - Free Report) reported an adjusted loss of 2 cents per share in fourth-quarter fiscal 2024, beating the Zacks Consensus Estimate by 50%. The company reported a loss of 13 cents in the year-ago quarter.
Revenues amounted to $174.2 million, up 38.1% year over year and beating the consensus mark by 2.76%. The upside is driven by the continued adoption of its AI-powered security solutions.
Top-Line Details
At the end of the fourth quarter of fiscal 2024, SentinelOne’s annualized recurring revenues (ARR) increased 39% year over year to $724.4 million.
SentinelOne added a record number of million-dollar customers in the fourth quarter, indicating strong momentum in customer acquisition. Existing customers showed strong expansion, contributing to the net new ARR growth.
SentinelOne, Inc. Price, Consensus and EPS Surprise
Customers with ARR of more than $100K rose 30% year over year to 1,133. The dollar-based net revenue retention rate was 115% at the end of the fiscal fourth quarter.
SentinelOne is riding on strong demand for its Cloud Security and Data Lake solutions, with Singularity Cloud emerging as its most rapidly-expanding solution.
The company continued to innovate its product offerings during the reported quarter, introducing solutions like Purple AI and expanding its platform capabilities to address evolving cybersecurity challenges.
Partnerships with Managed Security Service Providers and other ecosystem partners contributed to the company's growth by expanding its reach and customer base.
Operating Details
In fourth-quarter fiscal 2024, non-GAAP gross margin was 78%, significantly up from the 75% reported in the year-ago quarter.
Research & development expenses, as a percentage of revenues, were 23.2% compared with 31.4% reported in the year-ago quarter.
General & administrative expenses, as a percentage of revenues, were 16%, down 430 basis points (bps) year over year.
Sales and marketing expenses, as a percentage of revenues, were 47.9% compared with 58% reported in the year-ago quarter.
Total operating expenses increased 9.7% year over year to $151.8 million.
SentinelOne reported an operating loss of $15.9 million in the reported quarter, narrower than an operating loss of $43.7 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2024, SentinelOne had cash, cash equivalents and short-term investments of $1.1 billion, in line with the previous quarter's reported figure.
Free cash outflow was $10.6 million in the reported quarter compared with cash outflow of $26.4 million reported in the previous quarter.
Guidance
For the first quarter of fiscal 2025, SentinelOne expects revenues to be $181 million, indicating growth of nearly 36% year over year.
Non-GAAP gross margin is expected to be 77.5%.
For the fiscal 2025, the company expects total revenues between $812-$818 million, indicating growth of 31% at midpoint.
Non-GAAP gross margin is expected to be 77.5-78.5%.
Zacks Rank & Stocks to Consider
Currently, SentinelOne has a Zacks Rank #3 (Hold).
SentinelOne’s shares have declined 8.6% year to date compared Computer & Technology sector’s rise of 10.8%.
Image: Bigstock
SentinelOne (S) Q4 Earnings Beat Estimates, Revenues Up Y/Y
SentinelOne (S - Free Report) reported an adjusted loss of 2 cents per share in fourth-quarter fiscal 2024, beating the Zacks Consensus Estimate by 50%. The company reported a loss of 13 cents in the year-ago quarter.
Revenues amounted to $174.2 million, up 38.1% year over year and beating the consensus mark by 2.76%. The upside is driven by the continued adoption of its AI-powered security solutions.
Top-Line Details
At the end of the fourth quarter of fiscal 2024, SentinelOne’s annualized recurring revenues (ARR) increased 39% year over year to $724.4 million.
SentinelOne added a record number of million-dollar customers in the fourth quarter, indicating strong momentum in customer acquisition. Existing customers showed strong expansion, contributing to the net new ARR growth.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. Quote
Customers with ARR of more than $100K rose 30% year over year to 1,133. The dollar-based net revenue retention rate was 115% at the end of the fiscal fourth quarter.
SentinelOne is riding on strong demand for its Cloud Security and Data Lake solutions, with Singularity Cloud emerging as its most rapidly-expanding solution.
The company continued to innovate its product offerings during the reported quarter, introducing solutions like Purple AI and expanding its platform capabilities to address evolving cybersecurity challenges.
Partnerships with Managed Security Service Providers and other ecosystem partners contributed to the company's growth by expanding its reach and customer base.
Operating Details
In fourth-quarter fiscal 2024, non-GAAP gross margin was 78%, significantly up from the 75% reported in the year-ago quarter.
Research & development expenses, as a percentage of revenues, were 23.2% compared with 31.4% reported in the year-ago quarter.
General & administrative expenses, as a percentage of revenues, were 16%, down 430 basis points (bps) year over year.
Sales and marketing expenses, as a percentage of revenues, were 47.9% compared with 58% reported in the year-ago quarter.
Total operating expenses increased 9.7% year over year to $151.8 million.
SentinelOne reported an operating loss of $15.9 million in the reported quarter, narrower than an operating loss of $43.7 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2024, SentinelOne had cash, cash equivalents and short-term investments of $1.1 billion, in line with the previous quarter's reported figure.
Free cash outflow was $10.6 million in the reported quarter compared with cash outflow of $26.4 million reported in the previous quarter.
Guidance
For the first quarter of fiscal 2025, SentinelOne expects revenues to be $181 million, indicating growth of nearly 36% year over year.
Non-GAAP gross margin is expected to be 77.5%.
For the fiscal 2025, the company expects total revenues between $812-$818 million, indicating growth of 31% at midpoint.
Non-GAAP gross margin is expected to be 77.5-78.5%.
Zacks Rank & Stocks to Consider
Currently, SentinelOne has a Zacks Rank #3 (Hold).
SentinelOne’s shares have declined 8.6% year to date compared Computer & Technology sector’s rise of 10.8%.
Some better-ranked stocks in the broader technology sector are Bill Holdings (BILL - Free Report) , Bentley Systems (BSY - Free Report) and Cadence Design Systems (CDNS - Free Report) , each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bill Holdings shares have declined 17.2% in the year-to-date period. BILL’s long-term earnings growth rate is currently projected at 23.64%.
Bentley Systems shares have declined 6.8% in the year-to-date period. BSY's long-term earnings growth rate is currently projected at 12%.
Cadence Design Systems shares have gained 12.5% in the year-to-date period. CDNS’ long-term earnings growth rate is currently projected at 17.07%.