We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SentinelOne (S) Q3 Earnings Miss Estimates, Revenues Improve
Read MoreHide Full Article
SentinelOne (S - Free Report) reported a non-GAAP loss of 15 cents per share in third-quarter fiscal 2022, missing the Zacks Consensus Estimate by 21.05%. The company had reported a loss of 72 cents in the year-ago quarter.
SentinelOne reported revenues of $56 million, beating the Zacks Consensus Estimate by 12.71% and increasing 128% year over year.
Quarter Details
As of Oct 31, 2021, SentinelOne’s annualized recurring revenue (ARR) increased 131% year over year to $237 million.
In the reported quarter, SentinelOne announced the integration of the new Network Detection and Response solutions with Arista Networks, Fidelis Cybersecurity and Vectra AI, thus expanding its partner ecosystem.
SentinelOne, Inc. Price, Consensus and EPS Surprise
In the third quarter, SentinelOne entered into a strategic partnership with Kroll. The partnership is anticipated to help the company develop solutions to accelerate investigations and respond to advanced cyber threats and ransomware attacks.
Non-GAAP gross profit margin declined 870 basis points (bps) year over year to 66.8% compared with 58.1% in the year-ago quarter.
Research & development expenses, as a percentage of revenues, plunged 1300 bps on a year-over-year basis to 45.9%. General & administrative expenses, as a percentage of revenues, were 25.8%, down 180 bps year over year. Sales and marketing expenses, as a percentage of revenues, reached 64.2% on a year-over-year basis.
Total operating expenses, as reported in the third quarter, amounted to $76.1 million, up 93.4% year over year.
The operating loss was $38.7 million in the reported quarter compared with an operating loss of $25.1 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Oct 31, 2021, SentinelOne had cash, cash equivalents and short-term investments of $1,664.86 million compared with $395.836 million as of Jan 31, 2021.
Free cash outflow was $20.68 billion in the reported quarter compared with the free cash outflow of $19.84 million in the year-ago quarter.
Guidance
For fourth-quarter fiscal 2022, SentinelOne expects revenues in the range of $60-$61 million.
Non-GAAP gross margin is expected in the range of 62%-63% for the fiscal fourth quarter.
For fiscal 2022, SentinelOne expects total revenues in the band of $199-$200 million.
Non-GAAP gross margin is forecast within 61-62% for fiscal 2022.
Zacks Rank & Stocks to Consider
SentinelOne currently has a Zacks Rank #3 (Hold).
SentinelOne’s shares have returned 20.1% year to date compared with the Zacks IT Services industry’s increase of 0.9% and Computer & Technology sector’s growth of 21.4%.
Some better-ranked stocks in the Computer & Technology sector are Arrow Electronics (ARW - Free Report) , Salesforce (CRM - Free Report) and Advanced Micro Devices (AMD - Free Report) .
ARW has increased 28.7% year to date compared with the Zacks Electronics-Parts Distribution industry’s growth of 30.3% and the Computer & Technology sector’s return of 21.4%.
Salesforce, sporting a Zacks Rank #1, has a long-term earnings growth rate of 16.75%.
CRM is up 20% against the Zacks Computer Software industry’s decline of 35.8% and Computer & Technology sector’s return of 21.4% year to date.
The long-term earnings growth rate for AMD, a Zacks Rank #2 (Buy) stock, is currently pegged at 46.2%.
AMD has surged 57.9% year to date compared with the Electronics-Semiconductors industry’s growth of 32.5% and the Computer & Technology sector’s return of 21.4%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SentinelOne (S) Q3 Earnings Miss Estimates, Revenues Improve
SentinelOne (S - Free Report) reported a non-GAAP loss of 15 cents per share in third-quarter fiscal 2022, missing the Zacks Consensus Estimate by 21.05%. The company had reported a loss of 72 cents in the year-ago quarter.
SentinelOne reported revenues of $56 million, beating the Zacks Consensus Estimate by 12.71% and increasing 128% year over year.
Quarter Details
As of Oct 31, 2021, SentinelOne’s annualized recurring revenue (ARR) increased 131% year over year to $237 million.
In the reported quarter, SentinelOne announced the integration of the new Network Detection and Response solutions with Arista Networks, Fidelis Cybersecurity and Vectra AI, thus expanding its partner ecosystem.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. Quote
In the third quarter, SentinelOne entered into a strategic partnership with Kroll. The partnership is anticipated to help the company develop solutions to accelerate investigations and respond to advanced cyber threats and ransomware attacks.
Non-GAAP gross profit margin declined 870 basis points (bps) year over year to 66.8% compared with 58.1% in the year-ago quarter.
Research & development expenses, as a percentage of revenues, plunged 1300 bps on a year-over-year basis to 45.9%. General & administrative expenses, as a percentage of revenues, were 25.8%, down 180 bps year over year. Sales and marketing expenses, as a percentage of revenues, reached 64.2% on a year-over-year basis.
Total operating expenses, as reported in the third quarter, amounted to $76.1 million, up 93.4% year over year.
The operating loss was $38.7 million in the reported quarter compared with an operating loss of $25.1 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Oct 31, 2021, SentinelOne had cash, cash equivalents and short-term investments of $1,664.86 million compared with $395.836 million as of Jan 31, 2021.
Free cash outflow was $20.68 billion in the reported quarter compared with the free cash outflow of $19.84 million in the year-ago quarter.
Guidance
For fourth-quarter fiscal 2022, SentinelOne expects revenues in the range of $60-$61 million.
Non-GAAP gross margin is expected in the range of 62%-63% for the fiscal fourth quarter.
For fiscal 2022, SentinelOne expects total revenues in the band of $199-$200 million.
Non-GAAP gross margin is forecast within 61-62% for fiscal 2022.
Zacks Rank & Stocks to Consider
SentinelOne currently has a Zacks Rank #3 (Hold).
SentinelOne’s shares have returned 20.1% year to date compared with the Zacks IT Services industry’s increase of 0.9% and Computer & Technology sector’s growth of 21.4%.
Some better-ranked stocks in the Computer & Technology sector are Arrow Electronics (ARW - Free Report) , Salesforce (CRM - Free Report) and Advanced Micro Devices (AMD - Free Report) .
Currently, Arrow Electronics sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The long-term earnings growth rate is pegged at 27.36%.
ARW has increased 28.7% year to date compared with the Zacks Electronics-Parts Distribution industry’s growth of 30.3% and the Computer & Technology sector’s return of 21.4%.
Salesforce, sporting a Zacks Rank #1, has a long-term earnings growth rate of 16.75%.
CRM is up 20% against the Zacks Computer Software industry’s decline of 35.8% and Computer & Technology sector’s return of 21.4% year to date.
The long-term earnings growth rate for AMD, a Zacks Rank #2 (Buy) stock, is currently pegged at 46.2%.
AMD has surged 57.9% year to date compared with the Electronics-Semiconductors industry’s growth of 32.5% and the Computer & Technology sector’s return of 21.4%.