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) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
SentinelOne (S - Free Report) reported a fourth-quarter fiscal 2023 adjusted loss of 13 cents per share, beating the Zacks Consensus Estimate by 18.75%. The company reported a loss of 17 cents in the year-ago quarter.
It reported revenues of $126.1 million, which surged 92.1% year over year, beating the consensus mark by 0.91%.
Top-Line Details
In fourth-quarter fiscal 2023, SentinelOne’s annualized recurring revenues (“ARR”) increased 88% year over year to $548.7 million.
The company’s top-line growth benefited from an expanding customer base. Customer count grew 50% year over year to more than 10,000 customers at the end of the fourth quarter of fiscal 2023.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne added 750 new customers in the reported quarter. Customers with ARR over $100K grew 74% year over year to 905. Dollar-based net revenue retention rate was 130% at the end of the fiscal fourth quarter.
Singularity Cloud remained the company’s fastest-growing solution in the fourth quarter, followed by strong contributions from other emerging solutions like Data Retention, Vigilance MDR, and Identity Security.
Non-GAAP gross margin was 75.1%, significantly up from the 65.7% reported in the year-ago quarter. The year-over-year growth was attributed to increasing scale, growing platform adoption and improved operational efficiencies.
Research & development expenses, as a percentage of revenues, were 31.4% compared with 49% reported in the year-ago quarter.
General & administrative expenses, as a percentage of revenues, were 20.4%, down 710 basis points (bps) year over year.
Sales and marketing expenses, as a percentage of revenues, were 58%, up 270 bps on a year-over-year basis.
Total operating expenses surged 60% year over year to $138.4 million.
It reported an operating loss of $43.7 million in the reported quarter compared with an operating loss of $43.4 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2023, SentinelOne had cash, cash equivalents and short-term investments of $1.2 billion, unchanged sequentially.
Free cash outflow was $25.4 million in the reported quarter.
Guidance
For first-quarter fiscal 2024, SentinelOne expects revenues to be $137 million, indicating growth of roughly 90% year over year.
Non-GAAP gross margin is expected to be 73.5%.
For fiscal 2024, the company expects total revenues in the band of $631-$640 million, indicating growth of 105% over fiscal 2022.
Non-GAAP gross margin is expected within 73.5-74.5%.
Zacks Rank & Stocks to Consider
SentinelOne currently has a Zacks Rank #3 (Hold).
S shares were up 4.42% in pre-market trading. SentinelOne shares have declined 53.2% in the past year, underperforming the Zacks Computer and Technology sector’s return of 12.1%.
Image: Bigstock
SentinelOne (S) Q4 Earnings Beat Estimates, Revenues Up Y/Y
SentinelOne (S - Free Report) reported a fourth-quarter fiscal 2023 adjusted loss of 13 cents per share, beating the Zacks Consensus Estimate by 18.75%. The company reported a loss of 17 cents in the year-ago quarter.
It reported revenues of $126.1 million, which surged 92.1% year over year, beating the consensus mark by 0.91%.
Top-Line Details
In fourth-quarter fiscal 2023, SentinelOne’s annualized recurring revenues (“ARR”) increased 88% year over year to $548.7 million.
The company’s top-line growth benefited from an expanding customer base. Customer count grew 50% year over year to more than 10,000 customers at the end of the fourth quarter of fiscal 2023.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. Quote
SentinelOne added 750 new customers in the reported quarter. Customers with ARR over $100K grew 74% year over year to 905. Dollar-based net revenue retention rate was 130% at the end of the fiscal fourth quarter.
Singularity Cloud remained the company’s fastest-growing solution in the fourth quarter, followed by strong contributions from other emerging solutions like Data Retention, Vigilance MDR, and Identity Security.
Non-GAAP gross margin was 75.1%, significantly up from the 65.7% reported in the year-ago quarter. The year-over-year growth was attributed to increasing scale, growing platform adoption and improved operational efficiencies.
Research & development expenses, as a percentage of revenues, were 31.4% compared with 49% reported in the year-ago quarter.
General & administrative expenses, as a percentage of revenues, were 20.4%, down 710 basis points (bps) year over year.
Sales and marketing expenses, as a percentage of revenues, were 58%, up 270 bps on a year-over-year basis.
Total operating expenses surged 60% year over year to $138.4 million.
It reported an operating loss of $43.7 million in the reported quarter compared with an operating loss of $43.4 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2023, SentinelOne had cash, cash equivalents and short-term investments of $1.2 billion, unchanged sequentially.
Free cash outflow was $25.4 million in the reported quarter.
Guidance
For first-quarter fiscal 2024, SentinelOne expects revenues to be $137 million, indicating growth of roughly 90% year over year.
Non-GAAP gross margin is expected to be 73.5%.
For fiscal 2024, the company expects total revenues in the band of $631-$640 million, indicating growth of 105% over fiscal 2022.
Non-GAAP gross margin is expected within 73.5-74.5%.
Zacks Rank & Stocks to Consider
SentinelOne currently has a Zacks Rank #3 (Hold).
S shares were up 4.42% in pre-market trading. SentinelOne shares have declined 53.2% in the past year, underperforming the Zacks Computer and Technology sector’s return of 12.1%.
Some better-ranked stocks in the sector are Airbnb (ABNB - Free Report) , Arista Networks (ANET - Free Report) and Asure Software (ASUR - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Airbnb have declined 19.2% while shares of Arista Networks and Asure Software have gained 26.4% and 110.4%, respectively, in the past year.