Cyber security company SentinelOne (NYSE: S) will be reporting earnings tomorrow after market hours. Here’s what to expect.
SentinelOne beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $198.9 million, up 33.1% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates. It added 40 enterprise customers paying more than $100,000 annually to reach a total of 1,233.
Is SentinelOne a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting SentinelOne’s revenue to grow 27.8% year on year to $209.7 million, slowing from the 42.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SentinelOne has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.5% on average.
Looking at SentinelOne’s peers in the cybersecurity segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Varonis delivered year-on-year revenue growth of 21.1%, beating analysts’ expectations by 4.7%, and CrowdStrike reported revenues up 28.5%, topping estimates by 2.8%. Varonis traded down 10.7% following the results while CrowdStrike was also down 4.6%.
Read our full analysis of Varonis’s results here and CrowdStrike’s results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 17.6% on average over the last month. SentinelOne is up 7% during the same time and is heading into earnings with an average analyst price target of $29.54 (compared to the current share price of $27.25).
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