SentinelOne (S) Q1 Earnings: What To Expect

Cyber security company SentinelOne (NYSE:S) will be reporting earnings tomorrow after market close. Here’s what to look for.

SentinelOne beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $225.5 million, up 29.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ billings estimates and full-year guidance of slowing revenue growth. It added 101 enterprise customers paying more than $100,000 annually to reach a total of 1,411.

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 22.5% year on year to $228.2 million, slowing from the 39.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 missed Wall Street’s revenue estimates twice over the last two years.

Looking at SentinelOne’s peers in the cybersecurity segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Varonis delivered year-on-year revenue growth of 19.6%, beating analysts’ expectations by 2.3%, and Qualys reported revenues up 9.7%, topping estimates by 1.8%. Varonis traded up 2.2% following the results while Qualys’s stock price was unchanged.

Read our full analysis of Varonis’s results here and Qualys’s results here.

There has been positive sentiment among investors in the cybersecurity segment, with share prices up 7.3% on average over the last month. SentinelOne is up 7.3% during the same time and is heading into earnings with an average analyst price target of $24.53 (compared to the current share price of $19.80).

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