© SentinelOne PR SentinelOne (S): ARR miss offsets sturdy outcomes, analyst cuts goal
By Senad Karaahmetovic
SentinelOne (NYSE:) delivered better-than-expected for its third quarter, buoyed by strong demand for cybersecurity companies.
The corporate posted earnings per share of $0.16 on income of $115.32 million, beating analyst estimates for a lack of $0.25 and income of $95.7M. Nonetheless, the corporate missed the annual recurring income (ARR) estimate, which got here in at $487.4M vs the consensus of $497.5M.
The corporate’s revenue soared 106% year-over-year, primarily because of the sturdy adoption of the corporate’s cloud providing.
In consequence, SentinelOne raised its full-year income forecast to $420-421M from the prior vary of $415-417M. Analysts have been in search of $416M in full-year income. For the fourth quarter, S initiatives it’ll generate $125M in income.
Barclays analysts’ three key factors from the earnings are:
Web new ARR miss, which is “not stunning after CRWD’s quarter final week”;
Questions whether or not FY24 web new ARR is de-risked sufficient;
4Q23 web new ARR is anticipated to be up 20% q/q which is beneath its seasonal development of 40-80% traditionally.
The analysts lower the worth goal to $18 per share from the prior $20.
BTIG analysts mentioned the outcomes have been “much less unhealthy than feared.”
“Whereas we don’t like slicing forecasts, we expect the revised outlook is due fully to a weak financial surroundings and that investor issues over elevated competitors from Microsoft are overstated,” the analysts wrote in a notice.
