SentinelOne Earnings Beat; Cybersecurity Firm To Stay 'Independent'

Cybersecurity company SentinelOne reported a smaller Q2 loss than anticipated, with revenue surpassing expectations.

SentinelOne (S) shares soared on Friday following the cybersecurity company's Q2 earnings report that exceeded expectations. The stock of SentinelOne increased by over 3%.

The company reported its earnings after the market closed on Thursday, recording an adjusted loss of 8 cents per share for the quarter ending July 31, compared to a loss of 20 cents per share the previous year. Additionally, the earnings report indicated a 46% increase in revenue to $149.4 million.

Analysts had anticipated the Mountain View, California-based company to report a revenue of $141 million and a loss of 14 cents per share.

For the upcoming quarter ending in October, SentinelOne forecasts a revenue of $156 million, compared to the estimated $154.2 million.

"Given that expectations leading up to the report were more based on M&A speculation than fundamentals, CEO Tomer Weingarten strongly dismissed a potential acquisition, emphasizing the commitment to operate 'as a public, independent and transparent company'," stated UBS analyst Roger Boyd in a client note.

On the stock market today, SentinelOne shares increased by 3.5% to close at 17.21.

The company's results were announced amidst reduced financial expectations. Moreover, its Q1 sales growth fell short of estimates and the company projected a weak outlook due to accounting issues.

Prior to the earnings report, SentinelOne shares had risen by 11% this year.

In early August, shares bounced back following reports that the well-funded, rapidly growing security startup Wiz was considering a potential bid for SentinelOne. Additionally, SentinelOne announced on Wednesday that it has terminated a marketing partnership with Wiz.

SentinelOne's software identifies malware on laptops, mobile phones, and other "endpoints" that connect to corporate networks. The company is also developing a comprehensive, threat-detection cybersecurity platform.

Its competitors include CrowdStrike Holdings (CRWD) and Microsoft (MSFT).

SentinelOne shares have a weak Composite Rating of 34 and a Relative Strength Rating of 19.

Follow Reinhardt Krause on Twitter URL for updates on 5G wireless, artificial intelligence, cybersecurity, and cloud computing.


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