SentinelOne Stock Falls Despite Earnings, Revenue Beat

Cybersecurity steadfast SentinelOne (S) reported third-quarter results precocious Tuesday that bushed estimates connected the apical and bottommost lines. But SentinelOne banal dropped.

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The institution reported an adjusted nonaccomplishment of 15 cents a stock connected gross of $56 million. Analysts expected SentinelOne to study gross of $49.6 cardinal and a nonaccomplishment of 18 cents a share. Results were for its fiscal 3rd 4th ended Oct. 31.

SentinelOne banal plunged 12% to 45.05 during after-hours trading connected the stock marketplace today. During regular hours trading, SentinelOne banal popped 13.4%, closing astatine 51.04.

SentinelOne banal has experienced a pullback, similar galore bundle maturation stocks. After a coagulated tally pursuing its archetypal nationalist offering successful June, SentinelOne banal has retreated astir 37% from an all-time precocious of 78.53 acceptable connected Nov. 12.

"In a marketplace acrophobic astir ostentation and Covid, SentinelOne is apt a crucible for capitalist sentiment," Needham expert Alex Henderson said successful a study to clients.

DocuSign (DOCU) banal collapsed 40% past week aft its gross outlook severely missed estimates. Cybersecurity steadfast Zscaler (ZS) sold disconnected contempt a stellar fiscal archetypal quarter.

While SentinelOne banal has coagulated gross growth, it's inactive unprofitable connected an adjusted basis, which excludes banal compensation to employees.

SentinelOne Stock: Annual Recurring Revenue One Key Metric

Annual recurring gross is 1 cardinal fiscal metric for SentinelOne stock. The institution sells subscription-based services. Henderson said analysts expect $216 cardinal successful October-quarter ARR.

The SentinelOne IPO successful precocious June raised $1.2 cardinal with shares priced astatine 35. The IPO lockup play expires connected Thursday, Henderson noted successful the report. He said the expiration volition escaped up 185 cardinal shares for trading.

SentinelOne's cybersecurity bundle detects malware connected laptops, mobile phones and different "endpoints" that entree firm networks.

SentinelOne competes with CrowdStrike (CRWD) and others. CrowdStrike reported better-than-expected October-quarter earnings.

Heading into the net report, SentinelOne banal owned a Relative Strength Rating of lone 32 retired of a best-possible 99, according to IBD Stock Checkup.

IBD offers a wide scope of growth banal lists, specified arsenic Leaderboard. Investors besides tin make watchlists, find companies nearing a buy point, oregon make customized screens astatine IBD MarketSmith.

Follow Reinhardt Krause connected Twitter @reinhardtk_tech for updates connected 5G wireless, artificial intelligence, cybersecurity and unreality computing.

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