SentinelOne (S) on Tuesday reported second-quarter earnings and revenue that topped Wall Street estimates. The cybersecurity company’s guidance for SentinelOne stock only met expectations, given the views the company might get from competitors CrowdStrike Holdings‘(CRWD) recent setback.
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Meanwhile, SentinelOne achieved a key subscription-based financial metric.
The company reported SentinelOne results for the July quarter after the market close. SentinelOne said it earned 1 cent on an adjusted basis, versus a loss of 8 cents a year earlier.
The cybersecurity company posted revenue of $199 million, an increase of 33%. Stock analysts at SentinelOne expected the Mountain View, California-based company to report revenue of $197.3 million and break even.
SentinelOne Stock: Key Growth Metric
Further, SentinelOne said annualized recurring revenue from subscription-based services increased 32% to $806 million, above estimates of $801.8 million.
For the current quarter ending in October, SentinelOne forecast revenue of $209.5 million, in line with estimates of $209.4 million.
In today’s stock market, SentinelOne stock fell more than 1% to 24.34 in extended trading.
By 2024, SentinelOne stock will have fallen by almost 10%. However, SentinelOne shares rebounded after the July 19 global IT outage due to a CrowdStrike software update.
CrowdStrike earnings are expected after market close on Wednesday. Many analysts expect a reduction in full-year guidance from CrowdStrike.
SentinelOne’s software detects malware on laptops, mobile phones and other ‘endpoints’ that access corporate networks. The company is also building a broad cybersecurity platform for threat detection.
Technical Ratings of SentinelOne Stock
SentinelOne rivals also include Microsoft (MSFT) And Palo Alto Networks (PANW).
Meanwhile, SentinelOne stock owns a Relative Strength Rating of 85 out of a best possible 99, according to IBD inventory check.
In April, the company lowered its full-year revenue guidance, leading to a sell-off.
Moreover, SentinelOne is one of the cybersecurity stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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