Shares of cybersecurity company SentinelOne (NYSE:S) plunged in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2025, which included soft guidance. Earnings per share came in at $0.00, which beat analysts’ consensus estimate of -$0.05 per share.
Sales increased by 39.7% year-over-year, with revenue hitting $186.36 million and beating analysts’ expectations by $5.3 million. In addition, annualized recurring revenue (ARR) grew by 35% to $762 million. The number of customers contributing more than $100,000 in ARR surged by 30% to 1,193.
In terms of margins, the GAAP gross margin improved from 68% to 73%, while the non-GAAP figure increased from 75% to 79%. Operational efficiency also saw notable improvements, as non-GAAP operating margin improved to -6% from -38%.
Looking forward, management now expects revenue for Q2 2025 to be $197 million, while full-year revenue is anticipated to land between $808 million and $815 million. For reference, analysts were expecting Q1 and full-year revenues of $197.75 million and $817.28 million, respectively.
What Is the Prediction for SentinelOne?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SentinelOne stock based on 11 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 9% decline in its share price over the past year, the average SentinelOne price target of $30 per share implies 54.48% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
