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.
