Shares of cybersecurity company SentinelOne (NYSE:S) plunged in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at -$0.02, which beat analysts’ consensus estimate of -$0.04 per share.
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Sales increased by 38.2% year-over-year, with revenue hitting $174.2 million, beating analysts’ expectations by $4.83 million. In addition, annualized recurring revenue (ARR) grew by 39%, reaching $724.4 million. The number of customers contributing more than $100,000 in ARR surged by 30% to 1,133, with the dollar-based net retention rate holding strong at approximately 115%.
In terms of margins, the GAAP gross margin improved from 68% to 72%, while the non-GAAP figure increased from 75% to 78%. Operational efficiency also saw notable improvements, as non-GAAP operating margin improved to -9% from -35%.
Looking forward, management now expects revenue for Q1 2025 to be $181 million, while full-year revenue is anticipated to land between $812 million and $818 million. For reference, analysts were expecting Q1 and full-year revenues of $180.87 million and $818.09 million, respectively.
What Is the Prediction for SentinelOne?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SentinelOne stock based on nine Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 93% rally in its share price over the past year, the average SentinelOne price target of $29.65 per share implies 6.12% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
