SentinelOne reports break-even earnings in Q3 fiscal 2025, raises revenue guidance, positive.

From Nasdaq: 2024-12-05 09:36:00

SentinelOne reported break-even earnings in Q3 fiscal 2025, missing estimates by 100% with a loss of 3 cents per share in the year-ago quarter. Revenues were $210.65 million, up 28.3% YoY. The company raised its fiscal 2025 revenue guidance based on strong results and market momentum.

In Q3, SentinelOne’s ARR increased 29% YoY to $859.7 million, with net new ARR up 20% sequentially. The company saw growth in large enterprise customers generating ARR over $100K. The Singularity platform drove customer adoption, with new solutions like Purple AI gaining traction.

SentinelOne benefitted from partnerships with AWS and Lenovo, expanding market reach. Operating details for Q3 showed improved gross margin and lower expenses as a percentage of revenues. Total operating expenses increased 20.2% YoY to $178.3 million, with an operating loss of $10.7 million.

SentinelOne had $1.1 billion in cash and short-term investments as of Oct. 31, 2024. The company saw free cash outflow of $12.7 million in Q3. It raised its fiscal 2025 revenue guidance, expecting $818 million for the year with a non-GAAP gross margin of 79%.

SentinelOne currently has a Zacks Rank #4 (Sell). Investors can consider C3.ai, which has a Zacks Rank of 2 (Buy). C3.ai shares have lost 5.7% YTD. The company expects strong growth potential, with the release of second-quarter fiscal 2025 results scheduled for Dec. 9.



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