SentinelOne (S) Q2 Earnings Report Preview: What To Look For

Cyber security company SentinelOne (NYSE:S) will be reporting earnings tomorrow after the bell. Here’s what investors should know.

SentinelOne beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $186.4 million, up 39.7% year on year. It was a weak quarter for the company, with a miss of analysts’ billings estimates and underwhelming revenue guidance for the next quarter. It added 60 enterprise customers paying more than $100,000 annually to reach a total of 1,193.

Is SentinelOne a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting SentinelOne’s revenue to grow 32.1% year on year to $197.4 million, slowing from the 45.8% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at $0 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SentinelOne has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.3% on average.

Looking at SentinelOne’s peers in the cybersecurity segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Varonis delivered year-on-year revenue growth of 12.9%, beating analysts’ expectations by 4.4%, and Rapid7 reported revenues up 9.2%, topping estimates by 1.9%. Varonis traded up 14.7% following the results while Rapid7 was also up 9.7%.

Read our full analysis of Varonis’s results here and Rapid7’s results here.

Investors in the cybersecurity segment have had steady hands going into earnings, with share prices flat over the last month. SentinelOne is up 12.2% during the same time and is heading into earnings with an average analyst price target of $25.9 (compared to the current share price of $25.36).

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