Cloud Security

SentinelOne Stock seeks to secure a fund

SentinelOne Stock seeks to secure a fund
Written by ga_dahmani
SentinelOne Stock seeks to secure a fund
SentinelOne Stock seeks to secure a fund cyber security provider SentinelOne (NYSE:S) Stocks have fallen (-44%) year-to-date in the tech bear market despite their triple-digit growth. The cloud-based cybersecurity provider provides artificial intelligence (AI)-based protection for endpoints, cloud, and identity, which are areas that offer significant growth opportunities. Revenue increased 109% and non-GAAP gross margins peaked at 68% in the first fiscal quarter of 2023 as the number of customers increased 55%. Annual Recurring Revenue (ARR) increased 110% to $339, and customers with ARR of more than $100,000 increased 113% to 591. The company has more than $1.5 billion in cash and increased its forward guidance. Despite the economic slowdown amid rising interest rates, cybersecurity remains a top IT spending priority, signaling recession-proof resilience. This is driven by secular trends including digital transformation, expanding attacks, and data proliferation. The headlines have shown how costly not having a cybersecurity solution can be. SentinelOne delivers continuous autonomous protection through AI and machine learning and represents one of the largest operational implementations of AI in the world. The Company is still in its hyper-growth stage with a path to profitability driven by the scalability of its solutions and high margins. Cautious investors looking for growth in the cybersecurity segment may be on the lookout for opportunistic pullbacks in SentinelOne stock.

Release of results for the first quarter of fiscal year 2023

On June 1, 2022, SentinelOne released its fiscal first quarter 2023 earnings report for the quarter ending April 2022. The Company experienced an earnings per share (EPS) loss of (-$0.21), excluding non-core items. recurring, beating analyst consensus estimates for a loss of (-$0.24) by $0.03. Revenue increased 109.4% year over year (YoY) to $78.3 million, beating analyst estimates of $74.64 million. Annualized recurring revenue (ARR) increased 110% to $339 million. SentinelOne CEO Tomer Weingarten commented: “Our first quarter results demonstrate the combination of a strong demand environment for our leading cybersecurity platform and impressive execution across the board. Once again, we maintained triple-digit growth with significant margin expansion, added a record number of new clients, and ended the quarter with an extremely strong pipeline. We are raising our revenue guidance to near triple-digit growth again this fiscal year, which now includes our acquisition of Attivo Networks.”

Upward Income Guide

SentinelOne raised guidance for the fiscal second quarter of 2023 for revenue to be between $95 million and $96 million compared to analyst consensus estimates of $84.83 million. The company forecasts fiscal 2022 revenue to be between $403 million and $407 million versus analyst consensus estimates of $371.03 million.

Conclusions of the conference call

CEO Weingarten touched on a few highlights from the quarter, including the first quarter of 2023 as his fifth consecutive quarter of triple-digit ARR growth, which he expects to repeat next quarter. The cyber security outlook looks promising, prompting the Company to increase its guidance. He emphasized the success of its land and expansion strategy, as evidenced by the record number of new clients growing even more than the seasonally strong fourth quarter. He hinted at some of the notable wins that included one of the nation’s largest telecommunications companies, a major US agency and a global media conglomerate. His net retention rate increased to a record 131%. They also closed their acquisition of Attivo, making their mark in the identity security segment. Cloud security continued to be its fastest growing segment. The demand for mission-critical cybersecurity has never been stronger and is a top IT investment priority. The proprietary technology core Singularity XDR platform is the world’s largest AI operations implementation, providing autonomous protection. CEO Weingarten summed it up: “Our XDR platform addresses the top attack surfaces that enterprises need. In addition to the endpoint, these emerging capabilities like cloud, Ranger, data, and surveillance are driving growth. Cloud grew to nearly 10% of our Q1 ACV.”

SentinelOne Stock seeks to secure a fund

Opportunistic retracement levels

Using the rifle charts on the weekly and daily time frames allows for an accurate view of the price action playing field for S shares. The weekly rifle chart formed an inverse puppy breakout as it broke $37.91 Fibonacci level (fib). The downtrend put in a clean bottom at the $19.08 lie before staging a rally through the 5-period weekly moving average (MA) resistance at $24.63 towards the 15-period MA resistance at $30.34. The weekly lower Bollinger Bands (BB) sits at $14.36 and the daily 50-period MA sits near the $46.05 fib. The weekly stochastic is forming a small staggered puppy through the 20 band. the weekly low market structure (MSL) buying triggers a break through $27.18 which also almost overlaps with the 50-period daily MA at $27.00. The daily rifle chart breakout has a rising 5-period MA support at $24.47 followed by the 15-period MA at $23.53 as the stochastic climbs through the 60 band. Daily upper BBs sit at $ 01.28. Prudent investors should avoid chasing and patiently watch opportunistic retracement levels at $23.26 Fib, $21.10 Fib, $20.03, $19.08 Fib, $17.48, $15.54 and $12.81 Fib. The bullish trajectories range from the $35.90 fib level to the $47.02 fib level.

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