SentinelOne S is set to release third-quarter fiscal 2025 results on Dec. 4, 2024.
The company expects total revenues of $209.5 million, up 28% year over year, for the quarter to be reported. The Zacks Consensus Estimate for revenues is pegged at $209.56 million, suggesting growth of 27.65% from the figure reported in the year-ago quarter.
The consensus mark for earnings remained at 1 cent per share in the past 30 days, indicating an improvement from a loss of 3 cents in the year-ago quarter.
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SentinelOne, Inc. Price and EPS Surprise
SentinelOne, Inc. price-eps-surprise | SentinelOne, Inc. Quote
SentinelOne’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an earnings surprise of 103.13%, on average.
Let’s see how things have shaped up for this announcement.
Factors Likely to Influence Q3 Results
SentinelOne’s fiscal third-quarter performance is likely to have benefited from the strong adoption of the Singularity platform, which includes endpoint security, cloud security and data lake solutions.
S is expanding its platform into adjacent markets, such as Singularity Cloud and Singularity Data Lake. This is likely to have been a tailwind for the company in the to-be-reported quarter.
SentinelOne’s ongoing investments in security, data and AI are expected to have driven growth in the fiscal third quarter.
New features and capabilities, such as Purple AI — which enhances the speed and performance of the Singularity platform — are expected to have contributed well to revenue growth and customer expansion in the quarter to be reported.
Strong momentum with large enterprise customers is expected to have continued in the third quarter of fiscal 2025. Customers with more than $100,000 in ARR grew 24% year over year to 1,233 in the fiscal second quarter. ARR per customer increased by double digits year over year, driven by strong platform adoption and success with larger enterprises.
SentinelOne expects the continued adoption of its advanced AI-powered security solutions, including its cloud and data platforms, will contribute to greater growth. Growth of its CNAPP (Cloud-Native Application Protection Platform) and SIEM solutions is particularly notable.
SentinelOne's international revenues, which increased 36% in the second quarter of fiscal 2025, continue to be a key growth driver. This is expected to have reflected in the to-be-reported quarter as well.
S Benefits From Expanding Clientele
SentinelOne’s expanding partner base, which includes Alphabet GOOGL cloud business, Google Cloud, Amazon AMZN cloud computing platform, AWS, and Lenovo LNVGY, is likely to have driven growth during the fiscal third quarter.
In the second quarter of fiscal 2025, SentinelOne and Alphabet’s Google Cloud announced a strengthened partnership. Per the terms, GOOGL integrated SentinelOne’s AI-driven endpoint protection with Google Cloud’s threat intelligence to enhance enterprise cyber defense. Benefits from this partnership are likely to have been reflected in the to-be-reported quarter’s performance.
In October, SentinelOne expanded its collaboration with Amazon Web Services to enhance its Purple AI cybersecurity platform with generative AI from Amazon Bedrock. This partnership also aims to broaden the reach of SentinelOne’s Singularity Platform on the AWS Marketplace.
In September, SentinelOne and Lenovo announced a multi-year collaboration to integrate SentinelOne’s AI-powered Singularity Platform into Lenovo devices, enhancing endpoint security and introducing a new Managed Detection and Response service.
However, persistent macroeconomic uncertainties and geopolitical tensions are expected to have hurt SentinelOne’s top line in the to-be-reported quarter.
SentinelOne currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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