SentinelOne raises annual revenue guidance after Q2 results top analyst estimates By Investing.com

Investing.com — SentinelOne lifted its annual revenue guidance Tuesday after reporting Q2 results that topped Wall Street estimates as new business deals boosted performance in the quarter, underpinned by rising cybersecurity demand. 

SentinelOne Inc (NYSE:) rose around 1% in Wednesday’s premarket trade.

For the three months ended Jul. 31, the  AI-powered cybersecurity provider reported adjusted earnings per share of $0.01 on revenue of $198.9M, beating Wall Street estimates of $197.4M. 

For Q3, the company forecast revenue of $209.5M and adjusted margin of 79%, compared with expectations for $209.7M. 

Annualized recurring revenue (ARR) grew 32% year-on-year to $806M. 

“We are seeing increasing enterprise interest for our Singularity Platform and differentiated AI architecture, which can help improve security and operational resilience,” the company said Tuesday. 

Looking further ahead, the company is forecasting full-year fiscal 2025 revenue of $815M, compared with a prior forecast for $808M to $815M, or $811 at the midpoint, compared with expectations for $813.7M. 

“While the CrowdStrike (NASDAQ:) outage presents a potential tailwind, we think SentinelOne is taking a prudent approach,” Baird analysts said in a post-earnings note. 

“Overall, S is executing well on its transition to the new operating model and strong RPO growth (40% y/y) suggests durable demand and potential upside to the prudent outlook.”

Separately, Jefferies analysts said after the report that SentinelOne’s long-term trajectory looks bright, however, the outlook for new ARR acceleration in the second half (2H) of the year “looks challenging,” they added.

Although the ARR growth in Q2 aligns with SentinelOne’s expectations of stabilization, Jefferies analysts said they “would have expected a bit higher given strong checks and easy comps,” which increases the risk “for a steep ramp in 2H new ARR which could tether future 2H upside.”

Yasin Ebrahim contributed to this report.