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SentinelOne Class A Shares (NYSE:S) Thursday A drop of more than 10% The extended deal comes after the cybersecurity company’s first-ever quarter of positive free cash flow was overshadowed by a small cut in annual revenue guidance.
SentinelOne (S) stock is Last down 10.4% It traded at $17.41 after hours.
The company’s loss per share narrowed to 23 cents in the first quarter of 2025 from 37 cents a year ago. Its revenue increased 40% year-over-year to $186.36 million, beating expectations by $5.3 million.
Headquartered in Mountain View, Calif., SentinelOne (S) provides cloud security services such as the Singularity Platform for detecting, preventing and responding to cyberattacks. Its clients include companies like Samsung ( OTCPK:SSNLF ), ServiceNow ( NOW ), Abbot Laboratories ( ABT ) and Lyft ( LYFT ), according to its website.
The company also provides generative artificial intelligence (AI) solutions through its Purple AI security analyst.
SentinelOne (S) annualized recurring revenue (ARR) increased 35% to $762 million in the first quarter, while customers with ARR of $100,000 or more grew 30% as of April 30, 2024 %, reaching 1,193.
SentinelOne (S) CEO Tomer Weingarten and Chief Financial Officer Dave Bernhardt said in a letter to shareholders: “In the first quarter, we achieved positive operating cash flow margin of 23% and positive free cash flow margin of 18%. It is the first important milestone for the company.
“We are helping enterprises reduce complexity and optimize costs while significantly strengthening their security posture. Platform adoption and success among large enterprises continues to drive higher ARR per customer, which has driven the company’s record year-over-year growth to double digits New high,” the executive added.
The SentinelOne (S) results come amid an increase in cyber attacks and hacking attacks.
Weingarten and Bernhardt said: “Structurally, the threat landscape is becoming more severe. Cyberattacks are increasing in frequency and sophistication. The total cost of breaches and operational disruptions has reached new highs. The cybersecurity status quo is failing. ”
Turning to SentinelOne’s (S) guidance, the company now expects full-year fiscal 2025 revenue of $808 million to $815 million, compared with its previous forecast of $812 million to $818 million. The new revenue estimate is below the consensus estimate of $817.28 million. The slight downward revision to the forecast comes as IT customers will flexibly adjust their budgets and spending due to the “dynamic global macroeconomic environment.”
For the second quarter, SentinelOne (S) expects revenue of $197 million, also just shy of the consensus figure of $197.75 million.
