Why SentinelOne Stock Is Getting Slaughtered After Hours

SentinelOne Inc S shares are seeing significant selling pressure in extended trading Thursday after the company reported financial results and issued a weak forecast.

• Q1 Revenue: $133.4 million missed estimates of $136.63 million
• Q1 EPS: loss of 15 cents beat estimates for a loss of 17 cents

Revenue was up 70% year-over-year, and ARR was up 75%. SentinelOne's total customer count increased 43% year-over-year to more than 10,680 customers as of the end of April. 

The company ended the quarter with $1.1 billion in cash, equivalents and investments. 

"Despite many underlying business strengths, our Q1 topline growth did not meet our expectations. Macroeconomic pressures continue to impact deal sizes, sales cycles, and pipeline conversion rates," the company said in a letter to shareholders.

"While not entirely new, the impact from these factors was more pronounced in Q1. Together, these evolving dynamics also impacted our expectations for Q2 and fiscal year 24."

Outlook: SentinelOne said it expects second-quarter revenue of $141 million versus estimates of $151.92 million. The company sees full-year 2024 revenue in a range of $590 million to $600 million versus estimates of $638.49 million.

S Price Action: SentinelOne shares were down 31.8% after hours at $14.13 at the time of publication, according to Benzinga Pro.

Photo: Elchinator from Pixabay.