Overview
- SentinelOne, which reported results on Thursday, May 28, posted first-quarter revenue of $276.7 million that narrowly missed analysts' estimates while adjusted earnings beat at $0.04 a share.
- The company gave Q2 revenue guidance of $289 million to $291 million, a range below the roughly $292 million consensus, and reaffirmed full-year revenue and adjusted EPS targets.
- Management announced about an 8% workforce reduction and expects a one-time restructuring charge near $25 million, roughly $15 million of which will be cash expenses.
- Key operating wins included ARR rising 23% to $1.163 billion and growth in customers with ARR of $100,000 or more, but non-GAAP gross margin slipped to 77% and operating margin was 4%.
- Investors sold shares heavily after the update, and executives said the cuts will free resources to accelerate Singularity platform work on AI, data and cloud as competition and tighter corporate budgets pressure near-term deals.