SentinelOne Shares Drop After Missing Profit Estimates Despite Revenue Growth

The cybersecurity firm reported increased revenue but faced challenges from rising expenses and stiff competition in a crowded market.

SentinelOne reported third-quarter revenue of $210.6 million, a 28% year-over-year increase, slightly exceeding Wall Street estimates of $209.7 million.
The company broke even on an adjusted basis, falling short of analysts' expectations of a 1 cent per share profit, leading to a 12% drop in its stock price during extended trading.
SentinelOne raised its fiscal 2025 revenue forecast to $818 million, up from its earlier projection of $815 million, and expects fourth-quarter revenue of $222 million, slightly above market estimates.
Operating expenses rose significantly, with research and development costs increasing to $70.5 million and sales and marketing expenses reaching $123.7 million, contributing to a net loss of $78.4 million for the quarter.
The company highlighted its focus on expanding sales reach and enhancing platform capabilities to compete with larger rivals like CrowdStrike and Palo Alto Networks, both of which reported strong results recently.