SentinelOne Shares Fall After CFO Departure and Weak Revenue Outlook
SentinelOne, a cybersecurity company, reported its third-quarter financial results, showing strong growth and improved margins. Despite this performance, the company gave a revenue forecast for the next quarter that was lower than what analysts had expected.
SentinelOne said it expects about $271 million in revenue for the fourth quarter, which is less than the $273.2 million predicted by analysts. This guidance represents a 20% year-over-year growth, but it is considered slower than previous periods.
The company also announced that its Chief Financial Officer, Barbara Larson, will step down from her role. Following this news, SentinelOne shares fell as investors reacted to the combination of lower guidance and leadership change.
Despite the weak short-term outlook, some analysts noted positive signs such as improving business backlog and stabilizing new contract growth, suggesting potential for recovery.
The stock fell because the company’s revenue forecast for next quarter was lower than expected, and its Chief Financial Officer announced her departure.
Barbara Larson is SentinelOne’s Chief Financial Officer, who announced she will be stepping down.
Yes, SentinelOne reported strong growth and improving profit margins in the third quarter.
Revenue guidance is a company’s estimate of how much money it expects to make in the future quarter or year.
Reuters
Business Wire
24/7 Wall Street
Zacks Investment Research
Seeking Alpha
Proactive Investors