The cybersecurity company SentinelOne (S.N.) boosted its annual sales expectations and forecasted revenue for the fourth quarter, which was higher than Wall Street had anticipated. This comes as spending on cybersecurity continues to be robust. Throughout after-hours trading, the shares of the California-based corporation increased by approximately 18%.
As a result of persistent inflation and high loan rates, businesses have prioritized spending on cybersecurity. This is because businesses have been compelled to reduce investment in other areas.
According to the research firm Gartner, the amount of money spent on risk management and security is anticipated to grow by 14.3% in the year 2024. CEO Tomer Weingarten stated during an earnings call, “We are seeing strong demand for our cloud security and data (leak) solutions, which combined grew by triple digits.” He also mentioned that the company’s flagship Singularity Platform continued to attract clients.
According to the statistics provided by LSEG, the business anticipates reporting sales of $169 million for the fourth quarter, which is more than the average estimate of $166.5 million that analysts have provided.
In addition, SentinelOne increased its revenue projection for the entire year to $616 million, an increase from its earlier perception of $605 million in revenues.
According to CEO Weingarten, the business has also begun marketing its generative artificial intelligence-based software, Purplee A.I. This program is designed to identify threats and analyze and react to specific clients.
According to a statement made by the business in November, Purple A.I. is anticipated to become “generally available” by the first quarter of 2024.
SentinelOne’s revenue for the three months ending on October 31 was 164.2 million, a 42% increase from the same period last year, and exceeded the projections of $156.1 million.
Additionally, the annual recurring revenue for the disclosed quarter came in at $663.9 million, which is higher than the predictions made by the market.
When adjusted for inflation, the corporation reported a loss of three cents per share, far lower than the eight-cent loss that analysts had anticipated.
Over 11,500 consumers were added to its overall customer count during the reporting quarter, an increase from the 11,000 clients counted during the second quarter.