SentinelOne (NYSE: S) stock recorded impressive gains of 45% since the beginning of June, which should come as a relief to shareholders. The cybersecurity specialist endured a difficult start to 2024 and was down substantially in the first five months of the year.
Its recovery is remarkable considering that investors pressed the panic button following the release of the company’s fiscal 2025 first-quarter results three months ago. The reason behind that sell-off was reduced full-year guidance. However, savvy investors started buying SentinelOne stock following its sell-off.
That turned out to be a prescient strategy. SentinelOne stock received a nice shot in the arm after a CrowdStrike software update crashed a vast number of global IT systems on July 19. Now, it looks like SentinelOne’s business may be benefiting in the aftermath of CrowdStrike’s blunder, as its latest results beat Wall Street’s expectations and the company raised its full-year guidance.
Let’s take a closer look at SentinelOne’s latest quarterly report and consider why the stock could deliver more upside.
SentinelOne’s solid results point toward robust demand for its cybersecurity offerings
On Aug. 27, SentinelOne released its results for its fiscal 2025 second quarter, which ended July 31. The company’s revenue rose 33% year over year to $199 million, exceeding the consensus estimate of $197.3 million. What’s more, it swung to an adjusted profit of $0.01 per share from a loss of $0.08 per share in the same quarter last year. Analysts had been expecting SentinelOne to break even on the bottom line.
Those stronger-than-expected results can be attributed to an improvement in the customer base, as well as SentinelOne’s ability to drive stronger spending from its existing customer base. This was evident from management’s comments in the latest shareholder report:
Our customer growth in Q2 was broad-based across businesses of all sizes and geographies. Our momentum with large enterprises remains strong, as our customers with ARR of $100,000 or more grew 24% y/y to 1,233. Customers with more than $1…
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