SentinelOne achieves second-quarter profitability because of robust buyer development

Shares in SentinelOne Inc. rose solely barely in after-hours buying and selling immediately after the cybersecurity firm reported modest earnings and income beats in its fiscal 2025 second quarter and forecast a better-than-expected outlook for the complete yr.

For the quarter that ended on July 31, SentinelOne reported adjusted earnings of a penny per share, reversing a lack of eight cents per share in the identical quarter of the earlier yr, on income of $198.9 million, up 33% year-over-year. Each figures beat analysts’ expectations of a break-even backside line and income of $197.31 million.

annual recurring income of $100,000 or extra rising 24% year-over-year, to 1,233 as of the top of July. Total annual recurring income additionally grew, up 32%, to $806 million, as of the top of the quarter.

Notable among the many outcomes was SentinelOne reporting an working money move margin of 1%. Although not enormous by any stretch, it contrasts with a destructive 8% margin in the identical quarter of final yr. Put merely, SentinelOne has shifted from dropping cash to being profitable. SentinelOne ended the quarter with $1.1 billion in money, money equivalents and investments available.

Enterprise highlights within the quarter included SentinelOne increasing its partnership with Google LLC to turn into a strategic endpoint vendor for Mandiant Consulting. The partnership makes SentinelOne a “accomplice of selection” throughout nearly all of the incident response ecosystem.

The corporate additionally introduced a Threat Assurance Initiative, in partnership with a community of cyber insurers, that helps small and medium enterprises enhance safety at most popular charges whereas extending its attain and scale.

“Based mostly on robust execution and broad-based demand, SentinelOne delivered distinctive outcomes with industry-leading development and our first-ever quarter of constructive web earnings and earnings per share,” Chief Govt Tomer Weingarten mentioned within the firm’s earnings launch. “We’re seeing a definite rise in buyer curiosity and appreciation for some great benefits of our patented AI-powered Singularity Platform to assist construct greater high quality and extra sturdy cyber protection.”

For its fiscal third quarter, SentinelOne expects to see income of $209.5 million, the precise determine anticipated by analysts, whereas for the complete yr, it expects income of $815 million, forward of the $813 million forecast by analysts.

Photograph: SentinelOne