Sentinelone boosted its projection for third-quarter revenue and yearly sales on Tuesday, surpassing Wall Street projections due to demand for cybersecurity.
Given the continued strength of cybersecurity investment, cybersecurity company SentinelOne (S.N.) increased its annual sales outlook and forecasted third-quarter revenue above Wall Street estimates on Tuesday.
In after-hours trading, the California-based company’s shares increased by almost 18%.
Due to high borrowing rates and sticky inflation, businesses have prioritized investing in cybersecurity while reducing expenditures elsewhere.
Global expenditure on risk management and security is expected to rise by 14.3% by 2024, according to research firm Gartner.
CEO Tomer Weingarten stated, “We’re seeing strong demand for our cybersecurity and data leak solutions, which combined grew triple digits.” He also mentioned that the company’s flagship Singularity Platform was still in business.
According to LSEG statistics, the company anticipates revenue of $169 million for the fourth quarter, which is more than the average forecast of $166.5 million made by analysts.
SentinelOne surpassed projections of $156.1 million with sales of $164.2 million for the three months that ended on October 31, up 42% over the same period last year.
The reported quarter’s annual recurring revenue of $663.9 million exceeded market projections as well.
The company reported a loss of 3 cents per share on an adjusted basis, which was less than the analysts’ projected loss of 8 cents.
From 11,000 clients in the second quarter to over 11,500 consumers for the reporting quarter, the company’s total customer count increased.
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