Is It Time to Load Up On Beaten-Down SentinelOne Stock?

SentinelOne (NYSE: S) shares are down much than 20% implicit the past year, contempt the banal being some inexpensive and seeing beardown gross growth. Let's instrumentality a person look astatine the cybersecurity stock's caller quarterly results to spot if present is simply a bully clip to load up connected shares.

SentinelOne continues to present beardown gross growth, with its income jumping 20% successful its fiscal 4th fourth to $271.2 million. That came successful conscionable up of its earlier $271 cardinal forecast.

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Annual recurring gross (ARR), which is the annualized worth of its lawsuit subscription and consumption-based contracts, roseate by 21% to $1.119 billion. It added grounds caller nett ARR of $64 cardinal successful the quarter. Meanwhile, the fig of customers with ARR of $100,000 oregon much climbed by 18% to 1,667.

Notably, the institution is seeing beardown cross-platform adoption, with 65% of endeavor customers present utilizing 3 oregon much of its solutions compared to conscionable 39% a twelvemonth earlier. Its Purple AI solution had a grounds 50% connect complaint for licenses sold successful Q4. It besides highlighted a large seven-figure triumph with Cloudflare, replacing a competitor, and signed a ample woody with a Fortune 100 fiscal services institution for AI information and governance.

Adjusted net per stock (EPS) roseate by 75% from $0.03 to $0.07 and came successful supra the expert expectations of $0.06. The institution generated $76.6 cardinal successful operating currency travel for the twelvemonth and escaped currency travel of $75.9 million. It ended the 4th with astir $769.6 cardinal successful nett currency and short- and semipermanent investments and nary debt.

Turning to guidance, the institution projected fiscal Q1 gross of betwixt $276 cardinal and $278 million, which would equate to astir 21% growth. It expects adjusted EPS to beryllium betwixt $0.01 and $0.02. For the afloat year, it forecasted gross to scope betwixt $1.195 cardinal and $1.205 billion, representing 20% growth. It projected adjusted EPS of $0.32 to $0.38.

SentinelOne is increasing its gross astatine a akin debased 20% complaint arsenic endpoint information peers CrowdStrike and Palo Alto Networks, but trades astatine a fraction of their valuations, with a guardant price-to-sales (P/S) aggregate of astir 4 times analysts' estimates versus 19 for CrowdStrike and 12 for Palo Alto. That's a large disconnect and a spread that should adjacent implicit clip if the institution tin proceed to turn its gross astatine a akin gait and commencement to spot much operating leverage.