SentinelOne provides tepid quarterly forecast, to cut 8% jobs
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SentinelOne logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
May 28 (Reuters) - Cybersecurity company SentinelOne forecast second-quarter revenue below analysts' expectations on Thursday and said it would cut about 8% of its workforce as it looks to invest in growth areas such as AI, data and cloud.
The company also missed first-quarter revenue estimates, sending its shares slumping 18% in extended trading.
Here are some details:
• SentinelOne faces intense competition from larger rivals such as CrowdStrike and Palo Alto Networks, as well as from Microsoft, which is bundling security features into its products.
• Even as ransomware and nation-state threats boost cybersecurity demand, some corporate clients are tightening their budgets, scrutinizing deals and extending sales cycles.
• SentinelOne expects a one-time charge of nearly $25 million related to the restructuring, of which $15 million are cash-based expenditures.
• As of January 2026, the company had more than 2,900 full-time employees worldwide.
• SentinelOne forecast second-quarter revenue to be between $289 million and $291 million, below analysts' average estimate of $292 million, according to data compiled by LSEG.
• It expects adjusted profit per share in the range of 6 cents to 8 cents, while analysts expect 8 cents.
• Revenue for the first quarter ended April 30 came in at $276.7 million, missing the estimate of $277.3 million.
• The company reaffirmed its fiscal 2027 revenue and adjusted profit per share forecasts.
• SentinelOne uses AI to help businesses monitor and secure laptops, servers and other devices connected to their networks.
• Its Singularity platform aims to be an all-in-one solution for security teams, a strategy that has become critical as firms look to simplify their security infrastructure.
(Reporting by Juby Babu in Mexico City; Editing by Shreya Biswas and Shilpi Majumdar)
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