SentinelOne Inc (NYSE:S) stock fell 9.80% (As on December 5, 11:43:06 AM UTC-4, Source: Google Finance) after the company reported a widening loss in its most recent quarter and gave a cautious outlook despite reporting beats in other core metrics in its fiscal 2025 third quarter. SentinelOne ended the quarter with its annual recurring revenue sitting at $859.7 million, up a healthy 29% year-over-year. The company saw customers with annual recurring revenue of $100,000 or more grow 24%, to 1,310. Business highlights in the quarter included an expansion of SentinelOne’s artificial intelligence-driven capabilities, including the introduction of Singularity AI SIEM, a cloud-native security information and event management solution designed to provide real-time detection, investigation acceleration and automated responses. The company also announced enhancements to its Purple AI platform, including auto-alert triage and auto-investigations that assist with threat-hunting and investigation processes.

In the quarter, SentinelOne launched AI Security Posture Management, a service that enhances visibility into AI resource deployment and identifies vulnerabilities. Additionally, the company also showcased advancements in hyper-automation through the Singularity Hyperautomation platform, which introduced no-code automation tailored to modern security operations centers.

It reported a net loss of $78.4 million, or 25 cents per share, up from a loss of $70.3 million, or 24 cents, a year ago. Analysts had expected a loss of $209.7 million, or 20 cents. The higher loss was driven by increasing operating expenses, which came in at $246.5 million, up from $201.9 million a year prior. Operating cash flow margin was (3)%, compared to (14)%. Free cash flow margin was (6)%, 10 percentage points higher compared to (16)%. Cash, cash equivalents, and investments were $1.1 billion as of October 31, 2024.

S in the third quarter of FY 24 has reported the break even adjusted earnings per share, beating the analysts’ estimates for the adjusted loss per share of penny. The company had reported the adjusted revenue growth of 28 percent to $210.6 million in the third quarter of FY 24, beating the analysts’ estimates for revenue of $209.7 million.

For its fiscal fourth quarter, SentinelOne expects revenue of $222 million and, for the full year, $818 million. Both figures were ahead of an expected $220.6 million and $815.6 million, but given the increasing costs experienced by SentinelOne, the outlook was conservative and may have played a role in investor sentiment in after-hours trading.