SentinelOne Inc (NYSE:S) stock fell 3.80% (As on Sep 9, 1:15:38 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 22. The company’s annual recurring revenue rose 127%, to $198 million in the quarter. And total customer count grew 75% over the same period, to 5,400 customers. The adjusted gross margin was 62%, which is down slightly from 64% a year ago. During the second quarter there has been addition of more than 600 customers, while the number of customers with ARR of more than $100,000 grew 140% year-over-year, to 345. SentinelOne’s dollar-based net revenue retention rate reached a new high, exceeding 125%. On the security side, the company’s SentinelLabs advanced threat research division uncovered several security threats and attacks. These include a vulnerability in computers from Dell Technologies Inc. and an attack on the Iranian railway system in July. The company has generated Non-GAAP loss from operations of $45 million in the second quarter of fiscal year 2022, compared to $21 million for the same period of fiscal year 2021. Cash, cash equivalents and short-term investments were $1.7 billion as of July 31, 2021, which now includes $1.4 billion of net proceeds from the company’s initial public offering and the concurrent private placement.
S in the second quarter of FY 22 has reported the adjusted loss per share of 38 cents, missing the analysts’ estimates for the adjusted loss per share of 20 cents. The company had reported the adjusted revenue growth of 121 percent to $45.8 million in the second quarter of FY 22, beating the analysts’ estimates for revenue of $40.37 billion. The company has delivered Non-GAAP gross margin of 62%, compared to 64% for the same period of fiscal 2021.
SentinelOne expects revenue to be in the range of $49 million and $50 million in its third quarter and revenue is expected to be between $188 million and $190 million for its full fiscal year 2022. The analysts had been predicting $45.78 million and $176.01 million, respectively. The company expects Non-GAAP gross margin to be in the range of 58-59% for the third quarter of 2022 and range of 58-60% for the full year.