SentinelOne Inc shares plummeted more than 37% in pre-market trading on Friday after the cybersecurity software company provided second-quarter and full-year fiscal 2024 revenue guidance that fell short of expectations.
SentinelOne announced its 2Q revenue forecast of $141 million, missing the FactSet consensus estimates of $152.1 million, while the company also reduced its fiscal year sales outlook to $590 million to $600 million from $631 million to $640 million previously, citing a slowdown in business spending this year for software companies and others selling tech to large enterprises.
In addition, the company suggested cost cuts were being made, noting that they are “taking actions to fortify our business by improving our cost structure and ensuring our path to profitability.”
A SentinelOne spokeswoman confirmed that the cost cuts will include layoffs of about 5% of the company, which she said would equal fewer than 100 employees, MarketWatch reported.
For 1Q 2024, the company reported an adjusted loss of $0.15 a share, an improvement from the $0.21 per share deficit a year earlier and better than the $0.17 per share loss expected by analysts.
Its revenue for the period rose to $133.4 million from $78.3 million in 1Q 2023, but missed the $136.6 million analyst consensus estimate.
Shares of SentinelOne have gained about 42% year to date as of Thursday’s closing price.
Contact Sean at sean@proactiveinvestors.com