By Dhirendra Tripathi
Investing.com – SentinelOne stock (NYSE:S) plummeted 13% Wednesday as the company reported a wider quarterly loss compared to a year ago owing to higher operating expenses and stock-based compensation to staff.
The adjusted loss in the third quarter was $40 million compared with $26 million a year ago, a reflection of higher headcount and increased operating costs as a result of being a listed entity.
In the past year, the company has grown its headcount to over 1,080 from about 600. Its operating expenses in the third quarter rose 135% year-on-year.
The cybersecurity firm debuted on the NYSE on June 30 as the highest-valued cybersecurity IPO ever. Shares were issued at $35 apiece, carrying an implied valuation of around $9 billion.
Business for cybersecurity firms like SentinelOne, Palo Alto Networks (NASDAQ:PANW) and Crowdstrike (NASDAQ:CRWD) has boomed as the world has moved to cloud computing, and both corporates and individuals are asking for digital solutions for almost every activity, a trend accelerated by the pandemic. With work-from-home an accepted reality for many now, demand for cybersecurity solutions has only increased, from both institutional and retail segments.
SentinelOne’s total revenue rose 128% to $56 million while annualized recurring revenue increased 131% to $237 million as of October 31, the company said.
That also allowed the company to raise its annual revenue forecast to $200 million from a high of $190 million guided in September.
Total customer count grew more than 75% to top 6,000 by the end of October.