On March 15, SentinelOne Inc. (S) reported its financial results for Q4 and fiscal 2022, which ended on January 31, 2022. The company also provided an outlook for fiscal 2023. Consequently, the stock went down in the after hours.

In the regular trading session, the stock traded in the green as SentinelOne had announced a deal for acquiring Attivo Networks. S stock added 4.53% in the regular session at an above-average volume of 9.69 million shares. At the close of the session, the stock had a value of $30.89 per share. Following the earnings announcement, the stock went down to $29.13 per share in the after hours. Thus, at a volume of 1.44 million shares, the stock subtracted 5.70% in the after-hours on Tuesday.

The cybersecurity startup, SentinelOne Inc. has a market capitalization of $7.89 billion. Founded in 2013, the company has 134.52 million shares outstanding in the market. Currently, the stock stands at a year-to-date loss of 38.82% and has lost 4.34% in the past five days.

SentinelOne’ Fiscal Q4 2022

For Q4 fiscal 2022, SentinelOne reported total revenue of $65.6 million with an increase of 120% YOY.

Moreover, the non-GAAP gross margin in the quarter was 66% in Q4 fiscal 2022, against 54% in the prior-year quarter.

The company ended the quarter with cash, cash equivalents, and short-term investments of $1.7 billion.

Fiscal 2022 Highlights

Furthermore, for fiscal 2022, SentinelOne reported total revenue of $204.8 million with a YOY increase of 120%.

The company’s non-GAAP gross margin was 63% in fiscal 2022, against 58% in the previous year.

SentinelOne’ Future Outlook

For Q1 fiscal 2023, the company expects a non-GAAP gross margin of 63-64% on revenue of $74-$75 million.

Additionally, for fiscal 2023, the expected revenue is $366-$370 million with a non-GAAP gross margin of 65-67%.

This guidance excluded the planned acquisition of Attivo Networks which is expected to close in Q2 fiscal 2023.

SentinelOne’ Attivo Networks’ Acquisition

Earlier on the same day, SentinelOne announced entering into a definitive agreement for the acquisition of Attivo Networks. Attivo is a leading identity security and lateral movement protection company.

The transaction is valued at $616.5 million of cash along with common stock shares.

Conclusion

Even though the company posted beat estimates and reported continued business growth, the investors remained unimpressed. Therefore, despite the beat earnings report, S stock traded in the red in the after hours.