2023-06-01 17:42:26 ET
Class A shares of SentinelOne ( NYSE: S ) cratered more than 30% in extended trading on Thursday, after the cybersecurity firm turned in a mixed quarterly performance and slashed its full year revenue guidance.
The company also revealed a restatement to its annual recurring revenue (ARR) due to a change in methodology and correction of historical inaccuracies.
Moreover, SentinelOne ( S ) in a shareholder letter by CEO Tomer Weingarten and CFO Dave Bernhardt said the company would implement "a workforce optimization plan that is expected to impact approximately 5% of" its current employees.
S stock crashed 36.3% to $13.20 after hours.
The company posted Q1 2024 adj. EPS of -$0.15, which beat estimates by 2 cents . Revenue grew more than 70% Y/Y to $133.4M, but missed expectations by $3.21M .
"Despite many underlying business strengths, our Q1 topline growth did not meet our expectations. Macroeconomic pressures continue to impact deal sizes, sales cycles, and pipeline conversion rates. While not entirely new, the impact from these factors was more pronounced in Q1," Weingarten and Bernhardt said in the letter .
The company's ARR increased 75% Y/Y to $563.6M. However, the adjustment to its methodology and correction of historical inaccuracies resulted in a one-time ARR reduction of $27M or about 5% of ARR.
S cut its FY 2024 revenue guidance to a range of $590M to $600M from $631M to $640M previously. The consensus estimate is $637.63M.
The company expects Q2 revenue of $141M vs. consensus of $152.07M.
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SentinelOne stock slumps +30% after hours on slashed guidance, ARR adjustment, job cuts