SentinelOne: A Buy? (Possibly)

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Right. So, SentinelOne (S +1.08%). It’s been having a bit of a moment – not a good moment, admittedly. Down over 20% in a year. Which, let’s be honest, feels…familiar. It’s like that dress you thought would be perfect for every occasion, then you realize it’s only suitable for…well, nothing, really. But the numbers are…intriguing. Strong revenue growth, relatively cheap stock. So, is it a bargain basement find, or just another item to add to the ‘Things I Should Have Avoided’ list? Let’s dive in, shall we? It’s either going to be thrilling or profoundly depressing.

The Numbers Game (and My Anxiety)

Revenue is up 20% in the last quarter, hitting $271.2 million. Which is…good. It’s definitely good. It was roughly what they expected, so no major catastrophes there. Annual Recurring Revenue (ARR) climbed 21% to $1.119 billion. Which sounds impressive when you say it fast. They added $64 million in new ARR. I added approximately zero to my savings account this month, so, you know, perspective. The number of customers spending over $100,000 has gone up 18% to 1,667. I’m pretty sure my average monthly spending is higher than that, but let’s not dwell.

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Apparently, people are actually using more than one of their solutions now. 65% of enterprise customers are using at least three. A year ago it was 39%. Progress! Their Purple AI thing is doing well – 50% attach rate. They landed a deal with Cloudflare (impressive) and a big financial services company. Good for them. I managed to negotiate a slightly lower price on my coffee this morning. Small wins, people.

Earnings per share went up 75% to $0.07. Above expectations. They generated $76.6 million in operating cash flow and $75.9 million in free cash flow. They have $769.6 billion in cash. (Okay, that number might be slightly off, I didn’t double check.) No debt. Which is…comforting. It’s nice to know someone has their financial life together. I’m currently operating on a ‘hope for the best’ strategy.

Guidance and Wild Speculation

So, what do they expect? Revenue of $276-$278 million for the next quarter (around 21% growth). Adjusted EPS of $0.01-$0.02. For the full year, $1.195-$1.205 billion (20% growth). Adjusted EPS of $0.32-$0.38. It’s all very…precise. Which is more than I can say for my investment strategy. It generally involves panicking and selling at the worst possible moment.

Is it a Buy? (The Eternal Question)

SentinelOne is growing at roughly the same rate as CrowdStrike and Palo Alto Networks, but it’s trading at a fraction of their valuation. A forward P/S multiple of 4 times analysts’ estimates, compared to 19 for CrowdStrike and 12 for Palo Alto. Which is…a disconnect. A big one. If they can keep growing at this rate and start making some actual profit, that gap should close. It’s a logical conclusion, really. Though logic has rarely been my strong suit.

They’ve been acquiring companies – Prompt Security and Obervo AI. Moving beyond just endpoint security into broader security operations and data management. Which is…sensible. It’s like finally deciding to learn how to cook instead of just ordering takeout. It might take effort, but it could pay off in the long run. With a cheap valuation, the stock is a buy. At least, that’s what the numbers say. I’m still slightly terrified, but I’m cautiously optimistic. Which is a new experience.

Units of Cryptocurrency Lost: 12. Hours Spent Watching Charts: 9. Number of Panicked Texts to Friends: 24. Must. Be. Disciplined. Long-term investor. (This is a lie.)

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2026-03-18 14:32