SentinelOne stock jumps as MSSP-driven revenue surges

Cybersecurity firm saw stock price jump 17 per cent as momentum with managed service partners fuels better-than-expected quarterly results

SentinelOne saw major share price gains as it disclosed better-than-expected financial results for its latest quarter, thanks in part to growing momentum with MSSP partners.

During the company's quarterly call with analysts, SentinelOne executives credited the company's traction with managed service partners for helping to enable its expectations-beating results for its fiscal third quarter of 2024, ended on 31 October.

"Our momentum with MSSP partners, and by extension SMEs, was particularly strong as it continues to fuel a solid base of long-term growth," SentinelOne CFO Dave Bernhardt said during the call.

SentinelOne's share price jumped 17.5 per cent in after-hours trading to $23.50 a share.

During the latest quarter, the company "solidified [its] lead with mid-market enterprises and expanded [its] business with leading MSSP partners," SentinelOne co-founder and CEO Tomer Weingarten said during the call with analysts.

Ultimately, "MSSPs represent the fastest-growing channel category in the security market and the preeminent way to protect SMEs," Weingarten said, adding that SentinelOne's "platform architecture is purpose-built to help service providers manage security at scale."

Other highlights of the recent quarter, Weingarten said, included SentinelOne's increased displacement of existing SIEM (security information and event management) technologies such as Splunk - which came in the wake of Cisco's £28bn agreement to acquire the SIEM stalwart.

For instance, "after 15 years of using Splunk, a large enterprise replaced it with Singularity Data Lake alongside our endpoint and cloud security" during SentinelOne's fiscal third quarter, Weingarten said.

Later during the call, the SentinelOne CEO said that "in Q3, we secured large data deals, which reinforces the demand from large enterprises looking to modernise away from legacy SIEM solutions.

"Recent news of the leading SIEM vendor being acquired is further boosting enterprise interest in our Singularity Data Lake," he said, in reference to the planned Splunk acquisition.

For SentinelOne's fiscal third quarter, revenue climbed 42 per cent, year-over-year, to $164.2m, the company reported. That surpassed analyst estimates for the quarter of $156.1m.

The company also reported a non-GAAP net loss of 3 pence per share for its fiscal Q3, beating the analyst consensus estimate of an 8-pence net loss per share.