SentinelOne, Inc. (S) experienced a significant overnight plunge of 18.87% following the release of its fiscal first-quarter financial results and a company restructuring announcement.
The cybersecurity company reported Q1 revenue of $277 million, which slightly missed the consensus estimate, while its operating cash flow margin nearly halved compared to the prior year. More concerning to investors was the company's Q2 revenue guidance of $289-291 million, which fell short of analyst expectations.
Compounding the negative sentiment, SentinelOne announced a restructuring plan to focus on AI, data, cloud, and endpoint security, which includes reducing its full-time workforce by approximately 8%. The company expects to incur a one-time charge of about $25 million related to the restructuring. Additionally, several analysts downgraded their ratings on the stock following the earnings report, with D.A. Davidson cutting its price target and Raymond James moving to a market perform rating.