SentinelOne Earnings: Strong Sales and Improved Profitability Mark a Strong Finish to Fiscal 2024

We are raising our fair value estimate for no-moat SentinelOne to $21 from $18 after the firm closed out a strong fourth quarter and provided guidance ahead of our prior estimates. Along with strong financial results, we were impressed by SentinelOne’s continued ability to land larger customers and expand sales from existing customers. Despite the strong results, we retain our long-term view that SentinelOne is a small player in a competitive endpoint security market that houses large players such as CrowdStrike, Microsoft, and Palo Alto Networks. Despite the tumble in SentinelOne’s share price and the rise in our fair value, we still view the firm’s shares as overvalued.