(Reuters) – SentinelOne raised its annual revenue forecast on Tuesday, anticipating new clients to turn to its cybersecurity products for safeguarding their digital operations amid growing online threats.
Shares of the Mountain View, California-based company were up nearly 3% in extended trading.
SentinelOne is gaining market share at the expense of CrowdStrike following the July 19 outage that paralyzed Microsoft Windows operating system, analysts have said.
Business consumers also continue to invest in AI-powered cybersecurity products as the rise in virtual scams and high-profile security incidents threatens to impact their business operations and put their reputations at stake.
This has helped drive demand for companies like SentinelOne and Fortinet. Its biggest rival, Palo Alto Networks, had forecast cash inflows and annual profits that beat estimates last week.
“We are seeing a transparent increase in visitor interest and appreciation for the benefits of our proprietary AI-powered Singularity platform,” Tomer Weingarten, CEO of SentinelOne, said in a statement.
Singularity is an autonomous platform for enterprise cybersecurity.
SentinelOne raised its full-year forecast to $815 million, from $808 million to $815 million.
Analysts had expected an average of $813 million, according to LSEG data.
For the second quarter, SentinelOne posted an adjusted profit per share of 1 cent for the first time in its 11-year history, while analysts had expected it to break even.
Revenue for the quarter ended July 31 rose 33% to $198. 9 million, beating estimates of $197. 5 million.
SentinelOne expects a third quarter of $209. 5 million, in line with estimates.
(Reporting via Jaspreet Singh in Bengaluru; editing via Maju Samuel)
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