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SentinelOne raises full-year forecast, adds partnership with Wiz still on

FILE PHOTO: The logo for SentinelOne Inc, a cybersecurity firm, is displayed on a screen during the company’s IPO at the NYSE in New York

By Akshita Toshniwal

(Reuters) - SentinelOne Inc raised its annual revenue forecast on Thursday, riding on resilient adoption of its AI-backed security offerings as macroeconomic fears abate.

The cybersecurity company also clarified that it had just canceled a "reselling agreement" with Wiz and their partnership with the startup was still on.

"Wiz is a nice little startup, we like working with them. But again, in terms of the reselling agreement, we didn't see any contribution from that. We didn't feel like that's something that is fulfilled on their end, so we decided to terminate that," SentinelOne CEO Tomer Weingarten said in an investor conference call on Thursday, a day after news it had terminated the partnership.

Startup Wiz said last week that it was considering a potential bid for SentinelOne, which has struggled to become profitable, after reports that it was considering putting itself up for sale.

Shares of the company were up 1.5% after the bell.SentinelOne offers artificial intelligence-backed cybersecurity products which are seeing steady demand as companies have largely kept their security budgets intact in face of growing cybersecurity attacks.

The Mountain View, California-based company expects revenue for the full-year to be $605 million, up from the $590 million to $600 million range it had forecast in June. Analysts on average estimate it at $594.77 million, according to Refinitiv data.

The cybersecurity company also forecast revenue of $156 million for the third quarter, higher than analysts' estimate of $154.20 million.

Its peer CrowdStrike Holdings on Wednesday also raised its full-year outlook and issued an upbeat forecast for third-quarter.

SentinelOne's total customer count grew about 30% to over 11,000 customers, as of July 31, as its flagship offering Singularity Platform saw resilient adoption among both public and private customers.

The company posted a loss of 8 cents per share, excluding items, compared to expectations of a 14 cent per share loss.

(Reporting by Akshita Toshniwal in Bengaluru; Editing by Shailesh Kuber)