SentinelOne's CEO and co-founder, Tomer Weingarten, made it clear in a recent CNBC interview the cybersecurity firm, which went public in 2021, is not on the market for a sale.
This announcement comes in the wake of a Reuters report that alluded to the company potentially being up for sale. Moreover, there was buzz about the security startup, Wiz, showing interest in acquiring SentinelOne, following statements from a representative of Wiz.
Following the disclosure of its impressive fiscal second-quarter results, which surpassed expectations, SentinelOne's stock surged over 10%. Although the year-over-year revenue growth slowed down to 46% from 70%, the company’s projected fiscal third-quarter revenue stands at $156 million, topping the Refinitiv estimate of $154.2 million.
Addressing the flurry of market speculations, Weingarten stated, "While there's a lot of market chatter, our performance metrics show that we are a rapidly growing and efficient company. Our main aim is to continually innovate and safeguard our clients." He emphasized that the best strategy moving forward is for SentinelOne to continue as an independent, publicly traded entity.
In other updates, SentinelOne had previously declared a workforce cut of 100 employees, approximating to 5% of its total strength in June. The firm is a contender in the endpoint security software market, where it rivals companies like CrowdStrike and VMware, with Microsoft also exerting competitive pressure.
Commenting on the market dynamics, Weingarten confidently said, "With every passing quarter, we're gaining more market share. Traditional players seem to be lagging in this competition."
While SentinelOne maintains an ongoing partnership with Wiz, it has terminated a reseller agreement with the said startup.
To put things in perspective, excluding the after-market performance, the year-to-date rise in SentinelOne's shares is roughly 14%, lagging behind the First Trust Nasdaq Cybersecurity ETF's growth of about 22%. CrowdStrike, a significant player listed in the said ETF, boasts a commendable rise of about 55% within the year.