SENTINELONE, INC. CLASS ACTION ALERT: WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP REMINDS INVESTORS THAT A SECURITIES CLASS ACTION LAWSUIT HAS BEEN FILED IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA AGAINST SENTINELONE, INC.

LEAD PLAINTIFF DEADLINE IS AUGUST 7, 2023

NEW YORK, June 15, 2023 /PRNewswire/ --  Wolf Haldenstein Adler Freeman & Herz LLP  ("Wolf  Haldenstein") announces that a federal securities class action lawsuit has been filed  against SentinelOne, Inc. ("SentinelOne" or the "Company") (NYSE: S). The class action, filed in the United States District Court for the Northern District of California, is on behalf of a class consisting of all persons and entities other than Defendants,  that purchased or otherwise acquired   securities between June 1, 2022 and June 1, 2023, both dates inclusive (the "Class Period").

All investors who purchased shares and incurred losses are  advised  to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.

If you have incurred losses, you may, no later than August 7, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.

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SentinelOne, Inc. is a cybersecurity company that provides services through its Singularity Platform.  Singularity ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of ever-expanding disparate external and internal sources in real-time.  The Company builds rich context and deliver greater visibility by constructing dynamic representation of data across an organization.  As a result, the Company is able to create AI models that are highly accurate, actionable and autonomous for the prevention, detection and response to cyberattacks. 

SentinelOne claims that its Annualized Recurring Revenue or "ARR" is a key business metric, which is defined as "the annualized revenue run rate of our subscription and capacity contracts at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contract with [the Company]."

During the Class Period, starting on June 1, 2022, the Company overstated revenue and the effectiveness of the internal controls over accounting and financial reporting. 

On June 2, 2023, SentinelOne reported a smaller than expected loss for the first quarter, but revenue missed Wall Street targets.  For the quarter, SentinelOne reported an adjusted loss of 15 cents per share v. 21 cents per share a year earlier.  SentinelOne guided $141 million in revenue for the second quarter, well below estimates of $152.1 million.  The Company's announcement included a one-time adjustment to ARR of $27M, which was due to "a change in methodology and correction of historical inaccuracies." 

Wells Fargo analyst Andrew Nowinski explained that "SentinelOne reported disappointing Q1 results, with revenue missing guidance by 3%[.]  Management said they are seeing smaller deal sizes, longer sales cycles, and lower pipeline conversion rates, in addition to lower usage and consumption trends."

During the earnings conference call, Bank of America Merrill Lynch analyst Tal Liani queried about whether the Company was experiencing solely slippage or if there were other conversion related problems given the Company's weaker than expected guidance.  In response, Tomer Weingarten, CEO, stated that "It's not just deal slippage…  I think deal slippage is something obviously we witnessed, you know, as early as Q3 and Q4 last year.  So, some of it was known.  And I think that, generally, we factored some of that into how we convert pipeline.  I think we have, you know, had a couple of execution hiccups where some deals that just were not supposed to slip.  This is not specifically macro-related.  We just weren't able, to execute these contracts in time.  And that was unfortunate and that's something we need to do better.  So, to me, this is not deal slippage, it's our own execution."

The prior quarter's conference call made no specific mention of any "slippage" or struggles with "conversion rates," touted the Company's execution and even stated that the Company was looking to "elevate execution."  Company Insiders were also active with selling between February 2023 and the end of May, including multiple sales in the millions of dollars.

In a letter to shareholders, management further explained that the Company had reviewed ARR and revenue methodologies to bring them more closely aligned.  In this review, the Company "discovered historical upsell and renewal recording inaccuracies relating to ARR on certain subscription and consumption contracts, which are now corrected." 

On this news, SentinelOne shares declined from a June 1, 2023 close of $20.72 per share down to a close of $13.44 per share on June 2, 2023. 

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at [email protected].

Contact:

Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774

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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP