(Reuters) – SentinelOne (NYSE:) missed Wall Street estimates for third-quarter profit on Wednesday, as the cybersecurity firm grapples with stiff competition from larger peers, sending its shares down more than 12% in extended trading.
The Mountain View, California-based company reported breakeven earnings on an adjusted basis, compared with analysts’ average expectations of a 1 cent profit per share, according to data compiled by LSEG.
Investors have come to expect strong results from cybersecurity companies as the growing threat of high-profile online hacks and data breaches has boosted the demand for digital protection services.
SentinelOne has been trying to grab market share in the crowded cybersecurity industry, where larger rivals such as Palo Alto Networks (NASDAQ:) and CrowdStrike (NASDAQ:) are also investing to upgrade their infrastructure and attract clients.
Both Palo Alto and CrowdStrike reported strong quarterly results last month.
SentinelOne raised its fiscal 2025 revenue forecast to $818 million from its prior projection of $815 million.
The company expects its fourth-quarter revenue to be $222 million, compared with estimates of $220.6 million.
Its revenue for the third quarter came in at $210.6 million, beating market expectations of $209.7 million.