Stock Market Nerd – Earnings Round-Up – December 4-8, 2023
SentinelOne (S) Earnings Snapshot
SentinelOne directly competes with CrowdStrike, Microsoft Defender and Palo Alto in endpoint security. It specializes in small and medium business clients.
Demand
SentinelOne beat revenue estimates by 5.1% and beat its guidance by 5.3%. The 71.2% 2-yr revenue CAGR compares to 80.6% as of last quarter & 89% 2 quarters ago. It also beat annual recurring revenue (ARR) estimates by 0.9%. This is the most important demand metric for the company.
- 1,060 $100K+ ARR clients vs. 994 Q/Q & 917 2 quarters ago.
- 115%+ net revenue retention vs. 115%+ Q/Q & 125%+ 2 quarters ago.
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Margins
- Beat EBIT estimates & beat same guidance by about 47%.
- Beat 76% GPM estimates & beat same guidance by 320 bps.
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Fourth Quarter Guidance
- Beat revenue estimate by 1.4%.
- Beat EBIT loss estimate by 25%.
- Beat 76% GPM estimate by 100 bps.
Full year guidance was raised as a result of Q3 results & the Q4 guide.
Balance Sheet
- $800M in cash & equivalents.
- Share count up 5.3% Y/Y. That must slow, and (like for GitLab) likely will as it moves further away from the IPO and controls hiring pace.
Broadcom (AVGO) Earnings Snapshot
Demand
Broadcom beat revenue estimates by 0.2% and beat its guidance by 0.3%.
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Margins
Beat EBITDA estimates by 1.3% and beat guidance by 0.3%. It missed $8.45 GAAP EPS estimates by $0.20, but beat $10.96 EPS estimates by $0.10.
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Guidance
Full year revenue guidance was 0.4% below expectations while EBITDA was also 0.4% below expectations. EBITDA margin was in line with expectations.
Balance Sheet
- $14.2 billion in cash & equivalents.
- $39.2 billion in debt ($1.6 billion is current)
- Basic and diluted share counts are flat Y/Y.
