SentinelOne (S) Stock Closes Up 21% in NYSE Debut as Highest Valued Cybersecurity IPO Ever

UTC by Patrick Kariuki · 3 min read
SentinelOne (S) Stock Closes Up 21% in NYSE Debut as Highest Valued Cybersecurity IPO Ever
Photo: NYSE / Twitter

SentinelOne chief executive explained that compared to the competition, his company has a higher win rate than any of them.

SentinelOne, a cybersecurity startup that’s trading using “S” as the ticker symbol, debuted in the New York Stock Exchange. On Wednesday, SentinelOne (S) stock price was at $46, $11 higher than the IPO opening price. The company’s shares were at $42.50 per share by the close of the day. SentinelOne’s market capitalization stood north of $10 billion at the close of business. Some of the companies involved in the initial public offering include Bank of America, Morgan Stanley, Wells Fargo, and Goldman Sachs.

On Tuesday, the shares were priced at $35, $3 more than the targeted price range. In the current IPO, the fund raised by SentinelOne was $1.2 B, resulting in $8.9 B in valuation. The company’s IPO however turned out to be the highest ever, breaking CrowdStrike and McAfee’s IPO record. CrowdStrike’s IPO, the previous record-breaker, sourced $6.7 B from the public two years ago (2019). As per CB Insights’ data, this IPO remains the most successful until another best performer comes along.

SentinelOne Past Performance before Its IPO

The company’s IPOs prospectus data showed that revenue (37.4 Million) for the past financial year grew by 108%. However, net losses rose by $36 million to end the year at a net loss of $62.6 million. SentinelOne’s chief executive, Timer Weingarten was quoted on a CNBC program called “Squawk on the street” saying that there was a increased transformation in the digital sector where both corporte and individual clients have resorted to storing data into the cloud, which gives the company a big opportunity to grow and become more enterprising.

In the past, the company’s competitors have reaped big time in their IPOs. One of the main competitors, CrowdStrike, is currently valued at $46 Billion. With the success of SentinelOne IPO, most competitors now believe that the company will likely be a big threat. For instance, CrowdStrike mentioned SentinelOne while presenting their annual reports. Qualsy is another competitor that acknowledged SentinelOne in a similar fashion. When the Covid-19 pandemic struck, Nikesh Arora, the chief executive at Palo Alto, while in an interview with analysts, mentioned SentinelOne over three times.

SentinelOne chief executive Weingarten told CNBC that compared to the competition, his company has a higher win rate than any of them. He further said that, the incumbent vendors, who obviously don’t use state-of-the-art are definitely weaker than them. The CEO added that this is the perfect time for the company to grab more of the market share.

Recently, the companies cybersecurity department prevailed over SUNBURST- a malware that mimicked Orion, a software made by SolarWinds. Orion is used by McKesson, AT&T, and many other SentinelOne’s customers.

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Patrick Kariuki

Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.

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