SentinelOne's stock dropped after beating earnings but missing guidance; revenue was $258.91M, earnings per share 7 cents.

Cybersecurity company SentinelOne reported third-quarter adjusted earnings of 7 cents per share, beating expectations of 5 cents per share, and generated $258.91 million in revenue, exceeding the consensus target of $257.7 million. Total revenue saw a 23% increase from the previous year, with customers bringing in $100,000 or more annually growing by 20% to 1,572. However, guidance for the fourth quarter fell short as the company projected sales to reach around $271 million, disappointing analysts expecting $273.09 million, leading to a significant drop in S stock. Despite management's emphasis on growing demand for their AI-native security platform, shareholders focused on the underwhelming guidance, causing a 7% and 13% decline in afterhours and open-market sessions, respectively. The volatility in the stock following the guidance miss showcases the concept of heteroskedasticity, where events trigger price fluctuations and uncertain outcomes, but volatility eventually stabilizes. The situation presents an opportunity for speculators looking forward to potential upsides in the future.