SentinelOne is looking at a possible sale with investment bank Qatalyst Partners. Ever since the upswing that tech companies experienced during the pandemic ended, the security company has lost 80 percent of its value.
Currently, its market value is estimated at roughly $5 billion. Yet initial talks with interested parties do not seem to have offered the amount the SentinelOne management is waiting for, at least not for the moment.
Reuters spoke with several insiders, but as yet received no comment from SentinelOne or Qatalyst.
Low prices at the expense of profits
SentinelOne offers the Singularity platform and has traditionally been an endpoint specialist. However, the company has been expanding this offering ever since 2013. For example, it has built a modular platform that is scalable and summarizes all kinds of security issues. Within its own XDR solution, it can monitor everything from cloud workloads to endpoints. It also integrates endpoint solutions with Cisco XDR, for example .
What sets this party apart, among other things, are its low prices, making it difficult to make a profit. It also had to lower its expectations for annual revenue growth and laid off 5 percent of its own staff.
Despite these setbacks, Morgan Stanley financial analysts are reasonably positive about the future. SentinelOne’s intrinsic value is said to be much higher than what the current market makes of it. Given the continued prominence of hybrid work, protecting endpoints will only become more important in the future, giving SentinelOne (especially when combined with the partnerships it has in place) reason to remain optimistic.