SentinelOne Has IPO Plans Amid Increased Focus on Cybersecurity

The cybersecurity firm SentinelOne has filed a public Form S-1 registration statement with the SEC to go public. The platform used by hundreds of companies listed on the Global 2000 will join fellow cybersecurity companies like CrowdStrike on the stock market. SentinelOne was fourth on the CNBC Disruptor 50 List for 2021.

The company has an autonomous cybersecurity platform that can provide prevention of malware and ransomware attacks, ActiveEDR (endpoint detection and response), IoT (visibility into managed and unmanaged network devices), and workloads (migration of workloads into the cloud).

Once the IPO is completed, SentinelOne intends to list for trading on the NYSE. The lead book runners on the deal will be Morgan Stanley and Goldman Sachs. In addition, active book-running managers are BofA Securities, Barclays Capital Inc., and Wells Fargo Securities.

Companies that currently use the SentinelOne platform include McKesson, JetBlue, Aston Martin, Sephora, Shutterfly, and Pandora. Four of the Fortune 10 companies are on its client roster.

Among SentinelOne’s top competitors in the growing cybersecurity market are CrowdStrike, Palo Alto Networks, and Qualys. The CEO of SentinelOne, Tomer Weingarten, has called CrowdStrike its primary competitor, according to CNBC.

In recent news, SentinelOne stepped in to stop SUNBURST, a malware that attacked SolarWinds’ Orion software. Thousands of organizations depend on that software, but SentinelOne’s platform stopped the attack at an early stage.

For the three months ending April 30, 2021, SentinelOne grew its revenues by 108 percent YoY, reported CNBC. However, the net losses more than doubled from $26.6 million to $62.6 million.

SentinelOne is focused in a key area right now, as the world moves more online (partially fueled by the COVID-19 pandemic) and cyber attacks are on the rise. In 2020, research gave the forecast for endpoint security systems like SentinelOne’s to grow in market size from $12.8 billion in 2019 to $18.4 billion by 2024. 

Endpoint security is key to helping prevent malware and stop other malicious cyber activity. It provides cyber defense across any devices connected to an enterprise network. A researcher at SentinelOne, Marco Figueroa, said at the recent RSA Conference that large-scale supply chain attacks like SolarWinds are here to stay.

The company hasn't determined its proposed price range yet or the number of shares to be offered in its IPO. Its ticker symbol on the NYSE is expected to be “S.”

SentinelOne conducted a funding round in November 2020 for $276 million led by Tiger Global. Its valuation tripled from $1 billion early in the year to $3 billion by the end of 2020, according to CNBC.

At this point, SentinelOne’s IPO date has not been announced, as its S-1 registration form was just completed on Thursday, June 3.

Once SentinelOne is publicly traded, retail investors will be able to purchase shares of its common stock on the NYSE. You can access trading of “S” stock through any type of brokerage when the IPO is completed.