SentinelOne's (S) fiscal Q4 revenue exceeded expectations and despite posting strong results near-term investor concerns persist due to lower-than-anticipated guidance for the next fiscal year, Oppenheimer said in a note on Thursday.

The company demonstrated strong enterprise adoptions with 1,411 customers generating over $100,000 in annual recurring revenue with 40% of these customers using three or more products, according to the note.

The firm said that the decision to retire the deception solution resulted in a $10 million annual recurring revenue loss and will impact near-term revenue figures. Additionally, the decline in dollar-based net retention signals lower expansion within existing customers.

Oppenheimer said SentinelOne continues to see competitive gains, particularly in managed security service provider partnerships and non-endpoint security solutions, while it is prioritizing AI investments and strengthening product offerings.

The brokerage has an outperform rating on SentinelOne's stock with a $32 price target.

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