SentinelOne, a cybersecurity firm specializing in endpoint security and detection and response, has reportedly hired investment bank Qatalyst Partners to explore possible sale options.

SentinelOne went public in June 2021 at a valuation of USD 8.9 billion, though subsequently, the company struggled to become profitable. In its latest quarterly earnings report, SentinelOne disclosed an increased net loss YoY and slashed revenue guidance for FY2024, also restating annual recurring revenue data and announcing plans to lay off 5% of its workforce. The company’s current market capitalization is USD 4.2 billion—a fall of nearly 80% since IPO. 

SentinelOne shares jumped 16% after the news to USD 16.82 at the close of trading on Monday.

Analyst QuickTake: Several listed cybersecurity firms are reportedly going private, having experienced difficult market conditions in previous years. IronNet formally announced its intention to delist in July 2023, following a major restructuring as part of a reported take-private deal with venture firm C5 Capital; Rapid7 is also reportedly tendering a takeover offer after a restructuring and layoffs earlier in August.