SentinelOne's shares fell 13% on Wednesday after the firm disclosed a larger quarterly loss than a year ago due to greater operating expenses and stock-based compensation for employees.

The third-quarter adjusted loss was $40 million, up from $26 million a year ago, reflecting increasing staff and higher operating costs as a result of being a publicly-traded company.

SentinelOne Detects and Remediates Advanced Attacks - Exclusive Networks -  Switzerland FR

The company's headcount has increased from around 600 to over 1,080 in the last year. Its operating expenses increased 135 % year over year in the third quarter.

On June 30, the cybersecurity firm became the highest-valued cybersecurity IPO in history when it went public on the New York Stock Exchange. The company's stock was priced at $35 per share, implying a $9 billion market cap.

As the world has shifted to cloud computing, businesses such as SentinelOne, Palo Alto Networks, and Crowdstrike have seen a surge in demand for digital solutions for nearly every activity, a trend amplified by the pandemic. With many people increasingly working from home, demand for cybersecurity solutions has risen in both the institutional and retail sectors.

As of October 31, SentinelOne's overall revenue had climbed by 128 % to $56 million, with annualized recurring revenue up 131 % to $237 million.

As of October 31, SentinelOne's total revenue jumped 128 % to $56 million, with annualized recurring revenue up 131 % to $237 million, according to the business.

As a result, the company was able to increase its annual sales prediction to $200 million from a high of $190 million in September.

By the end of October, the total number of customers had increased by more than 75% to over 6,000.