Latest news with #BarbaraLarson
Business Wire
28-05-2025
- Business
- Business Wire
SentinelOne Announces First Quarter Fiscal Year 2026 Financial Results
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--SentinelOne, Inc. (NYSE: S) today announced financial results for the first quarter of fiscal year 2026 ended April 30, 2025. 'Our top-tier growth and margin improvement reflect continued platform momentum and customer success," said Tomer Weingarten, CEO of SentinelOne. "Our innovation engine is fueling adoption across AI, Data, Cloud, and Endpoint. With Singularity, we're leading a transformational shift toward AI-powered security for the future.' 'We delivered strong revenue growth and achieved record free cash flow margin, demonstrating the scalability of our model and ongoing operational discipline,' said Barbara Larson, CFO of SentinelOne. 'Our continued focus on driving efficiency while investing in innovation positions us well to deliver sustainable, profitable growth moving forward. Given this opportunity, we're pleased to announce our first-ever share repurchase authorization.' First Quarter Fiscal Year 2026 Highlights (All metrics are compared to the first quarter of fiscal year 2025 unless otherwise noted) Total revenue increased 23% to $229.0 million, compared to $186.4 million. Annualized recurring revenue (ARR) increased 24% to $948.1 million as of April 30, 2025. Customers with ARR of $100,000 or more grew 22% to 1,459 as of April 30, 2025. Gross margin: GAAP gross margin was 75%, compared to 73%. Non-GAAP gross margin was 79%, compared to 79%. Operating margin: GAAP operating margin was (38)%, compared to (43)%. Non-GAAP operating margin was (2)%, compared to (6)%. Net income (loss) margin: GAAP net loss margin was (91)%, compared to (38)%. Non-GAAP net income (loss) margin was 3%, compared to 0%. Cash flow margin: Operating cash flow margin was 23%, compared to 23%. Free cash flow margin was 20%, 2 percentage points higher compared to 18%. Trailing-twelve month operating cash flow margin was 5%, compared to 0%. Trailing-twelve month free cash flow margin was 2%, compared to (3)%. Cash, cash equivalents, and investments were $1.2 billion as of April 30, 2025. In addition, the board of directors has authorized a $200.0 million share repurchase program. This authorization reflects the Company's confidence in its long-term growth and commitment to enhancing shareholder value. Repurchases may be made from time to time in the open market or through other methods, subject to market conditions and regulatory requirements. Financial Outlook We are providing the following guidance for the second quarter of fiscal year 2026, and for fiscal year 2026 (ending January 31, 2026). These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization of acquired intangible assets, acquisition-related compensation costs, restructuring charges, gains and losses on strategic investments, and income tax provision. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP gross margin and non-GAAP operating margin is not available without unreasonable effort. Webcast Information We will host a live audio webcast for analysts and investors to discuss our earnings results for the first quarter of fiscal year 2026 and outlook for second quarter of fiscal year 2026 and full fiscal year 2026 today, May 28, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). The live webcast and a recording of the event will be available on the Investor Relations section of our website at We have used, and intend to continue to use, the Investor Relations section of our website at as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve risks and uncertainties, including but not limited to statements regarding our future growth, execution, product innovation and technological development, competitive position, and future financial and operating performance, including our financial outlook for the second quarter of fiscal year 2026 and our full fiscal year 2026, including non-GAAP gross margin and non-GAAP operating margin; share repurchase program; progress towards our long-term profitability targets; and general market trends. The words 'believe,' 'may,' 'will,' 'potentially,' 'estimate,' 'continue,' 'anticipate,' 'intend,' 'could,' 'would,' 'project,' 'target,' 'plan,' 'expect,' or the negative of these terms and similar expressions are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. There are a significant number of factors that could cause our actual results to differ materially from statements made in this press release, including but not limited to: our limited operating history; our history of losses; intense competition in the market we compete in; fluctuations in our operating results; actual or perceived network or security incidents against us; actual or perceived defects, errors or vulnerabilities in our platform; our ability to successfully integrate any acquisitions and strategic investments; risks associated with managing our rapid growth; general global, political, economic, and macroeconomic climate, including but not limited to, the changes in U.S. federal spending, significant political or regulatory developments or changes in trade policy, actual or perceived instability in the banking industry; supply chain disruptions; a potential recession, inflation, and interest rate volatility; geopolitical conflicts around the world; our ability to attract new and retain existing customers, or renew and expand our relationships with them; the ability of our platform to effectively interoperate within our customers' IT infrastructure; disruptions or other business interruptions that affect the availability of our platform including cybersecurity incidents; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and risks of securities class action litigation. Additional risks and uncertainties that could affect our financial results are included under the captions 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' set forth in our filings and reports with the Securities and Exchange Commission (SEC), including our most recently filed Annual Report on Form 10-K, dated March 26, 2025, subsequent Quarterly Reports on Form 10-Q and other filings and reports that we may file from time to time with the SEC, copies of which are available on our website at and on the SEC's website at You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information and estimates available to us as of the date hereof, and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date of this press release or to reflect new information or the occurrence of unexpected events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Non-GAAP Financial Measures In addition to our results being determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, with the financial information presented in accordance with GAAP, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period. Reconciliations between non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP are contained below. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. As presented in the 'Reconciliation of GAAP to Non-GAAP Financial Information' table below, each of the non-GAAP financial measures excludes one or more of the following items: Stock-based compensation expense Stock-based compensation expense is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation expense provide investors with a basis to measure our core performance against the performance of other companies without the variability created by stock-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used. Employer payroll tax on employee stock transactions Employer payroll tax expenses related to employee stock transactions are tied to the vesting or exercise of underlying equity awards and the price of our common stock at the time of vesting, which varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for employer payroll taxes on employee stock transactions provide investors with a basis to measure our core performance against the performance of other companies without the variability created by employer payroll taxes on employee stock transactions as a result of the stock price at the time of employee exercise. Amortization of acquired intangible assets Amortization of acquired intangible asset expense is tied to the intangible assets that were acquired in conjunction with acquisitions, which results in non‑cash expenses that may not otherwise have been incurred. Management believes excluding the expense associated with intangible assets from non-GAAP measures allows for a more accurate assessment of our ongoing operations and provides investors with a better comparison of period-over-period operating results. Acquisition-related compensation costs Acquisition-related compensation costs include cash-based compensation expenses resulting from the employment retention of certain employees established in accordance with the terms of each acquisition. Acquisition-related cash-based compensation costs have been excluded as they were specifically negotiated as part of the acquisitions in order to retain such employees and relate to cash compensation that was made either in lieu of stock-based compensation or where the grant of stock-based compensation awards was not practicable. In most cases, these acquisition-related compensation costs are not factored into management's evaluation of potential acquisitions or our performance after completion of acquisitions, because they are not related to our core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related compensation costs from non-GAAP measures provides investors with a basis to compare our results against those of other companies without the variability caused by purchase accounting. Restructuring charges Restructuring charges primarily relate to severance payments, employee benefits, stock-based compensation and asset impairment charges related to facilities. These restructuring charges are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude restructuring charges from non-GAAP financial measures because it enables the comparison of period-over-period operating results from continuing operations. Gains and losses on strategic investments Gains and losses on strategic investments relate to the subsequent changes in the recorded value of our strategic investments. These gains and losses are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude gains and losses from strategic investments from non-GAAP financial measures because it enables the comparison of period-over-period net income (loss). Income tax provision The tax charge related to a framework for a final settlement and resolution discussed during the three months ended April 30, 2025 with the Israel Tax Authorities (ITA) as a part of the ongoing bilateral Advance Pricing Agreement negotiations with the U.S. Internal Revenue Service and ITA of $136.0 million (included in the balance sheet within other liabilities) and the $4.7 million tax benefit, related to valuation allowance release for the recording of Israeli deferred tax assets, have been excluded from our non-GAAP results because these represent discrete, non-recurring items that are not indicative of our core operating performance. These exclusions provide investors with a clearer view of our underlying financial results and facilitates meaningful comparisons across reporting periods. No finalized resolutions or agreement has been reached at this time. Dilutive shares applying the treasury stock method During periods in which we incur a net loss under a GAAP basis, we exclude certain potential common stock equivalents from our GAAP diluted shares because their effect would have been anti-dilutive. In periods where we have net income on a non-GAAP basis, these common stock equivalents would have been dilutive. Accordingly, we have included the impact of these common stock equivalents in the calculation of our non-GAAP diluted net income per share applying the treasury stock method. Non-GAAP Cost of Revenue, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss and Non-GAAP Net Loss Per Share We define these non-GAAP financial measures as their respective GAAP measures, excluding the expenses referenced above. We use these non-GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. Free Cash Flow We define free cash flow as cash provided by operating activities less purchases of property and equipment and capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors, and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives. Key Business Metrics We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions. Annualized Recurring Revenue (ARR) We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription and consumption and usage-based customers, and to maintain and expand our relationship with existing customers. ARR represents the annualized revenue run rate of our subscription and consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates, usage, renewal rates, and other contractual terms. We believe that our ability to increase the number of customers with ARR of $100,000 or more is an indicator of our market penetration and strategic demand for our platform. We define a customer as an entity that has an active subscription for access to our platform. We count Managed Service Providers, Managed Security Service Providers, Managed Detection & Response firms, and Original Equipment Manufacturers, who may purchase our products on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers. Source: SentinelOne NYSE: S Category: Investors SENTINELONE, INC. (in thousands, except share and per share data) (unaudited) Three Months Ended April 30, 2025 2024 Revenue $ 229,029 $ 186,355 Cost of revenue (1) 56,532 50,137 Gross profit 172,497 136,218 Operating expenses: Research and development (1) 72,253 58,321 Sales and marketing (1) 133,881 115,830 General and administrative (1) 48,679 42,667 Restructuring (1) 5,167 — Total operating expenses 259,980 216,818 Loss from operations (87,483 ) (80,600 ) Interest income, net 12,290 12,046 Other income (expense), net 492 (39 ) Loss before income taxes (74,701 ) (68,593 ) Provision for income taxes 133,492 1,512 Net loss $ (208,193 ) $ (70,105 ) Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.63 ) $ (0.23 ) Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 327,976,349 309,547,693 (1) Includes stock-based compensation expense as follows: Cost of revenue $ 4,665 $ 4,869 Research and development 20,941 17,465 Sales and marketing 22,915 18,074 General and administrative 20,170 18,145 Restructuring (36 ) — Total stock-based compensation expense $ 68,655 $ 58,553 Expand SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended April 30, 2025 2024 CASH FLOW FROM OPERATING ACTIVITIES: Net loss $ (208,193 ) $ (70,105 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 10,848 10,691 Amortization of deferred contract acquisition costs 18,610 15,284 Non-cash operating lease costs 1,096 957 Stock-based compensation expense 68,655 58,553 Accretion of discounts, and amortization of premiums on investments, net (2,780 ) (3,628 ) Asset impairment charges 2,171 — Other 549 1,551 Changes in operating assets and liabilities, net of effects of acquisitions Accounts receivable 80,580 80,911 Prepaid expenses and other assets (4,215 ) 3,904 Deferred contract acquisition costs (14,738 ) (15,207 ) Accounts payable 13,402 2,368 Accrued liabilities and other liabilities 130,676 (790 ) Accrued payroll and benefits (16,408 ) (18,897 ) Operating lease liabilities (1,191 ) (1,481 ) Deferred revenue (26,788 ) (22,108 ) Net cash provided by operating activities 52,274 42,003 CASH FLOW FROM INVESTING ACTIVITIES: Purchases of property and equipment (146 ) (886 ) Purchases of intangible assets (21 ) (73 ) Capitalization of internal-use software (6,684 ) (7,361 ) Purchases of investments (167,258 ) (246,965 ) Sales and maturities of investments 108,517 210,574 Cash paid for acquisitions, net of cash acquired — (61,553 ) Net cash used in investing activities (65,592 ) (106,264 ) CASH FLOW FROM FINANCING ACTIVITIES: Repurchase of early exercised stock options — (21 ) Proceeds from exercise of stock options 12,277 6,554 Net cash provided by financing activities 12,277 6,533 NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (1,041 ) (57,728 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–Beginning of period 193,302 322,086 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–End of period $ 192,261 $ 264,358 Expand Three Months Ended April 30, 2025 2024 Cost of revenue reconciliation: GAAP cost of revenue $ 56,532 $ 50,137 Stock-based compensation expense (4,665 ) (4,869 ) Employer payroll tax on employee stock transactions (230 ) (207 ) Amortization of acquired intangible assets (4,059 ) (5,471 ) Acquisition-related compensation (20 ) (273 ) Non-GAAP cost of revenue $ 47,558 $ 39,317 Gross profit reconciliation: GAAP gross profit $ 172,497 $ 136,218 Stock-based compensation expense 4,665 4,869 Employer payroll tax on employee stock transactions 230 207 Amortization of acquired intangible assets 4,059 5,471 Acquisition-related compensation 20 273 Non-GAAP gross profit $ 181,471 $ 147,038 Gross margin reconciliation: GAAP gross margin 75 % 73 % Stock-based compensation expense 2 % 3 % Employer payroll tax on employee stock transactions — % — % Amortization of acquired intangible assets 2 % 3 % Acquisition-related compensation — % — % Non-GAAP gross margin* 79 % 79 % Research and development expense reconciliation: GAAP research and development expense $ 72,253 $ 58,321 Stock-based compensation expense (20,941 ) (17,465 ) Employer payroll tax on employee stock transactions (531 ) (413 ) Acquisition-related compensation (674 ) (787 ) Non-GAAP research and development expense $ 50,107 $ 39,656 Sales and marketing expense reconciliation: GAAP sales and marketing expense $ 133,881 $ 115,830 Stock-based compensation expense (22,915 ) (18,074 ) Employer payroll tax on employee stock transactions (692 ) (923 ) Amortization of acquired intangible assets (2,180 ) (2,204 ) Acquisition-related compensation (17 ) (44 ) Non-GAAP sales and marketing expense $ 108,077 $ 94,585 General and administrative expense reconciliation: GAAP general and administrative expense $ 48,679 $ 42,667 Stock-based compensation expense (20,170 ) (18,145 ) Employer payroll tax on employee stock transactions (1,295 ) (642 ) Acquisition-related compensation — (1 ) Non-GAAP general and administrative expense $ 27,214 $ 23,879 Restructuring expense reconciliation: GAAP restructuring expense $ 5,167 $ — Severance and employee benefits (3,004 ) — Asset impairment charges (2,171 ) — Stock-based compensation expense 36 — Other restructuring charges (28 ) — Non-GAAP restructuring expense $ — $ — Operating loss reconciliation: GAAP operating loss $ (87,483 ) $ (80,600 ) Stock-based compensation expense 68,655 58,553 Employer payroll tax on employee stock transactions 2,748 2,188 Amortization of acquired intangible assets 6,239 7,675 Acquisition-related compensation 711 1,103 Severance and employee benefits 3,004 Asset impairment charges 2,171 — Other restructuring charges 28 — Non-GAAP operating loss $ (3,927 ) $ (11,081 ) Operating margin reconciliation: GAAP operating margin (38 )% (43 )% Stock-based compensation expense 30 % 31 % Employer payroll tax on employee stock transactions 1 % 1 % Amortization of acquired intangible assets 3 % 4 % Acquisition-related compensation — % 1 % Severance and employee benefits 1 % — % Asset impairment charges 1 % — % Other restructuring charges — % — % Non-GAAP operating margin (2 )% (6 )% Net income (loss) reconciliation: GAAP net loss $ (208,193 ) $ (70,105 ) Stock-based compensation expense 68,655 58,553 Employer payroll tax on employee stock transactions 2,748 2,188 Amortization of acquired intangible assets 6,239 7,675 Acquisition-related compensation 711 1,103 Severance and employee benefits 3,004 — Asset impairment charges 2,171 — Other restructuring charges 28 — Net loss on strategic investments 3 — Income tax provision 131,283 — Non-GAAP net income (loss) $ 6,649 $ (586 ) Net income (loss) margin reconciliation: GAAP net loss margin (91 )% (38 )% Stock-based compensation 30 % 31 % Employer payroll tax on employee stock transactions 1 % 1 % Amortization of acquired intangible assets 3 % 4 % Acquisition-related compensation — % 1 % Severance and employee benefits 1 % — % Asset impairment charges 1 % — % Other restructuring charges — % — % Net loss on strategic investments — % — % Income tax provision 57 % — % Non-GAAP net income (loss) margin* 3 % — % GAAP basic and diluted shares 327,976,349 309,547,693 Dilutive shares under the treasury stock method 11,350,541 — Non-GAAP diluted shares 339,326,890 309,547,693 Diluted EPS reconciliation: GAAP net loss per share, basic and diluted $ (0.63 ) $ (0.23 ) Stock-based compensation expense 0.20 0.19 Employer payroll tax on employee stock transactions 0.01 0.01 Amortization of acquired intangible assets 0.02 0.02 Acquisition-related compensation — — Severance and employee benefits 0.01 — Asset impairment charges 0.01 — Other restructuring charges — — Net loss on strategic investments — — Income tax provision 0.39 — Adjustment to fully diluted earnings per share (1) 0.01 — Non-GAAP net income per share, diluted* $ 0.02 $ — Expand *Certain figures may not sum due to rounding. (1) For periods in which we had diluted non-GAAP net income per share, the sum of the impact of individual reconciling items may not total to diluted non-GAAP net income per share because the basic share counts used to calculate GAAP net loss per share differ from the diluted share counts used to calculate non-GAAP net income per share, and because of rounding differences. The GAAP net loss per share calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share. Expand
Yahoo
04-04-2025
- Business
- Yahoo
SentinelOne (NYSE:S) Unveils Future-Ready Program Amid 7% Share Price Dip
Last week, SentinelOne launched its Global PartnerOne Program, aimed at enhancing partner strategies and growth. Despite this initiative, aimed at reinforcing partner collaborations, SentinelOne's stock experienced a 7% decline. This decline coincided with broader market turmoil, where major indexes fell due to escalating trade tensions and tariffs. The Dow Jones dropped 4%, pushing the Nasdaq into bear market territory, reflecting investor concern over economic stability. As tech stocks broadly declined, SentinelOne's price move aligned with these trends, demonstrating the impact of macroeconomic factors on individual stock performance despite positive company announcements. We've identified 2 risks for SentinelOne that you should be aware of. The end of cancer? These 21 emerging AI stocks are developing tech that will allow early idenification of life changing disesaes like cancer and Alzheimer's. Over the last year, SentinelOne experienced a total return of 18.07% decline, contrasting the modest 3.3% return of the broader US market and further underperforming the US Software industry, which saw a 3.1% drop. The company's financial results, reported in March 2025, indicated significant growth with full-year sales rising from US$621.15 million to US$821.46 million. However, the substantial net loss of US$70.79 million highlights ongoing profitability challenges. The integration of AI-driven security solutions with partners like Obsidian and High Wire Networks also marked progress, but did not immediately bolster investor sentiment. Nevertheless, these technological advancements might lay the groundwork for future performance improvements. The appointment of Barbara Larson as Chief Financial Officer in September 2024 and the continued partnership advancements, specifically with Lenovo and Google Cloud, further position SentinelOne in the AI cybersecurity arena. Despite these initiatives, economic uncertainties and reliance on non-GAAP measures present continued risks, impacting investor confidence and highlighting challenges in achieving consistent earnings growth. Upon reviewing our latest valuation report, SentinelOne's share price might be too pessimistic. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:S. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
13-03-2025
- Business
- Yahoo
SentinelOne Reports Strong Q4, Revenue Up 29%, Eyes $1 Billion Milestone
SentinelOne (S, Financials) shares fell more than 4% on Thursday after the cybersecurity firm reported a 29% increase in fourth-quarter revenue to $225.5 million, driven by continued demand for its artificial intelligence-powered security platform. Reflecting ongoing client growth and platform adoption, annualized recurring revenue climbed 27% to $920.1 to a negative 9% margin in the same time a year ago, the firm reported its first quarter of positive non-GAAP operating margin of 1%. Adding that SentinelOne is focusing on developing autonomous AI-driven security processes to improve its platform, CEO Tomer Weingarten said the firm is on pace to reach $1 billion in annualized recurring revenue and total revenue this rose 32% to $821.5 million from $621.2 million for the whole fiscal year. Customer count with annually recurring income of at least $100,000 increased 25% to 1,411. Gross margins also grew; non-GAAP margin jumped to 79% in the fourth quarter from 78% a year said that while GAAP net loss margin improved to 31% in the fourth quarter from 41% in the previous year, its losses were shrinking. Reversing a 4% loss in the same time previous year, non- GAAP net income margin hit 5%.Operating cash flow margin of negative 2% compared to negative 4% a year earlier indicated improvement in cash flow patterns. From negative 6%, free cash flow margin moved to negative 4%. Reflecting a good liquidity, the business closed the fiscal year with $1.1 billion in cash, cash equivalents, and income between $1.007 billion and $1.012 billion for the whole year, SentinelOne released recommendations for the first quarter and whole fiscal year 2026. Reflecting ongoing attempts to balance expansion with profitability, the business estimates a non-GAAP operating margin between 3% and 4%.Apart from ongoing research and development, the company's growth plan calls for further developments in AI-driven security capabilities. CFO Barbara Larson said the business is still mostly focused on increasing margins in fiscal year 2026 and beyond and fostering sustainable in a very competitive cybersecurity industry, SentinelOne faces competitors such as CrowdStrike (CRWD, Financials) and Palo Alto Networks (PANW, Financials) also fighting for business security contracts. The company's emphasis on automated security response driven by artificial intelligence-powered threat identification has helped it to become a major participant in the expanding cybersecurity businesses search for sophisticated defense against changing digital threats, the cybersecurity industry has witnessed growing demand. One of SentinelOne's main differences is how it uses artificial intelligence and machine learning to automate threat identification and response. To further its market position, the firm has also been extending its alliances and integrations with cloud service by worries about ransomware, data breaches, and state-sponsored assaults, industry experts predict cybersecurity expenditure to keep increasing. The capacity of SentinelOne to expand its AI-driven security solutions while enhancing its financial performance will be crucial for its future development is setting itself for long-term growth in the cybersecurity sector while striving for consistent profitability with a strong near to fiscal 2025 and an ambitious plan forward. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
13-03-2025
- Business
- Yahoo
SentinelOne Announces Fourth Quarter and Fiscal Year 2025 Financial Results
Revenue increased 29% year-over-year ARR up 27% year-over-year MOUNTAIN VIEW, Calif., March 12, 2025--(BUSINESS WIRE)--SentinelOne, Inc. (NYSE: S) today announced financial results for the fourth quarter and fiscal year 2025 ended January 31, 2025. "Our strong finish to the fiscal year reflects solid execution and the accelerating adoption of our platform solutions," said Tomer Weingarten, CEO of SentinelOne. "We're on track to surpass $1 billion in ARR and revenue this year, a key milestone in our growth journey. For more than a decade, we've patented leading machine learning security models — now, we're pioneering fully autonomous, agentic AI workflows. We're solidifying Singularity as the preeminent AI security platform of the future." "We once again delivered industry-leading growth and margin expansion in fiscal year 2025, culminating in our first quarter of positive non-GAAP operating margin in Q4," said Barbara Larson, CFO of SentinelOne. "We're focused on driving sustainable growth and improving margin in fiscal year 2026 and beyond." Fourth Quarter Fiscal 2025 Highlights (All metrics are compared to the fourth quarter of fiscal year 2024 unless otherwise noted) Total revenue increased 29% to $225.5 million, compared to $174.2 million. Annualized recurring revenue (ARR) increased 27% to $920.1 million as of January 31, 2025. Customers with ARR of $100,000 or more grew 25% to 1,411 as of January 31, 2025. Gross margin: GAAP gross margin was 75%, compared to 72%. Non-GAAP gross margin was 79%, compared to 78%. Operating margin: GAAP operating margin was (36)%, compared to (47)%. Non-GAAP operating margin was 1%, compared to (9)%. Net income (loss) margin: GAAP net loss margin was (31)%, compared to (41)%. Non-GAAP net income (loss) margin was 5%, compared to (4)%. Cash flow margin: Operating cash flow margin was (2)%, compared to (4)%. Free cash flow margin was (4)%, compared to (6)%. Cash, cash equivalents, and investments were $1.1 billion as of January 31, 2025. Full Year Fiscal 2025 Highlights (All metrics are compared to fiscal year 2024 unless otherwise noted) Total revenue increased 32% to $821.5 million, compared to $621.2 million. Gross margin: GAAP gross margin was 74%, compared to 71%. Non-GAAP gross margin was 79%, compared to 77%. Operating margin: GAAP operating margin was (40)%, compared to (61)%. Non-GAAP operating margin was (3)%, compared to (19)%. Net income (loss) margin: GAAP net loss margin was (35)%, compared to (55)%. Non-GAAP net income (loss) margin was 2%, compared to (13)%. Cash flow margin: Operating cash flow margin was 4%, compared to (11)%. Free cash flow margin was 1%, compared to (13)%. Financial Outlook We are providing the following guidance for the first quarter of the fiscal year 2026 (ending April 30, 2025), and for the fiscal year 2026 (ending January 31, 2026). Q1FY26Guidance Full FY2026Guidance Revenue $228 million $1,007 - 1,012 million Non-GAAP gross margin 79% 78.5-79.5% Non-GAAP operating margin (2)% 3-4% These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization of acquired intangible assets, acquisition-related compensation costs, restructuring charges, and gains and losses on strategic investments. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP gross margin and non-GAAP operating margin is not available without unreasonable effort. Webcast Information We will host a live audio webcast for analysts and investors to discuss our earnings results for the fourth quarter of fiscal year 2025, and outlook for the first quarter of fiscal year 2026 and full fiscal year 2026 today, March 12, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). The live webcast and a recording of the event will be available on the Investor Relations section of our website at We have used, and intend to continue to use, the Investor Relations section of our website at as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve risks and uncertainties, including but not limited to statements regarding our future growth, execution, product innovation and technological development, competitive position, and future financial and operating performance, including our financial outlook for the first quarter of fiscal year 2026 and our full fiscal year 2026, including non-GAAP gross margin and non-GAAP operating margin; progress towards our long-term profitability targets; and general market trends. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target," "plan," "expect," or the negative of these terms and similar expressions are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. There are a significant number of factors that could cause our actual results to differ materially from statements made in this press release, including but not limited to: our limited operating history; our history of losses; intense competition in the market we compete in; fluctuations in our operating results; actual or perceived network or security incidents against us; actual or perceived defects, errors or vulnerabilities in our platform; our ability to successfully integrate any acquisitions and strategic investments; risks associated with managing our rapid growth; general global, political, economic, and macroeconomic climate, including but not limited to, the impacts from the current U.S. presidential administration; changes in tariffs and trade restrictions, actual or perceived instability in the banking industry; supply chain disruptions; a potential recession, inflation, and interest rate volatility; geopolitical conflicts around the world; our ability to attract new and retain existing customers, or renew and expand our relationships with them; the ability of our platform to effectively interoperate within our customers' IT infrastructure; disruptions or other business interruptions that affect the availability of our platform including cybersecurity incidents; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and risks of securities class action litigation. Additional risks and uncertainties that could affect our financial results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" set forth in our filings and reports with the Securities and Exchange Commission ("SEC"), including our most recently filed Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other filings and reports that we may file from time to time with the SEC, copies of which are available on our website at and on the SEC's website at You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information and estimates available to us as of the date hereof, and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date of this press release or to reflect new information or the occurrence of unexpected events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Non-GAAP Financial Measures In addition to our results being determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, with the financial information presented in accordance with GAAP, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period. Reconciliations between non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP are contained below. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. As presented in the "Reconciliation of GAAP to Non-GAAP Financial Information" table below, each of the non-GAAP financial measures excludes one or more of the following items: Stock-based compensation expense Stock-based compensation expense is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation expense provide investors with a basis to measure our core performance against the performance of other companies without the variability created by stock-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used. Employer payroll tax on employee stock transactions Employer payroll tax expenses related to employee stock transactions are tied to the vesting or exercise of underlying equity awards and the price of our common stock at the time of vesting, which varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for employer payroll taxes on employee stock transactions provide investors with a basis to measure our core performance against the performance of other companies without the variability created by employer payroll taxes on employee stock transactions as a result of the stock price at the time of employee exercise. Amortization of acquired intangible assets Amortization of acquired intangible assets expense is tied to the intangible assets that were acquired in conjunction with acquisitions, which results in non‑cash expenses that may not otherwise have been incurred. Management believes excluding the expense associated with intangible assets from non-GAAP measures allows for a more accurate assessment of our ongoing operations and provides investors with a better comparison of period-over-period operating results. Acquisition-related compensation costs Acquisition-related compensation costs include cash-based compensation expenses resulting from the employment retention of certain employees established in accordance with the terms of each acquisition. Acquisition-related cash-based compensation costs have been excluded as they were specifically negotiated as part of the acquisitions in order to retain such employees and relate to cash compensation that was made either in lieu of stock-based compensation or where the grant of stock-based compensation awards was not practicable. In most cases, these acquisition-related compensation costs are not factored into management's evaluation of potential acquisitions or our performance after completion of acquisitions, because they are not related to our core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related compensation costs from non-GAAP measures provides investors with a basis to compare our results against those of other companies without the variability caused by purchase accounting. Restructuring charges Restructuring charges primarily relate to severance payments, employee benefits, stock-based compensation, impairment charges related to excess facilities and inventory write-offs. These restructuring charges are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude restructuring charges from non-GAAP financial measures because it enables the comparison of period-over-period operating results from continuing operations. Gains and losses on strategic investments Gains and losses on strategic investments relate to the subsequent changes in the recorded value of our strategic investments. These gains and losses are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude gains and losses from strategic investments from non-GAAP financial measures because it enables the comparison of period-over-period net income (loss). Dilutive shares applying the treasury stock method During periods in which we incur a net loss under a GAAP basis, we exclude certain potential common stock equivalents from our GAAP diluted shares because their effect would have been anti-dilutive. In periods where we have net income on a non-GAAP basis, these common stock equivalents would have been dilutive. Accordingly, we have included the impact of these common stock equivalents in the calculation of our non-GAAP diluted net income per share applying the treasury stock method. Non-GAAP Cost of Revenue, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss and Non-GAAP Net Loss Per Share We define these non-GAAP financial measures as their respective GAAP measures, excluding the expenses referenced above. We use these non-GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. Free Cash Flow We define free cash flow as cash provided by (used in) operating activities less purchases of property and equipment and capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors, and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives. Key Business Metrics We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions. Annualized Recurring Revenue (ARR) We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription and consumption and usage-based customers, and to maintain and expand our relationship with existing customers. ARR represents the annualized revenue run rate of our subscription and consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates, usage, renewal rates, and other contractual terms. Customers with ARR of $100,000 or More We believe that our ability to increase the number of customers with ARR of $100,000 or more is an indicator of our market penetration and strategic demand for our platform. We define a customer as an entity that has an active subscription for access to our platform. We count Managed Service Providers, Managed Security Service Providers, Managed Detection & Response firms, and Original Equipment Manufacturers, who may purchase our products on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers. Source: SentinelOneNYSE: SCategory: Investors SENTINELONE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) January 31, January 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 186,574 $ 256,651 Short-term investments 535,331 669,305 Accounts receivable, net 236,012 214,322 Deferred contract acquisition costs, current 64,782 54,158 Prepaid expenses and other current assets 47,023 102,895 Total current assets 1,069,722 1,297,331 Property and equipment, net 71,774 48,817 Long-term investments 419,367 204,798 Deferred contract acquisition costs, non-current 85,322 71,640 Intangible assets, net 107,155 122,903 Goodwill 629,636 549,411 Other assets 23,649 26,507 Total assets $ 2,406,625 $ 2,321,407 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 8,159 $ 6,759 Accrued payroll and benefits 79,612 74,345 Deferred revenue, current 470,127 399,603 Other current liabilities 55,655 109,360 Total current liabilities 613,553 590,067 Deferred revenue, non-current 102,017 114,930 Other liabilities 21,808 22,367 Total liabilities 737,378 727,364 Stockholders' equity: Preferred stock — — Class A common stock 31 27 Class B common stock 1 3 Additional paid-in capital 3,294,542 2,934,607 Accumulated other comprehensive income (loss) 2,158 (1,550 ) Accumulated deficit (1,627,485 ) (1,339,044 ) Total stockholders' equity 1,669,247 1,594,043 Total liabilities and stockholders' equity $ 2,406,625 $ 2,321,407 SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited) Three Months EndedJanuary 31, Twelve Months EndedJanuary 31, 2025 2024 2025 2024 Revenue $ 225,521 $ 174,175 $ 821,461 $ 621,154 Cost of revenue(1) 57,010 48,266 211,106 179,281 Gross profit 168,511 125,909 610,355 441,873 Operating expenses: Research and development(1) 74,626 56,446 267,002 218,176 Sales and marketing(1) 128,065 101,478 487,225 397,160 General and administrative(1) 46,078 46,822 185,487 198,247 Restructuring(1) — 2,377 — 6,706 Total operating expenses 248,769 207,123 939,714 820,289 Loss from operations (80,258 ) (81,214 ) (329,359 ) (378,416 ) Interest income 12,469 11,979 50,100 45,880 Interest expense (61 ) (3 ) (171 ) (1,216 ) Other income (expense), net (1,339 ) (737 ) (2,177 ) 918 Loss before income taxes (69,189 ) (69,975 ) (281,607 ) (332,834 ) Provision for income taxes 1,599 2,007 6,834 5,859 Net loss $ (70,788 ) $ (71,982 ) $ (288,441 ) $ (338,693 ) Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.22 ) $ (0.24 ) $ (0.92 ) $ (1.15 ) Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 321,446,833 301,356,227 314,811,783 294,923,536 (1) Includes stock-based compensation expense as follows: Cost of revenue $ 5,862 $ 4,617 $ 22,105 $ 17,187 Research and development 22,865 15,179 83,957 61,055 Sales and marketing 24,928 15,436 80,496 55,798 General and administrative 20,458 18,330 80,973 83,890 Restructuring — — — (1,060 ) Total stock-based compensation expense $ 74,113 $ 53,562 $ 267,531 $ 216,870 SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Twelve Months EndedJanuary 31, 2025 2024 CASH FLOW FROM OPERATING ACTIVITIES: Net loss $ (288,441 ) $ (338,693 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 42,766 38,912 Amortization of deferred contract acquisition costs 66,640 48,682 Non-cash operating lease costs 4,079 4,020 Stock-based compensation expense 267,531 216,870 Accretion of discounts, and amortization of premiums on investments, net (13,482 ) (19,943 ) Other 1,257 1,934 Changes in operating assets and liabilities, net of effects of acquisitions: Accounts receivable (21,174 ) (61,949 ) Prepaid expenses and other assets 1,746 (1,207 ) Deferred contract acquisition costs (90,946 ) (81,039 ) Accounts payable 1,405 (4,499 ) Accrued liabilities and other liabilities 5,075 5,611 Accrued payroll and benefits 5,286 19,140 Operating lease liabilities (4,954 ) (4,410 ) Deferred revenue 56,940 108,197 Net cash provided by (used in) operating activities 33,728 (68,374 ) CASH FLOW FROM INVESTING ACTIVITIES: Purchases of property and equipment (1,860 ) (1,304 ) Purchases of intangible assets (155 ) (3,505 ) Capitalization of internal-use software (25,121 ) (13,956 ) Purchases of investments (804,498 ) (466,253 ) Sales and maturities of investments 737,074 639,193 Cash paid for acquisitions, net of cash and restricted cash acquired (123,837 ) (13,585 ) Net cash provided by (used in) investing activities (218,397 ) 140,590 CASH FLOW FROM FINANCING ACTIVITIES: Repurchase of early exercised stock options (21 ) — Proceeds from exercise of stock options 33,406 28,317 Proceeds from issuance of common stock under the employee stock purchase plan 22,500 19,147 Net cash provided by financing activities 55,885 47,464 NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (128,784 ) 119,680 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–Beginning of period 322,086 202,406 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–End of period $ 193,302 $ 322,086 SENTINELONE, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (in thousands, except percentages and per share data) (unaudited) Three Months EndedJanuary 31, Twelve Months EndedJanuary 31, 2025 2024 2025 2024 Cost of revenue reconciliation: GAAP cost of revenue $ 57,010 $ 48,266 $ 211,106 $ 179,281 Stock-based compensation expense (5,862 ) (4,617 ) (22,105 ) (17,187 ) Employer payroll tax on employee stock transactions (187 ) (149 ) (684 ) (389 ) Amortization of acquired intangible assets (4,196 ) (5,139 ) (18,057 ) (20,389 ) Acquisition-related compensation (30 ) (120 ) (380 ) (499 ) Inventory write-offs due to restructuring — — — (720 ) Non-GAAP cost of revenue $ 46,735 $ 38,241 $ 169,880 $ 140,097 Gross profit reconciliation: GAAP gross profit $ 168,511 $ 125,909 $ 610,355 $ 441,873 Stock-based compensation expense 5,862 4,617 22,105 17,187 Employer payroll tax on employee stock transactions 187 149 684 389 Amortization of acquired intangible assets 4,196 5,139 18,057 20,389 Acquisition-related compensation 30 120 380 499 Inventory write-offs due to restructuring — — — 720 Non-GAAP gross profit $ 178,786 $ 135,934 $ 651,581 $ 481,057 Gross margin reconciliation: GAAP gross margin 75 % 72 % 74 % 71 % Stock-based compensation expense 3 % 3 % 3 % 3 % Employer payroll tax on employee stock transactions — % — % — % — % Amortization of acquired intangible assets 2 % 3 % 2 % 3 % Acquisition-related compensation — % — % — % — % Inventory write-offs due to restructuring — % — % — % — % Non-GAAP gross margin* 79 % 78 % 79 % 77 % Research and development expense reconciliation: GAAP research and development expense $ 74,626 $ 56,446 $ 267,002 $ 218,176 Stock-based compensation expense (22,865 ) (15,179 ) (83,957 ) (61,055 ) Employer payroll tax on employee stock transactions (245 ) (202 ) (1,020 ) (669 ) Acquisition-related compensation (837 ) (594 ) (3,203 ) (1,514 ) Non-GAAP research and development expense $ 50,679 $ 40,471 $ 178,822 $ 154,938 Sales and marketing expense reconciliation: GAAP sales and marketing expense $ 128,065 $ 101,478 $ 487,225 $ 397,160 Stock-based compensation expense (24,928 ) (15,436 ) (80,496 ) (55,798 ) Employer payroll tax on employee stock transactions (410 ) (361 ) (1,993 ) (1,112 ) Amortization of acquired intangible assets (2,253 ) (2,156 ) (8,963 ) (7,972 ) Acquisition-related compensation (21 ) (109 ) (121 ) (647 ) Non-GAAP sales and marketing expense $ 100,453 $ 83,416 $ 395,652 $ 331,631 General and administrative expense reconciliation: GAAP general and administrative expense $ 46,078 $ 46,822 $ 185,487 $ 198,247 Stock-based compensation expense (20,458 ) (18,330 ) (80,973 ) (83,890 ) Employer payroll tax on employee stock transactions (666 ) (591 ) (1,984 ) (1,259 ) Amortization of acquired intangible assets — — — (2 ) Acquisition-related compensation (1 ) — (2 ) (383 ) Non-GAAP general and administrative expense $ 24,953 $ 27,901 $ 102,528 $ 112,713 Restructuring reconciliation: GAAP restructuring expense $ — $ 2,377 $ — $ 6,706 Stock-based compensation expense — — — 1,060 Other restructuring charges — (2,377 ) — (7,766 ) Non-GAAP restructuring expense $ — $ — $ — $ — Operating income (loss) reconciliation: GAAP operating loss $ (80,258 ) $ (81,214 ) $ (329,359 ) $ (378,416 ) Stock-based compensation expense 74,113 53,562 267,531 216,870 Employer payroll tax on employee stock transactions 1,508 1,303 5,681 3,429 Amortization of acquired intangible assets 6,449 7,295 27,020 28,363 Acquisition-related compensation 889 823 3,706 3,043 Inventory write-offs due to restructuring — — — 720 Other restructuring charges — 2,377 — 7,766 Non-GAAP operating income (loss) $ 2,701 $ (15,854 ) $ (25,421 ) $ (118,225 ) Operating margin reconciliation: GAAP operating margin (36 )% (47 )% (40 )% (61 )% Stock-based compensation expense 33 % 31 % 33 % 35 % Employer payroll tax on employee stock transactions 1 % 1 % 1 % 1 % Amortization of acquired intangible assets 3 % 4 % 3 % 5 % Acquisition-related compensation — % — % — % — % Inventory write-offs due to restructuring — % — % — % — % Other restructuring charges — % 1 % — % 1 % Non-GAAP operating margin* 1 % (9 )% (3 )% (19 )% Net income (loss) reconciliation: GAAP net loss $ (70,788 ) $ (71,982 ) $ (288,441 ) $ (338,693 ) Stock-based compensation expense 74,113 53,562 267,531 216,870 Employer payroll tax on employee stock transactions 1,508 1,303 5,681 3,429 Amortization of acquired intangible assets 6,449 7,295 27,020 28,363 Acquisition-related compensation 889 823 3,706 3,043 Inventory write-offs due to restructuring — — — 720 Other restructuring charges — 2,377 — 7,766 Gain on strategic investments — — (345 ) (2,703 ) Non-GAAP net income (loss) $ 12,171 $ (6,622 ) $ 15,152 $ (81,205 ) Net income (loss) margin reconciliation: GAAP net loss margin (31 )% (41 )% (35 )% (55 )% Stock-based compensation 33 % 31 % 33 % 35 % Employer payroll tax on employee stock transactions 1 % 1 % 1 % 1 % Amortization of acquired intangible assets 3 % 4 % 3 % 5 % Acquisition-related compensation — % — % — % — % Inventory write-offs due to restructuring — % — % — % — % Other restructuring charges — % 1 % — % 1 % Gain on strategic investments — % — % — % — % Non-GAAP net income (loss) margin* 5 % (4 )% 2 % (13 )% GAAP basic and diluted shares 321,446,833 301,356,227 314,811,783 294,923,536 Dilutive shares under the treasury stock method 17,526,337 — 18,192,341 — Non-GAAP diluted shares 338,973,170 301,356,227 333,004,124 294,923,536 Diluted EPS reconciliation: GAAP net loss per share, basic and diluted $ (0.22 ) $ (0.24 ) $ (0.92 ) $ (1.15 ) Stock-based compensation expense 0.22 0.18 0.80 0.74 Employer payroll tax on employee stock transactions — — 0.02 0.01 Amortization of acquired intangible assets 0.02 0.02 0.08 0.10 Acquisition-related compensation — — 0.01 0.01 Inventory write-offs due to restructuring — — — — Other restructuring charges — 0.01 — 0.03 Gain on strategic investments — — — (0.01 ) Adjustment to fully diluted earnings per share (1) 0.02 — 0.06 — Non-GAAP net income (loss) per share, diluted $ 0.04 $ (0.02 ) $ 0.05 $ (0.28 ) *Certain figures may not sum due to rounding. (1) For periods in which we had diluted non-GAAP net income per share, the sum of the impact of individual reconciling items may not total diluted non-GAAP net income per share because the basic share counts used to calculate GAAP net loss per share differ from the diluted share counts used to calculate non-GAAP net income per share, and due to rounding differences. The GAAP net loss per share calculation uses a lower share count as it excludes dilutive shares, which are included in calculating the non-GAAP net income per share. SENTINELONE, INC. SELECTED CASH FLOW INFORMATION (in thousands) (unaudited) Reconciliation of cash provided by (used in) operating activities to free cash flow: Three Months EndedJanuary 31, Twelve Months EndedJanuary 31, 2025 2024 2025 2024 GAAP net cash provided by (used in) operating activities $ (3,401 ) $ (6,182 ) $ 33,728 $ (68,374 ) Less: Purchases of property and equipment (194 ) (187 ) (1,860 ) (1,304 ) Less: Capitalized internal-use software (5,326 ) (4,269 ) (25,121 ) (13,956 ) Free cash flow $ (8,921 ) $ (10,638 ) $ 6,747 $ (83,634 ) Net cash provided by (used in) investing activities $ (132,499 ) $ 113,029 $ (218,397 ) $ 140,590 Net cash provided by financing activities $ 24,218 $ 23,682 $ 55,885 $ 47,464 Operating cash flow margin (2 )% (4 )% 4 % (11 )% Free cash flow margin (4 )% (6 )% 1 % (13 )% View source version on Contacts Investor relations:Doug Clarkinvestors@ Press:Karen Masterpress@ Sign in to access your portfolio
Yahoo
01-03-2025
- Business
- Yahoo
Skype is shutting down, Microsoft says
The Brief The era of "Skyping" is coming to an end. Microsoft is shutting down what was once a pioneer in videoconferencing. Skype, the video-calling service that was once so popular it became a verb, is shutting down, Microsoft said Friday. Purchased by Microsoft in 2011, Skype was a pioneer in making telephone calls using the internet instead of landlines. Big picture view The decision to fold Skype reflects Microsoft's strategy to prioritize Teams and streamline its main communications app against competitors. RELATED: How Apple's iconic products reshaped everyday life: A look back at decades of innovation Timeline: Skype will retire in May and shift some of its services to Microsoft Teams, the company's flagship videoconferencing and team applications platform. Skype users will be able to use their existing accounts to log into Teams. The backstory Skype was founded in 2003 by a group of engineers in Tallinn, Estonia. It relied on VOIP, voice over internet protocol, technology that converts audio into a digital signal transmitted online. Skype added video calls after online retailer eBay bought the service in 2005. RELATED: Amazon unveils AI-powered Alexa+ with humanlike chat for $19.99 a month Microsoft bought Skype for $8.5 billion in 2011. What they're saying "You no longer had to be a senior manager in a Fortune 500 company to have a good quality video call with someone else," said Barbara Larson, a management professor at Northeastern University who studies the history of virtual and remote work. "It brought a lot of people around the world closer." RELATED: Paid subreddits coming in 2025, CEO says The ability to bypass expensive international phone calls to connect with far-flung coworkers was a boon for startups, but also people outside of the business world. RELATED: Watch: Flying car moves closer to takeoff "You could suddenly have long calls, frequent calls, that were either free or very inexpensive," Larson said. As with other new platforms, scammers also made use of it. By the numbers Skype had about 170 million users worldwide in 2011, then-Microsoft CEO Steve Ballmer said in an event announcing the planned merger. "The Skype brand has become a verb, nearly synonymous with video and voice communications," Ballmer said at the time. RELATED: Microsoft says it created a new state of matter to power the world's most advanced computers Skype was still considered high-tech in 2017 when Microsoft launched Teams, an attempt to catch up to the growing demand for workplace chatting services sparked by upstart rival Slack Technologies. Slack and Teams, along with newer video platforms such as Zoom, saw explosive growth during the COVID-19 pandemic as companies scrambled to shift to remote work, and even families and friends looked for new tools for virtual gatherings. Skype, by then, was already on the wane but had paved the way for strengthening the connections people can build remotely. The Source This report includes information from The Associated Press.
