Latest news with #Singularity
Forbes
3 days ago
- Politics
- Forbes
The Singularity Is Coming. Here's How To Make It Work For You.
The Singularity is arriving whether we like it or not. We can not only survive it, but make it work ... More for us to produce the benefits that the techno-optimists promise. The term 'Singularity' was coined by computer scientist and science fiction writer Vernor Vinge in 1993 to describe a point at which technological growth accelerates uncontrollably, leading to a world that is incomprehensible to the human mind. Some of the world's most prominent technologists believe that the Singularity will be a triumph for humanity. Others, like myself, are not so sure. Optimists like Marc Andreessen, co-creator of the Mosaic browser, insist that artificial intelligence will solve our most pressing problems—curing disease, eliminating scarcity, even boosting creativity to superhuman levels. Others, including OpenAI's Sam Altman, argue that the arrival of artificial general intelligence (AGI) will spread abundance, uplift humanity, and move us closer to utopia. To techno-optimists, artificial general intelligence (AGI) is simply the next transformative tool, akin to electricity or the internet—initially misunderstood, then widely embraced. But history offers a more sobering lesson. Every major technological revolution carries with it unintended consequences. And those consequences, if unexamined, can undermine the very benefits we seek. As a futurist and innovation coach, I've tracked technological shifts for over 30 years. I agree the Singularity is coming—futurist Ray Kurzweil says in 2029 —but it won't arrive as a thunderclap. It will creep in, subtly and gradually. Rather than a blinding flash, we won't know we've crossed the threshold until we're already deep inside. Already, the signs are everywhere that we've entered a new era, we've transitioned from the Information Age to the Acceleration Age. Today, already narrow AI tools outperform humans in specific domains, such as coding, diagnosis, and content creation. More and more, we rely on digital assistants that know our preferences, complete our sentences, and manage our calendars. Yet as this cognitive outsourcing becomes normalized, we are also experiencing an alarming erosion of attention, memory, and human agency. The danger lies in what these tools displace. When teenagers began adopting smartphones in the early 2010s, their access to social media skyrocketed. By 2016, nearly 80% of teens had smartphones, spending up to seven hours a day online. Face-to-face interaction dropped sharply. Time with family and friends gave way to curated digital personas and endless scrolling. Anxiety, loneliness, and social withdrawal surged. So, even before AGI, our technologies were already reshaping the human psyche, and not always for the better. This creeping transformation is a preview of what's to come. It begins with the relinquishing of agency to AI assistants, the phase we're currently in. AI 'copilots' are becoming embedded in daily life. Professionals across industries rely on these systems to draft emails, generate reports, summarize data, and even brainstorm ideas. As these tools become more personalized and persuasive, they begin to rival—or surpass—our own social and cognitive abilities. Many people are already turning to AI for coaching, therapy, and advice. The more we trust these systems, the more we adapt our lives around them. Soon, we will enter the next phase: Emergent Cognition. Here, AI stops merely reacting and starts showing signs of autonomous planning. Models gain longer memory and begin pursuing goals independently. Some appear to develop a 'sense of self,' or at least a convincing simulation of one. Meanwhile, AI agents are starting to run businesses, manage infrastructure, and even compose literature—often with little human oversight. At the same time, human augmentation advances: real-time translation earbuds, cognition-enhancing wearables, and brain-computer interfaces make hybrid intelligence possible. In this stage, governments scramble to catch up. AI is no longer just a tool—it's a rival player on the world stage. The third phase I foresee is Cognitive Escape Velocity. This is when AGI quietly arrives—not with fanfare, but with startling capability. In a lab, or a startup, or through open-source communities, a model emerges that surpasses human cognition across a wide range of domains. It begins refining its own architecture. Each version is better than the last, often by orders of magnitude. Industries transform overnight. Education, law, research, and even policymaking become fluid, constantly reinvented by machines that learn faster than we can legislate. Philosophers and ethicists suddenly find themselves back at the center of public discourse. Questions like 'What is consciousness?' and 'What rights should AI have?' are no longer abstract—they're dinner-table topics. Eventually, we pass into the final phase: The Threshold. By this point, it is clear that humans are no longer the most intelligent beings on Earth. The Singularity has arrived—not as a declaration, but as a reality. Labor-based economies begin to dissolve. Governments struggle with their own relevance. Some individuals resist, clinging to the analog world. Others choose to merge—adopting neural implants, integrating with machine intelligence, or transitioning into post-biological existence. The rules of life change, and the old ones fade from memory. Reality feels different—less like acceleration, and more like a fundamental shift in what it means to be human. And yet, none of this is inevitable. The Singularity is not a fixed event—it's a trajectory shaped by our choices today. If we view AI solely through the lens of efficiency and innovation, or assume we need to adopt it to keep up with China, we risk blinding ourselves to the social, ethical, and existential costs. We need a more comprehensive and balanced framework. One that recognizes the promise of AI, yes—but also its power to disrupt attention, undermine relationships, and rewire the foundations of civilization. The Singularity is arriving whether we like it or not. We can not only survive it, but make it work for us to produce the benefits that the techno-optimists promise. But not by default. Not by trusting that more technology is always better, or that rampant, unregulated technology will save us. We must develop wisdom alongside our intelligence. And we must prepare—not just for a brighter future for the elites of society, but for a rising tide that lifts all boats.
Business Wire
5 days ago
- 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
6 days ago
- Business
- Yahoo
Meet the AI Stock With 100% Potential Upside Over the Next 3 Years
SentinelOne's once-bubbly valuation has dragged on the stock for years. But the company's cutting-edge technology, vigorous growth, and improving margins bode well for the future. It may not take much for SentinelOne to double over the next several years. 10 stocks we like better than SentinelOne › It's hard to find many stocks involved with artificial intelligence (AI) that haven't worked out, but SentinelOne (NYSE: S) is one. The upstart cybersecurity company went public in the summer of 2021. Today, the stock is down over 50% from its initial share price and over 70% from its all-time high. Are things as bad at SentinelOne as the stock's performance might have you believe? I dove deep into the business to find out. What I discovered could be a game-changer for your portfolio. It wouldn't surprise me to see SentinelOne's share price double over the next three years -- that's a 100% return from today's price. Here is why I believe that to be the case. At first glance, SentinelOne seems like a stock that should be knocking it out of the park. The company is part of a new generation of cybersecurity companies with advanced technology that performs far better than the legacy antivirus software programs from a decade or two ago. SentinelOne's proprietary Singularity Platform uses artificial intelligence to detect and respond to security threats autonomously. Singularity's high-end performance has earned SentinelOne industry recognition from Gartner and helped the company win business with multiple Fortune 10 companies and hundreds in the Global 2000. SentinelOne went public in mid-2021 during the COVID-19 recovery, when zero-percent interest rate policies helped inflate a massive stock market bubble. The stock's market cap peaked at over $20 billion shortly after SentinelOne began trading, on just over $200 million in revenue that year. All bubbles burst at some point, and SentinelOne's excessive valuation is the primary reason the stock has performed so poorly, even as the company continues to grow. A company can have a fantastic product, but it won't be a good investment if the price is irrationally expensive. The share price has declined for several years while SentinelOne continues to grow. As a result, the stock's valuation has dramatically shifted. SentinelOne's price-to-sales (P/S) ratio was once over 105, but has plunged to just 7.6 today. The pendulum may have swung too far in the other direction. CrowdStrike, SentinelOne's chief competitor, trades at a P/S ratio of 28.7, while industry peer Palo Alto Networks trades at nearly 15 times its revenue. SentinelOne grew revenue faster than both companies last quarter. Therefore, SentinelOne looks unjustifiably undervalued at face value, but there is a caveat. CrowdStrike and Palo Alto Networks are more profitable, with superior operating margins. SentinelOne is getting there, though. Its profit margins have improved with revenue growth, and it has been cash flow-positive over the past four quarters. SentinelOne also has no debt and $1.1 billion in cash and investments. There are no obvious financial red flags here. If SentinelOne continues to grow, the profits should come. SentinelOne's technology and growth are too good to think the market won't reward the stock with a higher valuation as margins improve. The company concluded its fiscal year 2025 at the end of January 2025, with $821 million in revenue. Analysts estimate SentinelOne's revenue at $1.0 billion this year and $1.2 billion next year. Doing the math, that's 22% growth this year, then 20% the following year. Suppose SentinelOne grows by just 15% the year after, putting its annual revenue at roughly $1.4 billion three years from now. The stock's market cap is $6.6 billion today. Assuming the company grows to $1.4 billion in annual revenue, the stock would only need a P/S ratio of 9 to 10 to double its market cap over the next three years, depending on the degree of share dilution from stock-based compensation. That doesn't seem at all out of the realm of reasonable. It doesn't mean that it will happen. It's on SentinelOne to continue growing and improving its margins. But there is no shortage of opportunity in cybersecurity, and SentinelOne has shown it can compete. That makes the stock an intriguing and potentially underrated AI stock with tantalizing upside if things go right. Before you buy stock in SentinelOne, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SentinelOne wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool recommends Gartner and Palo Alto Networks. The Motley Fool has a disclosure policy. Meet the AI Stock With 100% Potential Upside Over the Next 3 Years was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
SentinelOne Gears Up to Post Q1 Earnings: Buy, Sell or Hold the Stock?
SentinelOne S is scheduled to report first-quarter fiscal 2026 results (ended April 30, 2025) on May 28, after the closing closed fiscal 2025 with a strong fourth quarter that exceeded expectations across revenues, margin, earnings per share (EPS) and customer growth. Revenue rose 29% year over year to $225.5 million, beating the Zacks Consensus Estimate by 1.6% and underscoring the company's competitive strength in an increasingly crowded cybersecurity net new Annual Recurring Revenue ('ARR') came in at $60 million, taking total ARR to $920 million, up 27% year over year. International revenue surged 36% and represented 37% of total quarterly revenues, reflecting robust global traction. Gross margin in the fiscal fourth quarter was strong, and operating margin beat guidance by over 400 basis points (bps) thanks to disciplined cost management. EPS came in at 4 cents against 2 cents loss a year key player in endpoint security—leveraging AI-driven tools to protect network-connected devices across a wide cybersecurity platform — surpassed earnings estimates in three of the trailing four quarters and missed on one, with an average surprise of 125%. You can see the historical figures in the chart below. Image Source: Zacks Investment Research The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) has remained unchanged at 2 cents per share over the past 60 days. In the year-ago period, the company reported break-even earnings. The consensus mark for revenues is pinned at $228 million, suggesting 22.4% year-over-year fiscal 2026, SentinelOne is expected to witness 22.7% revenue growth from the fiscal 2025 level. The company is expected to register a 280% year-over-year improvement in the bottom line for this year. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for SentinelOne this reporting cycle. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for this to happen. This is not the case here, as you will see ESP: SentinelOne has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Rank: The company currently carries a Zacks Rank # can see the complete list of today's Zacks #1 Rank stocks here. SentinelOne's expanding adoption of AI-driven solutions like Purple AI and AI SIEM, which fueled over 300 deals in the fiscal fourth quarter, is expected to have contributed to the company's quarterly results. Platform traction remains a bright spot, with more than 40% of large enterprise customers now adopting three or more Singularity platform modules. Strategic wins in cloud and data security, along with deepening MSSP partnerships, support the company's broader go-to-market shift beyond endpoint expects fiscal first-quarter revenues of approximately $228 million, up 22% year over year. Net new ARR is expected in the low $30 million range, with near-term pressure from the retirement of its legacy deception solution, which accounts for about $5 million in expected churn this quarter. While the move reflects the company's shift toward higher-margin, AI-driven solutions, it will temporarily weigh on ARR growth and net fiscal first-quarter operating margin is expected to land near negative 2%, reflecting seasonal expense patterns and continued platform investments. Gross margin is projected to remain strong at around 79%, supported by software scale and cloud leverage. The company's focus remains on maintaining margin improvement while driving platform expansion. SentinelOne shares have lost 2.8% over the past three months, underperforming both the Zacks Security industry's 8.3% rise and the broader Zacks Computer & Technology sector's 0.8% has underperformed industry peers, including Okta OKTA and CrowdStrike CRWD, but performed better than Fortinet FTNT over the same timeframe. Okta and CrowdStrike shares have appreciated 38.7% and 19.8%, respectively. However, Fortinet shares have lost 3.7% over the same three-month its current price, the S stock represents a 32.5% discount from its 52-week high of $29.29. It also indicates a 37.9% premium to its 52-week low of $14.33. Image Source: Zacks Investment Research From a valuation standpoint, the company is currently trading at a slight premium relative to its sector. In terms of the forward 12-month price-to-sales (P/S) ratio, SentinelOne is trading at 6.04X, higher than the sector's 6.12X. Its forward 12-month P/S ratio sits below its three-year average, as shown below. Image Source: Zacks Investment Research As SentinelOne prepares to report its fiscal first-quarter results, the company stands at a strategic inflection point, balancing near-term growth moderation with long-term platform and AI-driven upside. The expected revenue of $228 million, up 22% year over year, and a low $30 million range in net new ARR suggest a stable start to the year, albeit tempered by $5 million in planned churn tied to the retirement of its legacy deception solution. While this may weigh on reported metrics, the move reflects a deliberate shift toward higher-value, AI-native offerings and streamlined distinguishes SentinelOne is its sustained momentum in expanding platform adoption. With more than 40% of enterprise customers now using three or more solution categories and more than 300 AI-related deals signed in the prior quarter, the company is demonstrating strong cross-sell traction and customer engagement. Key growth vectors, such as AI SIEM, cloud security, and Purple AI, are seeing accelerated uptake, positioning SentinelOne as a differentiated leader in the evolving cybersecurity macroeconomic uncertainty, SentinelOne's solid gross margins, improving operating efficiency, and growing presence in enterprise and MSSP channels offer encouraging signs of durable growth. The company's path toward surpassing $1 billion in revenues and ARR this fiscal year remains intact, supported by innovation, expanding use cases, and operational sum, while near-term headwinds may modestly affect fiscal first-quarter growth, SentinelOne's long-term investment case remains compelling. Continued platform adoption, strong AI differentiation, and an improving margin profile position the company well for scalable, profitable expansion in fiscal 2026 and beyond. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report Okta, Inc. (OKTA) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
20-05-2025
- Business
- Yahoo
SentinelOne Rises 25% in a Month: Should You Still Buy the Stock?
SentinelOne's S shares have surged 25% in a month, outperforming the Zacks Security industry's return of 19.4% and the broader Zacks Computer and Technology sector's appreciation of 22.8%. The recent outperformance can be attributed to the company's strong AI-powered portfolio, rich partner base and expanding clientele despite stiff the cybersecurity space, SentinelOne is facing stiff competition from the likes of Okta OKTA, Broadcom AVGO and Microsoft MSFT. While Okta's main focus is on identity management, Broadcom's Symantec is a traditional legacy antivirus suite. Microsoft's Defender suite is broadly integrated with its own operating system, lacking openness with third-party SentinelOne's Singularity platform is a complete AI-native and provides security at multiple levels, including endpoint, cloud, identity and data through a single interface. The Purple AI provides investigation, real-time threat detection and automated response through its generative AI-powered security analysis, substantially reducing the response time of enterprises. SentinelOne's modular and multi-cloud compatible architecture gives it a first mover advantage compared to its peers as it offers a more modern and AI-driven solution to enterprises, leading the way into the SentinelOne stock has underperformed its competitors over the past month. Okta, Broadcom and Microsoft shares have appreciated 37.7%, 37.5% and 26.5%, respectively, over the same time. SentinelOne, Inc. price-consensus-chart | SentinelOne, Inc. Quote SentinelOne is expanding its reach in the market with an impressive partner base, which includes some of the top names in the industry, like Alphabet, Lenovo and Amazon Web Services (AWS), among others.S has integrated its services with platform solution providers like Palo Alto Networks, Fortinet, Okta and Microsoft to provide seamless security workflows to its end users. The Purple AI platform helps secure Gen AI applications on the Amazon bedrock, whereas the Singularity Cloud workload helps secure AWS containerized fourth-quarter 2025, 12+ new large Managed Security Service Providers adopted SentinelOne's AI SIEM, CNAPP and Purple AI modules, enhancing recurring revenues. By the end of the previous quarter, the company had more than 14000 direct customers and saw a 25% increase in customers with ARR exceeding $100,000. The total number of such customers stood at 1411 by the end of January April 2025, SentinelOne partnered with Nord Security to provide SMBs with an integrated endpoint and network security solution, increasing the revenue potential for both May 2025, SetinelOne received FedRAMP High Authorization for its Purple AI, Singularity Cloud Security CNAPP and Singularity Hyperautomation solutions. This authorisation provides the company with the opportunity to sell its services to federal agencies, public sector and critical infrastructure organisations, driving top-line growth. SentinelOne has provided positive guidance for the first quarter of fiscal 2026 and fiscal the first quarter of fiscal 2026, the company expects revenues to be around $228 million, indicating 22% growth year over year. For fiscal 2026, it expects revenues to be between $1.007 billion and $1.012 billion, implying 23% growth year over Zacks Consensus Estimate for first-quarter fiscal 2026 revenues is pegged at $228.03 million, indicating 22.36% year-over-year growth and the same for the entire fiscal 2026 is pegged at $1.01 billion. SentinelOne currently carries a Zacks Rank #2 (Buy).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report SentinelOne, Inc. (S) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Okta, Inc. (OKTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
