Latest news with #TomerWeingarten
Yahoo
29-05-2025
- Business
- Yahoo
S Q1 Earnings Call: SentinelOne Addresses Sales Cycle Delays Amid Macro Uncertainty
Cyber security company SentinelOne (NYSE:S) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 22.9% year on year to $229 million. Its non-GAAP profit of $0.02 per share was in line with analysts' consensus estimates. Is now the time to buy S? Find out in our full research report (it's free). Revenue: $229 million (22.9% year-on-year growth) Adjusted EPS: $0.02 vs analyst estimates of $0.02 (in line) Adjusted Operating Income: -$3.93 million vs analyst estimates of -$3.76 million (-1.7% margin, relatively in line) Revenue Guidance for Q2 CY2025 is $242 million at the midpoint, below analyst estimates of $244.8 million Operating Margin: -38.2%, up from -43.3% in the same quarter last year Customers: 1,459 customers paying more than $100,000 annually Annual Recurring Revenue: $948.1 million at quarter end, up 24.4% year on year Market Capitalization: $6.65 billion SentinelOne's first quarter performance was shaped by increased adoption of its AI-driven security platform across large enterprises and mid-market customers, as well as ongoing customer expansion in cloud and data security. CEO Tomer Weingarten highlighted triple-digit bookings growth for Purple AI and a milestone of over $100 million in annual recurring revenue (ARR) for the company's data solutions. Management acknowledged that elongated sales cycles, especially for larger enterprise deals, impacted net new ARR growth. Weingarten attributed these delays chiefly to customers pausing spending decisions in response to wider economic uncertainty, emphasizing, 'We have not seen project cancellations or lost deals, and our win rates remain strong.' Looking ahead, SentinelOne's guidance incorporates a cautious view of the macroeconomic environment, with management noting a measured outlook due to unpredictable customer purchasing behavior. CFO Barbara Larson explained that the company's revenue forecast accounts for recent volatility and the possibility of further disruption, but also pointed to improved sales trends in May and a robust pipeline for the rest of the year. Management expects ongoing growth in platform adoption and continued momentum in AI and cloud security to support revenue expansion, while investments in automation and operational efficiency are projected to yield further margin improvements. Larson stated, 'We remain focused on instilling operational discipline and enhancing efficiency across the business.' Management cited platform innovation and expanded AI capabilities as key drivers of customer adoption, while also noting that delayed purchasing decisions in April contributed to lower net new ARR. AI-powered product traction: SentinelOne's Purple AI solution saw triple-digit year-over-year bookings growth, with an attach rate exceeding 25% of subscriptions sold in the quarter, indicating strong customer demand for AI-based threat detection and response. Cloud and data suite expansion: The company launched its unified cloud security suite, integrating workload, posture, detection, and AI security into a single platform, which management says makes deployments simpler and broadens market appeal. Data solutions surpassed $100 million in ARR, driven by customers seeking modern alternatives to legacy SIEM (Security Information and Event Management) products. Enterprise and mid-market momentum: Large enterprise customer wins included displacements of incumbent vendors and consolidation of security tools, while the mid-market segment maintained healthy expansion rates. Management highlighted higher ARR per customer and longer contract durations as evidence of increasing platform adoption. Partner ecosystem development: SentinelOne introduced the Partner One program to strengthen relationships with managed service providers, incident responders, value-added resellers, and technology partners. The company believes this initiative will expand its reach and make its platform more accessible. Public sector opportunities and challenges: Achieving FedRAMP High authorization for multiple products positions SentinelOne to compete for sensitive U.S. government contracts. However, management noted that ongoing federal budget uncertainty is elongating sales cycles in the public sector. SentinelOne's outlook is driven by expectations for continued adoption of its AI and cloud security solutions, balanced by ongoing caution regarding customer purchasing behavior and macroeconomic headwinds. AI and platform expansion: Management expects further growth from new and existing customers adopting AI-powered modules and broader platform offerings, with ongoing product enhancements aiming to increase deal sizes and customer retention. Operational efficiency focus: Investments in automation and cost discipline are projected to drive margin improvements, with management reiterating a target for full-year operating margin to improve by over 650 basis points. The company plans to reinvest in innovation while maintaining a careful approach to headcount and resource allocation. Macro and sector risks: SentinelOne's guidance reflects uncertainty surrounding customer budgets, especially for larger deals and federal contracts. Management is monitoring for potential delays or further disruptions in purchasing cycles, while highlighting that no major deal cancellations have occurred. In the coming quarters, the StockStory team will be watching (1) the pace of recovery in net new ARR and whether delayed deals convert as macro conditions stabilize, (2) adoption rates of the newly launched unified cloud security suite and further expansion of AI-driven solutions, and (3) progress in federal sector contracts following recent FedRAMP High authorizations. Execution on operational efficiency initiatives and the impact of the new Partner One program will also be key factors to monitor. SentinelOne currently trades at a forward price-to-sales ratio of 6.1×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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
Yahoo
28-05-2025
- Business
- Yahoo
SentinelOne's (NYSE:S) Q1 Earnings Results: Revenue In Line With Expectations But Stock Drops 13.8%
Cyber security company SentinelOne (NYSE:S) met Wall Street's revenue expectations in Q1 CY2025, with sales up 22.9% year on year to $229 million. On the other hand, next quarter's revenue guidance of $242 million was less impressive, coming in 1.2% below analysts' estimates. Its non-GAAP profit of $0.02 per share was in line with analysts' consensus estimates. Is now the time to buy SentinelOne? Find out in our full research report. Revenue: $229 million vs analyst estimates of $228.2 million (22.9% year-on-year growth, in line) Adjusted EPS: $0.02 vs analyst estimates of $0.02 (in line) Adjusted Operating Income: -$3.93 million vs analyst estimates of -$3.76 million (-1.7% margin, relatively in line) Revenue Guidance for Q2 CY2025 is $242 million at the midpoint, below analyst estimates of $244.8 million Operating Margin: -38.2%, up from -43.3% in the same quarter last year Free Cash Flow was $45.44 million, up from -$8.92 million in the previous quarter Customers: 1,459 customers paying more than $100,000 annually Annual Recurring Revenue: $948.1 million at quarter end, up 24.4% year on year Market Capitalization: $6.65 billion 'Our top-tier growth and margin improvement reflect continued platform momentum and customer success," said Tomer Weingarten, CEO of SentinelOne. With roots in the Israeli cyber intelligence community, SentinelOne (NYSE:S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, SentinelOne's sales grew at an incredible 52.1% compounded annual growth rate over the last three years. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis. This quarter, SentinelOne's year-on-year revenue growth of 22.9% was excellent, and its $229 million of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 21.6% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 23.1% over the next 12 months, a deceleration versus the last three years. Still, this projection is noteworthy and suggests the market is baking in success for its products and services. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. SentinelOne's ARR punched in at $948.1 million in Q1, and over the last four quarters, its growth was fantastic as it averaged 28.1% year-on-year increases. This performance aligned with its total sales growth and shows that customers are willing to take multi-year bets on the company's technology. Its growth also makes SentinelOne a more predictable business, a tailwind for its valuation as investors typically prefer businesses with recurring revenue. This quarter, SentinelOne reported 1,459 enterprise customers paying more than $100,000 annually, an increase of 48 from the previous quarter. That's a bit fewer contract wins than last quarter and quite a bit below what we've observed over the previous year, suggesting its sales momentum with new enterprise customers is slowing. It also implies that SentinelOne will likely need to upsell its existing large customers or move down market to maintain its top-line growth. We struggled to find many resounding positives in these results. ARR, revenue, operating profit, and EPS were all roughly in line with expectations, which we've seen is rarely good enough for higher-multiple software companies. Additionally, the company's revenue guidance for next quarter slightly missed. Overall, this quarter could have been better. The stock traded down 13.8% to $16.95 immediately after reporting. SentinelOne's earnings report left more to be desired. Let's look forward to see if this quarter has created an opportunity to buy the stock. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. 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
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
30-03-2025
- Business
- Yahoo
SentinelOne, Inc. (S): A Bull Case Theory
We came across a bullish thesis on SentinelOne, Inc. (S) on Substack by Matthew | Sycamore Capital. In this article, we will summarize the bulls' thesis on S. SentinelOne, Inc. (S)'s share was trading at $19.35 as of March 27th. S's forward P/E was 102.04 according to Yahoo Finance. 10 Important AI Announcements for Investors SentinelOne closed fiscal 2025 with strong financial momentum, showcasing competitive strength and a deepening shift toward AI-driven cybersecurity. Despite an initial 17% stock drop after earnings, the market quickly corrected, but the company remains significantly undervalued relative to its peers. SentinelOne continues to execute on its vision, outpacing legacy competitors and next-gen vendors alike. With revenue reaching $225.5 million in Q4, up 29% year-over-year, and ARR hitting $920.1 million, up 27%, the company is demonstrating solid top-line growth. Importantly, SentinelOne achieved its first-ever quarter of non-GAAP operating income, marking a significant milestone in its path to profitability. With a pristine balance sheet holding $1.1 billion in cash and no debt, the company is well-positioned for future expansion. CEO Tomer Weingarten credited this success to strong execution, increasing adoption of SentinelOne's AI-powered cybersecurity platform, and growing competitive win rates. The company continues to secure large enterprise deals, including a Fortune 100 airline that switched from a long-time incumbent and next-gen rival to SentinelOne, reinforcing its market leadership. The company's ability to displace established players is evident in its 25% growth in customers with $100K+ ARR, reaching 1,411 enterprise clients. These wins are translating into a larger market share and an expanding footprint, with over 50% of fiscal 2025 bookings coming from non-endpoint solutions such as cloud security, AI-driven analytics, and identity protection. The growing adoption of AI security solutions has further fueled SentinelOne's expansion. The company is embedding generative AI across its platform, helping land significant deals in AI-centric security. A Fortune 500 retailer quintupled its SentinelOne deployment, signaling growing confidence in its AI-driven approach. Management believes that AI will become a fundamental requirement in cybersecurity, and SentinelOne is using this advantage to drive adoption and secure its position as an industry leader. With over 300 deals in AI-driven security capabilities in Q4 alone, the company is proving that its AI-powered approach is resonating with customers. The company's platform expansion strategy is paying off, with a 4x increase in customers using four or more SentinelOne modules. This multi-module adoption is driving higher ARR per customer and reinforcing customer retention. SentinelOne's shift beyond endpoint protection to cloud security, identity protection, and AI-driven analytics is positioning it as a comprehensive security platform rather than just an endpoint protection provider. The record backlog of $1.2 billion, up 30% year-over-year, signals strong forward demand and underscores the company's long-term growth trajectory. Looking ahead, SentinelOne provided a measured fiscal 2026 outlook under new CFO Barbara Larson. The company guided for $1.01 billion in revenue, up 23% year-over-year, and expects operating margins to improve to 3-4%, marking continued profitability expansion. While net new ARR is expected to remain flat due to the retirement of a legacy deception product, management emphasized that without this headwind, ARR growth would be in the mid-to-high single digits. This transition aligns with SentinelOne's strategic focus on AI-native security solutions rather than maintaining legacy products with lower ROI. Overall, SentinelOne remains an underappreciated growth story. With increasing market share, strong execution, expanding AI-driven offerings, and improving financial performance, the company is on track for significant long-term upside. SentinelOne, Inc. (S) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held S at the end of the fourth quarter which was 37 in the previous quarter. While we acknowledge the risk and potential of S as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than S but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
SentinelOne, Inc. (S): A Bull Case Theory
We came across a bullish thesis on SentinelOne, Inc. (S) on Substack by Matthew | Sycamore Capital. In this article, we will summarize the bulls' thesis on S. SentinelOne, Inc. (S)'s share was trading at $19.35 as of March 27th. S's forward P/E was 102.04 according to Yahoo Finance. 10 Important AI Announcements for Investors SentinelOne closed fiscal 2025 with strong financial momentum, showcasing competitive strength and a deepening shift toward AI-driven cybersecurity. Despite an initial 17% stock drop after earnings, the market quickly corrected, but the company remains significantly undervalued relative to its peers. SentinelOne continues to execute on its vision, outpacing legacy competitors and next-gen vendors alike. With revenue reaching $225.5 million in Q4, up 29% year-over-year, and ARR hitting $920.1 million, up 27%, the company is demonstrating solid top-line growth. Importantly, SentinelOne achieved its first-ever quarter of non-GAAP operating income, marking a significant milestone in its path to profitability. With a pristine balance sheet holding $1.1 billion in cash and no debt, the company is well-positioned for future expansion. CEO Tomer Weingarten credited this success to strong execution, increasing adoption of SentinelOne's AI-powered cybersecurity platform, and growing competitive win rates. The company continues to secure large enterprise deals, including a Fortune 100 airline that switched from a long-time incumbent and next-gen rival to SentinelOne, reinforcing its market leadership. The company's ability to displace established players is evident in its 25% growth in customers with $100K+ ARR, reaching 1,411 enterprise clients. These wins are translating into a larger market share and an expanding footprint, with over 50% of fiscal 2025 bookings coming from non-endpoint solutions such as cloud security, AI-driven analytics, and identity protection. The growing adoption of AI security solutions has further fueled SentinelOne's expansion. The company is embedding generative AI across its platform, helping land significant deals in AI-centric security. A Fortune 500 retailer quintupled its SentinelOne deployment, signaling growing confidence in its AI-driven approach. Management believes that AI will become a fundamental requirement in cybersecurity, and SentinelOne is using this advantage to drive adoption and secure its position as an industry leader. With over 300 deals in AI-driven security capabilities in Q4 alone, the company is proving that its AI-powered approach is resonating with customers. The company's platform expansion strategy is paying off, with a 4x increase in customers using four or more SentinelOne modules. This multi-module adoption is driving higher ARR per customer and reinforcing customer retention. SentinelOne's shift beyond endpoint protection to cloud security, identity protection, and AI-driven analytics is positioning it as a comprehensive security platform rather than just an endpoint protection provider. The record backlog of $1.2 billion, up 30% year-over-year, signals strong forward demand and underscores the company's long-term growth trajectory. Looking ahead, SentinelOne provided a measured fiscal 2026 outlook under new CFO Barbara Larson. The company guided for $1.01 billion in revenue, up 23% year-over-year, and expects operating margins to improve to 3-4%, marking continued profitability expansion. While net new ARR is expected to remain flat due to the retirement of a legacy deception product, management emphasized that without this headwind, ARR growth would be in the mid-to-high single digits. This transition aligns with SentinelOne's strategic focus on AI-native security solutions rather than maintaining legacy products with lower ROI. Overall, SentinelOne remains an underappreciated growth story. With increasing market share, strong execution, expanding AI-driven offerings, and improving financial performance, the company is on track for significant long-term upside. SentinelOne, Inc. (S) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held S at the end of the fourth quarter which was 37 in the previous quarter. While we acknowledge the risk and potential of S as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than S but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
