S - Earnings call transcript Q1 2025

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Operator

Good afternoon. Thank you for attending the SentinelOne First Quarter Fiscal Year 2025 Earnings Conference Call. My name is Cameron, and I'll be your moderator for today. [Operator Instructions]. I would now like to pass the conference over to your host, Doug Clark, Vice President of Investor Relations.

proceed. may You

Douglas Clark

Dave website and the First everyone, an April SentinelOne's Call CEO; Earnings With press -- available call Good were and release and broadcast is issued welcome Fiscal on the the and Weingarten, Tomer Quarter today ended CFO. live and the audio of Year be section for A us our afternoon, after via are to Bernhardt, are 'XX, XX. today letter Relations our our and replay concludes. being on will shareholder posted webcast, earlier Investor call website. This which

or financial guidance we call, us the and quarter as full year like we that currently Before about statements second reflect to 'XX today's fiscal making our on be that that best our as and forward-looking known statements our during financial could would for I such well will and factors future We fiscal remind you begin, based events events differ judgment you materially. including performance, results our to caution targets. long-term actual

statements. refer particular, Please on materially and annual we those the These XX-Q. XX-K to differ from from and on information important documents forward-looking other Form may contained reports our Form our and quarterly report actual that to SEC, results the contain to time with factors in our time identify documents in file risk our cause

current this information. call the the is during made or being information during call today, contain replayed today. may forward-looking Any after this not accurate call as reviewed statements are made of or If presented

available update could forward-looking the or update by future. from anticipated differ law, the if becomes we reasons in the to these statements forward-looking publicly results required to even information in Except materially those new actual statements, assume no as obligation

the with financial GAAP our principles. than for These this not otherwise respect of results. will results financial to accepted be A measures and with are generally outlook accounting financial and we in non-GAAP our non-GAAP discuss letter. in measures accordance is During non-GAAP stated. shareholder to our measures reconciliation provided release call, in substitute are non-GAAP intended unless non-GAAP other These prepared a GAAP today's press not

compensation not strategic Our outlook charges tax be of investments, amortization payroll cannot stock-based intangible this excludes compensation restructuring gains stock reconciled expense, assets, on press today's which employer and financial time expense release. in employee acquisition-related on losses and determined are, acquired costs, therefore, and at transactions,

SentinelOne. call that, with turn of let Tomer CEO me And Weingarten, the over to

Tomer Weingarten

our call. and first you joining Good earnings afternoon, everyone, quarter fiscal for thank

revenue, expansion. we Our performance operating first our growth quarter surpassed margin expectations. gross and revenue industry-leading margin again, margin and delivered Once

XX% Revenue of the markets. distinguishing year-over-year, grew as public companies in X fastest-growing SentinelOne the

margin the more consecutive one most of increased XX stories margin improvement of back with significant markets. in which operating expansion, margin of gross points to quarter record the Our sustained XXth in QX, marked high believe a XX% public we than is also and

commitment the our ahead to the free that share flow time an incredible our We delivered company's positive we prior cash milestone. history, to generate first for well pleased margin flow I'm target. in of on free achieved positive cash

we positive QX, substantial flow XX% a free XX a basis, flow on generating margin. In a free Rule cash achieved cash of

proud operating us this or an quarter growth, achieved achievement. breakeven leading cash to for our We of combination and share. leverage also of our first shows remarkable I'm per This impressive teams earnings management.

SentinelOne's economics cybersecurity business demand These results model. scalability unit reflect and the of strong our autonomous of platform,

Center. kind CNAPP system the enhance and first are experience AI-driven AI Operations cloud setting and AI autonomous security dramatically of integration, the offering through across industry. launching security QX security innovation pace new In its benchmarks by the security our alone, full the we Our of amplified new with introduced Singularity Purple

expansion growth. margin evolve financial share increasing opportunity related and and profile. Still, to processes more to diverse execution go-to-market growth support shows and scale have I'll industry-leading we enhance an extraordinary on our the Our later. this

As Investor which website, shareholder always, more detail. also published letter Relations provides please in read the our

our a quarter threat turning SentinelOne and the The simplification new This breaches and enterprises intensifying. total security, performance. landscape best-in-class Structurally, More are rise disruptions dig breaches. Let's sharp to cyber evident is savings. cost and operational for is and first into highs. attacks more of in by are reaching

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recently strategy SentinelOne scale. growth Officer go-to-market for as Chief Cremen, Michael know, at to drive you Revenue our As joined

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strategy Our is straightforward.

including and scaling appointing the data enhancing process, at our we're evolving leaders full partner guide marketing and potential; analytics scale our processes expanding First, board, and teams sales proven to we're our our growth second, across to their renewals enablement. ecosystem with our

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constant part All journey, the of evolution. is growth requires of this which

we With stronger go-to-market to dynamics year revenue revised impact transition, and reflect the the business in To full that, line a macro we've the sight modestly range. generation half of our have second outlook new our of of year.

our stems ramping a new from improvements. strong and confidence from pipeline, products Our indicators leading go-to-market

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namely Even and and of AI. data single are we business. cloud, investing areas growth we results growth levers for to every leaning future industry-leading important as year. for our are Indeed, deliver we into significant potential, These evolve, the continue

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is also their deeply Lastly, SentinelOne. the Sentinels. been this our purpose customers outpost. thank foremost that trust none hard work and our resilience. is grateful people and talented the I'm dedication fuels of partners its with and paradigm. and SentinelOne want furthest new of of is work the would to collaboration. all I the without possible for Cybersecurity, for extremely We AI frontier have

Officer. Dave the will I Bernhardt, Financial turn to that, over call With our Chief

David Bernhardt

fiscal year afternoon, everyone, thank guidance again, additional regarding 'XX. joining. This I'll context for discuss for and financial quarterly Thank provide performance and our you, Tomer, and our QX you,

and are unless a financial non-GAAP discussed noted. otherwise . are here As year-over-year reminder, measures comparisons all

expectations, industry reinforcing only quarter exceeded and as margin not our revenue margin in revenue expansion. leader position results our but an first growth and met Our

We to ever our also EPS, breakeven quarter path significant delivered on sustained our profitability. a of first milestone

the Revenue grew million XX% quarter. in to $XXX first

also Our balanced markets XX% of -- quarterly across revenue. international Revenue And geographies. from growth was representing XX%, grew

QX practice. evaluate launched important above PinnacleOne helps This strategy single Our or ever landscape. of recently also revenue cyber framework product is governments, management a and benefited fortify technology-enabled beyond than modern any and teams threat security strong our management PinnacleOne, contribution solution. and their and more the risk boards in companies, from and

and mix Total ARR in we continue grew businesses a XX% of healthy drive sizes. across customers to all million as $XXX customer QX new expansion of to existing

new financial conditions uncertainty spending. the year, have macroeconomic pressure and enter to continued the tighter we enterprise As

We are still a and high continues new a rate in to impact operating and expansionary environment, interest high inflation budgets which spending.

Simultaneously, as Combined, CRO. of Tomer in is we're our our mentioned, ARR quarter under our of revamping seasonally these year. go-to-market new the smallest dynamics in our which QX, impacted process also the

While positions technology us we go-to-market macroeconomic We're our future and well to challenges path for the expect on enhancements leadership growth. forward. focused persist,

of growth the sight We new pipeline, of clear an and enhanced trends and new by half net contributions better year, go-to-market. have product to in second line a supported the plan strong ARR a

line of sequentially effectiveness Looking We're gross scale high platform from top top our to efficiencies underscoring our unit improved the strong growth, of XX%, and X cost increased points. beyond percentage record back economics. the gross management. Year-over-year, our margin line and margin benefiting

value-added in indicates best-in-class pricing the gross Our margin success of approach. also healthy our

delivers better as architecture platform our unified for well economics as unit Our SentinelOne customers.

operating XX than QX points year-over-year to consecutive margins. expansion. to of extraordinary we improvements quarter XXth addition, our our percentage In marked more make continue of

substantial to are In cost and discipline Our improvement. points operating XX increasing QX, percentage negative margin expanded X%. operating scale, margin just our driving efficiencies

cash showing In original $XX of of last and XX generated flow cash degree. cash achieve positive on share commitment quarter, compared more on we million of top improvement free of points billion strong XX%, $X cash an we by pleased year. ahead our margin percentage large a to and free that delivered free QX, of financial cash delivered our to equivalents. to position flow target flow than I'm in margin positive positive well our a in more the than We reinforcing

the flow cash free a and quarter. Rule XX our a a achievement of achieved testament is business the to model. scalability tremendous of This in We

and QX the fiscal Moving full to our guidance year 'XX. for

are results. delivering our remain about Looking trajectory growth ahead, to committed optimistic we and strong

about For QX, we $XXX expect of revenue up million, XX% year-over-year.

full to revenue reflecting economic confidence the despite million, our expect $XXX million year, landscape. $XXX of we For challenging

expect the modestly impact our go-to-market growth still, midpoint. revising to range We the reflect XX% and outlook deliver of transition. our at are uncertainty persistent revenue to macro Even we

trends of we the I As growth have mentioned earlier, to second of in year. sight line the half better

to we first improve half net the Specifically, half compared the of second expect new growth trends to year. ARR

Our confidence and growing traction driven early like conversion with go-to-market our and rates AI from improving strong is half pipeline, a second newer indications data. CNAPP, and solutions transition, by

to our X we to QX, be expect gross margins. Turning XX%, an improvement margin about of points In outlook year-over-year. for percentage

guidance basis our XX% to a As raising midpoint. gross year-over-year the XXX to XX% than up result, are we at year full and points more margin --

We results. and expect our benefiting our scale data continue processing improving increasing to efficiencies

expect we our On margins QX percentage compared X%, X%, negative year and our for than invest operating XX points about to of negative Finally, 'XX. fiscal expect year the improvement year-over-year. improvement we more operating be as an points of margin we X% XX between maintain at to implying continue negative to midpoint basis, future, a to an full

and elective positive and of basis to will in -- depend fiscal flow is year We opportunity investments. a full 'XX, have it the our be pace however, on cash on

on turning of end on the fiscal we Importantly, within remain the track page year. operating positive the by 'XX, for income delivering profitability

I'm a convinced focused efficiently. we that company. We're on are business becoming even more and improving stronger operating execution a great our

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continue we scalability leverage model. improve flow With towards operating within and positive our the substantial our cash and QX breakeven progress to margin, free in

are compromising margin result, improvement. investing near-term into without As for a leaning growth our we on

investments, of growth operate will goal our leverage. this we an lens, to opportunities is for basis. on EBIT Through towards Going and XX Rule the continue to forward, the evaluate

and durability billion and investments very X in flexibility. provides We balance This strong and sheet have cash, debt. cash with equivalents $X.X a

for operating leverage already business. the demonstrated We across tremendous potential have

leaders given innovate The are They're the budgets are industry evolving. is pace. solving stop legacy of solutions Self-proclaimed fast R&D ever cybersecurity breaches challenges even and security a facing to same at massive and failing landscape failing problems. to

offers gap opportunities security at the significant Singularity the are platform way. has top widening delivering transformation in of growth of critical intersection and and superior Our market enterprise and needs. improvement. a massive us And we're AI-based This margin protection, line placed we superior

We savings. security, the lead well facts, delivering around value of With AI-based and position building stakeholders. with to continue not We're simplicity fiction. robust future and financial our security are the prepared superior industry and to leading innovations, our we

joining you Thank all for us today.

now will questions. the please Operator, take up We open line.

Operator

Thank [Operator you. Instructions].

The from with the first of Brian question Essex JPMorgan. is line

Brian Essex

I -- question I is really first and from and but introductory see just comments, that some kind the apologies, missed guess, to Tomer, of dig a quarter? you to for perspective the macro you wanted of understand first into what last wanted didn't happened I really perspective macro execution

year? then kind changed to what lead to have the guidance the a And of you this full trim words, other I for quarter In follow-up.

Tomer Weingarten

we the see that of quarters. First, previous in same factors we've some seen definitely

We changing. factors. grasp a So most in we guided on got to lot don't think revenue. I we all. a good revenues all We feel macro is beat

you're of still seeing throughout or you're have. small smallest a sizes you're of timing change seeing think different seasonally deals quarter. the the seeing I quarter us deals, large for we quarter And

is enablement. of go-to-market from I process. our evolving. process. kind improving I internally, that execution-wise, constantly do us mean see improving We're I full That, of our of we improving macro think, pressure renewal We're our the We're marketing our kind for what is think the extent

of is taking All nicely. very also very, that shape

X% operations. level But and the our at less It's we this factoring needed that's that's we're of feel year, transition a adjustment with some in. that, it in to does what kind of add than And point.

But mean year in good keeping industry-leading all, of it. an the again, feel I we kind growth. about really pretty all performance, strong

Operator

Adam line with Raymond The is next question from Tindle of James. the

Adam Tindle

have billion Tomer, acknowledge, is and cash. positive of doing I business $X flow, over just free you profitability, to want well cash obviously, generating on

little a of here. advocate So devil's a bit question

more meaningful these AI, to about If think behind cloud in very fastest not you outlining marketing areas I the growing products data, you're invest and the have are Why areas sales and that that differentiated. growth? accelerate industry, in

Or way even you marketing what versus as more the and are given this ask positive growth? accelerate heavily of Board in those to investing And to going buildup and behind you justify with do sales right the path platforms another the trajectory? how cash to perhaps is, do that

Tomer Weingarten

Absolutely.

For invest us, working on it's while, made But time, been and basically cash something license into all be same think go flow which we've that growth. generating that, quarter quite this with about profitable. gives us, is At to machine a the that for we happened to have what in the commitment is I a business. which for back turning a us

So, what see. happened this quarter is exactly what we wanted to It positive. was extremely

much how the as flow and we free year. think, invest towards ability invest, throughout we to cash generate continue as to where that to same can keep us, the understand we want much I trajectory want gives that Now profitability to we as

software how centers make opening can question next procure that innovation that. around address this AI. the that even in there's say quarter We we We aggressively leaning sure to how we growth. we going would the and I And and couple want think in think no people into mentioned more future I we're the can change, unlocked of it's So much really for invest way go. yes, us we're we years, to

committed get of our we why we're definitely we're don't to balancing of transition and envelope of to that's have ahead also we to. skis, want all we balancing that that and while all get go-to-market, our this So to the

Operator

line is the Stanley. question from with The Hamza of Fodderwala next Morgan

Hamza Fodderwala

half new net the new expecting reflecting in improvement of your of go-to-market based talked CRO. the on under improvements the some some about and Dave, you ARR that you're in back some products new guidance.

have Because changes, you a disruption? when -- for in do what that you the to go-to-market bring factored sales some extent I'm curious, potential is risk.

So I'm wondering least in couple about next handicapping guidance to for of at you thought your quarters. that what the extent

David Bernhardt

of we We guide have line what Hamza. Thanks, sight to to.

conditions, the half. are macro to the the go-to-market very So early as in of in . Obviously, in of offering the products. we which factoring we're new building transition customers, CNAPP positive the full both tremendous happening We're ramp in AI sales second Tomer discussed, have and stages pipeline.

know execution second we're products offered. the lot We And pipeline being the first and that the new than dynamics a stronger half. addressing is half

that as just builds [indiscernible] team. general, in be going to think I is also there's enhancements this just go-to-market out Michael

the the we're the enterprise products, sales I increased take of and you take just on heavier the take very from newer all positive think And then second you half. So you that, mix in on large second half. contribution the

Tomer Weingarten

to Just the our is paint really opportunity change in also for emerging sales other And what a many derivative it. obviously, picture mean platform the starts aspects requires and to of to DNA in company. contribution the add to that, XX% for I that product

So cognizant that. we're of absolutely

the that, again, and I more think strength what the point, ramping with of quarters, that few the we're in next with will transitory go-to-market that I balancing But effect we're any take new that's other hold products. think, balancing. than

felt about strong revenue each kind slightly to We of feel mean, all tick But projections. year. in growth. good negate I the the other, and both like need we So extremely we factors down all,

very that's going we happen. to to dynamic continue executed many, and it's I a This transition for a years, a And market degree change And and as Evolution happen. I Dave by not change. continue market. has not to many that. any mentioned, will statement is mean true mean, will embrace SentinelOne

Operator

Cowen. line is next The Eyal TD question Shaul with of from the

Shaul Eyal

back was Tomer the slipped Dave, that's April past weeks? over any towards of the end business there that the X course of already booked or

Tomer Weingarten

nothing Nothing dynamic. this for of into just We next terms the quarter. really challenging of point, there's business. some, the significant, in needed really at I quarter. we is answer what that but have course like the it's yes. It's normal deals all constantly mean, book But normal

Operator

question The next is Walsh Citizens line from with Trevor the JMP. of

Trevor Walsh

Great. Tomer, the PingSafe. you integration quick of mentioned fairly

just efforts kind of going So around that just faster? it was to curious get dynamics the internal more of

the sector and of what on workload was you looks that, top the stuff kind selling kind that as that uplift you're were. maybe of CNAPP of with protection could it of And for level on already the doing already what into like beyond of what kind share truck the some

Tomer Weingarten

force We and planned. with a got mostly acquisition. PingSafe gets stronger massively was only the that R&D talented Integration

it a for unified I customer. delivering about us, for think experience that was always the

talk that bit. quite a about heard You've that

platforms mean So these you're protection. really think to leg what as about uplift guides workload value be us integration. should keeping The substantial. is X I true security cloud with when using what we of had the is we

got leg. we've other the Now

us. you So about it really can think the for opportunity doubling as

with And you very it's our cloud at customer obviously, security. as base, underpenetrated look

in forward-looking with superiority different incumbency, the and security If of you in demonstrate to still even we're able look cloud at opportunities footprint. go some the endpoint

us. So all, strategic PingSafe our a stronger. all highly cloud security make and entire a is for in just motion great suite it's to going technology,

Operator

the with is line Peter question next from of Weed . The Bernstein.

Peter Weed

look I think that. versus at headwinds maybe kind we've in around of there separate you market performance may your have enterprise hearing been if been some SMB, and some the

you're a kind that of doing Can in lot you're us particularly the And kind investment on the of give performance, when some the we there? like of go-to-market in from I see categories work guess some to color making you each those inflection enterprise, drive might in separately? is performance of

Tomer Weingarten

Generally, you're and I kind of towards a continuum enterprise-based deals. more seeing think of larger improvement

of all in pockets you this headwinds, type across of headwinds I terms the of think board. of In kind see market,

specific call So dynamic. I wouldn't out any

of definitely mid-market. and market I mean, we're SMB strong At in the the end day, the us, for

really and For more us, more of that it's enterprise muscle. developing

customers. growth that large another I proven think we've this with quarter, last XX% with again customers large quarter, XX% again, growth

to where up all, are that the us want for offerings of in of begin half tracking online And are year nature second we in all coming be. more to enterprise-oriented the So the with. to the

in know of are they're would I mid-market. growth products large The we to They're for providers for that great kind intuitive these more they're service for SMB. assume great a so They're be enterprises. going the really great partners, to of great they're segments us, I it's for full of don't for for great that use, to inflection. mean, build and across if I parallel market. different the So all

they We exactly we're and their are environment, getting more just from for what that's more have better looking efficacy, simplification, what in delivering.

Operator

the question Liani next of The is of Bank Tal line with America. from

Tal Liani

go. now? you . Can you here Oh, me hear

Tomer Weingarten

Yes.

Tal Liani

Good. Perfect.

at that space XX% your look a which company only the to means great want -- step problem on the terms and taking growth rate, with there metric than the growing players is back, ability legit any of is despite I'm ARR I when larger the substantially to But your a I you same relative is in in space So grow small your is is there great. X growing, are a space, is size.

the bigger SMB you this you issue go-to-market? limited why product can this what portfolio? question analyze in your better how issue product on you of Or an your more the or Is size competitor? your is performance, can't smaller When portfolio, given market? your of an And focus outgrow is do --

Tomer Weingarten

problem I any our see with growth. don't

$X.X only it I quarter here invest strives how in thing prior mean I much we can can is this constrained profitability, had think bank last well. invest. we balance billion our of quarter, for in obviously, cash the is much company the quarter as in a how that that's the by and

our power somewhat electively treat and do. as seeing more and and that's how opportunity much more focus we're constrained what we less, by this behind right we're go-to-market. more obviously, us an become that's we with So put that, doing efficient, now. We're and With to more our

not said to we what anybody. outgrow to this we're do That's year. chase We're to going going

a away our has I into when are right. We been we're I technology, building to business. quarter start indication mentioned, us. for very, is a moving the as building effective investing and this that's best time the go-to-market and our very And focus. mean machine back great

thinks our this stop And wakes and the company thing keep breaches we and is about customers me, up how lastly, safe. to #X

single I doing think that's we're what every day.

in the bit other to think vendors the space be of might prove a I lax. promises

wouldn't all your how just I growth the marketing and aggressive after chase this So put be. on can

need responsible You in way. to grow a

You customers to need keep your safe.

sure we to company also at a scale us our target make that profitability like you achieve to set out need achieve. can that for the You

the that's growth. again, industry-leading at. still, entire that looking we're And picture

XX% growth free incredibly proud positive of and our breakeven we're of think cash I growth a or profile. Ending flow, company. basically Rule with XX up that's XX% this quarter

I think tremendous is profile. a this

Operator

of . from Eric Next KeyBanc with Capital Markets. question is the line Heath

Eric Heath

guess, the just comments guide, of growth targets given I see reiteration to some market the mean good it's to Tomer of for I on and I Dave. these of the changes of some but have guess go-to-market and the follow the nature I this competitive margin just and strong -- year. to continue

you're OpEx a Just growth thinking maintaining confidence while support to about curious modest innovation growth? and how fairly that product the

we could, one, on of got I granularity don't And know I great go-to-market the changes. if just if second some then a

So what would it. you're changes love to of on hear some on those more details some instituting

Tomer Weingarten

ability a about Growth grow marketing. is, something feel in and invest grow smarter. for you envelope. this chase that's to very us really our again, investment not in continue We feel elective. like need to We're We good to under

to expensive You don't need way. grow in necessarily more a

of in product saturate I lack them the with actually far anything, maybe superiority the vendors leads messaging think other that reality. over the them by in space, the are the of marketing, If is that it with leads to lead technology and some marketing space to ahead

we mean, continue I us, no them technology. dynamic with for to this different, So is and outexecute

way obviously, instead AI the your modules that diluting data, multitude the different on offering, dilutes cloud is of your a to our core focusing focus. Purple, which is kind go, across right R&D, me, For dilutes and of areas, of

environment. advise to that more there market. at customers looking ways out still in find time. is This grow very this spend a just in point wouldn't effective We much this to I so difficult macro are

our So assessing quarter of to for and we deciding and put it then firepower by quarter, philosophy taking been where year. this it's us, the that do really start more want has investments the from about

on I the year. and path, right for the half far, second we're excited So of we're think the

Operator

from Josh question the The is next Tilton. Apologies.

Tomer Weingarten

on expanding selling question. of partners, bringing touch modern partners. more new quoting out. to motion kind the We our go-to-market automate more in for Obviously, I partners, called systems sales, partnerships, to the moving platform boarding just new leadership when our enabling enablement, want we're to striking putting

We the So scaling significantly. our the always we're had and reach go-to-market partnerships.

effective, Now a more them we're think doing it's theme making which common this about across everything year. is I

Operator

Joshua Wolfe Your with is next Research. Tilton the question line of from

Joshua Tilton

fire around tonight a in jumping office. alarm Also off and there's going my

was already. So mentioned this I apologize if

us Is there to trying give understand have? that I'm what just confidence anything in increase guess is talking to can you're of I around investor the comfort believe second to kind visibility the you But you half. us in

Because little worse the a quarter giving from were of expected. guidance days bit we our ago. than and XX kind perspective, shook out

now come advance? in been a XX it's days in where just guide So when confidence of does difficult from the the out kind visibility from few quarters to

at brakes And I'm that and prepared to pace about the we you my over you've today? expansion like going the quarters? Are then outstanding guys understand of just rule margin there's the were of lot how is are just talk relative of about about And that to trying future margin and few the second on amazing you the thinking we continue the that? a story expansion the should question think you going to end the remarks last How delivered of part see in as we statuses. forward put the guys pace to lenses go profitability,

Tomer Weingarten

is hope safe. I everybody First,

we're factors. think, we're is range what to everything and giving from folks, guided beat just given from and seeing us, macro, execution the given we have To the Second, our revenue revenue. here our to mitigate I that own doing we're on we're expanding, ability what these seeing

look actually been approach margin So zoom philosophy. ARR for could a has believe in measure pretty in in us the what lastly, lot sight And us. And we're doesn't you a for just you growth, you taking continue from every safer different if SentinelOne, And every a and goes be by for company for revenue to a that giving philosophy. of It there's better improvement have has outperformance given our we into range market. I ARR market. of just revenue to better that that year at revenue resulted single other to. that will again, out line Better go the be much a our

more that's scrutiny endpoint, at team, look and of modules, adjacent deals, at And specifically, a we're our year, when cross-sell to more looking the more half second sales robust better executing across and very we dynamics. and diversified data, better we're Purple, cloud, looking at upsell pipeline the pipeline

entire obviously, we is in. up going So that's all confidence. us than factors And a lot talked range. adjustment give opening less of about that, again, here the we're of other the about why, The those With X%.

I So much too read wouldn't it. into

David Bernhardt

initiative. want that I everything philosophy, to is That's of . our company, and to what drive XX that. strategic we That's that we're doing a goal. be we add to do really to to our work achieve investment Yes. that, Rule going to to would want is we're

Operator

is question with the line Kessinger next from D.A. The of Rudy Davidson.

Rudy Kessinger

the I letter. shareholder don't in it's believe

Just versus continues more towards share you net TTM figure retention? business skew could but . I -- what existing, retention that new said to you net know was

David Bernhardt

north focus We Thanks, the good XXX%. expansionary in That's as Yes. well. and Rudy. to very territory, relationship of on so upsell we're remain still continuing customer existing in new to acquisition, customers

remaining proud at we're So the to continue scale the we expansionary in of grow . as pretty we territory are.

Operator

the of question The from Citi. with is line Boolani next Fatima

Fatima Boolani

respect the go-to-market to could with with granularity, getting more comment kind you organization. Tomer, I tax hoping down was of to brass

can But was So sort there what productivity a some pipeline. is prosecute delta by your that optimistic only mean and to inference the about you draw I disparity. clearly, of that the pipeline or we the ability are is, very

can of talk the if talk So kind to can you that or productivity overall to levels. us go-to-market you voluntary through it under attrition, relates the of new capacity, CRO. if offices involuntary as wondering whether And sales

standpoint. bit So a a sales input and productivity attrition just capacity, granularity more from maybe little

Tomer Weingarten

on both very For of rebuilt XX participation, mean, and rise, months. productivity that our the hand-in-hand basically I which these we're being say. with last very, the team, is I emerging metrics product seeing course over would the comes definitely encouraging,

part XX%. own We mentioned about on mean partners now bringing of board. I team, emerging new that our seasoned, bringing products, is leadership their place for new business in

So our obviously, growth to very positive has as trajectory. impact that a

it's Sales attrition, it's always be to there SentinelOne. that's going to and unique nothing

need. on the in we hone talent and that continue We

to level. We up continue

people attrition, part the see of It's be kind after doing in the changing part of of you to If force. of of in enterprise. part this of It's It's different aspects growing there. sales different going part some market It's haters of to the DNA. going it's selling business.

GTM So all what seeing is normal in all, you're just I think transition. that

other to business, of Some go, into we of our and business. that the the more of most folks we the parts yielding let parts we invest more repurposed

is part that is of of mean that come with also to business. of that positive. it Does of sometimes none attrition? positive. All all alarming Yes, that's I is us involuntary and some

Operator

The Guggenheim next question of with from the is . line John DiFucci

John DiFucci

SMB said an elsewhere. seems to that about Tomer. enterprise area that Because demand But you there's mid-market remained softness been that Tomer, demand in more of to for and the talk can you see recently? be strong. changes Questions a that. on lot and some where to we're discussion to any starting

Tomer Weingarten

board. the across strength seeing We're

I that some every part market. as in think be of pockets I generally, going there's to of mentioned, tailwinds this

Some areas in SMB are softer than others.

So parts SMB, some some yes, in also of softness softness there's some other claim but you enterprise. in can

business normalized our in that a experiencing view any call think some can't material really area different is way. think, of in specific I in a X I out dynamics we

of out more in call all just view right. more time, what statements it's There but And softness, don't are we that's is some board. both of We think all, macro. it kind as same at the feel I a is kind skewed we the across difficult material. So

yielding just are that move work the something through, and just that's of parts to better execution, we focus And market our kind of that improve our investments there.

Operator

closing management the remarks. to I'll time there more back pass Unfortunately, no are remaining. it team for

Tomer Weingarten

Thank joining our today. . you, everybody, for call

Operator

XXXX That enjoy Fiscal the and the you of for Quarter day. Year your participation, rest Call. SentinelOne Earnings concludes your Conference Thank First

SentinelOne (S) 30 May 242025 Q1 Earnings call transcript