S - Earnings call transcript Q3 2025

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Operator

Good afternoon. Thank you for attending today's SentinelOne Q3 Fiscal Year 2025 Earnings Conference Call. My name is Jaylin, and I will your moderator for today. [Operator Instructions] I'd now like to turn the conference over to our host, Doug Clark. Doug, you may proceed.

Douglas Clark

welcome Fiscal Earnings October Year and Third for XX, everyone, of Quarter 'XX, afternoon, to Call SentinelOne's the XXXX. Good which ended Larson, today us are Weingarten, and With Tomer Barbara CEO; CFO.

our on concludes. letter release press earlier are be section is This and will our shareholder being via on the Our an were broadcast audio Relations Investor replay website live the today call issued and website. after call the of posted webcast, available and

could reasons materially statements to update in or statements by based call remind to to factors call if risk that annual this important events accurate from particular, the materially. Except the new on in are required you contain and obligation statements during we Please the including that those our begin, year we our contain being replayed in like Before to cause us presented as differ judgment information materially as our as reviewed forward-looking that is fiscal future quarterly documents to information would we'll actual law, events 'XX results call, about we our during fourth from contained well anticipated assume you publicly or the or during not information best making Form future. documents no actual may time becomes such Form forward-looking made and fiscal long-term report current today. time results the information. and identify reports XX-Q. may that factors statements be update on known results other the even our and those differ on file forward-looking the I could These today's and or performance, full after forward-looking currently from with refer differ call available this financial reflect the quarter If and XX-K actual and caution our to forward-looking guidance targets. in statements made our today, for these SEC, of financial to statements. Any We as

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

compensation amortization time stock-based on that, of expense with charges acquired payroll employer stock to turn and SentinelOne. assets, determined and not be over excludes release. And outlook in Tomer therefore, Weingarten, on are, at today's compensation this employee cannot press financial reconciled investments, transactions, me the restructuring intangible tax strategic Our acquisition-related call gains let which expense costs, of CEO

Tomer Weingarten

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

We improvement. continue Our demonstrate line business year-over-year QX margin and and top strong expectations growth momentum. exceeded to results our execution deliver

execution and solid interest customer Importantly, rise record more. with SentinelOne. of or by notable reaccelerated ARR a position for a territory, competitive reflects $XXX,XXX new in our momentum growth of to ARR positive number stronger back net and driven customers This

Singularity proactive enterprises evolve Singularity the rapidly, real-time customers leader to endpoint security best-in-class delivers through Today, a position AI-powered and and user across data that interface. Enterprises We a as security identity third-party well all as bolster in as continue to is our one that provide unifies comprehensive cyber platform autonomous to empowers future. This drive ability but capabilities into not advanced what AI ability is the and our efficient security today a standard landscape where a entire only real-time processed to technology by the autonomous advanced sets It to cloud our our designed cybersecurity, resilience. cybersecurity a streaming world further modern to for fastest-growing to our algorithms constant SentinelOne enterprise-wide Singularity the and single cybersecurity. bring approach capabilities outcomes. integrations market foundational and innovation. to adapts simplifying safeguard operations. selecting threat we platform rapid from AI platform new clearly believe while increasingly This are way In analyzed and suite, threats in data security stack effective operations. to now adoption our of customers. establishes bring we for future of also be security their data innovation agents solution, more value pillar that and is a do the AI The highlights operational into is Purple

raising ahead, full year we're guidance. Looking our revenue

revenue 'XX, last For to deliver to of from year XX% XX% year, growth our we now prior compared expect growth. of guidance up fiscal

their who a sentinels successful confidence Our and pipeline, customer to increasing disruption. protect from trust and partner collaboration stems and expanding and our want life from solutions by to and an driven worked for opportunity ways strong threats thank emerging all our and customers I set of tirelessly partners cyber engagements.

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

sequentially, details Let's third XX% seasonality. quarterly ARR above performance. our QX, In and total revenue ARR our Net $XX grew historical increased over year-over-year. grew million of review of well new quarter XX% XX% the

improving year-over-year. new indication This our growth is a return net of accelerated position. strong growth and momentum business X% our to market ARR Importantly, to positive

we gross compared was again, macroeconomic to While and margin operate landscape, solutions. Once percentage improved geographies of continue by platform in of broad-based XX%. best-in-class than our performance delivered across the Operating long-term challenging more we positive margin points QX quarter, strength consecutive to a profile have the second a and we an margin sheet, for a balance across net gains dynamic opportunity opportunities. income. to flexible, positioning share be for growth ourselves And we solid and With improving X delivered diverse year. last

than are intensity last call, solutions, growing modern and are faster cyber earnings modern security our on mentioned aging the increasing ever. the I threats so-called of exposing As sophistication incumbent shortcomings even of technologies

to risen. We're and XX% grew additions. result, record a in plus $XXX,XXX strength added customer our large QX, customer see in we and platform with year-over-year. new a As awareness In ARR security which of interest customers, notable AI-based number beginning have

than Our Overall, well. faster. higher enterprises $X our with record with customer million QX drive and we parallel, per a to base. healthy as customers more ARR platform in grew large customer, in to new even our rates ARR expansion which adoption success continues In with reached continue maintain existing

has efficacy; more. The also a recognitions discussions at and Gartner's and expansion customers to in customer demonstration one across term. In including see Endpoint enterprise conversations. endpoint, industry architecture, It now leader broadest, Customer was enterprise the year. we analytics the an from cloud solution the to installed Singularity evaluations of most with identity modern the consecutive cloud security Cloud CyberScoop in honors continue October, a security a was the OneCon A data solution leading our Investor size for X We for in from excitement and plenty Conference. being security of prominent coverage the the and across clear MITRE a undisputed central Magic point performant our over platform leadership and for evolution record recognized endpoint-centric our terrific substantial great best year; a potential our the fourth base top for growth named of with hosted Regardless of solution. Day or of best the first event long earned just years are These of was cutting-edge reliable yesterday, Award CRN's for AI our attendance, platform Protection security row, our Innovation winner benefit for market. testament Singularity endpoint SC innovation differentiation. the and as broad Singularity's And product industry, Media's Purple and security security platforms Security recognitions of AI, overall receiving to Singularity Quadrant models

expansions delivers point delivering new These and larger existing solutions, are data from our powerful equivalent competing functionality features. We multiple platform deploying modules and Each list among and and modules We're to customers. platform vendors. solutions not an wins sell capabilities. of endless of security both

cloud endpoint, Our leading Purple we help a customer. positions expansion cloud for cybersecurity doubled a broad coverage strategic enterprises. and the was major platform multiyear network many deal. security, platform adopted a and selected identity aggregate a Singularity and the Purple provider multimillion-dollar wins ARR endpoint seamlessly another as services. in AI visibility platform, SIEM a This AI hunting was leverage security, multimillion-dollar AI and partner example, the and AI. and of SentinelOne enterprises In With international a QX, deal for threat technology platform retailer that data have." "must Among industry-leading

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AI interest in and As platform In remains AI giving and Purple analysts Purple a recently workflows one the and multiplier in eligible and for history source Purple Purple been force is automation. extremely QX. for to rate growth. announced using investigation Customers alerts thousands Purple of positive. the more our future. GenAI attach getting will continue better. has giving and growth compared need of analysts. is true to threat auto just security across cases newer response The minutes, enjoy to gains hand and of of use hundreds We QX, capabilities, threats. into solutions drive market fastest-growing them the security against in Purple all to of the is upper security triage, the continuously one SentinelOne's a alert endpoints doubled AI in meaningful hunting capabilities. streamline We're tools productivity And depreciation manage they real

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switched In a As architecture one capabilities equating QX, example, Fortune customer achieved enhancements we the to wins. and record Purple closest due of company with result, platform efficacy, our productivity wins XX AI. a a SentinelOne competitor number more more against superior to opportunities and integration to in

switch number their and We after they improved of all those with AI, Singularity customers government which Singularity and posture. are alternatives. local Many from federal of solution. also had considering evaluations, entities was Data against capabilities experience SentinelOne performance easier of use already testing and In the security and enhancing a to their platform platform unique Purple are existing our to these their absent Lake found other

of footprint interest than ultimately, incidence SentinelOne endpoints. This awareness, before. twice strategic to Taking in the quarters step and time. servers that a After were and more now endpoint in will and out threats. incumbent protect their one utilized incumbent there pace XX enterprises human-dependent Siloed and decided engagements. some We're of as had modern keep this other ever to weren't includes years largest in just recovery solutions, apparent consideration as the come, turned Microsoft SentinelOne as for channel and play with opportunities engaging This months, as We back, the us platform SentinelOne to in to over solutions their more institutions is well. Overall, the cannot the covered breached well opportunities test that past. renew in security available ever and for to financial architectures in are evaluate, past before. SentinelOne to with shortcomings world Defender solutions and come endpoints Microsoft more close than becoming solutions simply response secure and customer by customer

scale, open. presence. The long-term road strategically expanding we're To is and maximize our success our market

few provide examples. a me Let

drastically Purple First, Lenovo we with protection and of years. PC millions security enterprise new industry partnered across scale manufacturer. the endpoints Singularity. The can We the how largest Singularity to participants. on partner will with other partnering shipments like Lenovo, can and increase the in truly compete with reach world's and coming enhance AI OEMs and the Together, showcases believe platform world PC SentinelOne agreement to not bundle Lenovo of the autonomous

presence we're AI-SIEM. security Second, both endpoint we FedRAMP expanding recently arena, in our achieved and High and for the federal

years, our security ability testing to designation demanding and testament is the through this Going rigorous over a performance meet requirements. of multiple most

Third, partnership our we've run AWS. AI SentinelOne Purple choose expanded Bedrock. can that customers with now AWS Amazon on

to deploy one the choose our Singularity largest with deepen Amazon, cloud We the will continue enabling relationship to in customers world. to and of providers

and partners I Finally, helps Singularity to and mentioned earlier, enhance them improve platform, business of potential. we're our Data adopt more like the MSSP as enabling their Lake security Singularity This Purple expand AI. efficiency,

agentless recently also CSPM, CIEM more. including our We MSSPs, suite and launched for of CNAPP solutions

security to over driving expanding All customers SentinelOne in capabilities and convert and with strategic our ahead constantly intelligent hand-in-hand of more relationships all, in for customer infrastructure, for critical future. before. evolving customer solutions these landscape. Security on into execution, market enduring and platform are threat interest tailwinds trial test, and Singularity and organizations We're We're cybersecurity deploy It's enterprises. mission presence long-lasting and working leading are building the helping platform. ever us well to than innovating focused improving partners on wins in execute We're and the the autonomous engagement building stay time.

grow. this we as adapt, week, company XX list, and named Just Fortune's were to to a most Future likely drive recognized

we growth delivered We in I'm by have technology. encouraged and momentum strategy, the the and right people QX.

making growth Platform to mine achieved the While share contributions of continued expanding market expanding are positive this alone, rates investments in all and record highest In early, new quarter software. Solutions, and margins. our we're one in growth returned fueling of across business the presence we

like Financial company opportunities. With that, gains to growth to for over and call the across welcome our diverse the positioning long-term are Larson, Barbara would Officer. turn Chief share I We

Barbara Larson

everyone to been Thank Tomer, thrilled team for has an Stepping be and you, here. it's into us thanks work and journey, privilege a transforming cybersecurity. to exciting to joining today. incredible to role I'm alongside dedicated an this

my months, opportunities. time of unique couple exploring listening, past and focused and learning strengths the Over I SentinelOne's on

committed I already to foundation mission strong operating cutting-edge through secure consistent the potential financial and and long-term on place. From the growth, in leverage. a value is for building Our to perspective, scale technology. clear future see delivering we're

our and our the fiscal of review QX let's and third for year Now details financial guidance performance 'XX. quarter

QX, year-over-year our exceeded significantly historical quarter here As otherwise XX% measures are quarterly sequentially, financial grew a third XX% ARR $XXX also of non-GAAP markets our million QX international comparisons grew revenue. In exceeded grew revenue million increased all $XX and noted. all discussed XX% total strong of and growth to new our unless XX% reminder, expectations to from quarter across geographies. our Revenue expectations. the million. Revenue represented $XXX in outpacing are Net and We ARR momentum our seasonality. ARR with and XX%

net growth that XX by Our rate from of the to improvement new first net reflecting in growth marks well QX. stronger second new are to point demonstrates positive the return percentage we ARR in This year half the a positioned year-over-year, QX ARR reacceleration increased to and growth X% half. deliver the growth business of new a compared

and continues by to drive customer, added base. solutions. customers we with rates ARR position execution broad adoption expansion our healthy record and our growth maintain number enterprises $XXX,XXX to a double-digit higher we per which quarter, continue team's of and strong of new prior The quarters, of to across and Consistent of reflects or a ARR in more. improved solutions success a emerging QX. customer our our large This percentage with increased existing platform high This competitive year-over-year with

operating the fees incurred a last in that margin point gross percentage margin legal In settlement the compared are year. our line was QX, financials. In top disciplined highlights included we onetime and legal to XX% non-GAAP our strong costs negative QX improvement of our unit platform Singularity X economics reflecting our X%, growth, of QX, Beyond pricing. and

guidance. Excluding these approximately X%, our consistent have with operating onetime expenses, been QX negative our margin would

For positive we the second net income. delivered consecutive quarter,

cash positive a the first time achieved on company history. in basis free also flow for We trailing XX-month

positive Importantly, track 'XX. we're to year on for flow free fiscal cash achieve

closest of investments sustained towards against presence results, market adoption for progress At increased strategically growth. scale, new we record position and flow steady already management. Overall, cash competitor operational efficiencies Our ourselves expand reacceleration are margin our our including and improved same early solutions, increasing to time, our These the yielding disciplined improved is by growth. durable of profile. our and driven profitability platform and investing are new significantly business cost we've wins

unit $X remains than with equivalents Our economics debt. no financial position more and cash investments strong and in billion cash, and

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

raising million Given we're year ARR guidance expect an and and full We in QX new strong revenue guidance. revenue growth. business our $XXX momentum, XX%, and of our of $XXX net increase from solid of prior approximately full growth now XX% year million

year-over-year a expect approximately For we XX%. reflecting $XXX QX, revenue of increase of million,

solutions. It's that threats. the Organizations breaches the landscape continue. and environment. to time, new dynamics continue positive also with net and half. second 'XX We new At on threat customer intense, healthy cost to efficiency, position note trends our continue about a evolving cyber in still a fiscal macroeconomic expect stronger navigating to half by data, ARR and compared in the competitive headlines new and same these and This focus to increasing is solid of we expect frequent momentum acquisition, outlook AI supported remains growth important pipeline, with first a challenging we're to the cloud

margins. outlook to for turning the Now

For basis year, an XX%, be also is approximately to of XX%, continue year-over-year. In QX, the to to expect basis expected gross XXX over XXX margin year. points last approximately an about of gross compared points improvement increase margin we full of reflecting

with robust increase improvement year-over-year points clear margin platform $X SentinelOne's It's our built we an customer X of 'XX, industry-leading by of improvement our prior For of in of few take negative and of approximately and margin expect an past AI year billion to a to ecosystem. to I'm be percentage we and diverse new operating crossing X%, X XX security nearing and approximately to year X%, fiscal midpoint consistent of for impressed from ARR, partner months. an compared my a teams milestone to In fiscal company. solid any reflecting sequentially. Reflecting percentage constantly 'XX. negative an a talented points heights the operating SentinelOne their on achievement points about and significant base about we to dedication the percentage guidance QX, expect foundation success. We're

and businesses as our protect strategy. business additional thousands we strengthen secure expand we reach the is execute leverage positioned delivering millions to well globe. As growth our and of endpoints in SentinelOne ongoing our We presence, to market committed the remain across tens more of

achieving the maintaining investment that's a and we're and strikes time, instilling Our responsible maximizing to toward Ultimately, operational profitable operating strategy margin long-term strong, while productivity. SentinelOne opportunities goal discipline long-term thing balance approach efficiency ways enhance sustainable XX% profile, One is and a a same a our by to between growth to progressing thoughtful a scaling financial of multibillion-dollar certain. growth key business. At our time. identifying remains target over

security has on to continue the our be will success. unwavering and backbone partners Our customers, always been of focus and

of by team I'm and progress so proud our shown we've far. incredibly the dedication the made

forward analysts, that, broader even shareholders line. months investment Thank questions. community a now I'm While we've our today. with we'll already open and days please great come. With take I ahead. look and that greater up joining the connecting to in the you for opportunities to Operator, lie confident accomplished us the deal,

Operator

company Instructions] Our comes question with first [Operator Zelnick Bank. the Deutsche from Brad

Brad Zelnick

you can in at gives about we you visibility the you Barbara, and for have then the confidence might is it momentum seeing year trend inform the that this see you execution terms Tomer, does ARR in growth that months, the be of build. many results. from levers all positive improvements what continue next and And in very to clearly clear see But and how Great. that the in market point? ahead show disruption the Good QX to you've that wouldn't how what acceleration? up few is newer that see your thinking financials. you're last been of immediately over pipeline And benefits from

Tomer Weingarten

to July outage the momentum we're strong clearly, already Well, added the experiencing.

same and a to a we're win record starting the number our record number opportunities, that still $XXX,XXX plus time. maintaining benefits more record added customer wins we're the against QX alone, of strong customers. that so over includes So will translate of had see competitor. we've rates, closest pipeline. And In We've

Our endpoint in accelerated growth actually QX.

of upside to So it for is these just these of in offering. It indicates not in the it's products more resulting bigger ARR and some in the really growth the the is so I I incremental remarks, industries to deals the before. opportunity our engagements. to drove mentioned all be It's resilience, emerging the we very improving type ability really in but we customers our quarter, more and resulting have with we It is pipeline. The that market SentinelOne encouraging. lever conversations believe had us in proving momentum only within are conversations, have we're that's that prepared on these and going more core engagements, superior seeing, consideration fronts these on paying It endpoint. across platform serving, the operational think the as resulting to performance is continue. Broadly, in translate attention enterprise SentinelOne. the to not security we're mean to is is

in it's unlock to for be going will this us. and we translate years to to It positive be come. quarters and So continues the something

Barbara Larson

right forecast Brad, FY of And terms in year's 'XX, now. too just next discuss early then, it's to

on maximizing reaccelerate the pleased of a But front half. new half to that are in and innovating the stronger deliver and clearly, we us. have see Our really we growth compared ARR to focus opportunity QX the is first second the in in year-over-year executing, net

Operator

Powell comes company next with Gray BTIG. The the from question

Gray Powell

net comments. back territory. Brad's new yes, great I'll Great. into And positive get see the It's echo ARR to

Just that in than And was? was this like prior years? of of QX about but year that missed the whatever this, how driver sustainability in we seasonality, should it growth different think that then the what stronger was terms maybe just I drove actually quarter-over-quarter

Tomer Weingarten

we're just seeing combination emerging our say. the is main One with a I'd products. It's leverage factors, X of

you're attach I past for seeing So from whether us the AI double come think with more Purple it's online, capabilities rate quarters.

Cloud that's new to is all significant. are online. coming These So grow. for relatively Data continues us. up capabilities

expect And online, bigger see was just is we 'XX pipeline. It and they the as the our in case obviously, evidence we come we that going lands, July into So bigger QX. the expect outage. other factor deals,

the migrations. We've these ever past. upside that is coming Some had customer had than large displacements definitely enterprise we in you're seeing more of from the

X, something just I that we've according And this we from that a to that QX seeing pipeline, think, We continue. is QX. type those into So to different drove we're that believe, very will the sustainable. seen trend that seasonality of believe is

We will in and need there to it's of it's repeat translate to that. pipeline, I terms the will that. us But for work.

Operator

Piper question Sandler. Our comes Rob from the with company next Owens

Robbie Owens

And then motion selling from, Yes. macro a perspective, with one. market and about the you're success seeing Great. I Curious is you're elements where you're there. the what seeing up and larger deals just number of the most the platform success larger multiple customers guess, the and

Tomer Weingarten

something platform more platform that for than Our more the than is with is or playbook single evolving. And think capability ever before. is definitely new components the entire us. landing relatively that We're of I a

encouraging. we've really upselling it's clear motion out think more. just had we're of more. the very cross-selling there and always I that But also with largest and and We're now landing important. The attaching is that's dialogue covering incredibly with enterprises more,

evidenced that sizes average that the on You see rise. the deal by are

record with million You of $XXX,XXX a see and customers. that $X number

Fortune is away being of the Fortune to some I the enterprise, XXX. that XXX, to that is to translate cater incumbents more market dominant gradually our past, So to higher in which going presence these ability relatively unlocked were the in SentinelOne end of that part believe from in for in now the of the

provide macro which the capability The actually is I customers SIEM we AI data what say not or other when would a that is. one And capability stopped have, thrives have, the that is is capability macro that is would not the that we given analytics say create are I have scrutinizing. are to customers a into customers. And our the savings but actually can data and can immense that going not what very cyber good these that not away. very oriented, some of we cost analytics obviously, that threats for solutions budget fit translates data

best-of-breed So for the is need structurally security there.

X So in years, the macro, bodes with I this seen market of is which even think combined, past our well still it things to what motion. in those on we've couple relatively par

Operator

comes next Barclays. question Saket company with Our from Kalia the

Saket Kalia

contributing with market think you to just talked Tomer do sounds the the to maybe the Lenovo question Barbara, with partnership. is really And you, broadening start Lenovo ARR. interesting. it about Maybe about net presence how new

kick this that flows does is that Or the to ebbs quarterly and shipments on into be something when to going going sort with of And how us model sort about forward. that in? basis? a layers sort of Specifically, talk of Lenovo

Barbara Larson

much so Thanks question. Sure. the for

a It's market. of it offerings. closely working time. We're excited terms really security its with is potential. includes about multiyear Lenovo, the a innings. We're long-term That We're as strategic This Lenovo designed evolve agreement. to partnership. to in multiple as In activate early managed is routes to over pre-installations well

on agreement today. we an It reseller the also existing that fact builds have

starts to year co-sell up through of all deepening we and ramp part Lenovo extending, our we're in latter the pre-installed as So we contribution pick in our ship terms expect of and the collaboration, regions. really to revenue units of as next up

deal I'm it and about next not to year. the specifics revenue, latter how thinking half terms of that's on to contribution going talk but to So ARR, of we're in

Operator

TD question the with next Cowen. Eyal Shaul comes Our from company

Shaul Eyal

I RPO raised believe, maybe from slightly I metrics. think know us RPO sequential thoughts growth. I up, X% XX% on annual guys guide just Can a so deceleration which I you think about duration? do and or pricing would to trends imply maybe know discuss year your your you guidance. was last It you contract Barbara, talk not Tomer, a and year-over-year,

Barbara Larson

Sure. take that. Great. I'll

QX, in RPO of delivered XX%. strong growth year-over-year for we So

with So ARR that's relatively in line growth. our total

Just mind, signed last a our keep large MSSPs, to QX in of comparison. in difficult contracts, year, with several long-term of including this making we year-over-year several more

ARR metric contract and that is RPO So can ARR, be our impacted removes preferred duration by as variability.

Tomer Weingarten

how price think of think platform pricing. ability the in terms a pricing, sell just longer a And specific in There's changes now right market. full really point the I no you to about

steady. held have prices Our

the continue margin, has that there's discounting other have play for breed always I've making the think focused which discounts and in do on out of been in different our preserve think price of seeing, to always way the heavy a us this I seen We, gross to anything and deep go There's years, markets that stop I who years. I don't the in, past be market there's best player that customers always players bit mindful way. we is more can not are dominant a a evolved transparent be our many using of on is the and especially on so pricing, hand, just from in And we don't extract. too now. the bring cost reflected cases, that too order the are ordinary see the maybe the value definitely right need number incredibly flexible, we vendors to It in definitely deals, more market. You the We're and or factor. anything few the savings in we think that. we discounts, with their that and doesn't that over of in by

all to vendors. is by high. changed. So in very margin when of we're different different the maintaining Gross cybersecurity on our realities hasn't It the it market comes And pricing. the all, just it's focused discounting down

Operator

next Bank from company Liani the America. question with Tal of comes Our

Tal Liani

is Alto vendor it financing aggressively. it market the because doing How now? I'm we've seen important asking Palo very in

you Or is required? seeing that is requirement it. CrowdStrike the by we're higher starting clarification. question second Now And this see something just customers? Is do

that few XQ. new mind growth you any XQ? for net strong have a expect noted you or have ARR you there for any in You for new number ARR net Is in times mind that a a

Tomer Weingarten

financing do it's believe future not that for capabilities we seeing are out vendor needs something space, for happen. now As really channel every need don't I financing, that really outside capabilities very you're been always every has toward aiming demand lot of commitment futures. cybersecurity They're on there of may today. deals are to possible or dealing that the of the that A consumption be customers the may customers. lot done is this now. partners. that A with current We that these focus channel think partners by in showing our typically any financing Financing apparent helping and then. do it right

customers SentinelOne, sort giving need which of For we partners any now. financing, we're right not typically facilitate what a require uptick with of, they very of customers If I've set seen focused that. on work any that can

So do of with out the I to working anything all, there ordinary. think need as as all ramp, no in long customer as flexible, you're you're desired as is the long

growth still half We the great maintain that, we second are ARR, new we the momentum. have for going net that maintain be to for positive. year, we still of As

that's all, in on share new QX. I can for net ARR all So what

Operator

from JPMorgan. comes next The with question the Brian Essex company

Brian Essex

Great I for I X the to reacceleration questions. guess see one Tomer. have first on ARR.

back holding adds focus about new onetime with non-GAAP. and those invest You've logo help off expansion the foot what over regard base. where to gas, you costs there's how regard talked to installed in could you're maybe investing that within the with new your But installed where the non-GAAP if bit. as the us and you keeping [ expansion growth. And in understand follow-up maybe what or out about a prioritization base are a you Help understand previously the on Barbara, they're us expand maybe legal for for maybe speak, so within on on in settlement think upsell went the financials, why ] you cross-sell, just to of back little the logo

Tomer Weingarten

of that to sellers new at Sure. majority kind on adding focused We're on think the online still of come their our holding Obviously, want anything. not own I we letting natural our back accounts estate. certain just we're things time. really

right within And So as year. to and customer now unlock and driving into put I that if say, I footprints. we're, more piece focused the more cross-sell itself would will upsell there frameworks is start base playbooks that gradually we is us on adjacent that one would say, next something less and in, is where to

an lever customer clear our us. core that solutions, very represents if expand software adjacent Many that, into the another our our It's growth some point, at estate, you end partners resell So represents to markets. only partners. at for opportunity for customers look for expect ability especially and becoming new also our opportunity. estate is endpoint that with that partners, will underpenetrated not an OEM have MSSP It but

where focus mentioned, the needs of between usher account cloud our But where after end and say, go It's value. is after customer analytics. sellers Whatever we accounts. capability, the or with would or don't I going prescribe that, so and discriminate, as in any going more new whatever the we to data really point competitive we is accounts with I'd try

to our that to coming in dominant that of part the ARR want It's we see evident from So us, go and starting as into is with new customer gradually accounts. go-to-market efficient we balance see, our what your quarter been but become that obviously, the are estate motion. motion. The also more you well, with has to a to efficient own market. is desire selling to more And

showing X next impact those years. more couple So things will start the of in

Barbara Larson

and this with by costs million legal dollars. QX impacted onetime of was remarks, as a few I margin, my prepared legal to regards operating And noted settlement in fees

costs we negative in settle minimize Excluding litigation also the X%, legal to our And past costs with legal these, with were proactively during so quarter, QX the activity. would These and forward. to made the order decision guidance. associated in line been lengthy M&A overall going avoid margin our have

Operator

the Our next question comes from Joe Gallo company, Jefferies. with

Joseph Gallo

through can are calendar guidance we Tomer, methodology you changes year? or that, start just next of then you whole as about thinking you're as And customers guidance our year for models process giving yet. know to just brought I for to fine-tune to a part your budgets? not But walk any Barbara, SentinelOne 'XX a how us as next their

Barbara Larson

it's say, expectations what things control, anticipated just in and see in and what's potential we products the rates. of contributions guidance clear the line set guidance our and business, and in terms we like Sure, reasonable based and reflect have sight from Yes. to that conversion of that philosophy, win I overall, on new we pipeline to would our activity,

Tomer Weingarten

I at it's capabilities presence. only clear about we that are is their capabilities which to when fend creating savings. It's most look AI-based that becoming it's very vector on And is if customers what providers, currently mandatory. about cost synergies. still expanding off threats, prominent think threat past from the are also are focused budgets, complete much of not couple you platform new cybersecurity looking very at think I years. Those And Customers a for look cost

type more fend of the but about only need these modernize into So customers are looking response the to threats speed and invest and resilient, can they of think any solutions become infrastructure fend really to more off disruption. not that robust off as

looked in of say they the past I spending at would couple much looking like in all at years. all, So customers it are

I as focused, the actually or the solution think significant savings. that's They technologies well there is And of you cloud. create some cost solutions ability on more a the vendors have cannot for whether also emphasis to incumbent certain cloud-native today, believe certain as that perform where create converted native where and we capabilities. synergies can into on-premise versus we're set cloud

Operator

& with from Dezort the next question Matt Company. comes Needham company The

Matt Dezort

specifically in are I there, about ever Congrats the of those flip enterprise about the in the pipeline think your past you legacy how that, XX you, momentum since quarter. for how maybe of in are the talked seeing behaving ability all, on whether more conversations? and is Can on Tomer, supports pricing discounting And the side XX% continued than that talk results. this displacements AV? then win market leveraging July to change, still you at if you

Tomer Weingarten

in different we've the that we're fully dialogues There question magnitude upwards of continued I that the pipeline no is mean supports some of of enterprise that market. dialogues are the we been into the having past. having believe the a trends

for I think us our has suit. been that always strong pricing

gross match not market. I to it's never endpoint were always years we is see able the of still price in margin, the And breed. to to for point. XX% anybody us think the an And around you which protection, XX% throughout obviously best been. specifically at around operate almost us play any It issue at has

average the we largest are focus. our rise. continue be of So having for gross as going it, the largest world continue of to that We're we've in shortcomings size prepared of been, in remarks that we're And to regard. to going for quite address the see sustain some we our some about mentioned the to and I year that companies margin, into other we're contract aggressive. look financial been that year, be next mean, and next with has platforms. the to point ways to of looking on We believe transformative some continue us, a in going has could talked institutions, be the they

they years think that think carry in X easy going SentinelOne, at look And Leading you're for leader. I to they see into the on future. is I a a row no technology feat. see MITRE

It's most It's evidenced with not both So crystallizing AI only about attach traction. pricing. the that especially and of both where in obviously Purple are the the and July see to share outage. market AI. endpoint capabilities, SentinelOne direction These in protection the XX only you with certain pointing we're about it's acceleration seeing with leadership it a the about you that not pertains technology has, as

Operator

next Our Baird. Shrenik company Kothari question comes with from the

Shrenik Kothari

influences hit Again, ARR a driven, in success cross-sell, this execution as well affecting sales perhaps and large customer, high a quarter mentioned I new a by Then constrained how here. course, sales as also highlighted ARR. quick longer? a Barbara, new upsell. of potentially have and factors Could help per macro the you larger dynamic of kind like deals Great. of the enterprise Is unpack great of cycles net dynamic getting IT budgets there bit outage Tomer course, follow-up cycles? the on

Tomer Weingarten

change business. SentinelOne. is the are everybody for mean thinking outage about not to as XX business. about SentinelOne's are it's just The or I the driving any the we factor. I driving business is meaningful macro think July customers would another material kind the I what's what's technology momentum or don't similar. macro what's also the how think largely, driving of relatively think those. have encourage I factors factors there's in

more incumbent table, customers showcase our is see I think feel this I think at having us and part. foremost. bring is ease solutions. the consideration from that, I to the important And to just more first what conversations can that's think more starting we're allow move ones results that to in. The most are as away to technology this you're just their And we where that

we're wins your deals is larger that, those. This the and But more mean have of think, point, is business. more at. balancing those, we're market. large looking I balancing all sales I past. for new of just all at We're not seeing the And to and of phenomenon been think, We're part what I doing do our mean longer a we larger Now deals cycles. us. in the of with with those of growth any this

positive to in translate take this for a And will all, those, we net complete all sales will is So me, us. we cycles while consider time, and will those.

accelerates next large obviously plan One in of position most enterprise into catapults our strategic market. year is our elements and of the it going the

Operator

company with Guggenheim. Our DiFucci the John comes next from question

John DiFucci

for Tomer, for and sales yes, point, on take lot shorter. the sales a mid-market, cycles SMB especially talked are cycles it the and enterprise. the But Those a the that right? There's you enterprise. lot does about time,

more, quarter little momentum you -- but the comment performed this the expected Now I that. improving might this how have does a indicate results there's guess, investors, it indicate on quarter? Can SMB/mid-market business. some Obviously for the How

Tomer Weingarten

I seeing Yes. think It's increased mean there. even we're definitely performing that momentum well. I

way. I think grow we're to strong a seeing in continue our MSSP partners very

can't, in I at the momentum. the want benefits we across own is seeing I whether all contribute the to less But more, market, day, or would of more. outage-driven both does what verticals end our always say, it we geographically we versus think see pinpoint different much across see the to want pretty mean, the are exactly think and I innate So everywhere. board. I I

Again, one core established mentioned, very, we're dynamics would for and we're on ecosystem endpoint there, seeing. one extracting kind rates The as say, win I that's The think is the But more just better of for our SMB MSSP I in acceleration. same But goes these is some I is focus enterprise. that self-driven. even of seeing really the us more markets.

XX very encouraging. acceleration into So specifically, market mean, that I this very, when that's you see an in journey, years

Operator

Our Walsh company the next question with JMP. Citizens comes from Trevor

Trevor Walsh

kind specifically bit why shareholder help a enablement dynamics. those up terms following expanding you comments just and kind more space, the them just a the of not MSSP of and In letter, over made that portion wanting just on ago. potential Tomer, would second if of it's it's partners all understand or of you let products just, can on the release kind technical or the Maybe, skis about more little your those products talked the CNAPP. MSSP, as help the us bit of some get that around guess, just to kind once you detail of broadly there little a of Just a not be platform? a reason That more maybe kind Is within to limiting their factor requirements I other in us of within great. at gradual of of go too kind understand more why

Tomer Weingarten

Of need course. hands. to It's more. more honestly, our I mean, just enable in We them

these We of to had years kind also adhere in over sure to approach that make that need we've products the market. multi-tenanted that endpoint

every the playbook, for certain market of segment mean, products elements capability I was part is. are have So our we're make that of arguably, elements the certain as training that to that in not adapting and we sure our right fit of the prevalent is endpoint of market. as our that

the and to over need, partners time. of it's them. we for articulate the end help they and really obviously, will these give customers, about it's the themselves happen It's sure them the on So that on value to customers us it but that making us enable types proposition capabilities customers,

just believe, have technology We beyond, in Purple capabilities. in as for above working expanded we the extract fit our team from part Both to even are market lake a more best now and say, we're that market, of way, past AI. those, this CNAPP our let's pretty of significant data quarter both as MSSP the well and MSSP the

have enterprise. the The of automation is going to workloads staff which they require of they different. amount amount The traction the than Obviously amount So about is obviously to the what that bit in selling of different. it's have market, of really you feel most a generate different. is different is they segment a large is

So all making best those, fit then we of enable adjusting. in and markets, are possible succeed. these will we to we partners that We're to continue sure have the these

Operator

to our to I remarks. conference time, pass hosting back like closing the team this over for would At

Tomer Weingarten

you, Thank for joining everybody, today. us

Operator

today's of your Thank and enjoy conclude call. day. will conference That rest your the participation, for you

SentinelOne (S) 4 Dec 242025 Q3 Earnings call transcript