Naughty and Nice ER Review: SentinelOne

Note: SentinalOne reported Q4 2022 on Mar 15th and I want to go ahead and create a performance baseline for the company. They report Q1 For FY 2023 in early June. I intend, and might actually do, an update on the company at that time.

SentinelOne - Automated Cybersecurity Company In a Mano a Mano Duke-it-Out with CRWD.

Note: Actually they are in a Mano A Mano Duke-it-Out with other cybersecurity companies as well with plenty of room for more than one winner. At least I’ve heard.

Current Data Points:

Current Price: $24.05
Range: 18.64 - 78.53
Market Cap: $6B (Give or Take)
About 69% Below its High
Momentum YTD: -49.5%

S Reported Last Reported with FQ4 on March 15:……

  • Revenue increased 120% year-over-year: ATTA BOY!

Note: This was a small decrease from the prior QTR RG of 128%.

  • Revenue from international markets grew 140% and represented 31% of revenue: ATTA BOY!

  • ARR up 123% year-over-year: ATTA BOY!

  • Total customer count grew more than 70% year-over-year to over 6,700 customers as of January 31, 2022. Customers with ARR over $100K grew 137% year-over-year to 520 as of January 31, 2022: ATTA BOY!

  • Dollar-based net revenue retention rate was 129% as of January 31, 2022: ATTA BOY!

  • Non-GAAP gross margin was 66%, compared to 54% for the same period of fiscal year 2021: ATTA BOY!

  • Non-GAAP operating margin was (66)% in the fourth quarter of fiscal year 2022, compared to (104)% for the same period of fiscal year 2021: ATTA BOY!

  • I’m thrilled that today, we announced our plan to acquire Attivo Networks. Attivo is a premier and highly differentiated solution that will enable us to provide cybersecurity in one of the most critical and dynamic parts of enterprise security today, the identity parameter. With Attivo’s user-centric identity capabilities, we will be able to support an even more comprehensive zero trust framework. I’d also encourage everyone to read our shareholder letter we published on our Investor Relations website, which provides a lot more detail: ATTA BOY!

  • Leader in the 2021 Gartner Magic Quadrant for Endpoint Protection, highest scores in Gartner Critical Capabilities use cases and being the only vendor with 100% visibility and no misdetection in the latest MITRE evaluation. This has to be good…right? ATTA BOY!

  • We added a record number of $100,000-plus ARR deals, a record number of million dollar-plus ARR customers and closed our largest ever net new customer contract, one of the most influential and leading global Internet companies: ATTA BOY!

  • Guidance:

Moving to our guidance for Q1 and the full fiscal year '23. In Q1, we expect revenue of $74 million to $75 million, reflecting annual growth of 99% at the midpoint. For the full year, we expect revenue of $366 million to $370 million, reflecting annual growth of 80% at the midpoint. While we don’t specifically guide for ARR, I do want to remind you that we are a subscription business. Our ARR and revenue growth track very closely. Our revenue guidance for Q1 implies that we should be at or better than typical Q1 net new ARR seasonality, which has been down between 25% to 35% sequentially in the past 2 years: ATTA BOY!

Market Reaction to ER: ATTA BOY!…


LIST and RANKING Assignment: NICE #2

NOTE: Fantastic Q4 Report/Quarter but be aware Q1 Guidance is typically soft - this could be bad; however, given that the company stated that they would be at or ahead of the Q1 typical softness - this could be good. To be noted the BEAT on Revenue was 8.1% which meets my target for adding to a position if Guidance it good; however, sequential Revenue was the lowest of three publicly reported QTRs.

All the Best,