I really like this company. I feel Sentinel is the young blood in its security space while Crowdstrike is the big gorilla. They are both nimble, both adding new functions all the time. Crowd’s emphasis seems to be more on well trained teams of people solving the problems, while Sentinel’s seems more on having AI instantly finding the breach and stopping it without needing human intervention, but I’m sure that they overlap a lot. I think that there is plenty of room for both of them.
Sentinel announced results on August 31st. They were excellent.
ARR was up 122%. Sure they are including Ativa, but still…up 122%!
Revenue was up 124%. Five or six years ago, I would have been elated with a company growing revenue 28%, and here I have a hundred and 28%!!!
Gross margin was up 4 points sequentially and up 10 points yoy to 72%.
Op margins were minus 57% of revenue, improved from minus 98% a year ago.
Total customers grew more 60% yoy to over 8600 customers.
Customers with ARR over $100K grew 117% yoy to 755. Up 117% means that they have more than twice as many as they had a year ago.
NRR hit a record of 137%, up from 129% a year ago.
Operating Cash Flow and FCF margins are still terribly negative, but improved from a year ago.
Cloud security is their new field and has grown to 20% of their business from practically nothing a year ago. Endpoint security had been their main business and they are adding one thing after another (like Cloud and Identity, etc), but Endpoint is still growing like mad too, as is everything else. This company is growing incredibly fast.
They increased annual guidance, bringing it over 100% again (with three more quarters to raise in), but it’s hard to evaluate as they will be including Attivo from now on. All in all you can say that they will be reporting annual revenue growth probably over 110%, which is enormous, but organic growth about 95% or 100%, as a piece of revenue will be from the acquisition.
Unveiled a new product in August, XDR Ingest, a disruptive step in democratizing XDR, it provides our customers with a limitless data platform to ingest, retain, correlate, search, and act on all enterprise security data – real time and historical, from any source. Cybersecurity is a data problem.
SIEM has been the technology for retaining security data and applying security analytics to uncover and respond to threats. But the data ingestion process is arduous and retention costs are high. It requires too many operators and too much manual interaction to be effective at scale. XDR Ingest solves the people, process, and technology challenges, and we’re excited for our customers to thrive in the XDR era”.
Sounds awesome to me! but remember that I’m not a techie and don’t understand the tech at all, but people who are techies that I talked to also felt that it was “awesome”. We’ll have to see.
New alliances and acquisitions including an integration with Okta just announced this quarter.
Great tailwinds of worries about breaches with the Ukraine war, as well as new exciting products, and the acquisition of Attivo.
In Sept they launched a venture fund for startups that already bring interesting new uses to the Singularity Marketplace.
In Sept they also announced the first annual SentinelOne LABScon Security Research Conference. Just look at this partial list of speakers!!!
Mark Russinovich, Microsoft Azure CTO
Dmitri Alperovitch, CrowdStrike’s Co-Founder and former CTO
Morgan Adamski, Director of NSA’s Cyber Collaboration Center
Chris Krebs, the first director of the Dept of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA)
And Sentinel was able to round up all these ultra-big names! To me it sounds like it’s SentinelOne announcing: We’re the big-time now!!! We’re no longer a little startup/catch up company. We’ve arrived!
And they described their mission:
Cybersecurity is constantly changing. Time favors the adversary. Today’s challenges are nothing like tomorrow’s. Threats are becoming more and more advanced leveraging the power of automation.
Some wait and react. At SentinelOne, we innovate. Our mission is to **defeat every attack, every second, of every day.**Our Singularity Platform instantly defends against cyberattacks – performing at a faster speed, greater scale, and higher accuracy than possible from any single human or even a crowd. . So, if our tech seems like something from the future, good — that’s exactly what it is.
Not being currently profitable is definitely out of favor in the current market, which makes it hard for the small very rapidly growing companies like Sentinel, but this is a very impressive company and I’m sticking with it. It’s now a 14.3% position.