SentinelOne’s has an expanding Partner Ecosystem with
- Cyber Risk Partners such as KPMG IR & Proactive Services and Aon Insurance.
- Channel Partners
- Technology Alliance Partners like ServiceNow and Azure.
- Singularity Marketplace partners like Splunk and Zscaler.
On Friday while investors were distracted with banks, SentinelOne continued to expand their Partner Ecosystem.
Let’s see how these partnerships are contributing to this Quarters earnings and Guidance going into fiscal 2024.
“We continued to deliver leading growth and margin improvement, a result of stronger execution and our competitive position. Our ARR crossed half a billion dollars, and our global customer-base exceeded 10,000 - two major milestones. Our sights are set much higher,”
said Tomer Weingarten, CEO of SentinelOne.
“We continue to strengthen our technology leadership. Once again, we are a leader in Gartner’s Magic Quadrant for Endpoint Protection Platform and achieved the top ranking across all three Gartner’s Critical Capabilities for Endpoint Protection Platforms.”
- Total revenue increased 92% to $126.1 million, compared to $65.6 million.
- Annualized recurring revenue (ARR) increased 88% to $548.7 million as of January 31, 2023.
(That Revenue of $126.1M beats analyst expectations by ~$1.4M,
while Q4 Non-GAAP EPS of -$0.13 beats by $0.03.)
Q4'23 Q3'23 Q2'23 Q1'23 Q4'22 Q3'22 Q2'22 92% 106% 124% 109% 120% 128% 121%
Annualized recurring revenue (ARR)
Q4'23 Q3'23 Q2'23 Q1'23 Q4'22 Q3'22 Q2'22 88% 106% 122% 110% 123% 131% 127%
Dollar-based net revenue retention rate
Q4'23 Q3'23 Q2'23 Q1'23 Q4'22 Q3'22 130% 134% 137% 131% 129% 130%
Total customer count grew about 50% to over 10,000 customers as of January 31, 2023. Customers with ARR over $100,000 grew 74% to 905 as of January 31, 2023.
Dollar-based net revenue retention rate remained above 130%.
Total customer count YoY Growth
Q4'23 Q3'23 Q2'23 Q1'23 Q4'22 Q3'22 50% 55% 60% 55% 70% 75%
- Gross margin: GAAP gross margin was 68%, compared to 63%. Non-GAAP gross margin was 75%, compared to 66%.
- Operating margin: GAAP operating margin was (79)%, compared to (108)%. Non-GAAP operating margin was (35)%, compared to (66)%.
- Cash, cash equivalents, and investments were $1.2B as of 1/31/23.
“Our fourth quarter results exceeded expectations across all key metrics, indicating strength of our competitive position and unit economics,”
said Dave Bernhardt, CFO of SentinelOne.
Full Year Fiscal 2023 Highlights
(All metrics are compared to fiscal year 2022 unless otherwise noted)
- Total revenue increased 106% to $422.2 million, compared to $204.8 million.
- Gross margin: GAAP gross margin was 66%, compared to 60%. Non-GAAP gross margin was 72%, compared to 63%.
- Operating margin: GAAP operating margin was (95)%, compared to (130)%. Non-GAAP operating margin was (49)%, compared to (85)%.
CFO Dave Bernhardt continued,
“Evident in our fiscal year 2024 outlook, we expect to deliver compelling top line growth with consistent margin improvement.”
Guidance for both Q1 2024 and Full Year 2024
|Revenue||$137 million||$631-640 million|
|Non-GAAP gross margin||73.5%||73.5-74.5%|
|Non-GAAP operating margin||(41)%||(29)-(25)%|
- Management has us focusing on beating both their own along with analyst expectations.
- customer growth is muted, though acceptable in this economic environment with businesses watching expenses.
- solid Dollar-based net revenue retention rate above 130%
- guidance for the first quarter is ok though we hope to see improvement moving into fiscal 2024.
During the conference call CEO Tomer Weingarten said that Guidance was “conservative” as they only guided what “they could control” in this environment with banks having problems last Friday…
He proposed that they expected to “overachieve” mentioning their Gartner top ranking.
Made me laugh a few times speaking to conservative guidance and the company being overachievers… i like this CEO.
Best, kevin c
long of SentinelOne and CEO Tomer Weingarten