SentinelOne Partnership Ecosystem and Q4 earnings

Investment Analysis Clubs Saul’s Investing Discussions
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SentinelOne’s has an expanding Partner Ecosystem with

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.

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https://investors.sentinelone.com/press-releases/news-details/2023/SentinelOne-Announces-Fourth-Quarter-Fiscal-Year-2023-Financial-Results/default.aspx

“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.)

Revenue

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)%.

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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)%

Summary

  • 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

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I am curious what others thought of the call. I found it solid for a SaaS though not as positive as what I have heard in other sectors. My only gripe relates to what the analysts pushed for: ARR guide now vs 3 months ago.

Basically, it went like this:
1/ On the business climate: better in Q4 and at present than in Q3 (in line with what AI said but not as pronounced or bombastic as the CEOs have very different personalities).

2/ And yet ARR guide 47 vs 50% which made for a dissonance and in response to one of the questions, S brought in the macro and the bank run, etc which felt very defensive relative to the earlier statement about climate being better.

I personally wanted a revenue guide in the 670s or higher but what they promised seems to be right in line with expectations, hopefully leaving room for considerable out-performance.

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Here’s a straightforward but shortened cut out from their press release. We simply don’t have ANY other company that is growing like Sentinel in these macro conditions.
Saul

Revenue increased 92% year-over-year
ARR up 88% year-over-year

“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. “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.”

“Our fourth quarter results exceeded expectations across all key metrics, indicating strength of our competitive position and unit economics,” said Dave Bernhardt, CFO. “Evident in our fiscal year 2024 outlook, we expect to deliver compelling top line growth with consistent margin improvement.”

Fourth Quarter Fiscal 2023 Highlights

  • 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.
  • 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%.
  • 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 $1.2 billion as of January 31, 2023.

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)%.
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… And at the mid point are guiding for 50.5% revenue growth for the full financial year ahead (which they literally called “conservative”). I’m struggling to recall any of our companies issuing guidance for 50%+.

Admittedly they are only 1/3rd the ARR of ZS, 1/4 of Palo Alto NGS ARR and 1/5th of Crowdstrike’s ARR and remain cash flow and Op Inc negative.

Ant

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I also liked the quarter. I felt that relative to the last Q, the tone from both management and analysts were improved. Here are a couple snippets that I liked:

  • Last Q they said that net new ARR this Q would be up at least 20% qoq and it was 26%/11% yoy (CRWD net new ARR was up 12% qoq/2% yoy). S added $61m of ARR; CRWD added $222m so S is winning share from CRWD (27% of CRWD’s ARR added vs 21% of CRWD’s total ARR).
  • The revenue growth guide for next year is 50%+. The only other company that guided above 50% that I look at was TMDX.
  • They made the usual comment that many other companies also make about having a record pipeline, which of course tells one nothing for a growing company (your pipeline needs to be at record levels to sustain your growth). But they said it but also went on to quantify it: they now have double the pipeline vs last year which is significant, and also with cloud-focused pipeline building which is their fastest-growing product
  • EU is 35% of revs and revenue outside of US has been growing much faster that US. Sounds like they are addressing the relative underperformance of the US though with new leadership installed last Q and they are bullish on early results of that move.
  • Deal closure has been better toward the end of the quarter and gross retention improved.
  • Growth deceleration yoy, or “growth decay” - current q revenue growth / last year yoy rev growth - was 77%, in line with some of the better results this Q: NET’s (78%), CRWD (76%), ZS (82%) - so growth has slowed but not by too much, relatively speaking (GLBE is the only exception that I follow - they had an acceleration on this score: 127%).
  • Good margin improvements again
  • No SVB exposure
  • Strategic plans and operating model changes seem well-thought through
  • competitive position is improved and very strong; they now cite 4 areas where they compete (vs 3 last Q): endpoint protection, cloud workload protection, identity and security data lake
  • Valuation is not demanding

What I didn’t like, but kinda expected (and 3 analysts asked the same question, I guess to really, really make the point): they gave a 47% ARR growth guide after giving a 50% ARR growth guide 90 days ago. The 50% ARR growth “guide” for next year they gave last Q was clearly a mistake.

I’m also keeping a position.

-WSM

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Thanks to all your insights on the quarter. Here are my thoughts:

Revenue and Guidance

  • Revenue was $126.1M, up 92.1% year over year, 9.4% quarter over quarter. A slight beat of 0.9%. I had hoped for $129M but am still satisfied given the current environment.

  • Net new ARR was $61.3M (total ARR of $548.7M), up 10.8% year over year, 25.6% quarter over quarter. Like Crowdstrike, sequential net new ARR growth accelerated again.

  • Deferred revenues were $303.20M, up 18.7% sequentially. Good to see this metric growing double digits sequentially.

  • Q1 revenue guidance of $137M, suggesting $139M, 10.2% quarter over quarter and 77.6% year over year growth if they continue exceeding guidance by 1.5%, assuming slight improvement.

  • FY2024 revenue guidance of $640M, suggesting $652.8M, up 54.6% year over year if they exceed conservative guidance assuming headwinds persist through year-end. Still, I expect up to 60% year over year growth for FY2024 as macro effects fade. This requires: Q1: $139M (10.2% QoQ) → Q2: $157M (12.9% QoQ) → Q3: $178M (13.4% QoQ) → Q4: $205M (15.2% QoQ). Optimistic yet realistic, and initial fiscal year guidance is usually most conservative. “We expect macro-related uncertainties to persist for the full year, which is factored into our guidance.”

  • FY2024 ARR guidance of 47% YoY growth. CFO Dave Bernhardt couldn’t help highlighting multiple times how conservative that forecast is. I try not to read too much into it, though he seemed really eager to convey how absurdly low that guidance is. I’d like that, but his last mistake guiding to 50% ARR growth 90 days ago makes me wary.

  • Sentinel’s cloud security solution more than doubled quarter over quarter, including multiple million-dollar customer wins, contributing about 15% of quarterly ACV. Potential greenfield market opportunity. Recall, Sentinel One’s subscription model is primarily seat-based. The number of cloud workloads, which benefit from cloud security, can easily exceed the number of employees at any enterprise.

  • About 30% of revenue from EMEA,

Cash Flow & Profitability

  • Gross margin rose to 75.1% from 68.7% last year. → Great trend moving in the right direction.

  • Operating loss was -$43.74M (-34.7% of revenue), down from $43.37M previously, but as a percentage improved from -66.1% of revenue. → Smaller loss resulted from revenue growth exceeding the increase in expenses.

  • Net loss was -$37.39M (-29.6% of revenue), up from -$43.98M, and percentage-wise up from -67%.

  • Earnings per share were -$0.13, up from -$0.17 last year.

  • Operating cash flow was -$22M (-17.4% of revenue), up from -$5.8M, and percentage-wise down from -8.8%, which seemed like an outlier. The sequential trend still looks good.

  • Free cash flow was -$25M (19.8% of revenue), down from -$7.8M, and percentage-wise down from -10.8% last year.

  • R&D expense was $39.56M (31.4% of revenue). A big decrease from last year at 49% of revenue, still above their long-term target of 20%.

  • S&M expense was $73.14M (58% of revenue), up from 55.3% of revenue last year due to more headcount. Their Go-To-Market strategy is the main reason for still being cash flow negative. I like them being aggressive, especially when others are slowing down but let’s hope the aggressive approach pays off long term.

  • G&A expense was $25.67M (20.4% of revenue), declining but consistent with previous trends.

  • Q1 operating margin guide of -41%, up from -73.4% in 1Q23. → A sequential decrease from -34.7% in 4Q23, but fine since Sentinel One is frontloading expenses early in the year = seasonality. All good here.

  • FY2024 gross margin guide of 74.7%, up from 72.1% in FY2023.

  • FY2024 operating margin guide of -25%, up from -49.5% in FY2023 → Last 4 years’ guide was: -152%, -107%, -86%, -49%. We can expect them to reach around -19% by the end of FY2024.

Customers

  • Added 750 customers, reaching 10,000, up 49.3% year over year and 8.1% from last quarter → Growth accelerated from last quarter, which is good given the environment. Note: MSSP partners count as one customer, though they may add hundreds of customers below them, which isn’t reflected in customer metrics.

  • Added 78 $100k+ customers, reaching 905, up 74.0% year over year and 9.4% from last quarter → Growth in line with last quarter. Hoping to see growth accelerate here soon.

  • Dollar-based Net Retention Rate was 130+% , down from 134% last quarter but up from 129% a year ago.

  • Gross retention rate “improved.”

  • Added “a record number of Global 2000 enterprises” in the quarter, including major U.S. federal agencies, global financial institutions, and tech leaders for endpoint and cloud security.

  • ARR per customer “continued to increase.”

  • MSSP partners continue to perform well.

Macro

  • Continue to see customers being cost-conscious and prudent about IT budgets, which has led to longer sales cycles and ensuring deals are sized appropriately. Expecting these dynamics to persist. Though, linearity has been much better than Q3 stated Tomer Weingarten, CEO.

Competition & Go-To-Market

  • Win rates increased in the fourth quarter, including against large next-generation competitors

  • Named a Leader in the 2022 Gartner Magic Quadrant for Endpoint Protection Platforms

  • Ranked highest across all customer use cases in Gartner’s 2022 Critical Capabilities for Endpoint Protection Platforms

  • FY2024 focus will be on three core areas of product innovation: 1) Advancing leadership in endpoint security, 2) Strengthening competitive advantage in cloud security, and 3) Expanding platform capabilities and market opportunity

  • Partnered with Wiz, a cloud security company, to offer cloud workload and application protection to customers of all sizes. By combining platforms, they aim to provide comprehensive visibility into cloud infrastructure, detect and fix vulnerabilities, and prevent threats across cloud environments.

  • Entering FY24, the pipeline nearly doubled year-over-year → Great to see, but with S&M expenses eating much of the cash, I don’t want to see anything else.

  • Launched a partner enablement program in June 2021 to build a collaborative go-to-market approach. In Q4, they crossed a milestone with over 20,000 partner accreditations across sales and technical training courses.

  • Expecting target TAMs to exceed $100 billion in the coming years.

Product

  • Sentinel’s Singularity platform has the first and only unified security data lake with EDR hunting and querying capabilities. It eliminates the need for multiple data query languages and logging solutions from other vendors, resulting in faster, cheaper, and easier cybersecurity data analysis. Sentinel One believes this innovative, integrated approach gives them a competitive advantage in the growing market for security data analytics solutions.

Misc

  • They expect dilution to slow to 5% YoY in FY2024, still high but trending in the right direction.

  • Employee retention is about 10% higher than the industry average. However, some leadership team members left, which “had minimal effect on us”.

  • Strong Glassdoor ratings of 4.9. SentinelOne was named the best workplace and tech company on Fortune’s 2022 U.S. ranking.

  • Exposure to Silicon Valley Bank’s insolvency was immaterial, and no financial risks associated with them.

My Take

After delivering strong 92.1% YoY revenue growth, the market reaction to earnings was muted. I assume analysts’ FY24 revenue estimate of $651.26M versus the company’s lower-than-anticipated FY guidance of $640M was the reason. The stock price increased about 7% during the confident and uplifting earnings call, which felt slightly oversold.

Compared to Sentinel One’s 9.4% sequential growth, Crowdstrike’s 9.7% sequential growth at 4x the revenue seems strong. To maintain conviction in Sentinel One, I want to see acceleration in sequential growth soon, as their smaller size is an advantage. That said, the market is big enough for many players, so I avoid reading much into comparisons.

Viewed in isolation, I liked the results. Clearly, the valuation suffers from lack of profitability. I remain concerned about negative profitability. However, sequentially, I expect a 6% increase in shares for FY2024, still high but a big improvement.

The trend to profitability remains on track, which is mission-critical for them, though absolute negative cash flow metrics must improve soon. $1.2B in cash provides enough runway.

I didn’t change my allocation and don’t plan to. Lack of positive profitability mutes conviction, though the relatively small market cap indicating an easy double in share price intrigues me to buy more which I resist. Key metrics I’ll watch closely and want to see improve in particular: $100k+ customers, DBNRR, and cash flow.

Edit: Fixed the statements on dilution. Thanks @wsm007 and @Softie !

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I don’t think that’s right, mooo. A ton of shares vested I would guess and they had their IPO in FY2022 so the weighted average of the share count in year ended 2022 was quite a bit lower due to that. Here’s the main culprit for that big increase in share count:

“In July 2021, we completed our IPO and a concurrent private placement, in which we issued and sold an aggregate of 41,678,568 shares of our Class A common stock at $35 per share, including 5,250,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares and 1,428,568 shares issued pursuant to the concurrent private placement. We received net proceeds of approximately $1.4 billion after deducting underwriting discounts and commissions.”

→ Not such a bad deal for the company, no?

If you look at the weighted average shares in the quarter ended 31 Jan of 2023 vs the quarter ended 31 Jan 2022, that is closer to how much the shares outstanding increased.

That went from 265,775,986 to 283,545,048 per the latest 8-K in a year.

That’s a 6.6% dilution.

Also note that going forward dilution should be lower than 5% due to incentives to employees as, under their incentive plan:

“The number of shares of our Class A common stock available for issuance under the 2021 Plan is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2022, equal to the lesser of: (i) five percent (5%) of the aggregate number of outstanding shares of all classes of our common stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as our board of directors may determine.”

-WSM

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Thank you for the clarification and the additional insights, wsm! I Still learning a bit more every day.

I should have added that I also assumed the increase of 59.9% dilution in FY23 was due to their IPO (and vested shares).

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Now, it’s great to see the dilution slowed significantly to - as you mentioned - ~7% in 3Q23 and 4Q23, though still remaining at a higher level compared to Crowdstrike (2.6 % in FY23). That said, I interpreted all of that as a positive development.

Please correct me, if I am wrong here. :slight_smile:

mooo

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Mooo, part of that increased number of shares could have been because Sentinel made a largish acquisition somewhere in there, and may have paid part in shares.
Saul

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@mooo , take a look at page 88 of their FY2022 10-K and you’ll see exactly the breakdown of where their shares have come from. Especially, note that the majority of current shares outstanding are conversions of shares issued in their pre-IPO phase. Prior to an IPO, you will typically see multiple classes of stock, with many of the company’s investors receiving convertible preferred stock, which is different from common stock. But these are shares in the company just the same. When looking at “outstanding shares” from before an IPO, you are only looking at a small slice of the actual equity in the company.

Post-IPO, these convert to common stock and “outstanding shares” starts to be meaningful. So besides the modest dilution that came from selling shares in the IPO, the vast majority of what you are seeing as dilution is actually just conversion of shares from one share class to another. Immediately following their IPO (July 31, 2021), they had 264.9M shares outstanding (see page 8 of their FY23 Q2 10-Q). As of October 31, 2022, they had 282.2M shares outstanding. That’s dilution of 6.5% over the course of 5 quarters, or an average of 5.2% per year.

One other note – in your tables, you are adding shares each quarter to get a yearly total and doing year-over-year comparisons on that total. This doesn’t make sense – the numbers are point-in-time share counts, not shares issued in a given period. This is like if you were looking at the balance sheet and adding up the cash on hand in Q1, Q2, Q3, and Q4 to get a total cash on hand for the year. So the 59.9% calculation is not sensible, even setting aside the issue of share classes.

Hope that helps,

Softie
No position in S

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Thank you, Softie! Makes totally sense.

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Agree with moo on this heavily…

Compared to Sentinel One’s 9.4% sequential growth, Crowdstrike’s 9.7% sequential growth at 4x the revenue seems strong. To maintain conviction in Sentinel One, I want to see acceleration in sequential growth soon, as their smaller size is an advantage.

Yes yes and yes. SentinelOne has rapidly decellerated over last 2Qs to the point of growing slower than CrowdStrike.

Viewed in isolation, I liked the results.

Agreed here too. SentinelOne is making the right moves in focusing heavily on FCF and op margin profitability as growth slows heavily. But this throws them off the trajectory they have been following in CrowdStrike’s footprints.

As for earnings, I am very surprised that no one is breaking out organic here in earnings takes, due to the Attivo acquisition adding $30M growing ~50%… that hopefully grew to $45M by end of year. Lots of big growth numbers being bandied about like +92% YoY growth but that is due to Attivo greatly bloating the year as well as a way stronger 1H of FY23.

Looking at QoQ growth, this is not the fastest grower we have. (CrowdStrike, Confluent, Monday did better)

Organically, I see them having +9.0% QoQ growth this Q4 (maybe 10% if Attivo slowing very heavily), which is BELOW CrowdStrike’s +9.3% QoQ growth of sub rev.

My entire thesis was built around a faster growing upstart that can go head to head with the gorilla. Both have best of breed platforms and rate at the top on leader boards and reviews. But S1 is now tailspinning from 19.8% to 12% to 9.0% QoQ organically over the last few Qs, to be growing slower than CRWD – that is not good news.

This is, of course, assuming Attivo was growing 50% YoY as it was at the time of acquisition. But maybe it is slowing faster than core endpoint? If so (making it more like +10% QoQ growth organic) that means their expensive acquisition is slowing rapidly (+30%? worse?) and becoming a huge anchor. Also bad.

I am also very unimpressed w/ the Wiz partnership, as it is an admission they are missing critical pieces in their cloud solution. They should have been building these features instead of relying on a partner. Palo Alto is eating up CNAPP share, and CrowdStrike has a more fully featured CNAPP as well as Zscaler and Datadog and Netskope. While nice at first glance (combines agent and agentless solutions, cross-sell both ways, feeds into XDR), my take is that this seems an admission that S1 has dropped the ball on the huge greenfield oppo here and needed to move fast to catch up to cust needs.

-muji

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Muji, I agree with you on the lackluster QoQ revenue growth figure, but that’s something happened in the past.

To compare the relative future performance between S and CRWD, better to use ARR QoQ growth, not revenue as ARR is forward looking:

  • S had ARR qoq 12.58% in Q4 vs 11.13% in Q3
  • CRWD had ARR qoq 9.4% in Q4 vs 9.3% in Q3

So I believe S will still be growing significantly faster than CRWD in FY2024 (around 3% QoQ faster).

Zoro

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Agree with Zoro.

The FY guide doesn’t have the big acquisition bump. That bump was in last year’s 106% figure, not next year’s guide of 51%.

FY YoY guide is the next 4 QoQ numbers multiplied together.

FY revenue guide for $CRWD is what, 35% & $S is 52%. $CRWD is saying their QoQ growth will average 8% over the next 4 quarters. $S is saying their next 4 Qs will average a bit over 11%.

The future QoQ growth for $S will be bigger than the future QoQ growth numbers in $CRWD.

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Not completely Zoro and FinallyFoolin - the acquisition completed last May 4th according to the announcement so we will still have Feb-April this financial year of inorganic compares to factor into the 51% guide, (so 1 financial quarter post FY end 31st Jan 2023).

Ant

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I understand what you’re saying and yes, the headline YoY growth number is inflated by the purchase, and will be next Q as well. Then there will be a big drop in the YoY growth number because the purchase, and 31% QoQ, will be lapped.

I’m focusing my comparison on quarterly growth, so it is an apples to apples comparison. As we know, this is more relevant for true SaaS companies than some others. For comparing the future QoQ numbers, the comp of Q1 to the recently reported Q4, both already have Attivo included. Sentinel One is guiding the next 4 QoQ to AVERAGE a bit over 11%. Crowdstrike is guiding the next 4 QoQ to AVERAGE 8%.

Also, recall that at acquisition, Attivo was growing 50%. Unless they have accelerated in this environment, they are likely weighing down the rest of the Sentinel One quarterly growth percent.

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