Remember SentinelOne acquired Attivo Networks, Bringing Identity to and extending XDR capabilities while raising their total addressable market by $4B.
They announced that they completed this acquisition on 05/04/2022.
- Singularity Identity : End credential misuse…
- Singularity Ranger® Active Directory Assessor : Uncover vulnerabilities…
- Singularity Hologram : Lure network and insider threat actors into engaging and revealing themselves…
A month later in April they developed new partnership:
- Streamlined Security Operations with Arctic Wolf
- Centralized Data Collection and Automation with LogRhythm
- Improved Cybersecurity Asset Management with Noetic Cyber
On the Management front they promoted from within:
- Mark Parrinello has been promoted to Chief Sales Officer, and Eran Ashkenazi has been promoted to Chief Customer Officer
- Promoted Nicholas Warner from COO to President,
- and added new talent in Vats Srivatsan Joining as COO… bringing with him 30 years of cloud and growing companies experience as Chief Strategy Officer at Palo Alto Networks.
More recently, today, they announced:
SentinelOne (S) XDR-Okta Integration to Boost Incident Response
June 1, 2022
So now that they built that impressive management team and partnership and product improvement, lets look at this quarter’s report.
SentinelOne Announces First Quarter Fiscal Year 2023 Financial Results
For this Q1’2023 quarter Revenue decelerated, increasing 109% year-over-year compared to the past three quarters.
Q4’22 Revenue increased 120% YOY
Q3’22 Revenue increased 128% YoY
Q2’22 Revenue increased 121% YoY
This Q1’2023 Annualized recurring revenue (ARR) also decelerated and was up 110% year-over-year
Q4’22 Annualized recurring revenue (ARR) up 123% YOY
Q3’22 Annualized recurring revenue (ARR) was up 131% YoY
Q2’22 Annualized recurring revenue (ARR) up 127% year-over-year
“Our Q1 results demonstrate the combination of a robust demand environment for our leading cybersecurity platform and impressive execution across the board. We once again sustained triple-digit growth with significant margin expansion, added a record number of new customers, and exited the quarter with an extremely strong pipeline,”
said Tomer Weingarten, CEO of SentinelOne.
“We’re raising our revenue guidance to nearly triple-digit growth again this fiscal year, which now includes our acquisition of Attivo Networks.”
They did have record gross margins.
- Fiscal first quarter GAAP gross margin was 65%, up 14 percentage points year-over-year.
Non-GAAP gross margin was 68%, up 15 percentage points year-over-year.
- Fiscal first quarter GAAP operating margin was (115)%, up 50 percentage points year-over-year. Non-GAAP operating margin was (73)%, up 54 percentage points year-over-year.
“Our platform unit economics and highly efficient business model uniquely position us to pair hyper growth with meaningful margin expansion and our first quarter results clearly demonstrate this success,”
said Dave Bernhardt, CFO of SentinelOne.
“I’m most proud of our record gross margins, which expanded double digits year-over-year. This really showcases the strong combination of our expanding product portfolio, data-enabled efficiencies, and operational excellence across SentinelOne.”
First Quarter Fiscal 2023 Highlights
- Total revenue increased 109% to $78.3 million, compared to $37.4 million.
- Annualized recurring revenue (ARR) increased 110% to $339.0 million as of April 30, 2022.
**** Revenue Guidance for this Q1’2023 was $74-75 million and they beat that with this $78.3M.
*****They did add a record number of customers in our this Q1’23 at about 750 customers sequentially.
Total customer count grew over 55% to over 7,450 customers as of April 30, 2022.
Customers with ARR over $100K grew 113% to 591 as of April 30, 2022.
Dollar-based net revenue retention rate was a record 131%.
Last quarter, 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.
Dollar-based net revenue retention rate was 129% as of January 31, 2022.
Customer growth dropped from 70% YOY last quarter to 55% YOY this Q1’23 while
Large customer count growth dropped from 137% YOY to 113% YOY this Q1’23.
Dollar-based net revenue retention rate was the stand out growing a record 131% YOY as compared to 129% YOY last quarter.
More detail in the Shareholder Letter:
Q1 FY2023 - Letter to Shareholders
June 1, 2022
- For Q2’23 they are guiding for revenue between $95-96M, reflecting growth of 107-110% YOY.
- While for all of 2023, they are guiding for revenue of $403-407M, reflecting growth of between 97-99% YOY.
Plenty to like and not as much to dislike. ;^)
- Increasing dollar based retention rate is good.
- Nice to see record customer growth though YOY slowed.
- Record gross margins look very promising, though as a young and growing companies Stock Based compensation is still high while attracting all the above great talent.
- Sustainable triple digit growth is also promising.
- Partnerships are increasing and the Attivo acquisition is complete to become accretive.
- They beat their own (and others) expectations and raised guidance indicates that may continue.
A good report for a growing company.
Best, kevin c
long of S
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