Some things to keep in mind re SentinelOne

Some things to keep in mind re SentinelOne’s results.

Revenue for the quarter was $45.8 million.

Adjusted LOSS was $45.0 million. That DOESN’T mean that they took in $45.8 million and spent $45.0 million. No! It means that they took in $46 million and spent $91 million!!! That’s just shy of a 100% loss. That’s NOT a sustainable business model.

And that $45 million loss was more than double the $21 million they lost in the same quarter last year. They aren’t moving toward breakeven at any pace you’d recognize.

And for those benighted souls that follow GAAP, Sentinel One had $45.8 million revenue and lost $67.2 million!!! Just picture that for a minute. They took in $46 million and spent $113 million!!! Can you imagine a business that does that?

Their gross margin was 62%, which was DOWN from 64% last year.

Put it all together and this is not a company to invest in (in my opinion, anyway).




Another way to look at this is that they are bringing in half of what they are spending, or that they are spending twice the amount of revenue to bring in one time the amount of revenue… So evidently they are cutting their prices desperately to make sales.

Any way you look at it, it doesn’t look good.

And thanks to Qaz for throwing in a bit of humor.:grinning:



Hi Saul,

Their metrics are horrible, no doubt but I believe that is mostly due to them investing heavily in the business, sales, r&d, etc. I wouldn’t want to invest in SentinelOne at this point.

Couple of things to note and I’m looking at since I’m Crowdstrike investor are

  1. Their outstanding DBNER of 129% which is one of the highest if not the highest among the cyber security companies I follow, and higher than Crowdstrike. That indicates strength of their product, so we can’t call them a Trabant or whatever crappy car George Kurtz said they are.

  2. They are reporting really good growth numbers on ACV > $100k and also reporting million dollar client growth- something we don’t get from Crowdstrike

  3. And this is more of general feeling here, but it appears to me that none of these companies have an actual moat if they can be displaced at any time. So why would one want to trade a Ferrari for a crappy car?

  4. I don’t see (yet) SentinelOne going and naming specifically Crowdstrike to be a bad company, something that Mr. Kurtz does all the time. That can’t be a good thing and not necessarily if one company is that much superior than the other.