SentinelOne Announces Third Quarter Fiscal Year 2025 Financial Results
SentinelOne (NYSE: S) reported strong Q3 FY2025 results with revenue growing 28% year-over-year to $210.6 million and ARR increasing 29% to $859.7 million. The company demonstrated significant improvements in profitability metrics, achieving positive free cash flow on a trailing-twelve-month basis for the first time. Key highlights include:
- GAAP gross margin improved to 75% from 73%
- Non-GAAP gross margin reached 80%, up from 79%
- Operating margin improved to (42)% from (50)%
- Customers with ARR over $100,000 grew 24% to 1,310
Based on strong execution and momentum, SentinelOne raised its revenue growth outlook to 32% for fiscal year 2025, with Q4 revenue guidance of $222 million.
SentinelOne (NYSE: S) ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2025, con un aumento del fatturato del 28% rispetto all'anno precedente, arrivando a 210,6 milioni di dollari e un aumento del ARR del 29%, raggiungendo 859,7 milioni di dollari. L'azienda ha dimostrato miglioramenti significativi nei parametri di redditività, raggiungendo un flusso di cassa libero positivo su base complessiva per la prima volta. I punti salienti includono:
- Il margine lordo GAAP è migliorato al 75% dal 73%
- Il margine lordo non GAAP ha raggiunto l’80%, in aumento dal 79%
- Il margine operativo è migliorato a (42)% da (50)%
- I clienti con ARR superiore a 100.000 dollari sono aumentati del 24%, arrivando a 1.310
In base a un'esecuzione e a una momentum forti, SentinelOne ha rivisto al rialzo le sue previsioni di crescita del fatturato al 32% per l'anno fiscale 2025, con una guida al fatturato del quarto trimestre di 222 milioni di dollari.
SentinelOne (NYSE: S) reportó resultados sólidos para el tercer trimestre del año fiscal 2025, con un crecimiento del 28% en los ingresos interanuales, alcanzando los 210,6 millones de dólares y un aumento del ARR del 29%, llegando a 859,7 millones de dólares. La empresa demostró mejoras significativas en sus métricas de rentabilidad, logrando un flujo de efectivo libre positivo en base a los últimos doce meses por primera vez. Los aspectos más destacados incluyen:
- El margen bruto GAAP mejoró al 75% desde el 73%
- El margen bruto no GAAP alcanzó el 80%, en aumento desde el 79%
- El margen operativo mejoró a (42)% desde (50)%
- Los clientes con ARR superior a 100.000 dólares crecieron un 24%, alcanzando 1.310
Basándose en una ejecución fuerte y un buen impulso, SentinelOne elevó su perspectiva de crecimiento de ingresos al 32% para el año fiscal 2025, con una guía de ingresos para el cuarto trimestre de 222 millones de dólares.
SentinelOne (NYSE: S)는 2025 회계연도 3분기 강력한 실적을 보고하며 전년 대비 28% 증가한 2억 1,060만 달러의 매출 성장과 ARR이 29% 증가하여 8억 5,970만 달러에 달함을 발표했습니다. 이 회사는 수익성 지표에서 знач적인 개선을 보여주며, 처음으로 지난 12개월 기준 긍정적인 자유 현금 흐름을 달성했습니다. 주요 하이라이트는 다음과 같습니다:
- GAAP 총 마진이 75%로 73%에서 개선됨
- 비GAAP 총 마진이 80%에 도달, 79%에서 상승
- 운영 마진이 (42)%로 (50)%에서 개선됨
- ARR이 100,000 달러를 초과하는 고객이 24% 증가하여 1,310명에 도달함
강력한 실행력과 모멘텀에 따라, SentinelOne은 2025 회계연도 매출 성장 전망을 32%로 상향 조정하며, 4분기 매출 가이던스를 2억 2,200만 달러로 제시했습니다.
SentinelOne (NYSE: S) a annoncé de solides résultats pour le troisième trimestre de l'exercice fiscal 2025, avec une augmentation de 28 % des revenus d'une année sur l'autre, atteignant 210,6 millions de dollars et une augmentation de 29 % de l'ARR, atteignant 859,7 millions de dollars. L'entreprise a démontré des améliorations significatives dans ses indicateurs de rentabilité, atteignant pour la première fois un flux de trésorerie disponible positif sur une base des douze derniers mois. Les faits saillants comprennent :
- La marge brute GAAP s'est améliorée à 75 % contre 73 %
- La marge brute non GAAP a atteint 80 %, en hausse par rapport à 79 %
- La marge opérationnelle s'est améliorée à (42)% contre (50)%
- Le nombre de clients avec un ARR supérieur à 100 000 dollars a augmenté de 24 %, atteignant 1 310
Sur la base d'une exécution solide et d'un bon élan, SentinelOne a relevé ses prévisions de croissance des revenus à 32 % pour l'exercice fiscal 2025, avec une prévision de revenus pour le quatrième trimestre de 222 millions de dollars.
SentinelOne (NYSE: S) berichtete über starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025, mit einem Umsatzwachstum von 28 % im Vergleich zum Vorjahr auf 210,6 Millionen Dollar und einer Steigerung des ARR um 29 % auf 859,7 Millionen Dollar. Das Unternehmen zeigte signifikante Verbesserungen in den Rentabilitätskennzahlen und erreichte zum ersten Mal positiven freien Cashflow auf Basis der letzten zwölf Monate. Die wichtigsten Höhepunkte umfassen:
- Die GAAP-Bruttomarge verbesserte sich von 73 % auf 75 %
- Die Non-GAAP-Bruttomarge erreichte 80 %, ein Anstieg von 79 %
- Die operative Marge verbesserte sich von (50)% auf (42)%
- Kunden mit ARR über 100.000 Dollar wuchsen um 24 % auf 1.310
Aufgrund starker Ausführung und Dynamik hob SentinelOne seine Umsatzwachstumsprognose für das Geschäftsjahr 2025 auf 32 % an, mit einer Umsatzprognose von 222 Millionen Dollar für das vierte Quartal.
- Revenue increased 28% YoY to $210.6 million
- ARR grew 29% YoY to $859.7 million
- Improved gross margins: GAAP 75% and Non-GAAP 80%
- First-time positive free cash flow on trailing-twelve-month basis
- Operating margin improved by 800 basis points YoY
- Raised full-year revenue growth outlook to 32%
- Still operating at a loss with GAAP operating margin of -42%
- Negative free cash flow margin of -6% in Q3
Insights
The Q3FY25 results demonstrate significant progress in SentinelOne's financial performance. Key highlights include
Most notably, SentinelOne achieved positive free cash flow on a trailing twelve-month basis for the first time, marking a important milestone toward profitability. The operating margin improved significantly from
The enterprise customer base continues to expand, with customers having ARR of
SentinelOne's Singularity Platform is gaining traction in the competitive cybersecurity market, particularly in AI-powered security solutions. The accelerated new business growth indicates strong market validation of their autonomous security approach. The platform's broadening capabilities and focus on real-time protection are resonating with enterprise customers, as evidenced by the growing number of large accounts.
The company's investment in AI-powered innovations positions them well in the rapidly evolving cybersecurity landscape. The improved operating metrics suggest that their technology investments are starting to yield economies of scale, important for long-term competitiveness in the enterprise security market.
Revenue increased
ARR up
“Our Q3 results demonstrate strong execution and business momentum. We exceeded our topline growth expectations and re-accelerated new business growth,” said Tomer Weingarten, CEO of SentinelOne. “Enterprises are increasingly selecting Singularity Platform for real-time, autonomous security. With our industry-leading innovations and broadening platform capabilities, Singularity is setting the standard for the future of AI-powered cybersecurity.”
“Our Q3 performance reflects strong execution as we continue to deliver top-tier revenue growth, best-in-class gross margins, and operating leverage,” said Barbara Larson, CFO of SentinelOne. “For the first time, we delivered positive free cash flow on a trailing-twelve-month basis, a key milestone in our journey toward sustained profitability. Based on strong execution and business momentum, we’re raising our revenue growth outlook to
Letter to Shareholders
We have published a letter to shareholders on the Investor Relations section of our website at investors.sentinelone.com. The letter provides further discussion of our results for the third quarter of fiscal year 2025 as well as the financial outlook for our fiscal fourth quarter and full fiscal year 2025.
Third Quarter Fiscal Year 2025 Highlights
(All metrics are compared to the third quarter of fiscal year 2024 unless otherwise noted)
-
Total revenue increased
28% to$210.6 million $164.2 million -
Annualized recurring revenue (ARR) increased
29% to$859.7 million -
Customers with ARR of
$100,000 24% to 1,310 as of October 31, 2024. -
Gross margin: GAAP gross margin was
75% , compared to73% . Non-GAAP gross margin was80% , compared to79% . - Operating margin: GAAP operating margin was (42)%, compared to (50)%. Non-GAAP operating margin was (5)%, compared to (11)%.
-
Cash flow margin: Operating cash flow margin was (3)%, compared to (14)%. Free cash flow margin was (6)%, 10 percentage points higher compared to (16)%. Trailing-twelve month operating cash flow margin was
4% , compared to (15)%. Trailing-twelve month free cash flow margin was1% , compared to (17)% in the year-ago quarter. -
Cash, cash equivalents, and investments were
$1.1 billion
Financial Outlook
We are providing the following guidance for the fourth quarter of fiscal year 2025, and for fiscal year 2025 (ending January 31, 2025).
|
Q4FY25 Guidance |
|
Full FY2025 Guidance |
Revenue |
|
|
|
Non-GAAP gross margin |
|
|
|
Non-GAAP operating margin |
(3)% |
|
(4)% |
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets, acquisition-related compensation costs, restructuring charges, and gains and losses on strategic investments. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP gross margin and non-GAAP operating margin is not available without unreasonable effort.
Webcast Information
We will host a live audio webcast for analysts and investors to discuss our earnings results for the third quarter of fiscal year 2025 and outlook for fourth quarter of fiscal year 2025 and full fiscal year 2025 today, December 4, 2024, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The live webcast and a recording of the event will be available on the Investor Relations section of our website at investors.sentinelone.com.
We have used, and intend to continue to use, the Investor Relations section of our website at investors.sentinelone.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve risks and uncertainties, including but not limited to statements regarding our future growth, execution, competitive position, and future financial and operating performance, including our financial outlook for the fourth quarter of fiscal year 2025 and our full fiscal year 2025, including non-GAAP gross margin and non-GAAP operating margin; progress towards our long-term profitability targets; and general market trends. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms and similar expressions are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words.
There are a significant number of factors that could cause our actual results to differ materially from statements made in this press release, including but not limited to: our limited operating history; our history of losses; intense competition in the market we compete in; fluctuations in our operating results; actual or perceived network or security incidents against us; our ability to successfully integrate any acquisitions and strategic investments; actual or perceived defects, errors or vulnerabilities in our platform; risks associated with managing our rapid growth; general global market, political, economic, and business conditions, including those related to declining global macroeconomic conditions, the change in the
Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our filings and reports with the Securities and Exchange Commission (SEC), including our most recently filed Annual Report on Form 10-K, dated March 27, 2024, subsequent Quarterly Reports on Form 10-Q and other filings and reports that we may file from time to time with the SEC, copies of which are available on our website at investors.sentinelone.com and on the SEC’s website at www.sec.gov.
You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information and estimates available to us as of the date hereof, and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date of this press release or to reflect new information or the occurrence of unexpected events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
Non-GAAP Financial Measures
In addition to our results being determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, with the financial information presented in accordance with GAAP, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.
Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period.
Reconciliations between non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP are contained below. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.
As presented in the “Reconciliation of GAAP to Non-GAAP Financial Information” table below, each of the non-GAAP financial measures excludes one or more of the following items:
Stock-based compensation expense
Stock-based compensation expense is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation expense provide investors with a basis to measure our core performance against the performance of other companies without the variability created by stock-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used.
Employer payroll tax on employee stock transactions
Employer payroll tax expenses related to employee stock transactions are tied to the vesting or exercise of underlying equity awards and the price of our common stock at the time of vesting, which varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for employer payroll taxes on employee stock transactions provide investors with a basis to measure our core performance against the performance of other companies without the variability created by employer payroll taxes on employee stock transactions as a result of the stock price at the time of employee exercise.
Amortization of acquired intangible assets
Amortization of acquired intangible asset expense is tied to the intangible assets that were acquired in conjunction with acquisitions, which results in non-cash expenses that may not otherwise have been incurred. Management believes excluding the expense associated with intangible assets from non-GAAP measures allows for a more accurate assessment of our ongoing operations and provides investors with a better comparison of period-over-period operating results.
Acquisition-related compensation costs
Acquisition-related compensation costs include cash-based compensation expenses resulting from the employment retention of certain employees established in accordance with the terms of each acquisition. Acquisition-related cash-based compensation costs have been excluded as they were specifically negotiated as part of the acquisitions in order to retain such employees and relate to cash compensation that was made either in lieu of stock-based compensation or where the grant of stock-based compensation awards was not practicable. In most cases, these acquisition-related compensation costs are not factored into management’s evaluation of potential acquisitions or our performance after completion of acquisitions, because they are not related to our core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related compensation costs from non-GAAP measures provides investors with a basis to compare our results against those of other companies without the variability caused by purchase accounting.
Restructuring charges
Restructuring charges primarily relate to severance payments, employee benefits, stock-based compensation, and inventory write-offs. These restructuring charges are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude restructuring charges from non-GAAP financial measures because it enables the comparison of period-over-period operating results from continuing operations.
Gains and losses on strategic investments
Gains and losses on strategic investments relate to the subsequent changes in the recorded value of our strategic investments. These gains and losses are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude gains and losses from strategic investments from non-GAAP financial measures because it enables the comparison of period-over-period net income (loss).
Dilutive shares applying the treasury stock method
During periods in which we incur a net loss under a GAAP basis, we exclude certain potential common stock equivalents from our GAAP diluted shares because their effect would have been anti-dilutive. In periods where we have net income on a non-GAAP basis, these common stock equivalents would have been dilutive. Accordingly, we have included the impact of these common stock equivalents in the calculation of our non-GAAP diluted net income per share applying the treasury stock method.
Non-GAAP Cost of Revenue, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss and Non-GAAP Net Loss Per Share
We define these non-GAAP financial measures as their respective GAAP measures, excluding the expenses referenced above. We use these non-GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance.
Free Cash Flow
We define free cash flow as cash (used in) provided by operating activities less purchases of property and equipment and capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors, and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.
Key Business Metrics
We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.
Annualized Recurring Revenue (ARR)
We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription and consumption and usage-based customers, and to maintain and expand our relationship with existing customers. ARR represents the annualized revenue run rate of our subscription and consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates, usage, renewal rates, and other contractual terms.
Customers with ARR of
We believe that our ability to increase the number of customers with ARR of
Source: SentinelOne
NYSE: S
Category: Investors
SENTINELONE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
|||||||
|
October 31, |
|
January 31, |
||||
|
2024 |
|
2024 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
235,742 |
|
|
$ |
256,651 |
|
Short-term investments |
|
424,517 |
|
|
|
669,305 |
|
Accounts receivable, net |
|
164,603 |
|
|
|
214,322 |
|
Deferred contract acquisition costs, current |
|
60,272 |
|
|
|
54,158 |
|
Prepaid expenses and other current assets |
|
105,857 |
|
|
|
102,895 |
|
Total current assets |
|
990,991 |
|
|
|
1,297,331 |
|
Property and equipment, net |
|
68,125 |
|
|
|
48,817 |
|
Operating lease right-of-use assets |
|
16,584 |
|
|
|
18,474 |
|
Long-term investments |
|
463,542 |
|
|
|
204,798 |
|
Deferred contract acquisition costs, non-current |
|
77,362 |
|
|
|
71,640 |
|
Intangible assets, net |
|
113,729 |
|
|
|
122,903 |
|
Goodwill |
|
629,636 |
|
|
|
549,411 |
|
Other assets |
|
7,051 |
|
|
|
8,033 |
|
Total assets |
$ |
2,367,020 |
|
|
$ |
2,321,407 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
9,706 |
|
|
$ |
6,759 |
|
Accrued liabilities |
|
122,518 |
|
|
|
104,671 |
|
Accrued payroll and benefits |
|
69,624 |
|
|
|
74,345 |
|
Operating lease liabilities, current |
|
5,120 |
|
|
|
4,689 |
|
Deferred revenue, current |
|
400,515 |
|
|
|
399,603 |
|
Total current liabilities |
|
607,483 |
|
|
|
590,067 |
|
Deferred revenue, non-current |
|
97,526 |
|
|
|
114,930 |
|
Operating lease liabilities, non-current |
|
14,975 |
|
|
|
18,239 |
|
Other liabilities |
|
7,513 |
|
|
|
4,128 |
|
Total liabilities |
|
727,497 |
|
|
|
727,364 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Class A common stock |
|
29 |
|
|
|
27 |
|
Class B common stock |
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
3,193,601 |
|
|
|
2,934,607 |
|
Accumulated other comprehensive income (loss) |
|
2,587 |
|
|
|
(1,550 |
) |
Accumulated deficit |
|
(1,556,697 |
) |
|
|
(1,339,044 |
) |
Total stockholders’ equity |
|
1,639,523 |
|
|
|
1,594,043 |
|
Total liabilities and stockholders’ equity |
$ |
2,367,020 |
|
|
$ |
2,321,407 |
|
SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited) |
|||||||||||||||
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
$ |
210,648 |
|
|
$ |
164,165 |
|
|
$ |
595,940 |
|
|
$ |
446,979 |
|
Cost of revenue(1) |
|
53,260 |
|
|
|
43,765 |
|
|
|
154,096 |
|
|
|
131,015 |
|
Gross profit |
|
157,388 |
|
|
|
120,400 |
|
|
|
441,844 |
|
|
|
315,964 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development(1) |
|
70,453 |
|
|
|
52,306 |
|
|
|
192,376 |
|
|
|
161,730 |
|
Sales and marketing(1) |
|
123,713 |
|
|
|
98,249 |
|
|
|
359,160 |
|
|
|
295,682 |
|
General and administrative(1) |
|
52,342 |
|
|
|
51,239 |
|
|
|
139,409 |
|
|
|
151,425 |
|
Restructuring(1) |
|
— |
|
|
|
74 |
|
|
|
— |
|
|
|
4,329 |
|
Total operating expenses |
|
246,508 |
|
|
|
201,868 |
|
|
|
690,945 |
|
|
|
613,166 |
|
Loss from operations |
|
(89,120 |
) |
|
|
(81,468 |
) |
|
|
(249,101 |
) |
|
|
(297,202 |
) |
Interest income |
|
12,696 |
|
|
|
11,877 |
|
|
|
37,631 |
|
|
|
33,901 |
|
Interest expense |
|
(38 |
) |
|
|
(1 |
) |
|
|
(110 |
) |
|
|
(1,213 |
) |
Other income (expense), net |
|
(378 |
) |
|
|
605 |
|
|
|
(838 |
) |
|
|
1,655 |
|
Loss before income taxes |
|
(76,840 |
) |
|
|
(68,987 |
) |
|
|
(212,418 |
) |
|
|
(262,859 |
) |
Provision for income taxes |
|
1,524 |
|
|
|
1,317 |
|
|
|
5,235 |
|
|
|
3,852 |
|
Net loss |
$ |
(78,364 |
) |
|
$ |
(70,304 |
) |
|
$ |
(217,653 |
) |
|
$ |
(266,711 |
) |
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted |
$ |
(0.25 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.70 |
) |
|
$ |
(0.91 |
) |
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted |
|
316,987,303 |
|
|
|
296,650,848 |
|
|
|
312,583,956 |
|
|
|
292,755,742 |
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes stock-based compensation expense as follows: |
|
|
|
|
|
|
|
||||||||
Cost of revenue |
$ |
5,810 |
|
|
$ |
4,329 |
|
|
$ |
16,243 |
|
|
$ |
12,570 |
|
Research and development |
|
22,816 |
|
|
|
15,634 |
|
|
|
61,092 |
|
|
|
45,876 |
|
Sales and marketing |
|
18,612 |
|
|
|
14,085 |
|
|
|
55,568 |
|
|
|
40,362 |
|
General and administrative |
|
22,950 |
|
|
|
20,865 |
|
|
|
60,515 |
|
|
|
65,560 |
|
Restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,060 |
) |
Total stock-based compensation expense |
$ |
70,188 |
|
|
$ |
54,913 |
|
|
$ |
193,418 |
|
|
$ |
163,308 |
|
SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
|||||||
Nine Months Ended October 31, |
|||||||
|
2024 |
|
2023 |
||||
CASH FLOW FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss |
$ |
(217,653 |
) |
|
$ |
(266,711 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
31,825 |
|
|
|
28,549 |
|
Amortization of deferred contract acquisition costs |
|
48,297 |
|
|
|
34,699 |
|
Non-cash operating lease costs |
|
2,981 |
|
|
|
3,010 |
|
Stock-based compensation expense |
|
193,418 |
|
|
|
163,308 |
|
Loss on disposal of assets |
|
1,481 |
|
|
|
1,116 |
|
Accretion of discounts and amortization of premiums on investments, net |
|
(10,536 |
) |
|
|
(16,289 |
) |
Net gain on strategic investments |
|
(345 |
) |
|
|
(2,706 |
) |
Other |
|
302 |
|
|
|
(479 |
) |
Changes in operating assets and liabilities, net of effects of acquisitions |
|
|
|
||||
Accounts receivable |
|
49,980 |
|
|
|
18,846 |
|
Prepaid expenses and other assets |
|
5,987 |
|
|
|
10,075 |
|
Deferred contract acquisition costs |
|
(60,133 |
) |
|
|
(47,289 |
) |
Accounts payable |
|
2,975 |
|
|
|
1,935 |
|
Accrued liabilities |
|
14,557 |
|
|
|
(220 |
) |
Accrued payroll and benefits |
|
(4,702 |
) |
|
|
(1,998 |
) |
Operating lease liabilities |
|
(3,925 |
) |
|
|
(4,650 |
) |
Deferred revenue |
|
(17,163 |
) |
|
|
16,311 |
|
Other liabilities |
|
(217 |
) |
|
|
301 |
|
Net cash provided by (used in) operating activities |
|
37,129 |
|
|
|
(62,192 |
) |
CASH FLOW FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchases of property and equipment |
|
(1,666 |
) |
|
|
(1,117 |
) |
Purchases of intangible assets |
|
(149 |
) |
|
|
(3,436 |
) |
Capitalization of internal-use software |
|
(19,795 |
) |
|
|
(9,687 |
) |
Purchases of investments |
|
(597,614 |
) |
|
|
(462,539 |
) |
Sales and maturities of investments |
|
594,879 |
|
|
|
504,340 |
|
Cash paid for acquisitions, net of cash acquired |
|
(61,553 |
) |
|
|
— |
|
Net cash (used in) provided by investing activities |
|
(85,898 |
) |
|
|
27,561 |
|
CASH FLOW FROM FINANCING ACTIVITIES: |
|
|
|
||||
Repurchase of early exercised stock options |
|
(21 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
22,888 |
|
|
|
17,366 |
|
Proceeds from issuance of common stock under the employee stock purchase plan |
|
8,800 |
|
|
|
6,416 |
|
Net cash provided by financing activities |
|
31,667 |
|
|
|
23,782 |
|
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
|
(17,102 |
) |
|
|
(10,849 |
) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–Beginning of period |
|
322,086 |
|
|
|
202,406 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–End of period |
$ |
304,984 |
|
|
$ |
191,557 |
|
SENTINELONE, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (in thousands, except percentages and per share data) (unaudited) |
|||||||||||||||
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cost of revenue reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP cost of revenue |
$ |
53,260 |
|
|
$ |
43,765 |
|
|
$ |
154,096 |
|
|
$ |
131,015 |
|
Stock-based compensation expense |
|
(5,810 |
) |
|
|
(4,329 |
) |
|
|
(16,243 |
) |
|
|
(12,570 |
) |
Employer payroll tax on employee stock transactions |
|
(158 |
) |
|
|
(114 |
) |
|
|
(497 |
) |
|
|
(240 |
) |
Amortization of acquired intangible assets |
|
(4,195 |
) |
|
|
(5,139 |
) |
|
|
(13,861 |
) |
|
|
(15,250 |
) |
Acquisition-related compensation |
|
(38 |
) |
|
|
(128 |
) |
|
|
(350 |
) |
|
|
(379 |
) |
Inventory write-offs due to restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(720 |
) |
Non-GAAP cost of revenue |
$ |
43,059 |
|
|
$ |
34,055 |
|
|
$ |
123,145 |
|
|
$ |
101,856 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
157,388 |
|
|
$ |
120,400 |
|
|
$ |
441,844 |
|
|
$ |
315,964 |
|
Stock-based compensation expense |
|
5,810 |
|
|
|
4,329 |
|
|
|
16,243 |
|
|
|
12,570 |
|
Employer payroll tax on employee stock transactions |
|
158 |
|
|
|
114 |
|
|
|
497 |
|
|
|
240 |
|
Amortization of acquired intangible assets |
|
4,195 |
|
|
|
5,139 |
|
|
|
13,861 |
|
|
|
15,250 |
|
Acquisition-related compensation |
|
38 |
|
|
|
128 |
|
|
|
350 |
|
|
|
379 |
|
Inventory write-offs due to restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
720 |
|
Non-GAAP gross profit |
$ |
167,589 |
|
|
$ |
130,110 |
|
|
$ |
472,795 |
|
|
$ |
345,123 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP gross margin |
|
75 |
% |
|
|
73 |
% |
|
|
74 |
% |
|
|
71 |
% |
Stock-based compensation expense |
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
Employer payroll tax on employee stock transactions |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Amortization of acquired intangible assets |
|
2 |
% |
|
|
3 |
% |
|
|
2 |
% |
|
|
3 |
% |
Acquisition-related compensation |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Inventory write-offs due to restructuring |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Non-GAAP gross margin* |
|
80 |
% |
|
|
79 |
% |
|
|
79 |
% |
|
|
77 |
% |
|
|
|
|
|
|
|
|
||||||||
Research and development expense reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP research and development expense |
$ |
70,453 |
|
|
$ |
52,306 |
|
|
$ |
192,376 |
|
|
$ |
161,730 |
|
Stock-based compensation expense |
|
(22,816 |
) |
|
|
(15,634 |
) |
|
|
(61,092 |
) |
|
|
(45,876 |
) |
Employer payroll tax on employee stock transactions |
|
(164 |
) |
|
|
(116 |
) |
|
|
(775 |
) |
|
|
(467 |
) |
Acquisition-related compensation |
|
(790 |
) |
|
|
(297 |
) |
|
|
(2,366 |
) |
|
|
(920 |
) |
Non-GAAP research and development expense |
$ |
46,683 |
|
|
$ |
36,259 |
|
|
$ |
128,143 |
|
|
$ |
114,467 |
|
|
|
|
|
|
|
|
|
||||||||
Sales and marketing expense reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing expense |
$ |
123,713 |
|
|
$ |
98,249 |
|
|
$ |
359,160 |
|
|
$ |
295,682 |
|
Stock-based compensation expense |
|
(18,612 |
) |
|
|
(14,085 |
) |
|
|
(55,568 |
) |
|
|
(40,362 |
) |
Employer payroll tax on employee stock transactions |
|
(290 |
) |
|
|
(177 |
) |
|
|
(1,583 |
) |
|
|
(751 |
) |
Amortization of acquired intangible assets |
|
(2,253 |
) |
|
|
(1,955 |
) |
|
|
(6,710 |
) |
|
|
(5,816 |
) |
Acquisition-related compensation |
|
(27 |
) |
|
|
(125 |
) |
|
|
(100 |
) |
|
|
(538 |
) |
Non-GAAP sales and marketing expense |
$ |
102,531 |
|
|
$ |
81,907 |
|
|
$ |
295,199 |
|
|
$ |
248,215 |
|
|
|
|
|
|
|
|
|
||||||||
General and administrative expense reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP general and administrative expense |
$ |
52,342 |
|
|
$ |
51,239 |
|
|
$ |
139,409 |
|
|
$ |
151,425 |
|
Stock-based compensation expense |
|
(22,950 |
) |
|
|
(20,865 |
) |
|
|
(60,515 |
) |
|
|
(65,560 |
) |
Employer payroll tax on employee stock transactions |
|
(335 |
) |
|
|
(242 |
) |
|
|
(1,318 |
) |
|
|
(668 |
) |
Amortization of acquired intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Acquisition-related compensation |
|
(1 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(383 |
) |
Non-GAAP general and administrative expense |
$ |
29,056 |
|
|
$ |
30,130 |
|
|
$ |
77,575 |
|
|
$ |
84,812 |
|
|
|
|
|
|
|
|
|
||||||||
Restructuring expense reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP restructuring expense |
$ |
— |
|
|
$ |
74 |
|
|
$ |
— |
|
|
$ |
4,329 |
|
Other restructuring charges |
|
— |
|
|
|
(74 |
) |
|
|
— |
|
|
|
(5,389 |
) |
Stock-based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,060 |
|
Non-GAAP restructuring expense |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
||||||||
Operating loss reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP operating loss |
$ |
(89,120 |
) |
|
$ |
(81,468 |
) |
|
$ |
(249,101 |
) |
|
$ |
(297,202 |
) |
Stock-based compensation expense |
|
70,188 |
|
|
|
54,913 |
|
|
|
193,418 |
|
|
|
163,308 |
|
Employer payroll tax on employee stock transactions |
|
947 |
|
|
|
649 |
|
|
|
4,173 |
|
|
|
2,126 |
|
Amortization of acquired intangible assets |
|
6,448 |
|
|
|
7,094 |
|
|
|
20,571 |
|
|
|
21,068 |
|
Acquisition-related compensation |
|
856 |
|
|
|
552 |
|
|
|
2,817 |
|
|
|
2,220 |
|
Inventory write-offs due to restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
720 |
|
Other restructuring charges |
|
— |
|
|
|
74 |
|
|
|
— |
|
|
|
5,389 |
|
Non-GAAP operating loss |
$ |
(10,681 |
) |
|
$ |
(18,186 |
) |
|
$ |
(28,122 |
) |
|
$ |
(102,371 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating margin reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP operating margin |
|
(42 |
)% |
|
|
(50 |
)% |
|
|
(42 |
)% |
|
|
(66 |
)% |
Stock-based compensation expense |
|
33 |
% |
|
|
33 |
% |
|
|
32 |
% |
|
|
37 |
% |
Employer payroll tax on employee stock transactions |
|
— |
% |
|
|
— |
% |
|
|
1 |
% |
|
|
— |
% |
Amortization of acquired intangible assets |
|
3 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
5 |
% |
Acquisition-related compensation |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Inventory write-offs due to restructuring |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Other restructuring charges |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
1 |
% |
Non-GAAP operating margin* |
|
(5 |
)% |
|
|
(11 |
)% |
|
|
(5 |
)% |
|
|
(23 |
)% |
|
|
|
|
|
|
|
|
||||||||
Net loss reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP net loss |
$ |
(78,364 |
) |
|
$ |
(70,304 |
) |
|
$ |
(217,653 |
) |
|
$ |
(266,711 |
) |
Stock-based compensation expense |
|
70,188 |
|
|
|
54,913 |
|
|
|
193,418 |
|
|
|
163,308 |
|
Employer payroll tax on employee stock transactions |
|
947 |
|
|
|
649 |
|
|
|
4,173 |
|
|
|
2,126 |
|
Amortization of acquired intangible assets |
|
6,448 |
|
|
|
7,094 |
|
|
|
20,571 |
|
|
|
21,068 |
|
Acquisition-related compensation |
|
856 |
|
|
|
552 |
|
|
|
2,817 |
|
|
|
2,220 |
|
Inventory write-offs due to restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
720 |
|
Other restructuring charges |
|
— |
|
|
|
74 |
|
|
|
— |
|
|
|
5,389 |
|
Net gain on strategic investments |
|
— |
|
|
|
(703 |
) |
|
|
(345 |
) |
|
|
(2,703 |
) |
Non-GAAP net income (loss) |
$ |
75 |
|
|
$ |
(7,725 |
) |
|
$ |
2,981 |
|
|
$ |
(74,583 |
) |
|
|
|
|
|
|
|
|
||||||||
GAAP basic and diluted shares |
|
316,987,303 |
|
|
|
296,650,848 |
|
|
|
312,583,956 |
|
|
|
292,755,742 |
|
Dilutive shares under the treasury stock method |
|
18,066,319 |
|
|
|
— |
|
|
|
19,385,520 |
|
|
|
— |
|
Non-GAAP diluted shares |
|
335,053,622 |
|
|
|
296,650,848 |
|
|
|
331,969,476 |
|
|
|
292,755,742 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP net loss per share, basic and diluted |
$ |
(0.25 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.70 |
) |
|
$ |
(0.91 |
) |
Stock-based compensation expense |
|
0.21 |
|
|
|
0.19 |
|
|
|
0.58 |
|
|
|
0.56 |
|
Employer payroll tax on employee stock transactions |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
Amortization of acquired intangible assets |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.06 |
|
|
|
0.07 |
|
Acquisition-related compensation |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
Inventory write-offs due to restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
Net gain on strategic investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
Adjustment to fully diluted earnings per share (1) |
|
0.02 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
Non-GAAP net income (loss) per share, diluted |
$ |
— |
|
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
|
$ |
(0.25 |
) |
*Certain figures may not sum due to rounding. |
|||||||||||||||
(1) For periods in which we had diluted non-GAAP net income per share, the sum of the impact of individual reconciling items may not total to diluted non-GAAP net income per share because the basic share counts used to calculate GAAP net loss per share differ from the diluted share counts used to calculate non-GAAP net income per share, and because of rounding differences. The GAAP net loss per share calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share. |
|||||||||||||||
SENTINELONE, INC. SELECTED CASH FLOW INFORMATION (in thousands) (unaudited) |
|||||||||||||||
Reconciliation of cash (used in) provided by operating activities to free cash flow |
|||||||||||||||
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
GAAP net cash (used in) provided by operating activities |
$ |
(7,174 |
) |
|
$ |
(22,230 |
) |
|
$ |
37,129 |
|
|
$ |
(62,192 |
) |
Less: Purchases of property and equipment |
|
(227 |
) |
|
|
(623 |
) |
|
|
(1,666 |
) |
|
|
(1,117 |
) |
Less: Capitalized internal-use software |
|
(5,251 |
) |
|
|
(3,522 |
) |
|
|
(19,795 |
) |
|
|
(9,687 |
) |
Free cash flow |
$ |
(12,652 |
) |
|
$ |
(26,375 |
) |
|
$ |
15,668 |
|
|
$ |
(72,996 |
) |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) investing activities |
$ |
29,723 |
|
|
$ |
12,853 |
|
|
$ |
(85,898 |
) |
|
$ |
27,561 |
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by financing activities |
$ |
10,075 |
|
|
$ |
3,521 |
|
|
$ |
31,667 |
|
|
$ |
23,782 |
|
|
|
|
|
|
|
|
|
||||||||
Operating cash flow margin |
|
(3 |
)% |
|
|
(14 |
)% |
|
|
6 |
% |
|
|
(14 |
)% |
Free cash flow margin |
|
(6 |
)% |
|
|
(16 |
)% |
|
|
3 |
% |
|
|
(16 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241204135788/en/
Investor Relations:
Doug Clark
investors@sentinelone.com
Press:
Karen Master
karen.master@sentinelone.com
+1 (440) 862-0676
Source: SentinelOne
FAQ
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