SentinelOne (S) 13 Mar 242024 Q4 Earnings call transcript

Hello, and welcome to the SentinelOne Fourth Quarter Fiscal Year 2024 Earnings Conference Call. My name is Harry, and I'll be coordinating your call today. [Operator Instructions] I will now hand you over to Doug Clark, Vice President of Investor Relations, to begin. Please go ahead.

Good afternoon, everyone, and welcome to SentinelOne's earnings call for the fourth quarter and fiscal year '24 which ended January 31. Tomer and are Bernhardt, today us Weingarten, Dave CEO; CFO. With

our letter release the earlier of audio is replay and our and press available after via were broadcast Investor This live being the section will on Our an posted the shareholder issued call webcast, call are today Relations on be website. website and concludes.

contained anticipated required the statements, Except could information this these call important the our making our forward-looking and as other I presented results like risk factors update those in may law, fiscal full during statements. We future. may information differ today, for we'll from reasons this long-term based statements forward-looking or be to to that such not in that our financial forward-looking the first forward-looking to currently or even becomes of as today's assume results XX-Q. These materially known events to reflect Form documents financial that contain on call during from future our documents including call during are reports you by us publicly Before forward-looking that remind would judgment identify the our quarter we actual If about no annual to we differ Form fiscal the to new guidance our factors being as begin, XX-K materially statements after today. contain information. SEC, accurate the Please from year to information made results actual the materially. targets. and time Any differ with quarterly performance, statements well available file those statements our you refer or the replayed call, and we caution reviewed 'XX and cause that best and if on could in report made obligation time is particular, update and events current in or on as actual

discuss outlook non-GAAP measures will accounting we non-GAAP with are call, of press in These respect letter. not in generally to non-GAAP intended our release this non-GAAP not otherwise provided be for results. stated. reconciliation is and measures today's unless These other A our measures and our financial non-GAAP than GAAP principles. financial to shareholder a During results substitute prepared in accepted accordance GAAP financial with are

expense, and restructuring expense cannot And Weingarten, intangible me employer Our transactions, over reconciled and press compensation losses on therefore gains turn amortization not at with that, Tomer acquired payroll employee of SentinelOne. this CEO financial strategic charges, of and investments, on outlook to are costs, time release. call the in compensation today's acquisition-related excludes stock determined which stock-based tax let assets, be

cash growth consistently operating achieve and ] page afternoon, Good our fiscal ARR, and strong surpassing growth leading flow you of everyone, to call. maintaining margin. In quarter software quarter earnings outperforming positive including points percentage by growth year-end. as year growth as we of profitability public over over XX Despite among income global other conditions delivered on deliver year apart challenging of and pleased improvement revenue financial we level year, we expect economic margin profitability. XX% fiscal past profile gross remain operating thank free on turning metrics, that say our I'm revenue We companies. In fourth time, us sets operating to growth accelerated our more to once [ companies. focused 'XX, the our for we closed compared fiscal the same a XX% The by the improvement well year expectations and very current from note, joining than leading achieved SentinelOne, all and the margin and year again, 'XX, At key across before. margin, margin our revenue, fourth expectations. we delivered on demonstrating and discipline the

remains technology strong. Our pace of and innovation leadership

consecutive in recognized Protection XXXX leader the is SentinelOne third Quadrant top-tier a for ratings for by AI-powered Endpoint Gartner Gartner Magic year, a Capabilities. and Critical XXXX preference SentinelOne's for Insights evident our as Platforms. For Peer Gartner security in Customers' Endpoint

environment platform security; SentinelOne rankings second, I'll industries. On both for endpoint growth In performance; mid-market. underscore the addition, call, of our key exceptional our multiple cyber the broader our across state a security relevance to IDC recently organizations comprehensive and X across of demand These and enterprise of cover varying future and markets. Singularity named innovations in and first, the its the third, topics: strong quarterly today's nature details sizes of drive leader

also always, Relations our on published As please letter read the shareholder Investor website.

returned year new the customer our net to our Let's rates. Net performance, new which grew fiscal half and million, top new strong bottom QX, second grew $XX ARR million. by net review we year-over-year yet The expectations. demanding, quarterly exceeded 'XX. to fueled in XX% our ARR macroeconomic and primarily line environment remains growth of $XXX positive year-over-year expansion In acquisitions ARR to

in reflects SentinelOne a customers new competitive that strong businesses winning position select demonstrates for better momentum outcomes. security Our and

high flow improvement QX, double percentage free scalability posted In of In more and parallel, our of margin profitability and point margin. Our operating we gross tenth our in reflect respectively. margin milestones profitability our remained quarter and the the on These business. cash progress XXs, income towards X%, digits our margin negative net only remains consecutive to XX the than focus clearly outstanding. X% and in by negative improved

As a year-end. we cash 'XX operating and to achieve as progress, flow pivotal will expect year income we positive SentinelOne this be by for free fiscal year build on

services. way the the security This MSSPs. managed key Looking are through and and address MSSPs organizations record such more of we're increasingly a highly beyond a protecting mid-market at SMBs. customers financial is adding customers scalable this strategic metrics, channel channel to our partners ecosystem as new We're pace combination turning as for through to

QX, launch example, visibility, view in NinjaOne with centralized to recent and single-click a endpoint partnered we in comprehensive response. control X As protection with

our grew Singularity enterprises. with we set remains and dollar-plus This future or Overall, strong momentum ARR customers company per partnerships growth by grow in greater our $XXX,XXX with increasing adoption enterprise, potential. On the year-over-year. MSSP and record XX% customer reflects adding ARR ARR significant million of more digit unified large ecosystem momentum customers year-over-year, Our number a of with continued new QX. success in of to highest the our double larger platform across

evaluation. we On landscape, continue the to a competitive significant competitive majority of win

remain strong. win incredibly and differentiation Our rates

across of value security Our all geographies. delivers AI-powered with platform Singularity sizes and customers that resonates all

SentinelOne point more makes to secure across It on their security for data share and a AI-based center preferred in the what starting gravity the data choice Endpoint the businesses. infrastructure. is aggregation for enterprise. me security any is Let of

highly to the expect our secure infrastructure vastly endpoint rising solutions presence enterprise-critical this the expanding business Our business platform growing platform collectively with like Data and in position remains secure has winner-takes-most a enterprise delivering systematically enabling underpenetrated continues with and total market. are our keep analytics a legacy the business broader opportunity Identity diversity nature years. leadership illustrating beyond been to in The from massive coming our 'XX, market X/X puts Combined by bookings, new it's markets. In platform exceeded security today. strong to in not us multiple our emerging solutions and at in solutions, winner-takes-all of endpoint our and $XXX Singularity and of us competitors. data and grow We're horizon. differentiated to our were TAMs a healthy Lake, billion single fastest-growing fiscal pace. our cloud endpoint Cloud, a we that of Plus security, ability exceed technologies Security market. Considering end any vendor. expand never to next-gen mix security, our critical our even

for the Given SentinelOne opportunity to our growth substantial we scale, come. years for believe remains

delivers unified protection both the continue and a most in why need crucial ownership. prevent a leading to to is Best-in-class is what and Singularity consistently next-gen today's platform consolidation on security, vendors. and we platform, economy: against this win cost of Our legacy AI-powered breaches, favorable enterprises

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and review the landscape. the on latest environment cybersecurity demand Let's the broader

cybersecurity. amid are the environment impacted know, higher demand to and the advancing. over condition. our placed the emphasis year. persist. continue AI-based have cybersecurity As and modern on scale and have risk new that withstand remains own, constant always governments. The at is and similar can quickly attacks and frequency world. every Organizations of major Regardless way a nearly for dynamics raising simply an digital sophistication and not life these with reaching are businesses high-profile in macroeconomic And industry on the in we in past scale. constant headwinds security, macroeconomic They is which enterprise-wide modern and efficiency expect and to of must It cost attacks delivers. including infrastructure equipped increasing speed, AI-based actors best-of-breed awareness we The cyber cost priority to only Cyber we all is are attacks disrupt of the large are reminders discussed Enterprises, prior these global a change broader macroeconomic aging conditions, evolving cyber threat attacks a landscape. Bad of and critical are connected trends SentinelOne efficiency. incidents. a Organizations quarters. our focus of business today's levels, to The digital attacks.

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Moving to AI.

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evolving infinitely Our is cybersecurity to the most vision that always deliver advanced and intelligent. is

platform Singularity and is AI-powered intelligent, our to Our secure data-driven customers. evolves

our SentinelOne, Dave valued and will our PingSafe call to technology With welcome the makes all Officer. of dedication Our securely. possible. well world of Sentinels customers, I to Stride this the shareholders. the over all turn world thank and who empowering I Chief by the Bernhardt, that, as to and I'm teams to around organizations relentless Sentinels better want and and Financial the as make partners, proud focus run the

quarterly QX fiscal I'll and regarding context Thank you, our Tomer. provide our for and financial performance 'XX. guidance additional afternoon, discuss This

otherwise growth reminder, measures a and are comparisons We delivered non-GAAP discussed 'XX. year-over-year here fiscal margin financial unless are all noted. in As industry-leading and expansion

fourth exceeded XX% QX, grew to grew board. our to XX% XX% to million, improved again, operating more revenue to $XXX XX 'XX. Once revenue Our the quarter across million. million, compared $XXX percentage our than In by grew results ARR our expectations and fiscal $XXX our margin points

customer million as of Our data, was We by endpoint, and strong net record and from led of added new a logos executed million-dollar well existing ARR new $XX customers wins. contributions expansion. as number by driven cloud well

grow Our and customer adoption of double higher customer in large reflecting platform. to momentum enterprises per continued digits, ARR from our

was across also Our growth balanced geographies.

position signifies enterprise Our strong fourth quarter cybersecurity. demand competitive performance and our SentinelOne's for best-in-class

taking are We incumbents and share vendors. market share from and mind next-gen

Looking beyond outstanding line make towards profitability. growth, top we're continuing to progress

comfortably improvement a X% within remains long-term margin high, gross record XX% of range near our target and percent. to a remained of Our XX-plus XX% showing

of deliver Our and benefits indicative and gross pricing we scale margin disciplined the increasing economics. reflects customers. platform immense also the unit of our It's progression to value

Our SentinelOne percentage marked our customers. margin us enables points to as architecture than QX year-over-year expansion. of more XX tenth well our consecutive data for and value of unified deliver security operating meaningful quarter as

and $XX XX% also ago negative negative Our XX% QX than in substantial quarter. margin we're $XX operating million cost million free in $XX our increasing in the single by at reached more to in negative million significantly improving quarter. In reduced year-over-year. We've margins. And year operating scale just not XX ago QX flow $XX year we've QX our the percentage also driving digits discipline cash million losses operating points expanding parallel, been from than reduced X%, have to margin more by negative from negative our improvement.

to this on the progress. 'XX. of digits income income to pace are manage free strategically and operating our Our We cash progress investments to investment we net costs. and remain cash the our proactive both both targets reflects positive efforts enhance thoughtfully negative returns by at reached building X% track of free continuing negative as fiscal significant respectively. made It on and X%, the towards success deliver single our of growth. end flow and committed balance margin we flow margin We've profitability our with And

Before accelerates market turning time SentinelOne. and provide PingSafe to and to our additional of recent on ushers details our CNAPP our full outlook, PingSafe me at let Stride. acquisitions in

are and adds offensive Combined, 'XX our fully QX data at CSPM, beginning approximately and We and our combining all lake. platform. of the also PingSafe's attack with cloud across deals engine in for closed these singularity cash acquired secret scanning AI best-in-class protection of hyperautomation the fiscal unified million by that $XXX We've workload stock. Stride

revenue As technology and a our QX minimis PingSafe and de acquisitions, ARR. Stride on have impact

PingSafe's CNAPP contributions begin expect with selling We by in to QX. solution coming early midyear

margin, fiscal from expect point primarily X a acquisitions, percentage 'XX full EBIT first to year the For 'XX. we of X in the impact these fiscal half

Moving visibility quarters. we and deals. These year-over-year. guidance XX% of QX 'XX. for dynamics broader to dynamics mindful we quarter with of in of consistent fiscal as global smallest The timing macroeconomic prior efficiencies Organizations into focus We seasonally trends of on QX, size expect the conditions. the potential have growth QX, enter environment $XXX impact our the continue to and amid and demand can reflecting million, about of remain year. In revenue cost remains our these discussed we

optimization remain it Enterprises That full growth efforts. continue again this 'XX. prudent to revenue maintain growth environment. expect is $XXX annual we tensions and year, million for our XX% top-tier of million, assumes For and to geopolitical profile outlook appropriate macroeconomic persist prioritize said, year. reflecting we full once midpoint. to the uncertainties $XXX the in be between in fiscal expect at This to cost the Thus,

logo data, expansion momentum, security, diversity and and across our and the encouraged rates, by healthy rates, business product are innovations pipeline. both go-to-market driving the win AI growing We're new of adoption. Our across strong

and and from sales are rising. partners from cloud We are direct success like also seeing Contributions data MSSPs. strategic both

We're expect across year, enterprises As from the of PingSafe. the we conversation uplift the we AI move expanding scope Purple incremental with world. throughout and

for Turning margins. to our outlook

relatively to gross We up margin QX XXX expect about to QX XX.X%, points be levels and basis similar year-over-year.

cross-sell benefit basis expect solutions. the For scale gross at we we the and from and XX.X% XX between to adjacent continue full of be year, margin up midpoint year-over-year over to as XX.X%, points

improvement Finally, an for negative XX QX, operating we implying in year-over-year. points margin, expect XX% percentage of

and X% 'XX. the operating of be midpoint For to compared between X%, we fiscal points negative at year, full an the to negative expect improvement the margin XX

incremental them page to year. we Most cash outlook by PingSafe autonomous with market importantly, our are AI-driven global 'XX, to the margin operating committed fiscal operating the turning the Our reflects Stride on and the pair free investment security. income delivering profitability in end bring to within flow positive of and and them

of in our investments companies market, significant one public the road the As made fastest-growing against talent map. in over the years few innovation past delivering we've and while product

focused notably: and selective investment on Our of endpoint. always, cloud, strength, approach competitive as key data, areas AI, remains and

profitability We and billion year. to while to goal balance the a This margin cash sheet flexibility end strong the achieving growth is and durability by and of and optimize closed $X.X cash, X equivalents Our with growth year maximize in with top the line very improvement. debt. provides investments

percentage will our a more continue and was a the XX improvement to and capitalize year. share large grow market with performance points of QX of a 'XX, full strong to year margin summary, disruptive on fiscal growth TAMs than We prior technologies. In compared to end with strong XX%

continue to of us free operating 'XX year. market the outgrow today. achieving Thank by for profitability you the end expect fiscal flow We all joining the in cash while margin and to

take We up questions. will open the please now line. Operator,

Brian question first is line the from Essex of Our today JPMorgan. Instructions] of [Operator

the or question, could for positive executive causing you shift talk sales front We're flow. seeing and peers sales I cash disruption. bit see inflection about impact expected know some X making? some the causing the in nice of profitability that to It's I that's that inflection and a are seeing hires the some on turnover it's towards executive we're Tomer, choppiness. your guess amongst also strategy

year? any guess, your anticipate the that or that next more of profile So X ago, organization of sales cause terms or executive in with shift particularly may in you strategy the within a what, suite addition CRO, in new variability months about changes growth I the a

what so is execution. business our seeing us already to this how opportunity, I'll of And Most it, what continue the how a drive also I of still To lend, improved understand right the while that changes there's now lot of worth platform continuation in you're out tackle that different doing, we think just we're to other the has that call of us, we $XXX There's question we strategy, lot of a markets have levers the do of we more are no same we a the ago. that elements potential. to we in. target a more a when market maximization productivity of we in you different can and, billion-plus play started

between data-oriented trying our quite and don't So predict we're I definitely type cause endpoint few of I how core market, that but not we're to major evolving as any go disruption. very We've sales, adjustments our keep moving more go-to-market. any things those do more to changes. think a but and more towards basically made much we to

go-to-market to pleased we'll mean, that we of we factor go capabilities acquisition, across year back into major in these go-to-market, we our force. we're planning. But cloud new come. don't all security. onboard and invest any envelope our kind over If when in that motion our it to again, in that, predict with in changes with the With of through go-to-market we very data, continue and anything, evolve I continue So those once forward progression sales all, across the endpoint, across But time.

is may he strategy? made initiatives that carrying your what's just have or Michael Cremen forward Any primarily previous new

This constantly a adjusting. is market. very We're dynamic

level company. endpoint over should intended. this get now better management, of process, again, development, no pun the at is of pipeline I all think improvement This us, for different once But putting, with definitely the that time. completely it's a is of the not level right we're the continuous level is a we constant and scrutiny

Company. of from Henderson question Our of Alex is line Needham next & the

in about of one talk AI, about integration closure of going I as into versus you've everybody call time within stick question on the as going come think transaction but rates close KPIs duration, any instead. was with whether I and the to such tracks seeing standards I'm that ask a takes to it new sizes, changes you the Can to this amount some quarter the you're deal of expectations? quarter, the critical a of the

that QX we've think And and of is last trends stabilization. year we're I what the fiscal in I that seeing are over. QX carrying think demonstrated

I on execution predictable we're a more own drive own and to focused think definitely our ability to outcome. our

something free. Purple component the value that especially AI, other more That's way, we're something to the of deliver that's compounds which platform a It's In when continue way terms and that there's Customers from still to bring couple SentinelOne. seen our we acquire execution, like That's not their is is execute customers And the value new trend fold that ability you value. focus what QX to really past is in just just just in environment, same ARR of customers. incredible the level the I way normal. us, customers. This the record making environment, of customers bring sizes. going also an doing the better customers market that deal in definitely of most think I years. creating you in the to are for was by $X that. that consider new higher think terms predictable need we've to rightsizing purchases. change really now. Nothing cater the it scrutiny more to cost over for to about added efficiencies we that time. sure to company just I of that translated on in more of progression, giving for This the million a about customers. right And every synergies think And We

all our well of exiting growth we're imperatives. So on

might add that, Yes. I to Alex.

look at I like we're up you think something If about RPO, XX% quarter-over-quarter. year-over-year XX% and

definitely we're longer a and contracts good benefit seeing it's a that something deal sign. that larger larger we're from. the which is So sizes the is And seeing,

you So just be sizes contract duration and seeing larger increases? are clear, some to deal

That's correct.

Yes.

today Our is from line Peter of of next AllianceBernstein. question the Weed

here kind growth seeing their over and that bottoms are communicating kind you coming their of non-endpoint. last a job to? business the that you Congratulations it of on competitor done large -- own tracks really think in from high a really upsell the as of year, as of going coming has your some getting that? progress in market. lower? a the do from about think continuing Or the good still There's that another profitability XX% their how where towards of portion And growth of the of getting little market I think is Would Is forward? you

it's is our we're think scale. of us, developing see you And capabilities capabilities. combination contribution ample of obviously different peers, to in pretty We on but both. though a even the can growth revenue For I emerging much see emerging still endpoint, proportion with our par the a on definitely

we definitely go potential with as and growth. something We the But to and basically run it's we're So to I in that there, that mentioned, emerging treat like would endpoint on are of believe not parallel we something trying market. as there's that we progression growth ample that, ceding accelerate. see

point mentioning Another that the worth growth from most accounts. new of that's actually while comes on our is topic

So to a estate not in cross-selling. going or capabilities. this world, and customer to you that is base have back And other about a sell customer upselling,

to for upsell the to our I bigger, capabilities on the focusing new us, major well. accounts, we mean, we go still as of that a lend we it in the have customer estate, and platform, us and lend to cross-sell future net more other back opportunity For with represents

strong best security, of penetration and these AI, is also really would capabilities for worlds adoption I but emerging now, right like still accelerating We're we're with course. our and cloud both our endpoint, So data, of us. in

from macro, the know see a on of you're compression And where frustrating light on has kind is I been which something of you renewals, expansion of to kind with fee the thing associated seeing kind that at we hard when the of think starting and still to less is there should being start tunnel that? starting predict drag ongoing benefits and on to end? when that end Or some NRR it up, from might the effect lighten that's of where to it's

NRR for is us an expansionary very territory. still much

to logos treat rates. desire very market stable. and it we to So to new new as share. see points again, like And it once continue that's new and something these and that our We accounts amass

our We're own market now not estate us is in that focused NRR as to So we new winning we are to we like right in focus feel don't as for cross-selling share. something want on.

a us, natural growth NRR. So it's organic for again, in

on right, definitely it is more time the think I it, when further. we can we put and think I focus grow

I now, the for right us. believe mixture that's For

question from of next is the Our of line Barclays. Kalia today Saket

you bundle wondering if the talk little enterprise endpoint side. about a you. the maybe on I for Tomer, bit was could

think of your upsell are bundle of bigger AV that's -- enterprise commentary the bundle on to than opportunity coming some year? how is or EDR. about in sort kind the the Especially cross-sell highest-value quarter? really that the more how reception in such, the your And deals thinking given I that and of combines you and

capabilities, have, definitely other seeing mean, does especially that EDR drive, QX, in you're product MDR, partners has is good that what cloud line it's it's that, channel cannibalize capabilities And ingestion bundle retention. customer doesn't the versus our data bigger. But capabilities interest security, we There's something very it's data which it's It you retention. per it's data management, ARR endpoint, help We're that us operations, remote as like it's seeing mentioned, in so lot I the traction. like really a take in formidable it it's bundle. vulnerability more landing with that I think,

felt customer. highly really value and that for we strategic go the lend to bundle deliver it's for So bigger, more us a

up. think about the capabilities bundle. capabilities the drive are about outcome really creating and less I of put consolidation their environment, enterprise to customer, with for great a out just It's more which in it's of box getting nascent more more to trying the the price

it, customers we're mix that, the to like let's good shift to seeing leading much us. a take bundle definitely with But it, for production, that Complete time things is so to has enterprise. still very It the traction. charge like partners is get say, So these full

expect We to continue. that

is today of the question next McDonough Our from line Ray of Guggenheim.

Tomer, been outside one partners your becoming the environment. of for more that security from general capabilities challenging we giving deals have in of are free, creative, away competitors persistent given macro hearing some

increase any that helpful. at the all, deals they want more increasingly incentives of some larger deals ramp if becoming creative maybe or So to comment with impacting an structured? like Are full the seeing structures would be my on might to different if you be the not question is, of anything adoption? And in how drive maybe, Dave, or how impact ramp other you deals mentioned model we're are

done deals. too, of don't think not Dave Definitely can we've but we ramp don't think I I any I mean, comment, those. almost have --

that when of really have many you, dynamic, those have say, in to out think word and here, come for best-of-breed, I for are item which synergies analytics, really for security The a other freedom the so can capabilities you I like data the and most is you flexibility I'm you create customer. customers there, looking different cloud lot multimillion-dollar when parts is a line have

really center to more do, the cost about really I to save coming different go operational do we gravity enterprise It's is for of central the that does. we platform cost, that really to on us, can and cost we these finding gravity the point Splunk to agency when more the in your we to that leading about being think one our map do what replacement So Major data as we there's more about create earlier giving taking free. it's endpoint capabilities sales. I'll these with customer, Splunk treated a the but examples entire basically hub the It that elements always big call. and of do what across efficiency what we how data out of for and talk gave base. X-year synergies. on do a and starts the With said, road of not

strategically actually a cost in in you pays protection, Now that endpoint you're deal the saver that have with pays It's actually dramatic really that grow for very security. cloud the other footprint enterprise. for able data to competitive such a

customers want, about So deliver our broad better use what to really value. that to we take platform to is we how and it's that do me, outcome and flexibility more incredibly just how adhere better a

continues contract what's that shifting to installments. upfront And But in I around past customer we've that XX months. has few think pretty persist. I is XX, And continuing duration to but annual grow. static probably enterprises equally about about earlier, XX are remained more the new average contracts payment averaging how important talked quarters, terms to months, And multiyear at is from our payments about were talked RPO and which

have good -- them our allows for looking are that deals customers multiyear and to as on not customers and renew focus to news we with that have is to the us, focus sales have frequently So team new logos.

contracts So that's over year. extend to a prioritization longer-term been of to past the customers us

question of next from Stanley. today Our the Hamza is Morgan of Fodderwala line

a entering as year Dave, your congrats on company CFO. public third

you third you're how of a curious approaching the revenue is, for I'm year, guidance. that perhaps guidance than question kind on your your Just guidance of what in differently are us you have now had philosophy you any remind forward forward that rather you not today or the how again your into factor or and past? in you guidance? is consumption-based usage-based much can the And whether subscription- versus of revenue

piece Yes. declining longer-term getting remains the a consumption -- these it's to business customers commit we're commitments. Consumption minimum to contracts with of as

That's So that of since process has QX been in been last year. a focus.

gives is and and something middle of terms looking and and us company. massive us we when for raise feel about and looking that obviously, setting opportunities how the see in I fairly in want reliable, to achieve. invest for Just the give to what that's quarters. long-term that for meet not guidance, I'm invest when be the we beat down guidance we're to prudent, I gains great to we're guidance, short- flexibility that's and think to wanted I

of James. from line is the Adam question next Our Tindle Raymond of

you about think I of Tomer, you and and level the sets that's right. growth apart, how profitability talked

Just a X-parter that. on

for margin work? And and right you forward, this this the different I trade-off point? little David, What just about of think minus RIF. do think X% will at in about similar did one going incremental you landing on upcoming trade-off at a to sorry, million year. the did of get guide and operating on If that kind million [indiscernible] which acquisition X% swing, was that experienced year-over-year to bit an tomorrow but EBIT past $XX it's and profitability $XX levels this to the the is growth? you is they for what the how passed year, dollar fiscal weeds, year, what profitability land I 'XX. improvement, just you expenses. could But think growth past the you've As had on this This in a How got minus to and matrix benefit

improvement 'XX that 'XX. operating just the maybe deliver walk fiscal us to loss to So and enable from you 'XX through a to similar differences 'XX

things design very are elective in plan. we Largely, how the

the main this our free is for generation flow focus and think positive anchor end by year. inflict I cash we income operating and had commitment to of year to positive the a and

is really no grow from There's a degree to we There that, the just we growth potentially on even us, stems constraint can our that So factor. but guiding that. of are prioritizing was more, that profitability. question

with in In sustainability to of business drive commitment, view our the look of you're that sustain we we're that we do can model. And looking can staying think, to high guidance. balance think that our years, I will that we the and in I We the we this true is, prioritizing that, a are that to guide. the proving And seeing in as rates more into while taking best the prudent what it. question any change seeing the be We're there's find much event, our we out to invest you're back growth growth, this year we absolutely if if ability. can to no how

absolutely. Yes,

I look a of year, continues at for wouldn't this into have of we we the seeing think the our get is things one the working benefit that obviously, why last which year benefit model you're this need the that one, to same benefit year. of happening RIF we RIF as

you've since looked that of kind at had So rightsizing of and time, and well. at we execution the very we performed our benefit

the to see that is think other thing the globalization continuing I you're SentinelOne. of

ago. to look years Costa were great we're something our in at and at our and increase a to Czech maintaining Rica, Israel-based few better that's where deliver you where where and were continue So when IPO, to U.S. headcount. customers And profitability see we where in were we we regions look services from low-cost great that support strides we continuing other make prioritizing that's price We're really to you to in India, a at Republic, predominantly, while point. allowed where the us can

the line Our Joshua Research. next question of of from Wolfe today is Tilton

quick maybe on a kind the Just X-parter one, guidance. a of

make this all, Attivo's accelerated It's fully agent. ability into did should of more about just revenue a bit just broadly, the the new How, is, you think go-to-market that this first into a way ARR, you're guys kind sell part are year? at to your or said, ARR for that doing to the this as any if that then guidance think year? accounting Just faster. for you -- I forward also things little benefit any you And we talk integrated just to net or few guardrails going PingSafe, year, growth for

with Sure. net I'll start the new ARR.

other. we've revenue, and For to about each the grown the for very think I closely ARR full year. faster historically, year, the points. we're guiding midpoint their revenue a And revenue, of tracks has by guided which than XX% up ARR at percentage couple growth

is smallest the seasonally our quarter QX specifically, QX For of year.

guiding well. smaller, impact revenue quarter year. as And obviously, the number deals growth. to year this case can have an on larger have the be necessarily of any to that impact it's expect on the but wouldn't We an we're Because

think, growth. is, outlook QX XX% revenue I Our

So we quite is guidance believe strong. our that

platform. it call We does for on into want taken, it, kind into I is how take things approach a the create I platform, seamless that of we what experience experience. want factor. customer. definitely do. acquire you a It just go-to-market. can together. mean, and to don't let We call to try comment create to embed We create motion. We of our we we think, as a the frictionless this me approach benefits not you We've I always them, more patchwork go-to-market in where a a the these all capabilities those capabilities more just upside better thoughtful and Yes. into on does mean, treat the integrate

of modernized platform capabilities our at force which kind us. contains I assessing capabilities. work it's look is It's you friction. These together, similar as a multiplier level But and a think, for fully these of seamless So a by obviously, that's visually just what's fully all platform. there, we another, assume one

to not security, security nature. and AI about driving identity think cloud get capabilities data have If where to the driving you point just analysis, and driving compounding really combined endpoint you're driving starting a this also protection but

factor part it way for Nothing meaningful the again, just how I any in of provide, it guidance, to us, really but smoother we, think, that operation. philosophy So operate. our for of is we should

question of Sachs. today the is Next from line Goldman Borges Gabriela of

the installed around ask the force base in into having sales costs switching natural to had as that security think displacement a the sense. conversation Tomer, with you well success that's in potentially the types few to the mentioned is I you working remarks with more language we about get those lowering And of and that around you're currently different the for the opportunities. comments on playbook wanted vendors Data center. the broadly Lake the more prepared Maybe and on operations a

love well. how going as would to that's So hear

natural detail tremendous all today, the market. into analytics our go we very what But opportunity data Splunk whether strategy. a It's to people going it's not run that clear see its querying with is quite benefit. in definitely the said, of costly. the I'm beyond some it its beyond and or that is of even other language approach think benefits, And goes very this and goes cost peers about we and when antiquated

we them, to a possible. And of data If need and to and promise for how and something with then we in you how delivers and your it issues way. to that there substantial we incidents making coupled vision on as making lake as we that our fast our react to that hyper-automated need with respond hyperautomation, to only entire faster believe only strive very be own infrastructure taking vision, stack security we in to get actually autonomous is it the

also process, they those their just solution antiquated board. and hyper-automated conversations so you're what across that's move an an lake that So to in we're away new do react when to seeing and while a to seeing I transpire data you into faster these enterprises approach, from modernize the to look the I move mean, looking environment. win-win. And in need And are obviously faster at same old-gen if a think dollars way saving can incredible

data. about that just thing we actually regardless for that expect think APV us, is growth to gravity Last our unit. for data really for is more quarterly say analytics And came in data definitely the want is data of the of capability. center our adoption about again, data driving additional That from being year-over-year I acceleration XX% us platform I our further huge mentioned QX for solution. we of

years security an us billion It's ripe $XX in really TAM disruption. for it and and it's growth analytics, analytics to a we across the strategic So believe data come. incredibly vector for is

line Next Boolani question of Fatima today Citi. the is from of

you for is airtime I this Tomer, some you. to PinnacleOne. was give hoping could

vis-à-vis your curious sell-through a for service can your on the software-first PinnacleOne And your the engagements traditional how as especially Specifically very go-to-market PinnacleOne of has comment addition rest extent if about you software impacted motion. transaction to offering of are impacting what platform. velocity, your the

airtime. Of getting course. And definitely PinnacleOne is of plenty

for PinnacleOne company. I topmost our think strategy the philosophy that of really and a us, layer is as

really executive about that of they from selling PinnacleOne to where and pressing and this risk incident And our come opener kind the research eye about enterprises in like mitigation you stitches is allowing where not, Not PinnacleOne think, be can as whole there something -- one. a products, us together about all I buck? is an response importance us the these has. on strategy of amount cybersecurity. that unbelievable where approach think for mitigate a about that out you how and that just think shift just point is think security value customers think buy chasing for I you conversation incidents. And of or instead malware, shifting bang most? So can't represents PinnacleOne. Customers, CISO And I from for to the complete already other market out is Whether the I stopping If the we're product there for get seeing capability think what security the to products it investing? should of by your come brings also intelligence definitely currently every influenced your that you with our the to Where avenues, I always We're Not into the customer. and across seeing but equal. you the both, how I should PinnacleOne might might capability all capabilities is that teams offering uses ally in that that's of through very both our with And environment to risk concerned X that of mean, lot it. the it's And a and direct think, design significant and and I to strategy. underestimate created strategic an there do already derivative risk them the as and the boards, PinnacleOne technical reduce deals be the cybersecurity understand holistic And capabilities traction us, these no quite and incredibly both engagement with biggest sales to threat about. points a pain vendor capabilities geopolitical offering these in most out unique want to offers. parse are for elements PinnacleOne solutions,

of the TD Cowen. Our next Shaul is question Eyal of from line

incentivized? double-click A commercial the product enterprise to or question want Any sales the the deviation of from unbundled kind being selling the pretty is bundles. for same? force How Dave. and I back on much

the same. different for I in cases, whole We many the just enterprise certain a take from more have always the lot customer. It's We makes lead bundle customers. the And don't strategy. any think incentivation sense that

in For with what others, need. flexible again be we work they always and I mean, try

different it in bundle the what's to sellers for don't go do incentivize itself. we -- customer. to specific a of So route. designed wanted a want to enterprise for our deliver the ton value a so speaks right in is to of kind And We just

year this we last products emerging would the do our say continuing make sure that start in one is they efforts of I sales made it's we're make to to gaining and for Yes. year that market force, incentives traction. do, the we when more

nothing consistent that's said, Tomer But around So year-to-year. enterprise bundle. the yes, special as

I'd this Tomer like session remarks. And concluding bring for back will us SentinelOne's of Weingarten, CEO, the to so to to hand our Q&A you. end Thank

us you for appreciate joining time. today. I your Thank all

all This call. Thank you concludes joining. today's for

You your may lines. disconnect now