S Q4 2024 Earnings

Call Details

• Call Title: SentinelOne Q4 2024 Earnings Call
• Date: March 13, 2024 at 9:00 PM UTC
• Management Team:
  • Doug Clark (Vice President of Investor Relations)
  • Tomer Weingarten (Chief Executive Officer)
  • Dave Bernhardt (Chief Financial Officer)

Call Summary

Financial Performance

• Fiscal year 2024 revenue grew 47% to $621M year over year.
• FY24 ARR grew 39% year over year to $724M and Q4 net new ARR was $61M.
• Q4 revenue increased 38% year over year to $174M.
• Q4 gross margin was 78%, which management stated remained near a record high.
• Q4 operating margin reached negative 9%, improving 26 percentage points year over year.
• Q4 free cash flow was negative $11M with free cash flow margin improving to negative 6%.
• The company reported a reduction in operating losses to negative $16M in Q4 from negative $44M a year earlier.

Guidance

• SentinelOne guided Q1 revenue of about $181M, which implies 36% year-over-year growth for the quarter.
• Full-year fiscal 2025 revenue guidance is $812M to $818M, implying approximately 31% growth at the midpoint.
• Q1 gross margin was guided to about 77.5%, and full-year gross margin was guided to 77.5% to 78.5%.
• Q1 operating margin was guided to negative 14%, and full-year operating margin was guided to negative 2% to negative 6% with the midpoint implying a 15 percentage point improvement versus fiscal 24.
• The guidance assumes persistent macroeconomic uncertainties and geopolitical tensions for the full year.
• Acquisitions (PingSafe and Stride) were disclosed to have a 2-3 percentage point EBIT margin impact for fiscal 25, primarily in the first half.