SentinelOne Revenue Surges 33%

By Tamara Parker • Wednesday, August 28 06:02 • Permanent Link

SentinelOne, Inc. (NYSE: S) has reported its financial results for the second quarter of fiscal year 2025, ended July 31, 2024. The company's revenue increased by 33% year-over-year to $198.9 million compared to $149.4 million in the second quarter of fiscal year 2024. Annualized Recurring Revenue (ARR) also showed strong growth, increasing by 32% to $806.0 million as of July 31, 2024.

The number of customers with ARR of $100,000 or more grew by 24% to 1,233 as of July 31, 2024, indicating an expanding high-value customer base. Additionally, the company's GAAP gross margin improved to 75% from 70%, while non-GAAP gross margin was 80% compared to 77%.

In terms of operating margin, the company reported a significant improvement, with GAAP operating margin at (40)% compared to (67)% in the same period last year, and non-GAAP operating margin at (3)% compared to (22%) previously. The operating cash flow margin increased to 1% from (8%), and the free cash flow margin was reported at (3%), an improvement of 7 percentage points from (10%).

As of July 31, 2024, SentinelOne held cash, cash equivalents, and investments totaling $1.1 billion. The company's CFO, Dave Bernhardt, highlighted that they had achieved record margins and profitability, marking the 12th consecutive quarter with double-digit operating margin improvement.

Looking ahead, the company raised its revenue outlook for fiscal year 2025 and provided guidance for the third quarter of fiscal year 2025, projecting revenue of $209.5 million and a non-GAAP gross margin of 79%.

SentinelOne's CEO, Tomer Weingarten, emphasized the company's strong execution and broad-based demand, leading to exceptional results with industry-leading growth and positive net income and earnings per share for the first time. The company's commitment to innovation and scale, as well as its open ecosystem platform and superior technology, will be essential in maintaining its competitive advantages and driving future growth.

For further details on the financial results and outlook, a letter to shareholders has been published on the company's investor relations section of its website at investors.sentinelone.com. The market has reacted to these announcements by moving the company's shares -0.6% to a price of $24.75. If you want to know more, read the company's complete 8-K report here.

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