SentinelOne (S) Q4 2023 Earnings
Did S Beat Earnings? Q4 2023 Results
Yes. SentinelOne reported Q4 2023 earnings of $-0.13 a share on Mar 14, 2023, beating the $-0.16 consensus estimate by 18.8%. Revenue was $126.1M against a $124.7M estimate.
SentinelOne posted a strong finish to fiscal year 2023, beating consensus estimates on both the top and bottom lines as Q4 revenue surged 92.1% year-over-year to $126.10 million, ahead of the $124.66 million analysts had expected. The cybersecurity firm reported a non-GAAP loss of $0.13 per share, better than the $0.16 consensus estimate by 18.75%, with the outperformance driven in large part by meaningful margin expansion; non-GAAP gross margin reached 75%, up 9 percentage points year-over-year, reflecting greater scale and data efficiencies. Annualized recurring revenue climbed 88% to $548.70 million, while the customer count exceeded 10,000. Looking ahead, SentinelOne guided Q1 FY2024 revenue to approximately $137.00 million and set full-year FY2024 revenue guidance of $631.00 million to $640.00 million, implying roughly 51% growth at the midpoint, as management works to narrow its non-GAAP operating margin to between (29)% and (25)% while navigating persistent macroeconomic headwinds including longer sales cycles.
- 92% year-over-year revenue growth driven by new customer additions and existing customer expansion
- ARR grew 88% YoY to $549 million
- Non-GAAP gross margin expanded 9 percentage points YoY to 75%, aided by increasing scale, data efficiencies, and a one-time cloud hosting cost true-up
- Net retention rate remained above 130%
- International revenue grew 125% YoY, representing 35% of total revenue
- Singularity Cloud was the fastest-growing solution, contributing ~15% of quarterly ACV
- Win rates increased in Q4 including against large next-gen competitors
- Strong MSSP partner growth
“We continued to deliver leading growth and margin improvement, a result of stronger execution and our competitive position. Our ARR crossed half a billion dollars, and our global customer-base exceeded 10,000 - two major milestones. Our sights are set much higher.”
SentinelOne CEO, on the earnings call
What Was SentinelOne's Outlook in Q4 2023?
For Q1 FY24 (ending April 30, 2023), SentinelOne expects revenue of approximately $137 million (75% YoY growth), non-GAAP gross margin of 73.5%, and non-GAAP operating margin of (41)%. For full fiscal year 2024 (ending January 31, 2024), the company guides revenue of $631-$640 million (~51% growth at midpoint), non-GAAP gross margin of 73.5%-74.5%, and non-GAAP operating margin of (29)% to (25)%. Management expects macro-related uncertainties to persist for the full year and is committed to achieving long-term profitability targets by balancing growth with consistent margin improvement toward a long-term EBIT margin target of 20%+.
S YoY Financials
| Metric | Q4 2023 | Q4 2022 | Year over year |
|---|---|---|---|
| Revenue | $126.1M | $65.6M | +92.1% |
| Gross Profit | $86.3M | $41.4M | +108.6% |
| Operating Income | −$100.0M | −$168.7M | −40.7% |
| Net Income | −$93.7M | −$135.1M | −30.6% |
Figures from SEC filings and company reports. Not investment advice.