SentinelOne Inc - Class A
Q4 2023 Earnings
Did S Beat Earnings? Q4 2023 Results
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
Forward Guidance & Outlook
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
Figures from SEC filings and company reports. Not investment advice.