I guess relative to the question, partner retention results. This is an improvement upon our fiscal year 2021 operating margin of negative 107%. So we really think about growing the business from a new model perspective, as well as learning to extend, someone asked a question on that the answer is yes, we're doing both. So all in all, I mean, they can actually choose what they want to procure from us, but again apples-to-apples, I think you'll see that prices are very, very similar. We're definitely investing for growth. David Bernhardt has served as our Chief Financial Officer since September 2020. Just on maybe a question for either Nick or Tomer, I wanted to dig into some of the partnership announcements you guys have made in recent months particularly with Zscaler and Cloudflare. Okay. in Computer Science from the University of Arizona and an M.B.A. from the Wharton School of the University of Pennsylvania. Thank you very much for taking my question. But the last thing and this is not to be underestimated with our unique go-to-market business is that multi dimensional channel that we talked about. Today, theres only us and CrowdStrike.. At Tableau Software, Mr. Conder led the companys legal and regulatory affairs from its 2013 IPO through extensive growth and international expansion, including its acquisition, integration, and ongoing growth as a part of Salesforce.com, Inc. So we're going to continue to look for areas where we can advance, what we need in terms of driving our product and our innovation. What we do today will be transitioned into more remote and virtual settings, which will lead to more exposure of attack surfaces for hackers and criminals. twitter, follow us on This is XDR. Certainly the IPO is part of that. In fact, our IR partner ecosystem is our fastest growing channel. Driven by the rising wave of ransomware attacks, breaches have become pervasive for businesses around the world. So our ability to protect to prevent and to keep our customers safe. The proof of concept demo I went through before selecting this product was thorough and set us up for success when we did decide to continue our relationship with CrowdStrike., They also love the SentinelOne Singularity Platform. Or how many modules they typically purchase? From there, Weingarten hopes to introduce a high degree of automation around the data that's collected to improve security operations, not just on the endpoint or cloud but also around the network and email. Youre building something that protects everybodys data. Its zero additional deployment. So you'll see it in Q3, you'll see it in Q4, and then it should dissipate beyond there. In Q2, we added over a dozen additional IR partners and are bringing more online in Q3 and beyond. The property, on just over an acre in the Country Club. We are XDR. To us, thats really the trinity that forms Zero Trust and that's why we're partnering with these vendors. I think we take a different approach. The company raised close to $700 million over eight rounds of funding. Next is the digital enterprise environment, more devices, more places, more data requires updates to critical enterprise infrastructure and that includes new attack surfaces such as containers and workloads. And is this coming from an expansion in seats? SentinelOne is forecasting revenue growth of $161 million, an increase of 23 percent from the last quarter and 115 percent from the same quarter last year. , But judging by the numbers, thats not really the case. Just looking at our modules that cover IoT, cloud and data, these grew more than 6x year-over-year in Q2 and represent over 10% of the quarters' new business. And that's what we're experiencing. Can you characterize the competition? They want to use more abilities; they're opting for our services. "You're starting to see what the XDR strategy really looks like for some of these vendors," Weingarten says. information systems; Implement NIST's risk management framework, from defining risks to selecting, implementing I want to double click on our incident response partnerships. So all in all, I mean, it just really kind of falls in line with both of our Zero Trust strategy and our open XDR approach. Thank you for attending SentinelOne Second Quarter 2022 Earnings Conference Call. From June 2014 to February 2017, Mr. Parrinello served as Vice President of American Sales at Nimble Storage, Inc., a data storage solutions company that was acquired by Hewlett Packard Enterprise Company in April 2017. Yes. On Wednesday's episode of "Mad Money," SentinelOne CEO and co-founder Tomer Weingarten discusses the cybersecurity firm's fiscal second quarter 2022 results. From a go-to-market perspective, what it means for our customers is we really allow them to realize even greater ROI on previous solutions that they had purchased. I mean, that just comes to show that home prevention and all the way to detection, response and remediation. It's incredibly holistic again in nature. As we look at customer acquisition, typically who are you going up again? Another player in this market is the Israeli firm SentinelOne. So we're seeing massive traction with that. Security teams simply can't analyze and respond to billions of events every day. It's not just quantity, but quality. We are benefiting from increased scale, cloud hosting agreements and processing efficiency gains. Thank you. "It's a fantastic company, with astounding marketing and performance capabilities." Youre building for the benefit of the world at the end of the day. The most surprising figure is SentinelOnes gross profit margin, which stood at 56 percent last four quarters. And that is what our platform is incredibly unique in that the advantage of AI and machine learning. These non-GAAP measures are not intended to be a substitute for our GAAP results. From there, Weingarten says, the customer picks and chooses what data to transport into the SIEM for ticketing purposes or to respond to workflows that are already in place. You may proceed. Just some of the key rivals include CrowdStrike and Palo Alto Networks. You can actually stop these fire from actually ever happening. Over the last eight years at SentinelOne, we've developed AI and machine learning models built patented storyline technology and created an in-house cloud data platform. Massive sales forces at various channel partners in the MDR space, MSSP partners, IR partners, traditional resellers and distributors. These and others are global leaders with extensive enterprise relationships. Support has been relatively effective, but can be a little slow on response times.. Before SentinelOne, Tomer led product development and strategy for the Toluna Group as a VP of Products. Prior to Chegg, Mr. Bernhardt served in various positions at Palantir Technologies Inc., a data analytics software company, including most recently as its Vice President of Finance and an advisor, from May 2009 to August 2013. As we spend more, we grow more. Next, I'll share some insights on our go-to market. Lets put it that way. So all in all, we feel well positioned to continue and capture market share in the cloud workload protection platform space into us, again if you coupled that with the platform approach with everything coming back to the same security data layer, then you really start unlocking synergies and you allow security teams really ask a question once and get an answer from every part of your enterprise network that spends from the endpoint or though the cloud. Any forward-looking statements made during this call are being made as of today. Since July 2016, Ms. Ghatak serves on the board of directors for Watermark, a non-profit dedicated to increasing the number of women in leadership and an active sponsor of WiCys (Women in Cybersecurity). 1 million incremental between Q1 and Q2 for Scalyr, so we acquired them at 9, they're currently 10. Prior to that he held several . I mean, I think it's it's something that you'll see anecdotally happening. After enjoying a 21% rise on its first day of trading, is it too late to invest in SentinelOne? So we're going to actually have each quarter a bigger sales team that is also more efficient helping us continue to drive growth. Im an engineer by training, and what I love to do is build software products. And now we're seeing I think, of just increasing increase in accelerated attraction across the board, both in partners and with customers, with sales cycles and with competitive win rates. I guess the question is how do you sort of judge the scale of your channel? It jumped in Q2 to above 70. We added the highest number of million dollar ARR customers this past quarter. Once the data is ingested, Weingarten says, SentinelOne has mechanisms in its Singularity platform that let customers build rules around the collected data and invoke responses to those commands across any product. As for SentinelOne, the vision was to build a next-generation cybersecurity platform that leveraged AI. It's predominantly in the second half of this year. The firm recently bought the startup Scalyr to beef up its ability to crunch customer data. So we think the the market momentum in customers understanding that they need to change the mindset and we move over to a next gen offering is not really mainstream. Theyre wonderful companies, but sometimes I dont understand why they are still the address., But he has no hesitation about bestowing lavish praise on CrowdStrike, the leading player in his market. I would now like to pass the conference over to your host, Doug Clark, Head of Investor Relations with SentinelOne. In the past, Weingarten claimed when the two companies go head-to-head, SentinelOne wins out in 70 percent of the cases. So all in all, we feel that mix is a healthy one and one that we would like to carry into the future. Tomer co-founded SentinelOne in 2013. You have to be an incredibly good listener and understand pain points before you propose solutions. SentinelOne has expanded the scope of its business since I first spoke with Weingarten about two years ago. He is responsible for the company's direction, products, and services strategy. For us it's about technology. Prior to that, Mr. Weingarten co-founded Carambola Media Ltd., a publisher focused platform that creates new ad revenue streams through engaging content formats, where he served as Chief Technology Officer from May 2011 to May 2012. SentinelOne, Inc. (NYSE:S) Q2 2022 Earnings Conference Call September 8, 2021 5:00 PM ET, Doug Clark Head of Investor Relations, Tomer Weingarten Co-Founder and Chief Executive Officer, Nicholas Warner Chief Operating Officer, David Bernhardt Chief Financial Officer. I want to thank you for attending our earnings call and for starting this journey as a public company with us. Our platform today holds the most capabilities out of any other platform out there. One, our 97% gross retention rate, which means our customers are happy and staying with us. Consider that none of the companys customers were impacted by the SolarWinds Sunburst cyberattack. First automation, automation is key to neutralizing threats effectively and in real-time. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. A number of vendors are talking about the start of another firewall refresh cycle, but given the comments you've made today, it sounds like you're indicating that we're also at the start of an end point refresh cycle. I dont see any reason why anyone who needs to protect his end points the devices connected to the internet, or even the cloud should turn to CheckPoint and Palo Alto, he said. Prior to joining us, Mr. Parrinello served as Senior Vice President of Worldwide Sales at Cohesity Inc. from February 2017 to November 2019. Tomer Weingarten is responsible for the company's direction, products, and services strategy. At SentinelOne, Tomer Weingarten has 36 colleagues including Dan Schienman (Director), Ana Pinczuk (Director) . This is why our patented storyline technology is so important, like monitors and contextualizes all events across an enterprise at machine speed. "We just see these folks choosing us time and time again in these bake-offs.". This is Nick here. Nothing is trivial. They wanted a solution that can actually remediate and clean up all the infections they were seeing. We just, turns out to be a much more efficient model than the platforms that they've been using in the past which obviously, were more on-prem down. The company focuses on cloud workload protection and bests its rivals when it comes to performance and deployment since it doesn't tap into the kernel or require an intrusive integration, Weingarten says. Got it. We've had multiple years doing customers of Symantec and McAfee. Thanks. We grew customers with ARR over $100,000 by 140% versus last year. For me, writing code and building software products is the way I express myself. The chief information security officer of a Fortune 500 oil company captured it well saying SentinelOne's storyline technology fundamentally changes EDR. We're protecting even more mission-critical businesses. [PDF] [7d5kicaru8k0]. Ms. Tomasello has over 20 years of experience in the accounting industry. It's always going to be competitive with at least one other next gen competitor. Some people paint, some people write songs, some people are talented in different ways. So that $10 million you pulled out of inorganic ARR fell in 1Q right? Instead of people having to manually assemble data points, the technology assemble stories for us and even make decisions in real-time, game changer. The company's approach to the cloud limits trade-offs between performance and security and, unlike competitors, embraces an architecture that's compatible with the needs of cloud-native companies. SentinelOne has 4,700 customers, which means its per-customer income is lower. Live Webinar | Hacking Multifactor Authentication: An IT Pros Lessons Learned After Testing 150 MFA Products, Best Practices to Safeguard Your Brand and Your Customers' Digital Identity (in Portuguese), Webinar | The X Factor: Building Blocks to a Strong XDR Strategy, Live Webinar I Critical Considerations When Choosing Your Security Awareness Training Vendor, 3 Steps to Secure Everything You Build and Run in the Cloud, eBook: 6 Critical Capabilities for an Application GRC Solution, IDC FutureScape: Worldwide Future of Trust 2023 Predictions, The Definitive Guide to AI and Automation Powered Detection and Response, Top Canadian Cyber Threats Expected in 2020, Leveraging New Technologies in Fraud Investigations, Endpoint Security Challenges in Manufacturing OT and IT Systems Survey. Tom (@ttaulli) is an advisor/board member to startups and the author of Artificial Intelligence Basics: A Non-Technical Introduction, The Robotic Process Automation Handbook: A Guide to Implementing RPA Systems and Implementing AI Systems: Transform Your Business in 6 Steps. Microsoft back then wasnt about hardware, there was nothing to feel. Ms. Ghatak is a member of the board of advisors of Findem, Inc., a company that uses an artificial intelligence platform to assist companies in their employee hiring, since February 2021. This means distilling a solution that would be battle-tested through time, something that serves your customers for years to come. We knew that we need ways to deal with attacks that are increasing in frequency and becoming more automated. Many customers are using XDR as a filtering mechanism for their SIEM tools, Weingarten says, putting all of their data initially into XDR since it's much more cost-effective. Novinson is responsible for covering the vendor and technology landscape. Tomer co-founded SentinelOne in 2013. When SentinelOne CEO and co-founder Tomer Weingarten launched the company in 2013, he had a revolutionary vision to transform the way organizations protect their data and devices by building software that doesn't just observe but prevents and deflects in real-time. Ms. Ghatak also represents SentinelOne as an active sponsor of WiCys. And about pricing, is it is being cheaper than the next gen competition is the strategic strategic goal for you? In the unfortunate, but often common case of a company being breached, IR partners are called in to identify and remediate the attack. Even after backing out the $10 million and acquired ARR from Scalyr, our organic growth was still well into the triple digits. One of the reasons that we're looking at the Czech Republic is because they do have an excellent amount of cybersecurity talent that, assets is it allows in next. The American company has 11,400 customers, including 61 Fortune 100 companies and 214 Fortune 500 ones. I'll touch on a few of the highlights before we open for Q&A. Israel cyber firm SentinelOne is trying to hitch a ride on its major rivals success, but the numbers arent in its favor. Mr. Conder brings over 25 years of experience scaling high-growth, public companies in the technology sector. According to its prospectus, revenue grew 108% in the latest quarter ending in April to $37.4 million, while its net losses more than doubled from $26.6 million to $62.6 million. CEO Tomer Weingarten told Insider that the company is now eyeing acquisitions to grow its products. From sales to support, marketing to channels, business development to customer success, Vigilance MDR to SentinelLabs, our go-to-market organization is world-class and I'm proud to work with this global team of relentless Sentinels each and every day. Are you still seeing a lot of replacement of legacy out there, which would imply that there's still a long way to go in this markets? Our decision was to create a solution that doesnt just observe but reacts and deflects in real time. I mean, they deal with that, we deal with that. I think it's just fair to ask the question, if you can refer to their statements and announcements on this customer? Time and time again, what we've seen for several years now is folks go with SentinelOne for really a unique combination of prevention alas coverage and support, automation, and then lastly as Tomer had mentioned efficacy. We value trust and transparency, and I'll have the opportunity to model this as a public company. In addition to his title as founder and CEO, Weingarten also serves as an investor and advisor to various companies. youtube. And if you can talk about your we spoke about product differentiation, but I want to talk about the value of automation. Weingarten said in the past that CrowdStrike relies more on providing services, whereas SentinelOne relies more on machine learning and automation. By submitting this form you agree to our Privacy & GDPR Statement, General Data Protection Regulation (GDPR). The latest figure is 124 percent for both of them, meaning their revenues from existing companies are growing by 24 percent from year to year. The focus instead should be on having the right data that produces signals that can be modelled. That's correct. Our channel partners are bringing us into an increasing number of opportunities, giving our sales teams access, scale and reach around the globe. The next question is from Brent Thill with Jefferies. in Broadcast Journalism from Arizona State University. So it's incredibly easy to consume. Cloud-native companies from social media networks to ride-hailing providers tend to be very mindful of what's being deployed into production environments, especially if the service they offer is entirely based on the cloud. SentinelOne. The next question is from Tal Liani with Bank of America. Can you talk to us maybe from the quantitative or maybe just from a qualitative perspective on the LTV of cohorts over the past few quarters now going to say even a few years, specifically on the heels, or the fact that, your deal with a greater than 1 million have been fantastically on the rise out of the late. Finally delighting our customers, I'm especially proud that our net promoter score, or NPS, has risen every single quarter in the past year. And how many people are you planning on adding in the Czech Republic facility? Qualcomm Ventures. He also has developed various online courses, such as for the COBOL and Python programming languages. Yet the market is massive. Hey guys, thank you for taking my question and congrats on your first quarter post-IPO. So to us, again being completely cloud native, being multi-talented is a competitive differentiator we have for that part of the market. Since then, its evolved into a complete platform with about 10 different modules that can address different issues within a corporate enterprise environment. Terrific. Finally, for operating margin we expect negative 96% to 99% in Q3. And then what's the availability look like? At the previous startups that Ive built, I was the CTO and mostly on the technical side. In Q2, we added the highest number of customers with ARR over $1 million compared to prior quarters. For all of us at SentinelOne, our values and goals align on protecting customers and putting them first. Could I just, I guess follow on about the connected environment. We definitely see the ability to expand into other footprints in the enterprise, almost every account that we land. Thank you. You may proceed. Join us LIVE! This year, more than ever before because of the Covid-19 pandemic, huge droves of workers and consumers have been turning to the internet to communicate, get things done, and entertain themselves. Before our founding, Mr. Weingarten held various positions, including Vice President of Products, at Toluna Holdings Limited, a technology company that delivers real-time consumer insights, from May 2007 to December 2012, which he joined following the acquisition of Dpolls, a startup he had previously co-founded. in Manufacturing Engineering from Boston University, and a Ph.D. in Operations Research from the Massachusetts Institute of Technology. In Q3, we expect revenue of $49 million to $50 million, reflecting growth of 102% at the midpoint. Furthermore, the more we can build applications on top of the data that we collect using the platform, the more value we can bring to our customer base and the more extensive our offering can be across many different facets. Mr. Weingarten owns 259,427 shares of SentinelOne stock worth more than $3,914,753 as of February 1st. In the first quarter alone, it burned through $33 million. We go up against incumbent and next gen players all the time. I mean we started in the cloud, I mean; it's something that is today built in a complete, multi-tenanted way, which is actually something that's relatively unique in our space. Hi there. This is intended to further improve data processing for the future and unlock long-term platform and go-to-market synergies. According to a Bloomberg report from early March, the company is hoping for an even higher market value, of $10 billion. Thank you, Mr. Essex. After speaking with CEO, Tomer Weingarten, a few hours prior to its IPO, I see three reasons to consider buying the stock: Large Addressable Markets Superior Product Performance Aiming For. Attacks and threats are only becoming more sophisticated and more common and legacy solutions and human defenses just can't keep up. The next question is from Andrew Nowinski with Wells Fargo. 670 customers gave it 4.9/5 stars, according to Gartner PeerInsights. I mean, we feel like our traction in the enterprise and definitely 140% growth year-over-year and 100,000 deals and above is a good reflection of how much bigger we're landing in accounts. Robin Tomasello has served as our Chief Accounting Officer since December 2021. Thanks for the questions, Hamza. We caution you that such statements reflect our best judgment based on factors currently known to us and that actual results and events could differ materially. After speaking with CEO, Tomer Weingarten, a few hours prior to its IPO, I see three reasons to consider buying the stock: To be sure, there are risks to buying it now. Nick, Tomer, thank you. We look forward to talking to you again in the near future. Our website uses cookies. Obviously there are areas that are, economically more viable in terms of full strategy. You may proceed. Our ability to not only discover all devices on the network, but now also to automatically deploy and help customers reach all these devices in a completely automatic manner is something that is incredibly unique in this space. No egos. We're helping our customers stay ahead of all adversaries, prevent breaches and autonomously respond through innovation. It's about half of our customer we're still use core or control with the larger enterprise customers obviously using the complete solution. You call that the success with tears in modules, wondering if you can talk about the impact of cloud workload protection? Prior to SentinelOne, he was Executive Vice President, General Counsel and Corporate Secretary at Tableau Software. Before SentinelOne, Tomer led product development and strategy for the Toluna Group as a VP of Products. Looking back, it took over three years to reach a $100 million in ARR and just three quarters to nearly reach the next $100 million. Since then, its market value has increased sevenfold. When customers run a search or query in SentinelOne's EDR platform, it can return results from any other security product in the customer's IT ecosystem without having to deploy multiple consoles or duplicate or transport data, Weingarten says. Ranger for us has become truly a competitive advantage. And we'll do that for the foreseeable future. If you have an ad-blocker enabled you may be blocked from proceeding. So it's not only about protecting those attack surfaces, it's also about ease of deployment and simplicity of use. That's over 2000 more than last year. [Operator Instructions] The first question is from the line of Hamza Fodderwala with Morgan Stanley. I'm switching over to SentinelOne this quarter as this has been with the past quarters as well. And there's a mix across all of them, but there's certainly an opportunity us to continue to see the customers and core control we expand up to the more complete offering, as well as add more modules, et cetera, et cetera. Before launching the company in 2013, he had helped to create several other tech startups. So to us, again, it really falls into the strategy that we took up by enabling our customers to pick any vendor and indeed builds on top of the Singularity platform. To me, that was inspiring. Thanks. Previously, Ms. Ghatak led talent and implementation of people strategy at several global business units at Cisco Systems, from June 2007 to October 2013. Mr. Ashkenazi holds a B.S.C.S. They want to cover more surfaces. 02:14. Welcome everyone and thanks for joining our first earnings call as a public company. I think a lot of it is sometimes about relationships, but I think what's incredibly interesting about the customers that we've displaced is the reference they made to the amounts of infections they have to deal with, which to us is really why you're bringing in cyber security solution. It's something that we'll deal with that forever. In closing, Q2 was an excellent quarter with strong execution, and we're expecting that momentum to continue into the second half of the year. Thank you for taking my question. I believe for us it's really about the holistic approach we're taking that allows us to win both, I guess, incumbents and against the next gen peers. Yes. documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking statements. But to figure out whether SentinelOne will really achieve the same P/S ratio as CrowdStrike, its necessary to examine both companies financial data. Great. Contact support. I'm delighted to help protect that many businesses. Mr. Weingarten also previously served in various roles at Mckit Systems Ltd., a provider of information and knowledge management systems in Israel, from March 2005 to April 2007. Yes for sure. And so that's the right way to think about our global field presence is adding all of those folks up and understanding that each time we're adding a partner behind that are hundreds of sales reps, doing 2000 plus accreditations to date, that's really building that flywheel, but we're absolutely going to continue to invest in our own SentinelOne personnel as it relates to go-to-market. Please refer to the documents we file from time to time with the SEC in particular, our S-1 and our quarterly report on Form 10-Q. And then from a go-to-market perspective, for Nick, what type of incremental benefit will these partnerships bring? Wed, Jun 30 202111:06 AM EDT. The pace of technology today is pretty fast. At the same time, we moved to a hybrid work environment.