NYSE$S

SentinelOne Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Revenue increased, ARR grew, and margin improved.

SentinelOne's Q2 fiscal year 2024 performance exceeded expectations with strong growth and substantial margin improvement. The company raised its top and bottom line expectations for fiscal year 24.

  • Total revenue increased 46% year-over-year to $149.4 million.
  • ARR increased 47% year-over-year to $612.2 million.
  • GAAP gross margin was 70%, compared to 65% and non-GAAP gross margin was 77%, compared to 72%.
  • Free cash flow margin was (10)%, a 55 percentage points higher compared to (65).

Headline financials

Total Revenue

$149M

Previous: $103M+45.8%
EPS (adj)

-$0.08

Previous: -$0.20+60.0%
Annualized Recurring Revenue

$612M

Previous: $439M+39.6%
Customers with ARR of $100,000 or more

994

Previous: 755+31.7%
Capital Expenditures

-$494K

Previous: -$4.1M+88.0%
Free Cash Flow

-$90M

Previous: -$100M+10.3%
Net Income

-$89.5M

Previous: -$96.3M+7.0%
Operating Income

-$100M

Previous: -$108M+7.2%
Gross Profit

$105M

Previous: $66.2M+58.1%
Cash & Equivalents

$133M

Previous: $269M-50.6%
Total Assets

$2.21B

Previous: $2.27B-2.6%
Stock-Based Comp

$52.8M

Previous: $41M+28.9%

Revenue & EPS history

SentinelOne · Revenue · Quarterly

$149M

Q2 2024+45.8%vs Q2 2023
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company is providing guidance for the third quarter of fiscal year 2024 (ending October 31, 2023), and for the fiscal year 2024 (ending January 31, 2024).

Tailwinds

  • Revenue for Q3 is expected to be $156 million.
  • Revenue for full fiscal year 2024 is expected to be $605 million.
  • Non-GAAP gross margin for Q3 is expected to be 76%.
  • Non-GAAP gross margin for full fiscal year 2024 is expected to be 76%.
  • Non-GAAP operating margin for Q3 is expected to be (22)%.

Headwinds

  • Non-GAAP operating margin for full fiscal year 2024 is expected to be (25)%.
  • These statements are forward-looking and actual results may differ materially as a result of many factors.
  • Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets, acquisition-related compensation costs, restructuring charges, and gain on strategic investments.
  • The company has not provided the most directly comparable GAAP measures because certain items are out of their control or cannot be reasonably predicted.
  • A reconciliation of non-GAAP gross margin and non-GAAP operating margin is not available without unreasonable effort.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-2.7%

Avg return

Earnings day

-1.5%

Avg return

5 days after

-6.5%

Avg return

30 days after

42%

10 / 24 earnings

Positive

+18.6%

Q4 2022

Best reaction

-37.1%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+5.5%+4.4%-13.4%
Q3 2026-14.4%-10.2%-13.7%
Q2 2026+7.2%+2.3%+3.1%
Q1 2026-11.5%-7.7%-9.3%
Q4 2025-5.5%+0.4%-8.9%
Q3 2025-9.7%-10.5%-17.2%
Q2 2025-1.8%-5.3%-3.7%
Q1 2025-18.8%-16.9%+1.6%
Q4 2024-16.7%-17.1%-22.3%
Q3 2024+15.2%+18.6%+16.1%
Q2 2024+5.7%+9.9%+3.6%
Q1 2024-37.1%-36.0%-29.4%
Q4 2023+11.3%+8.0%+25.6%
Q3 2023-2.0%+7.9%-6.9%
Q2 2023-7.8%-9.3%-8.3%
Q1 2023+5.8%-3.0%-1.3%
Q1 2022+5.8%-3.0%-1.3%
Q4 2020-4.0%-4.0%-26.3%
Q4 2022+18.6%+37.3%+25.6%
Q3 2021+3.5%-4.4%-8.8%
Q3 2022+8.0%+11.8%-3.7%
Q4 2021-7.6%+2.2%-17.2%
Q2 2021-7.6%+2.2%-17.2%
Q2 2022-7.0%-14.1%-23.0%
Q1 2021
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014

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