NYSE$S

SentinelOne Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

SentinelOne's revenue and ARR grew triple digits, driven by strong adoption of the Singularity XDR platform.

SentinelOne announced strong financial results for the third quarter of fiscal year 2023, with revenue increasing by 106% year-over-year and ARR also up by 106% year-over-year. The company's customer base grew, and it maintained a strong gross margin. SentinelOne is focused on enhancing productivity and continuing to take market share in a dynamic environment.

  • Total revenue increased 106% to $115.3 million, compared to $56.0 million.
  • Annualized recurring revenue (ARR) increased 106% to $487.4 million as of October 31, 2022.
  • Total customer count grew about 55% to over 9,250 customers as of October 31, 2022.
  • Customers with ARR over $100,000 grew nearly 100% to 827 as of October 31, 2022.

Headline financials

Total Revenue

$115M

Previous: $56M+105.9%
EPS (adj)

-$0.16

Previous: -$0.15-6.7%
Annualized Recurring Revenue

$487M

Previous: $237M+105.7%
Customers with ARR of $100,000 or more

827

Previous: 416+98.8%
Capital Expenditures

-$4.83M

Previous: -$3.27M-47.7%
Free Cash Flow

-$104M

Previous: -$71.9M-44.3%
Net Income

-$98.9M

Previous: -$68.6M-44.1%
Operating Income

-$104M

Previous: -$67.4M-54.4%
Gross Profit

$74.3M

Previous: $35.7M+108.4%
Cash & Equivalents

$210M

Previous: $1.66B-87.4%
Total Assets

$2.21B

Previous: $1.98B+11.8%
Stock-Based Comp

$45.7M

Previous: $27.4M+67.0%

Revenue & EPS history

SentinelOne · Revenue · Quarterly

$115M

Q3 2023+105.9%vs Q3 2022
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company provided guidance for the fourth quarter of fiscal year 2023 and full fiscal year 2023.

Tailwinds

  • Revenue Q4 is expected to be $125 million.
  • Full year revenue is expected to be between $420-421 million.
  • Non-GAAP gross margin Q4 is expected to be 72%.
  • Full year non-GAAP gross margin is expected to be 71.0-71.5%.
  • Full year Non-GAAP operating margin (51)-(50)%.

Headwinds

  • Q4 Non-GAAP operating margin is expected to be (39)%.
  • 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, and acquisition-related compensation costs.
  • We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted.
  • Accordingly, 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 Q3 2023

Historical avgQ3 2023

-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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