Sentinel One revenues more than doubled to $102.5 million in the second fiscal quarter

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by Ifi Reporter Category:Hitech Sep 1, 2022

The cyber industry is protected from a global slowdown, at least according to the financial reports of the Israeli Sentinel One that were published after the lockdown in New York. The company, which deals with the detection and prevention of cyber attacks, performed better than expected and also raised the forward forecasts - accordingly the stock rose by 4% in late trading.
Sentinel's revenue more than doubled to $102.5 million in the second fiscal quarter, which ended in late July. The annual revenue rate (ARR) also jumped 122% to $438.6 million. Sentinel also improved its gross profit margin from 59% of revenue to 65% last quarter, but operationally it is still losing money.
The operating loss amounted to 108 million dollars, but this is an improvement in the rate of loss out of the revenues compared to the corresponding period in 2021 - when the revenues were 46 million dollars and the operating loss was 68 million dollars.
Following the strong quarter, Sentinel anticipates that the positive momentum will continue and raises the revenue forecast for the third quarter to $111 million and a gross profit margin of 71%. On an annual level, it estimates that it will reach revenues of 417-415 million dollars, an amount that will reflect a growth of 103% compared to 2021. This is compared to a previous forecast for an annual growth of "only" 98%.
"We have seen hyper growth in every aspect of the company - revenue, increase in customers, customer retention and profitability rates and this despite the new macro environment," said Tomer Weingarten, CEO of Sentinel One upon the publication of the reports. IT, which led to longer sales cycles."
Weingarten also added that in light of the strong performance and rapid growth that creates an advantage for size, the company has made significant progress towards reaching profitability. Sentinel's customer retention rate was 137%, which means that it is not only retaining customers, but its revenue from them is growing at a rapid rate. In a conversation with the analysts, the CEO noted that the company is expanding among large customers and has even replaced all of Microsoft's security solutions with one of the largest retail chains in the US.
The operating loss amounted to 108 million dollars, but this is an improvement in the rate of loss out of the revenues compared to the corresponding period in 2021 - when the revenues were 46 million dollars and the operating loss was 68 million dollars.
Following the strong quarter, Sentinel anticipates that the positive momentum will continue and raises the revenue forecast for the third quarter to $111 million and a gross profit margin of 71%. On an annual level, it estimates that it will reach revenues of 417-415 million dollars, an amount that will reflect a growth of 103% compared to 2021. This is compared to a previous forecast for an annual growth of "only" 98%.
"We have seen hyper growth in every aspect of the company - revenue, increase in customers, customer retention and profitability rates and this despite the new macro environment," said Tomer Weingarten, CEO of Sentinel One upon the publication of the reports. IT, which led to longer sales cycles."
Weingarten also added that in light of the strong performance and rapid growth that creates an advantage for size, the company has made significant progress towards reaching profitability. Sentinel's customer retention rate was 137%, which means that it is not only retaining customers, but its revenue from them is growing at a rapid rate. In a conversation with the analysts, the CEO noted that the company is expanding among large customers and has even replaced all of Microsoft's security solutions with one of the largest retail chains in the US.
Indeed, Sentinel One, which already at the time of its IPO made history as the largest cyber company IPO, meets the expectations of even the optimistic investors. The company has shown triple-digit growth in each of the quarters since becoming a public company in July 2021. The performance also explains the fact that Sentinel is trading at a value of $7.6 billion, relatively close to the IPO value of $9 billion.
During the quarter, Sentinel also began to consolidate in its reports the American company Ativo, which was purchased in March for $600 million in cash and shares. The acquisition brought Sentinel into the enterprise identity management market, one of the hottest markets in cyberspace today. After the acquisition, Sentinel competes head-on not only with Crowdstrike, but also with Okta, another cyber giant that is considered the strongest player in the identity management market. Even after the purchase, Sentinel still had 1.2 billion dollars left in its coffers.
With the acquisition, Sentinel received 300 new employees, so that today its personnel status is almost double what it was a year ago. Weingarten addressed the issue and noted that the company plans to continue recruiting employees in the coming year as well: "It is not possible to grow more than 100% without increasing the workforce, we take into account the uncertainty in the markets, but we will continue to recruit employees because we see a return on the investment."

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