Yahoo Finance

• Revenue: $229 million, a growth of 23% year-over-year.

• International Revenue Growth: 27%, representing 38% of quarterly revenue.

• Total ARR: $948 million, a growth of 24% year-over-year.

• Customers with ARR of $100,000 or more: Grew 22% to 1,459.

• Gross Margin: 79%.

• Operating Margin: Expanded over 4 percentage points year-over-year to negative 2%.

• Free Cash Flow Margin: Record 20% for the quarter.

• Q2 Revenue Guidance: Approximately $242 million, growth of 22%.

• Full Year Revenue Guidance: $996 million to $1.1 billion, representing 22% growth.

• Q2 Gross Margin Guidance: Approximately 79%.

• Full Year Gross Margin Guidance: Between 78.5% and 79.5%.

• Q2 Operating Margin Guidance: Breakeven, implying a year-over-year improvement of approximately 300 basis points.

• Full Year Operating Margin Guidance: Between positive 3% and 4%, an improvement of over 650 basis points at the midpoint compared to fiscal year '25.

• Share Repurchase Authorization: $200 million open-ended.

• Warning! GuruFocus has detected 3 Warning Sign with S.

Release Date: May 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SentinelOne Inc (NYSE:S) exceeded revenue growth expectations with a 23% increase and achieved a record free cash flow margin of 20%.

• The company expanded its customer base and drove platform adoption across AI, cloud, data, and endpoint, with Purple AI achieving triple-digit year-over-year growth in quarterly bookings.

• SentinelOne Inc (NYSE:S) introduced a unified cloud security suite, enhancing real-time defense and operations, which gained strong traction among cloud security opportunities.

• The company's data solutions surpassed $100 million in ARR, highlighting the momentum of its AI SIEM offering and increasing preference for its modern AI-driven cloud-native data solution.

• SentinelOne Inc (NYSE:S) achieved FedRAMP high authorization for multiple solutions, including Purple AI, marking it as the first cybersecurity agentic AI solution approved for US government organizations.

Negative Points

• The company observed elongated sales cycles due to macroeconomic uncertainty, impacting Q1 net new ARR.

• SentinelOne Inc (NYSE:S) took a more measured stance on full-year growth assumptions due to potential macro volatility.

• Despite strong demand, the company experienced slip deals in Q1, attributed to macro volatility rather than competitive pressures.

• The guidance for the full fiscal year 2026 was slightly reduced, reflecting a decrease in internal expectations around net new ARR.

• The company noted that the federal sector faced longer sales cycles and more approval requirements, affecting deal timelines.