SentinelOne Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : I wanted to follow up on some of the architectural strengths that you highlighted in the prepared remarks. Particularly the fewer updates and the lower level of [kernel] that you talked about. How are you able to maintain the same level of efficacy with mitigating the risk of kernel access in few updates? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 9:00PM, S.N - Q2 2025 SentinelOne Inc Earnings Call How is that architectural strength translating to some of the pipeline conversations you're having? Is there a way to think about what percentage of customers are thinking about dual sourcing versus single sourcing?And where the industry might go from a sole forcing versus dual sourcing standpoint? Thank you.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Thank you.

Question: Brian Essex - JPMorgan Chase & Co - Analyst : Great. Thank you. Thank you for taking the question. Tomer, I want to circle back on -- you called out in your shareholder letter and your prepared remarks, the interest in your platform as you just mentioned, has distinctly risen. Can you provide a little more color around conversations you're having with customers, how you might see the recent outage impacting your pipeline growth, if you can quantify it at all? Any impact on pricing, win rates? And are you counting on deal leakage from CrowdStrike in order to hit like target growth numbers that you've implied in your guidance? Just trying to get a sense of impact and conservatism there. Thank you.

Question: Hamza Fodderwala - Morgan Stanley & Co LLC - Analyst : Great. Good evening. Thank you for taking my question. Tomer, thanks a lot for all the commentary on the increased pipeline, the new product attach rates with Purple and a lot of the other things that you mentioned. I'm curious given this opportunity in front of you, it seems like a lot more is coming SentinelOne's way. From a go-to-market execution standpoint, do you feel like the go-to-market engine has significantly improved especially in light of the CRO transition that SentinelOne had recently?

Question: Saket Kalia - Barclays Capital Inc - Analyst : Okay. Great, guys. Thanks for taking my question here. We will change it up a little bit. And David, I've got a question for you. Very helpful commentary just on sort of directionally how to think about net new ARR here in the second half. But just for everybody's benefit, I was wondering if you wanted to put a finer point on net new ARR? How should we be thinking about modeling that new ARR for this year? And is it fair to say that based on the commentary so far, is it fair to say that, that doesn't include too much benefit from the CrowdStrike outage?

Question: Shrenik Kothari - Robert W. Baird & Co - Analyst : Thanks for taking my question. So Tomer, you highlighted the partnership with CISA, which delivers overall government-wide cyber defense, and that seems to be pretty meaningful. So how does the platform capabilities, firstly align with the requirements of the agencies? And then can you elaborate on the significance of the partnership and potential implications that would have on the growth opportunity in the federal market overall? Can you provide some more color?

Question: John DiFucci - Guggenheim Partners LLC - Analyst : Thank you. Tomer, you were already in process to change go-to-market. You have a new CRO. I guess any thoughts on redirecting that the recent issues with the CrowdStrike outage? And on a related point, I think last quarter, you said you weren't in a chase to invest in marketing. But given what looks like opportunity for you, has that approach changed, due to these events?

Question: Rudy Kessinger - D. A. Davidson & Co - Analyst : Hey, thanks for taking my question. I guess, Tomer, in the prepared remarks, I think you mentioned you had already maybe displaced a few CrowdStrike customers since the outage. And then some different kind of comments throughout the call here. You said low sales cycles could take 9, 12 months. Dave, you said the second half outlook really isn't dependent on any boost from CrowdStrike. So I guess I'm just trying to get -- similar to Saket, kind of a -- well, somebody else asked the question, not Saket. But just could you really quantify over the last five to six weeks ahead, can you directly attribute any material piece of your new business to customers who ex that CrowdStrike outage would not have signed contracts with you? I'm just trying to get a better sense of what's been the impact to date and your expectations for a potential positive impact for the rest of this year?

Question: Peter Weed - Sanford C. Bernstein & Co LLC - Analyst : Thank you. I think one of the things you've been emphasizing for several quarters has been kind of an increasing proportion of growth coming from new customers, which is obviously really exciting for potential of future growth. But can you help us, I guess, maybe on two dimensions. One is just give us some comfort that, that's not just because of the continued deceleration and growth of existing customers, so where is that kind of trailing 12-month NRR sitting now and that kind of line of sight to potential expansion in the second half? I guess the other side is in those new customers, is that coming from like an increasing number of incremental lands? Is that coming from expansion and the size of those new customers? Maybe give us some color on the profile that's driving that really nice track record.

Question: Brad Zelnick - Deutsche Bank - Analyst : Great. Thanks so much for taking the question. Tomer, I wanted to follow up on an earlier question about architecture. And specifically, what, if anything, you're expecting of Microsoft's upcoming Cyber Summit on September 10. What changes do you envision that they might make so that REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 9:00PM, S.N - Q2 2025 SentinelOne Inc Earnings Call the industry never sees 8.5 million Windows endpoints go down again. And how might any of those changes impact SentinelOne and perhaps your competitive positioning?

Question: Adam Tindle - Raymond James Financial Inc - Analyst : Okay. Thank you. Tomer, one of the highlights this quarter was you reached positive non-GAAP net income for the first time ever, and congrats on that. If I'm listening to Dave's closing comments in his prepared remarks, it does sound like you're maybe beginning to reevaluate the trade-offs and growth and profitability, certainly seems to make sense given the market is now more wide open than ever. But I guess the question would be, if you're potentially asking shareholders to go through an investment journey with you, be helpful to give visibility into your thought process on that, sort of the key factors that would go into your analysis on that decision? Any parameters that you might put on the magnitude of potential investment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 9:00PM, S.N - Q2 2025 SentinelOne Inc Earnings Call

Question: Gray Powell - BTIG LLC - Analyst : Okay, great. Thanks for taking the question and congratulations on the good results. So look, I know you've had a lot of questions on the CrowdStrike outage. If it's okay, I'd like to just ask one more. On the marketing side, just how aggressive are you being there following the incident? And do you have any specific programs in place to target Crowd customers for potentially upset following the outage, like anything like a free 6- to 12-month limited trial period to ease the transition costs? Or just anything else that you're doing that can maybe help you leverage the situation? Thank you.