SentinelOne Inc Q4 2025 Earnings Call Transcript

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

Question: Adam Tindle - Raymond James & Associates, Inc. - Analyst : Okay. Thanks. I'm going to ask one, but it's going to be multi-part. I'm going to try to beat up net new ARR right out of the box here, so bear with me. Appreciate the highlight that net new ARR flip back to positive for the back half, but if we're looking at just Q4, it was flattish on an easier comparison. So just rationale for that in Q4. And then Barbara, as we look to fiscal '26, it was helpful to get that color on total ARR growth. I guess the question would be on that, starting kind of flattish, I think if I backed out the retirement of the product you mentioned and needing to grow low single digits for the year as the comparisons get tougher throughout the year, what kind of gives you the confidence to come out here with that back-half tougher comparisons and with this ramp throughout the year? Thank you.

Question: Brian Essex - J.P. Morgan Securities LLC - Analyst : Hi, good afternoon. Thank you for taking the question. I was wondering if -- maybe sticking on the topic of ARR or net new ARR, how you're thinking about contribution from Lenovo. Are you starting to see some traction? Are they selling devices? I think you previously talked about maybe in the back half of the year, just wondering about visibility into that relationship and how that might impact how you're thinking about guide for the year.

Question: Gray Powell - BTIG, LLC - Analyst : Great. Thanks for taking the question. So maybe one for Barbara. You've been at SentinelOne a little over six months now. It's your first time owning the guide for the full year. Are there any material changes that you're making? Are you looking at any different KPIs? Or just any difference with regards to your guidance philosophy versus your predecessor?

Question: John DiFucci - Guggenheim Securities, LLC - Analyst : Thank you. So this quarter, forgetting even about the deception product and some attrition because of that, if I look at just new ARR and I take into account normal attrition, which I know is really small, it actually grew a little bit, which is I think about half of our companies actually showed growth in new ARR, only about half. And Barbara, thanks for all that color on the guide, which makes me think I might be able to answer this, but let me ask it anyway. You talked about the assumptions on the demand environment or the macro when you said about new normal. And so I'm thinking you're thinking, okay, the backdrop is consistent. But this implies your guidance that you expect SentinelOne to perform better against that backdrop, a little bit, not a ton. And I know you want to beat your number -- keep your goals or exceed them. So can you expand a little bit more, just a little more color as to why you think you're going to perform a little bit better this year than you did last year? And I'm thinking about new ARR. Thanks.

Question: Jonathan Ho - William Blair & Company, L.L.C. - Analyst : Hi. Good afternoon. Could you maybe give us a little bit of additional color in terms of your exposure on the federal government side and perhaps what you're seeing in terms of what your customers are saying or what your sales force is saying ther? Thank you.

Question: Shaul Eyal - TD Cowen - Analyst : Thank you. Hi, good afternoon. Tomer, I had a question on deception. What's driving that decision? And maybe some of deception capabilities from a product perspective are being displaced by some of the singularity AI-driven capabilities.

Question: Zach Schneider - Robert W. Baird & Co. Inc. - Analyst : Great. Hi. This is Zach Schneider on for Shrenik. Thanks for taking the question. So obviously, your emerging product portfolio is becoming an increasingly critical growth driver. And you highlighted data in AI as your fastest-growing solution. But maybe are there any specific solutions that stand out in terms of adoption velocity, cross sell success? Have there been any surprises either outperformers that are scaling faster than expected or areas where traction has been slower than anticipated? Would love to just get a sense of what's working best and where there's still white space to accelerate adoption. Thanks.

Question: Rudy Kessinger - D.A. Davidson & Co. - Analyst : Hey, guys. Thanks for taking my questions. I'm curious if you look at the second half of this year and net new ARR, obviously, improved quite a bit from the first half. But if you were to maybe strip out some of the benefit from the displacements from CrowdStrike that were specifically due to the outage that would have otherwise likely not have occurred, what would that second half net new ARR growth have looked like?

Question: Tal Liani - BofA Global Research - Analyst : Hi, guys. I wanted to just understand the guidance. So your guidance is about $7 million, $8 million below the consensus and $20 million for the year. Guidance for the next quarter is [7,8] or below. And part of it is because of deception, part of it is -- I'm trying to understand. So can you quantify the deception -- first of all, the deception impact on the guidance on the revenues, not on the ARR? And then second, what are the good things and the bad things that drove you to kind of guide slightly below the Street. Because your message is very strong, and I can see the numbers in the historicals, but the numbers are slightly weaker. Thanks.

Question: Tal Liani - BofA Global Research - Analyst : Got it. So the rest of it -- the rest of the guidance like the slight weakness versus the Street, is there anything you want to highlight why you're guiding below the Street? The growth rate is decelerating from last year, so what's the source of acceleration?

Question: Eric Heath - KeyBanc Capital Markets - Analyst : Hey. Thanks for taking the question. Maybe just one housekeeping one. Just wanted to clarify deception and the decision to end of life that was factored in the guidance as of last quarter. And then, Tomer, the question I wanted to ask is on pricing. You called out some adjustments to pricing. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 8:30PM, S.N - Q4 2025 SentinelOne Inc Earnings Call So just curious if you could elaborate a little bit more about what that means and if it's some sort of credit model that we're seeing a lot of vendors do to enable more adoption of more modules across the platform. Thanks.

Question: Trevor Walsh - Citizens JMP Securities, LLC - Analyst : Great. Thanks for taking the questions. Tomer and team, appreciate the new kind of disclosures around a module or solutionary adoption that you overlaid across the seven. It's great to see. Just curious if that's just more reporting for us here on this call or if you kind of aligned the more solution selling kind of orientation for the sales team and what playbooks you're maybe kind of running around, grouping those together. And then kind of on related lines, one of your peers/competitors kind of has about within cloud security, things moving more towards detection response, SIEM -- SOC taking over more of, I guess, like that whole kind of piece of the pie, and that benefiting them and others like you have maybe

Question: Andrew Nowinski - Wells Fargo Securities, LLC - Analyst : Thank you for squeezing me in. Just maybe two quick housekeeping questions. First, did the deception products have an impact on the decline in your NRR when it went down to 110 this quarter? And then second, you gave the cloud and data analytics ARR of 170 back in Q2. And given that it's a high priority for your investments, I'm just wondering if you could break those two out again in Q4 here or perhaps tell us how much you expect them to contribute to that $200 million in net new ARR for FY26. Thank you.