SentinelOne Inc at Barclays Global Technology Conference Transcript

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

Question: Saket Kalia - Barclays - Analyst : Yeah. Absolutely. So Tomer, I mean a lot of us were on your Q3 earnings call last week, but maybe just to make sure we're all sort of on the same page, could you just maybe recap some of the highlights from the quarter that you were most proud of?

Question: Saket Kalia - Barclays - Analyst : Yeah. Absolutely, it showed. So it's funny, we were talking about the earnings call last week. But ever since the earnings call, a little bit of news out here from MITRE. I think it was yesterday, MITRE put out their enterprise sort of results if you will, in the endpoint space. And it was good to see that SentinelOne achieved strong results here, which I think has been the case in prior years as well. Could you just maybe highlight some of the key takeaways from that MITRE reported?

Question: Saket Kalia - Barclays - Analyst : Definitely speaks to the strength of the product over the years. Tomer, I want to start a little high level because I know you spend a lot of time with customers. And I just want to put the July 19 aside for a second, right? The question is, what do you hear from customers about their interest in endpoint right now? It's been interesting to see we do a couple of CIO surveys every year, and we ask about prioritization of different security areas. And endpoint consistently comes out -- up at the top. What do you think is driving that from based on your conversations with the customers?

Question: Saket Kalia - Barclays - Analyst : Yeah. No, listen, I think that's thoughtful. And I think that punctuates one of the things that you said on the last call, which is the outage is certainly one factor in helping SentinelOne gain share, but it's not the only factor. But maybe looking at that because I know we'll get the question, maybe looking at that event, I mean you just sounded great about sort of the pipeline. What have you seen about just around the size? And I think you've also talked about the quality of the pipeline. What have you seen around the size and quality of the pipeline compared to before the outage? How has that changed? Whether it's from CrowdStrike displacements or just opportunities from other non-CrowdStrike?

Question: Saket Kalia - Barclays - Analyst : Maybe just to put a bow on the salvage point, right? Because again, I just want to make sure all of these questions are asked, but how do we feel about the momentum going into Q4, given everything that you just said. Because Q4 for that competitor as well as a lot of other competitors, that ends up being a very heavy renewal quarter for them. I know that the displacement is one part of the pipeline, but those renewal opportunities are also great opportunities for you to take share. How is that playing into your view on Q4?

Question: Saket Kalia - Barclays - Analyst : And to your point, that was three or four quarters ago, well before the outage, right, when that foundation was laid?

Question: Saket Kalia - Barclays - Analyst : Absolutely. I want to -- that's a great segue into go to market, right? And I think one of the area that really enhances that go-to-market is this Lenovo partnership that you expanded, right? Can you just maybe walk through what the current partnership sort of looks like and how that announcement in October enhanced it?

Question: Saket Kalia - Barclays - Analyst : So super helpful framework there, Tom, right? And I just want to make sure -- I'm sorry, it's probably a dumb question, but why -- we asked this question of Barbara on the last call as well. Why is it -- why would a Lenovo shipment just be a benefit to revenue and not just ARR? Because if there's -- is there something around the deployment or anything? Maybe touch on that a little bit.

Question: Saket Kalia - Barclays - Analyst : Yeah. Very clear and very helpful. One of the areas that I want to touch on just that I think one of the most important topics that came out of OneCon is sort of the momentum around non endpoint solutions. We've talked so much about endpoint. That's obviously an accelerating business, but the non-endpoint solutions like Data Lake, like Purple AI, like cloud and identity, can you just remind us of the rough sizing of kind of that in aggregate? And maybe stack rank those in terms of opportunities for growth.

Question: Saket Kalia - Barclays - Analyst : Yeah, absolutely. So maybe I want to use that to pivot to some financial questions here, right? And I fully appreciate you've just got so much more product. There's a net revenue retention opportunity there in the base as well, right? So let's put all this stuff together. I mean you still have tailwinds from the outage. You've got all these seeds that you've planted in terms of go-to-market, let's see how Lenovo sort of goes. And we've kind of crossed the $1 billion -- yeah, you've crossed the $1 billion market in ARR. Not looking for guidance here, but how should we think about sort of the moving parts for ARR next year if you will?

Question: Saket Kalia - Barclays - Analyst : Yeah, it definitely feels that way. I mean, we've spent so much of the time just on growth and SentinelOne as a growth company, and that's why I wanted to focus there. But I also don't want to lose sight of the fact that we're on track to achieve positive free cash flow, I think, for the year. What are some of the drivers of that stronger free cash flow this year? And how do you kind of think about that growth trajectory going forward? I know that's a great question for Barbara to when we have her here next year at some point. But curious how you think about that?

Question: Saket Kalia - Barclays - Analyst : Spoken like a technologist. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2024 / 5:15PM, S.N - SentinelOne Inc at Barclays Global Technology Conference

Question: Saket Kalia - Barclays - Analyst : Yeah, absolutely. I want to ask a couple of last questions here. But any questions here from the audience before we move on? Unidentified Participant (inaudible - microphone inaccessible) is there a change in the go-to-market you might need to now make for that, because is it harder to predict when those land because the sales cycle may be longer or how are you handling that?

Question: Saket Kalia - Barclays - Analyst : Any other questions here? I've got one last one. So just going back to, I mean, just the technology focus here. And I mean we've spoken so much about the organic growth here, Tomer. How do you think about sort of inorganic growth down the road in terms of just opportunities to bolster the portfolio?

Question: Saket Kalia - Barclays - Analyst : Yeah. It feels like just heads-down execution and focus. I think that makes a ton of sense. Well, I couldn't think of a better way to end on that. Tomer Weingarten, thank you so much for the time. Really appreciate it.