SentinelOne Inc at Goldman Sachs Communacopia & Technology Conference Transcript

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

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Tomer, we started to have a little more of an architectural discussion on the earnings call, and you highlighted a couple of things, including the embedded AI models that you embed into the agent that allow them to work a little bit more independently than some of your competition. So tell us a little bit more about where are your technical advantages with the embedded AI model, and is there a trade-off with the [lightweightness] of the agent? How do you think about the trade-off between putting more content in the agent versus having a lighter-weight agent?

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Could you explain a little bit more on why you don't need kernel access in Linux to work effectively? And where do you think Microsoft goes from it? What are some of the ways that they can balance the need for security products to be able to operate effectively with kernel access?

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : And there's a simplistic way of thinking about the power between the cloud environment when it comes to accessing the kernel space, and more specifically, not accessing it and what you do in Linux environment. Maybe expand on that a little bit. How does what you offer in the cloud compare technically to what you would typically offer on a classic on-premise implementation of endpoint with Linux, for example?

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : So we'll spend a few minutes here on the technology strength. We know in security that it's not enough just to have a good technology. You also need to have a strong supporting go-to-market. So talk to us a little bit about how you fortify your go-to-market, especially in the context of some of your competitors spending significantly more on [different] market assets than SentinelOne has?

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Well, let me pick up on the comment you made about customers being a little more eyes wide open or a little bit more aware. How have your conversations trended just in the past five weeks? Any specific color you can give us? And what advice are you giving your sales team as part of those engagements?

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : That was my next question.

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : I want to ask you about the upsell dynamic and end point separately from the cross-sell dynamic that you touched on with the emerging products. On the upsell, in Linux security, it's very common to see dual sourcing between multiple kernel vendors. Level set us, what is normal in endpoint? And do you think the industry structurally moves to more of a dual sourcing or multi-sourcing paradigm because of this idea of resilience?

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Let me pick up on the emerging products piece of the story. So you're already landing cloud footprints next to competitor endpoint footprint before July 19. How is the opportunity evolving in cloud, particularly as there's a little bit of a question mark. If I standardize on AWS, well, perhaps I can buy more of my security from the AWS security offerings. So how do you think about what a good cloud opportunity or what the cloud opportunity looks like for SentinelOne?

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Perhaps we'll use Azure as the benchmark.

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Fantastic. Any question in the audience? Just go for it. Unidentified Participant Yes, so Tomer, I mean, I've known about your kernel for a long time. I mean, Rick Bosworth writes about it. [He wrote a lot of] great stuff about it. So if anybody needs to read up on that content (inaudible). I do have two questions for you. The first question is, I've always believed you guys have a better product, I've been a shareholder for a long time but been somewhat disappointed with both stock price and the go-to-market.

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Tomer, maybe just a little context around the CFO announcement from this morning.

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : What were the one or two leadership qualities that stood out to you about her as you got to know her over the last several weeks and months?

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Excellent. Please join me in thanking Tomer for his time. Tomer, thank you very much.