SentinelOne Inc
NYSE:S
SentinelOne Inc
SentinelOne Inc., born out of the relentless drive for innovation in cybersecurity, has carved a niche by transforming how enterprises protect their digital assets. Founded in 2013, the company was established with the mission to revolutionize endpoint security through automation and machine learning. At its core, SentinelOne’s technology harnesses artificial intelligence to identify and neutralize threats in real-time, offering a proactive approach to endpoint protection. Unlike traditional antivirus software that relied on signature-based detection, SentinelOne’s platform intelligently predicts and prevents cyber threats by analyzing vast amounts of data across networks, making it a preferred choice for organizations aiming for comprehensive security.
The company's business model is largely subscription-based, with revenue generated from licensing its software-as-a-service (SaaS) platform. SentinelOne offers a tiered pricing structure, providing clients with the flexibility to choose packages tailored to their specific needs, whether it be advanced threat protection, endpoint detection and response, or extended detection and response capabilities. The growth of SentinelOne is bolstered by the increasing demand for robust cybersecurity solutions in a digitally transforming world, driving enterprises towards cloud-based defenses. Through continuous innovation and strategic acquisitions, the company strategically expands its capabilities, providing clients with a more comprehensive security ecosystem while securing a robust revenue stream from its esteemed clientele.
SentinelOne Inc., born out of the relentless drive for innovation in cybersecurity, has carved a niche by transforming how enterprises protect their digital assets. Founded in 2013, the company was established with the mission to revolutionize endpoint security through automation and machine learning. At its core, SentinelOne’s technology harnesses artificial intelligence to identify and neutralize threats in real-time, offering a proactive approach to endpoint protection. Unlike traditional antivirus software that relied on signature-based detection, SentinelOne’s platform intelligently predicts and prevents cyber threats by analyzing vast amounts of data across networks, making it a preferred choice for organizations aiming for comprehensive security.
The company's business model is largely subscription-based, with revenue generated from licensing its software-as-a-service (SaaS) platform. SentinelOne offers a tiered pricing structure, providing clients with the flexibility to choose packages tailored to their specific needs, whether it be advanced threat protection, endpoint detection and response, or extended detection and response capabilities. The growth of SentinelOne is bolstered by the increasing demand for robust cybersecurity solutions in a digitally transforming world, driving enterprises towards cloud-based defenses. Through continuous innovation and strategic acquisitions, the company strategically expands its capabilities, providing clients with a more comprehensive security ecosystem while securing a robust revenue stream from its esteemed clientele.
Revenue Beat: SentinelOne exceeded both top and bottom line expectations for Q3, with revenue growing 23% year-over-year to $259 million, beating guidance.
ARR Growth: Annual recurring revenue (ARR) grew 23% year-over-year with $54 million in net new ARR, setting a new record for ARR per customer.
Profitability Milestone: Company achieved a quarterly operating profit margin of 7% and a net income margin of 10%, both record highs, and is on track for its first full year of operating profit.
Strong Free Cash Flow: Free cash flow margin reached 6% in Q3, and full-year positive free cash flow is expected.
Emerging Products Momentum: Non-endpoint solutions made up about half of Q3 bookings, with strong growth in data, AI (Purple AI), and cloud security.
Raised Full-Year Guidance: FY '26 revenue guidance increased to $1.001 billion (22% YoY growth), and operating margin guidance improved to slightly over 3%.
M&A Activity: Acquisitions of Observo AI and Prompt Security completed; Observo provides end-to-end data pipeline capabilities, though financial contribution for FY '26 will be minimal.
CFO Transition: CFO Barbara Larson will step down in mid-January; Chief Growth Officer Barry Padgett named interim CFO. Leadership stressed that growth strategy and profitability focus remain unchanged.
