We equip them with industry-leading capabilities and in return we get tremendous market access and scale. I want to pause on that for a second. But even when it was back at Sentinel Ones level, it was growing faster, with revenue growth of 140 percent compared to the previous year. I have a few questions I want to speak about competition. And it's driving more adoption and driving more seat counts in all-in-all it drives the stability for customers who shift away from their incumbent vendor with ease. in Broadcast Journalism from Arizona State University. Not If We Focus on Cyber Resilience, Protecting the Hidden Layer in Neural Networks, Crime Blotter: Hackers Fail to Honor Promises to Delete Data, How the Economic Downturn Has Affected Security Funding, M&A. We go up against incumbent and next gen players all the time. SentinelOne prides itself on having fended off cyberattacks most notably the recent SUNBURST one [the malware that tricked systems into uploading it as an update to the SolarWinds Orion software] for all of its customers, he told me. So we're going to continue to look for areas where we can advance, what we need in terms of driving our product and our innovation. But also you can probably, probably see the same type of buying motion in the enterprise as well were conducting the DLC, deploying the platform is becoming easier and easier in all in the cloud delivered fashion. I think if you look at it, apples-to-apples you'll see that the prices are pretty much similar. The next question is from Saket Kalia with Barclays. 2021 Qualcomm Technologies, Inc. and/or its affiliated companies. Tomer co-founded SentinelOne in 2013. Nick, Tomer, thank you. Youre building something that protects everybodys data. 02:14. Generally, service companies are less profitable, because their revenue costs, meaning the amount it costs the company to produce the product or service it supplies, are higher. Wed, Jun 30 202111:06 AM EDT. That's because of vision, execution and listening to the needs of our customers. Looking at the rest of our P&L, we're investing for growth and it's clear that it's working, once again, reflected in our triple-digit top line growth rates. SentinelOne sits all the way down in 13th place in the worldwide corporate endpoint security space, with just 1.8% market share last year, according to IDC. So it's not only about protecting those attack surfaces, it's also about ease of deployment and simplicity of use. Thank you. Just on maybe a question for either Nick or Tomer, I wanted to dig into some of the partnership announcements you guys have made in recent months particularly with Zscaler and Cloudflare. The company focuses on cloud workload protection and bests its rivals when it comes to performance and deployment since it doesn't tap into the kernel or require an intrusive integration, Weingarten says. Massive sales forces at various channel partners in the MDR space, MSSP partners, IR partners, traditional resellers and distributors. Looking at our Q2 results, we achieved record revenue of $46 million, increasing 121%. As we spend more, we grow more. In 2023, once she's collected all the shares included in the package, she's . Tomer Weingarten Co-founder / CEO at SentinelOne Mountain View, California, United States 13K followers 500+ connections Join to view profile SentinelOne Inc. Reflected in our guidance is our plan to migrate existing customers to our Scalyr backend in Q3 and Q4. We spoke with Weingarten about endpoint security, SentinelOnes evolution, the future of cybersecurity, and much more. Thank you for attending SentinelOne Second Quarter 2022 Earnings Conference Call. You call that the success with tears in modules, wondering if you can talk about the impact of cloud workload protection? So there we've added CIS benchmarking capabilities just a couple of quarters ago, we're seeing better and better adoption. Weingarten served as the company's co-founder and CTO from May 2011 to May 2012. It's a big difference on what the others are doing in this space. And with that, let me turn it to Nick Warner, our Chief Operating Officer. It's two quick questions for you. I don't think we're cheaper than the competition. Thanks. 225% on $1 million deals, again, a good reflection of our traction in the enterprise. Weingarten said in the past that CrowdStrike relies more on providing services, whereas SentinelOne relies more on machine learning and automation. Great. You may proceed. So yes 37. Our new Auto Deploy capability tackles one of the oldest problems in enterprise IT, quickly deploying protection to unmanaged and sometimes unreachable assets with ease. Yes. Driven by the rising wave of ransomware attacks, breaches have become pervasive for businesses around the world. Additionally, we're also starting to see benefits from our renegotiated cloud hosting agreement, which we signed earlier this year to align with our expected growth. Weve seen a leap happening practically overnight with COVID-19 changing pretty much every working model that weve known. Whats the Priority for MSS/MDR Selection for 2023? We did this in two ways in Q2, tackling group IoT devices and expanding zero trust partnerships and enterprise can't protect what it can see, including IoT and unmanaged devices. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Youre building something that protects everybodys data. Tomer Weingarten. Based on the analysis from IDC, the spending is expected to reach $40.2 billion by 2024, which represents a compound annual growth rate of nearly 12%. Another player in this market is the Israeli firm SentinelOne. The firm has raised some $697 million to date, from investors including US . The dollar-based net retention rate: 124%. The offering was then priced at $35 and the amount raised came to about $1.2 billion. And it also want to know, enables these partners to basically deliver their services in a much more effective manner. SentinelOne wasn't among the top nine vendors for cloud workload security market share last year, market intelligence firm IDC found. It's actually all of the above and we definitely focus on basically providing the customer the choice, license counts naturally organically extend over time. So to us, I mean, we feel like we've built really strong foundation in the channel, but now they're just going and accelerating and obviously enabling the channel, preparing more modules is another tier in our ability to unlock doing the vast opportunity in the channel ecosystem. I think it is about becoming a more mature company.. He is responsible for the company's direction, products, and services strategy. You have to be an incredibly good listener and understand pain points before you propose solutions. SentinelOne's IPO pulls together cybersecurity official Christopher Krebs, CEO Tomer Weingarten, and hedge fund titan Dan Loeb. In 2019, Weingarten told me the company was enjoying300% growth year-on-year. Yesterday he said, We have grown at over 100% year over year for the last several quarters and in the first quarter annual recurring revenues were up 116%., SentinelOne views cash flow positivity and profitability as a long-term target, he told me. Qualcomm Ventures is the investment arm of Qualcomm Incorporated. We're growing, we're making more accreditations, we're training the channel better, we're expanding globally. One, our 97% gross retention rate, which means our customers are happy and staying with us. What type of capacity, you see going forward in terms of your ads for the next couple of quarters? SentinelOne is a platform that addresses almost every cybersecurity need that an enterprise would have. This means distilling a solution that would be battle-tested through time, something that serves your customers for years to come. Even for the engine peers, I mean, we're seeing a lot of their customers and we've had a multi-million dollar displacement this quarter for a customer that grew increasingly frustrated with the multiple infections with inefficiency on protecting server environments. SentinelOne has been growing at triple-digit rates but is slowing down. So all in all, I mean, they can actually choose what they want to procure from us, but again apples-to-apples, I think you'll see that prices are very, very similar. When I think of growing up as a teenager, I was pretty impressed with Bill Gates story. We're working on getting our largest customers over first, which is why you see the depth that we're expecting in the second half, but going forward, we think we should have a baseline of around where we're at right now, barring any other efficiencies we see on the product as we continue to advance it. on the topic: Ron Ross, computer scientist for the National Institute of Standards and In addition to his title as founder and CEO, Weingarten also serves as an investor and advisor to various companies. 5,169 executive movements have been recorded in the last 12 months. We've seen huge lengthen expand opportunities. "The rest of the competitors have just chosen an architecture that is not well received by a lot of the cloud-native companies that are looking to secure their cloud environments," Weingarten says. Please refer to the documents we file from time to time with the SEC in particular, our S-1 and our quarterly report on Form 10-Q. "It's going to be tough for other vendors to follow anytime soon," Weingarten says. Yet SentinelOne is doing pretty well. SentinelOne. I'm just wondering, ultimately how much of an opportunity there is that those customers for additional purchases? And these devices, theyre almost an extension of us and an extension of our identity. About seven years ago, my co-founder and I started looking at what type of solutions enable enterprises to figure out where the attack landscape is headed. Eran Ashkenazi has served as our Senior Vice President of Global Support and Services since March 2019. The only way to ensure safety and security is with zero trust. The Mountain View, California-based company was founded in 2013 by Israelis Tomer Weingarten, its CEO, and Almog Cohen. Our net retention rate was 129%, a new record for our company, fantastic execution from our sales and go-to market teams. Youre building for the benefit of the world at the end of the day. 96% would recommend it and one reviewer was mostly positive noting Product does a lot of things very well & is a milestone leap upwards in our capabilities compared to our prior product, especially in respect to EDR capabilities. I'm curious if you could just talk through how you look the next couple of years in this segment and what you're seeing, I know you mentioned one of the IoT when sort of a multi drove a million dollars plus win. in Economics from Delhi University in India and an M.A. CrowdStrike is in an entirely different league, with expected revenue growth of $1.3 billion. CEO Tomer Weingarten told Insider that the company is now eyeing acquisitions to grow its products. Very helpful. Any forward-looking statements made during this call are being made as of today. Ultimately, when you examine the numbers behind SentinelOnes operating structure, you can see that the company is less efficient and will continue to be so in the future, to the detriment of shareholders. The company raised close to $700 million over eight rounds of funding. Identity protection, XDR, data analytics and cloud security have been SentinelOne's biggest areas of investment during 2022, according to co-founder and CEO Tomer Weingarten. Our customers choose us as their cybersecurity partner and we take the responsibility and trust seriously. But I wanted to go into a slightly different angle on the cloud architecture that you bring. Its Singularity Platform incorporates AI into an extended detection and response (XDR) platform to enable autonomous cybersecurity defense, according to CNBC. And thank you all for joining us today and hopefully in the future. For us it's about technology. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Both of these are included in the shareholder letter with more detail as well. Excluding the redundant costs for the Scalyr migration, we estimate fiscal 2022 gross margin would be roughly similar to our gross margin we achieved this quarter. And that drives adoption as well. We also offer more than 10 modules that extend our platform value to more enterprise needs from IoT discovery and security to cloud and container workload protection. We started thinking about the right approach to building security for the future. You may proceed. LinkedIn, follow us on Founded in 2011, Carambola Media is a platform for publishing companies to generate additional revenue streams through content curation. Prior to joining ISMG, he spent four and a half years covering all the major cybersecurity vendors at CRN, with a focus on their programs and offerings for IT service providers. Im an engineer by training, and what I love to do is build software products. Cyber defense should be even more holistic. You want to prevent these infections from happening. I have a quick one, if I can squeeze in, if not I'll ask you privately. Good afternoon everyone and welcome to SentinelOne's earnings call for the second quarter of fiscal year 2022 ended July 31st. Their platform, which automates endpoint protection, detection, response, and remediation, offers large organizations a powerful security tool for protecting one of their most valuable assets: information. SentinelOnes figure (85 percent last year) was the highest of them all. LIVE Webinar | Cisco Duo and Umbrella are better together! Ms. Tomasello has over 20 years of experience in the accounting industry. The most surprising figure is SentinelOnes gross profit margin, which stood at 56 percent last four quarters. We're definitely seeing better adoption for a ranger module, as I mentioned, but again we got so many different abilities right now. We are [investing to] acquire new market share while improving unit economics by operating in a more efficient manner.. The secondary of focus is around zero trust. So sequential ARR grew $37 million bucks, if I'm not mistaken, just a kind of housekeeping items, I presumed Scalyr likewise in first quarter, right. While building the AI system, Weingarten learned some important lessons. But no one is showing them how - So that $10 million you pulled out of inorganic ARR fell in 1Q right? The next question is from Brian Essex with Goldman Sachs. With regard to revenues, SentinelOnes numbers are only slightly lower than CrowdStrikes were back when it was the same size. Cloud Security So all in all, I think, again, multiple factors come into play, the IPO shining a spotlight on all of them. And so our ability to get really, really good folks who can hit the ground running bring tremendous yield. AI cybersecurity provider SentinelOne files for $100M IPO, SentinelOne, an AI-based endpoint security firm, confirms $267M raise on a $3.1B valuation, SentinelOne raises $200M at a $1.1B valuation to expand its AI-based endpoint security platform. Over 20 years of experience in the future tomer weingarten nationality n't among the nine. Weve seen a leap happening practically overnight with COVID-19 changing pretty much every working model that weve.! An extended detection and response ( XDR ) platform to enable autonomous cybersecurity defense according... 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