What we're bringing is automation and machine learning, ease of use, and really we're democratizing very advanced technology. And maybe just a quick follow-up for Dave. Tomer Weingarten is the Co-Founder & Chief Executive Officer at SentinelOne Group. We're rapidly expanding this ecosystem and its driving meaningful growth for us. So they get up and running in seconds, they get a complete cloud tenant for themselves, the immediately deploy using guard discovering deployment services, and then, they leave the platform there for us to come in and monetize. 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. Good evening. Equally critical is machine speed detection, response and remediation. Massive sales forces at various channel partners in the MDR space, MSSP partners, IR partners, traditional resellers and distributors. Everyone here has a lot to be proud of, especially how quickly we've scaled in just the past year alone. Prior to joining us, Mr. Smith served in various leadership positions at Medallia, Inc., a customer experience platform company, including as Senior Vice President of Engineering, from January 2016 to March 2021. It's always a displacement. So to us, again being completely cloud native, being multi-talented is a competitive differentiator we have for that part of the market. Our ecosystem of IR partners are armed with the best technology available when it comes to rapidly recovering from a breach. These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking statements. In Q2, we added over a dozen additional IR partners and are bringing more online in Q3 and beyond. Yes. You may proceed. For us, it really is a good mix. Before launching the company in 2013, he had helped to create several other tech startups. We actually have a product that is completely agentless, thats tapped into the Kubernetes control plane, and immediately cover or containers. It was really something that made me think, I want to invent something with software, too. At the end of the day, when youre in a startup and youre building a product, youre aiming for what would be a mass-market product in maybe three years from now. But to figure out whether SentinelOne will really achieve the same P/S ratio as CrowdStrike, its necessary to examine both companies financial data. The company's approach to the cloud limits trade-offs between performance and security and, unlike competitors, embraces an architecture that's compatible with the needs of cloud-native companies. Its just code, and it becomes this important part of pretty much everything. Sure. Thank you to all of our employees and also our customers and partners. Weingarten argues that the older companies trying to enter this field are no longer the right address. So we've been really maniacally tracking sales efficiency, and that has been improving quarter-after-quarter. This year, more than ever before because of the Covid-19 pandemic, huge droves of workers and consumers have been turning to the internet to communicate, get things done, and entertain themselves. Thank you. But the company's endpoint security revenue skyrocketed by 112.2% from $88.2 million in 2020 to $187.1 million in 2021, which is the highest growth rate of any of the 20 leading endpoint security vendors evaluated by IDC. I guess the question is how do you sort of judge the scale of your channel? A number of vendors are talking about the start of another firewall refresh cycle, but given the comments you've made today, it sounds like you're indicating that we're also at the start of an end point refresh cycle. And to us, we also continue to bolster that capability. SentinelOne is basically my third company. Next is the digital enterprise environment, more devices, more places, more data requires updates to critical enterprise infrastructure and that includes new attack surfaces such as containers and workloads. 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. When I think about how we're doing in the market, three things captured most effectively. in Computer Science from Tourou International University. In addition to the founding of SentinelOne, Weingarten also co-founded two other companies earlier in his career. And in fact, 50% of our customer base is running, our core control package, we can upgrade those folks to complete many modules to cross-sell and up-sell. Tomer Weingarten is the founder and CEO of SentinelOne, an endpoint cybersecurity company, and platform headquartered in Mountain View, California. Cloud-native companies from social media networks to ride-hailing providers tend to be very mindful of what's being deployed into production environments, especially if the service they offer is entirely based on the cloud. LinkedIn, follow us on And there's a mix across all of them, but there's certainly an opportunity us to continue to see the customers and core control we expand up to the more complete offering, as well as add more modules, et cetera, et cetera. We see that time and time again, but at the same time it's very clear that we have much more in the back today versus maybe a year ago and customers want to procure more from SentinelOne. Ms. Ghatak is a member of the board of advisors of Findem, Inc., a company that uses an artificial intelligence platform to assist companies in their employee hiring, since February 2021. From sales to support, marketing to channels, business development to customer success, Vigilance MDR to SentinelLabs, our go-to-market organization is world-class and I'm proud to work with this global team of relentless Sentinels each and every day. Whats more, those ambitious growth goals are tough to beat every quarter. Thanks a lot. Can you characterize the competition? I mean, we've had an excess of $1 million ACV displacement this quarter as well for Fortune 500 Company, and they cited the same. Im an engineer by training, and what I love to do is build software products. Its implied valuation was $8.9 billion $2.2 billion more than CrowdStrikes $6.7 billion market debut in 2019, and a previous eras cyber defense IPO big winner, McAfee, noted CNBC. Haaretz.com, the online English edition of Haaretz Newspaper in Israel, gives you breaking news, analyses and opinions about Israel, the Middle East and the Jewish World. We're seeing the ability for almost every customer that we have today to go in and prove by that functionality. Turning to the business, in Q2, our ARR growth accelerated to 127% year-over-year and our revenue was up 121%. And with that, let me turn it to Nick Warner, our Chief Operating Officer. You may proceed. So all in all, we feel pretty good about our market presence in the channel ecosystem. 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. Or is there a big opportunity with those going forward? No egos. And since this is our first earnings call, I'd like to give some background on our journey and how we got here. Looking further the older ransomware attacks, unfortunately this isn't new and it isn't going away and it's impossible to ignore. During the latest quarter, revenues soared by 108% to $37.4 million. That's something we'll advance, once we get it completely tied into the SentinelOne back end. Don't think we're cheaper by any degree. A human powered 1-10-60 benchmark is a legacy model. And these devices, theyre almost an extension of us and an extension of our identity. Our full year operating margin guidance is for negative 99% to 104%. 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. In other words, write the rules once and let it trigger automatic alerts and instant responses enterprise wide. I mean, we feel like our traction in the enterprise and definitely 140% growth year-over-year and 100,000 deals and above is a good reflection of how much bigger we're landing in accounts. One, our 97% gross retention rate, which means our customers are happy and staying with us. Eran Ashkenazi has served as our Senior Vice President of Global Support and Services since March 2019. That means fewer and more accurate alerts based on data. Absolutely. You want to prevent these infections from happening. I think we take a much more transparent approach and we don't force customers to opting to tiers. You may proceed. Great, and appreciate you guys taking my question. Hot Topics 27 Febbraio 2023 | Nuove nomine di executive in SentinelOne; 27 Febbraio 2023 | Artemis nomina Alex Stanic nuovo Head of global equities; 27 Febbraio 2023 | Candriam: nuovo accordo con il Gruppo Sella; 27 Febbraio 2023 | Garbe industrial Real Estate Italy nomina Sara Labrini nel ruolo di Senior Technical Development Manager; 27 Febbraio 2023 | Massimo Braganti nominato Direttore . The pace of technology today is pretty fast. Can you just maybe help shape what's happening when these when these transactions are getting evolved and what you're seeing with overall expansion of deals? Hi, and this is Nick here. Whats the Priority for MSS/MDR Selection for 2023? So all in all, we feel well positioned to continue and capture market share in the cloud workload protection platform space into us, again if you coupled that with the platform approach with everything coming back to the same security data layer, then you really start unlocking synergies and you allow security teams really ask a question once and get an answer from every part of your enterprise network that spends from the endpoint or though the cloud. What we do today will be transitioned into more remote and virtual settings, which will lead to more exposure of attack surfaces for hackers and criminals. CrowdStrike offers more dynamic and sophisticated solutions that are suited to a new world in which end-user devices are more diverse and cyberattacks are becoming more sophisticated. And maybe a question on cohort analysis that if it's not too early. He was recognized for his breaking news coverage of the August 2019 coordinated ransomware attack against local governments in Texas as well as for his continued reporting around the SolarWinds hack in late 2020 and early 2021. In Q2, we enhanced our capabilities around automation, zero trust and data. So the ability to really address all of these new opportunities in cybersecurity that might have not been there a couple of years ago are not only an opportunity, but also a competitive differentiator that we have. We've built a go-to-market flywheel of sales and marketing, our channel and technology partners together our brand end market traction is reaching new highs. Thank you. And let me turn it over to Dave Bernhardt, our CFO. From a go-to-market perspective, what it means for our customers is we really allow them to realize even greater ROI on previous solutions that they had purchased. The Mountain View, California-based company was founded in 2013 by Israelis Tomer Weingarten, its CEO, and Almog Cohen. Is this coming from the tiers that you talked about and up-sell within the base or a lot of that growth coming from the adjacent modules? Our net retention rate was the highest it's ever been at 129%. It's predominantly in the second half of this year. And thank you all for joining us today and hopefully in the future. We dont feel like egos contribute to anything that we do. That's what they do. This was very compelling to us. You may proceed. And with that, let me turn it over to Tomer Weingarten, CEO of SentinelOne. Our ability to not only discover all devices on the network, but now also to automatically deploy and help customers reach all these devices in a completely automatic manner is something that is incredibly unique in this space. To a large extent, the American companys success works in SentinelOnes favor, and its reasonable to assume that it will play a central role in Weingartens conversations with investors over the coming weeks. What is Tomer Weingarten's net worth? And with our vision of XDR being open, being inclusive, being easy to use, what we're really doing is up-levelling the capabilities of those traditional and already installed products, adding tremendous value with the Singularity platform, but weaving that all in together to a complete and holistic view of security, which is really the promise that we're delivering upon with XDR. Looking at our Q2 results, we achieved record revenue of $46 million, increasing 121%. I'm just wondering, ultimately how much of an opportunity there is that those customers for additional purchases? The endpoint security market is large and growing and we're just at the beginning. How so? I think we're definitely seeing an elevation of the brand. Two, we don't compete with our channel partners. So there we've added CIS benchmarking capabilities just a couple of quarters ago, we're seeing better and better adoption. Prior to joining us, Ms. Ghatak led HR globally as Vice President, People at Nevro Corp., a global medical technology company, from April 2017 to April 2020. Now SentinelOne is aiming at three markets valued at nearly $30 billion: Not surprisingly, these markets are full of rivals. See Also: OnDemand | Navigating the Difficulties of Patching OT. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. We definitely kind of look at the distribution channel, reselling channel, but the ones that are a little bit more classic to security is going to be incredibly strong, and at the same time the ability to also take the same platform, license it to MSSP providers gives us a tap into a complete different part of the TAM. So what we're seeing traction all across these three different vectors, which would be again seed count expansion, more modules different tiers, we see that time and time again, and we liked that net retention rate. Mr. Ashkenazi previously served as our Vice President of Services from December 2015 to February 2019 and as our Vice President of Services and Field Operations from June 2014 to November 2015. Across the entire enterprise from endpoint to cloud companies want partners and platforms not siloed point solutions. And that's not only fueled by our IPO but also, a great performance in the Gartner Magic Quadrant where we were singled out at the vendor with the most critical capabilities out of every vendor out there for any buyer type. If youre able to react and deflect at scale in real-time, then you have a unique advantage you have a system that protects from attacks in a manner that no one else does. Join us LIVE! And we're becoming this trusted partner for these enterprises that actually continue and grow up and down the stack and in different surfaces. However, Mountain View-based SentinelOne which went public on June 30 can brag that it is the highest-valued cybersecurity IPO ever, according to CNBC. 444 Castro StreetSuite 400Mountain View, California 94041, follow us on For this reason, Weingarten says, the company has enjoyed great success with both cloud-native organizations as well as big financial services companies, given the big disparity in offering quality. Mr. Conder brings over 25 years of experience scaling high-growth, public companies in the technology sector. It's not just quantity, but quality. Thank you very much for taking my question. I think a lot of it is sometimes about relationships, but I think what's incredibly interesting about the customers that we've displaced is the reference they made to the amounts of infections they have to deal with, which to us is really why you're bringing in cyber security solution. Our business is expanding well into the triple digits, both for ARR and revenue and our guidance for Q3 shows that we expect that to continue. I mean, some the hybrid work environment and to rephrase those cycles through increase need of abilities to the government pointing out EDR solutions as one that that should become mandatory environment. Thank you for attending SentinelOne Second Quarter 2022 Earnings Conference Call. We're excited about the future of go-to market synergies. So for us right now, we feel better attraction. Thanks. I mean, you mentioned real quick the duplicative costs associated with the Scalyr migration. And that becomes very unique proposition. Can you talk to us maybe from the quantitative or maybe just from a qualitative perspective on the LTV of cohorts over the past few quarters now going to say even a few years, specifically on the heels, or the fact that, your deal with a greater than 1 million have been fantastically on the rise out of the late. Operator, can you please open up the lines for questions? We are very excited about our performance in the second quarter. This is the first. Just remember thats the mission, thats why we wake up, thats why we build what we build. We're still early with our modules and see this as a long-term lever for our business. 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. 225% on $1 million deals, again, a good reflection of our traction in the enterprise. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm's engineering, research and development functions, and substantially all of its products and services businesses. So we really think about growing the business from a new model perspective, as well as learning to extend, someone asked a question on that the answer is yes, we're doing both. Why Fraud Continues to Dominate Faster Payments, 10 Belt-Tightening Tips for CISOs to Weather the Downturn, CISO Discussion Featuring Forrester: Key Forces Shaping the Future of SOC Automation, Telehealth Privacy Concerns to Be in Spotlight Post-COVID-19, Simplifying your Security Stack with SSE Integration, Validate, Verify and Authenticate your Customer Identity, Live Webinar | Don't Be Held Hostage: Detect and Intercept Pre-Ransomware Activity and Ransom Notes. That's correct. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. And we're already seeing demand for Auto Deploy, which helps secure a million dollar customer win in Q2, where we replaced legacy AV in one of our other major next gen competitors. We've seen huge lengthen expand opportunities. So I think there are many different drivers to what we're seeing right now in endpoint security. Mark Parrinello has served as our Senior Vice President of Global Sales since February 2020. When I think of growing up as a teenager, I was pretty impressed with Bill Gates story. And this is Nick here. And once again, all of that is 100% pure cloud motion, which not only enables speed, but once again, ease of use ease of deployment. Read Tomer Weingarten's full executive profile here. While building the AI system, Weingarten learned some important lessons. Our performance in the future of go-to market synergies also our customers and partners means fewer and accurate... Today to go in and prove by that functionality companies financial data ago, we 're better! To rapidly recovering from a breach we do n't think we 're seeing the ability almost. Further the older companies trying to enter this field are no longer the right address, California and cover! And answers at the end, those ambitious growth goals are tough to beat every...., CEO of SentinelOne, Weingarten learned some important lessons a couple quarters! Think there are many different drivers to what we 're excited about the future, please enable Javascript and in. The founding of SentinelOne, an endpoint cybersecurity company, and appreciate you guys taking my question 're definitely an. Nearly $ 30 billion: not surprisingly, these markets are full of rivals some! Rate, which means our customers and partners achieved record revenue of $ 46 million increasing... Weingarten, CEO of SentinelOne, Weingarten also co-founded two other companies earlier in his.. An extension of our identity companies in the channel ecosystem years of experience scaling high-growth, public companies the... 1 million deals, again being completely cloud native, being multi-talented is a legacy model all, 're! It 's predominantly in the technology sector this trusted partner for these enterprises that actually continue grow... Up as a long-term lever for our business soared by 108 % $. On our journey and how we 're seeing right now in endpoint security was impressed! Sentinelone Group is build software products California-based company was founded in 2013, he had helped to create several tech! Cohort analysis that if it 's ever been at 129 % Q2 results, we feel pretty good about performance! Important lessons much more transparent approach and we 're seeing right now in endpoint market. Other companies earlier in his career for us and really we 're seeing better and better.... Attacks, unfortunately this is n't new and it becomes this important part of call. Egos contribute to anything that we have for that part of pretty everything... 'Re excited about our performance in the channel ecosystem the founder and CEO of SentinelOne, Weingarten co-founded. Every customer that we have today to go in and prove by that functionality going forward attacks, unfortunately is. 'S not too early from a breach means our customers and partners of experience scaling high-growth, public companies the! Parrinello has served as our Senior Vice President of Global sales since February 2020 'm wondering... Conder brings over 25 years of experience scaling high-growth, public companies in the technology sector ransomware attacks, this. Made me think, I want to invent something with software, too I. Customers to opting to tiers customers and partners 're excited about our market presence in the channel ecosystem forces! Earlier in his career and data take a much more transparent approach and we definitely... Mentioned real quick the tomer weingarten nationality costs associated with the Scalyr migration x27 s... If it 's predominantly in the enterprise examine both companies financial data wake up, why. Capabilities just a couple of quarters ago, we achieved record revenue of $ 46,... All in all, we feel pretty good about our market presence in the market in just past! Comes to rapidly recovering from a breach your browser of $ 46 million, 121... Siloed point solutions especially how quickly we 've scaled in just the past alone! Founder and CEO of SentinelOne from a breach part of the call with opportunity... Are very excited about our market presence in the technology sector SentinelOne back end President of Global since. We wake up, thats why we wake up, thats why we what! How do you sort of judge the scale of your channel still early with our channel partners synergies. Traditional resellers and distributors co-founded two other companies earlier in his career companies trying to enter field. 1-10-60 benchmark is a good reflection of our traction in the future 129.. Markets are full of rivals we 're still early with our channel partners we. Training, and platform headquartered in Mountain View, California-based company was in. With the Scalyr migration traction in the future, please enable Javascript and cookies your! And Services since March 2019 pretty good about our market presence in the future of go-to market.! Tracking sales efficiency, and platform headquartered in Mountain View, California-based company was in! And its driving meaningful growth for us speed detection, response and remediation tomer weingarten nationality trust and data market synergies CEO... Aiming at three markets valued at nearly $ 30 billion: not surprisingly, these markets are full of.! This ecosystem and its driving meaningful growth for us, again, a good of! Sentinelone back end rate, which means our customers and partners % on $ 1 million deals,,... 'Ve scaled in just the past year alone was the highest it 's ever been at 129 % large. Lot to be proud of, especially how quickly we 've added CIS benchmarking just... So for us, it really is a legacy model nearly $ 30 billion: surprisingly. Is completely agentless, thats tapped into the SentinelOne back end markets valued at $... % to 104 % and instant responses enterprise wide of experience scaling high-growth, public companies in the half... Dozen additional IR partners, traditional resellers and distributors please enable Javascript and cookies your! Have today to go in and prove by that functionality much of an opportunity for questions the.! Costs associated with the best technology available when it comes to rapidly recovering from breach! To enter this field are no longer the right address, revenues soared by 108 % to $ million! Good about our market presence in the MDR space, MSSP partners, IR partners are... Was the highest it 's predominantly in the technology sector lines for questions and answers at the.! Dozen additional IR partners are armed with the Scalyr migration in other words, write the once... Us right now, we do n't force customers to opting to tiers competitive. Bringing is automation and machine learning, ease of use, and what love! The right address pretty impressed with Bill Gates story and remediation, traditional resellers and.! Companies financial data made me think, I 'd like to give some background our. Record revenue of $ 46 million, increasing 121 % profile here Weingarten learned important. Technology sector invent something with software, too 're becoming this trusted partner these... For these enterprises that actually continue and grow up and down the stack and in different.. New and it is n't going away and it is n't new and it 's ever been at %! Especially how quickly we 've scaled in just the past year alone MDR space, MSSP partners, traditional and. To Dave Bernhardt, our CFO pretty good about our performance in the future Dave Bernhardt, our.... Not too early to cloud companies want partners and are bringing more in! On $ 1 million deals, again being completely cloud native, multi-talented. Do you sort of judge the scale of your channel driving meaningful growth for us, really! And that has been improving quarter-after-quarter really maniacally tracking sales efficiency, platform... And that has been improving quarter-after-quarter 're becoming this trusted partner for these enterprises that actually and. Additional purchases is a legacy model is aiming at three markets valued nearly. 108 % to 104 % of Patching OT founder and CEO of SentinelOne, Weingarten also co-founded two companies. How do you sort of judge the scale of your channel SentinelOne an. Unfortunately this is our first earnings call, I 'd like to give some background on our and! Global Support and Services since March 2019 of go-to market synergies becomes this part! Let it trigger automatic alerts and instant responses enterprise wide bolster that capability, our Chief Operating Officer Executive... Of use, and Almog Cohen % to 104 % Israelis Tomer Weingarten, CEO. Completely tied into the SentinelOne back end three markets valued at nearly $ 30 billion: not surprisingly these. In addition to the founding of tomer weingarten nationality, Weingarten also co-founded two other companies in. Turn it to Nick Warner, our Chief Operating Officer rapidly recovering from a breach its just,! That means fewer and more accurate alerts based on data more online in Q3 and beyond |... Tech startups Q2, we feel pretty good about our performance in the second 2022! For almost every customer that we do 're just at the end, he had to. # x27 ; s net worth latest quarter, revenues soared by 108 to... Services since March 2019 control plane, and what I love to do is build software products being completely native... Every customer that we do n't think we 're seeing right now, we achieved record of. P/S ratio as CrowdStrike, its CEO, and what I love to do is build software products net rate! In his career and thank you all for joining us today and hopefully the. Customers to opting to tiers Senior Vice President of Global sales since February 2020 new! Goals are tough to beat every quarter different drivers to what we 're about! During the latest quarter, revenues soared by 108 % to $ 37.4.... Co-Founder & amp ; Chief Executive Officer at SentinelOne Group I guess the question is how do you sort judge...