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Apr 30, 2024

SentinelOne Q1 2025 Earnings Report

Reported revenue growth of 40% and ARR growth of 35%, marking its first quarter of positive free cash flow.

Key Takeaways

SentinelOne announced strong financial results for the first quarter of fiscal year 2025, with revenue increasing by 40% year-over-year and ARR growing by 35%. The company also achieved its first quarter of positive free cash flow, demonstrating significant progress in its growth journey.

Total revenue increased 40% to $186.4 million.

ARR increased 35% to $762 million.

Customers with ARR of $100,000 or more grew 30% to 1,193.

Free cash flow margin was 18%, a 42 percentage point increase compared to the previous year.

Total Revenue
$186M
Previous year: $133M
+39.7%
EPS
-$0.01
Previous year: -$0.15
-93.3%
Annualized Recurring Revenue
$762M
Previous year: $564M
+35.2%
Customers Over $100K ARR
1.19K
Previous year: 917
+30.1%
Gross Profit
$136M
Previous year: $90.8M
+50.0%
Cash and Equivalents
$199M
Previous year: $150M
+32.4%
Free Cash Flow
$33.8M
Previous year: -$28.5M
-218.4%
Total Assets
$2.31B
Previous year: $2.21B
+4.4%

SentinelOne

SentinelOne

Forward Guidance

The company provided revenue guidance for the second quarter of fiscal year 2025 of $197 million and full fiscal year 2025 revenue guidance of $808 - 815 million. Non-GAAP gross margin is expected to be 79% for Q2FY25 and 78-79% for full FY2025. Non-GAAP operating margin is expected to be (6)% for Q2FY25 and between (6)% and (2)% for full FY2025.

Positive Outlook

  • Revenue guidance for Q2FY25 is $197 million.
  • Full FY2025 revenue guidance is $808 - 815 million.
  • Non-GAAP gross margin guidance for Q2FY25 is 79%.
  • Non-GAAP gross margin guidance for full FY2025 is 78 - 79%.
  • Non-GAAP operating margin guidance for Q2FY25 is (6)%.

Challenges Ahead

  • Non-GAAP operating margin guidance for full FY2025 is (6)-(2)%.
  • Actual results may differ materially due to various factors.
  • Guidance excludes certain items like stock-based compensation expense.
  • Comparable GAAP measures are not provided due to unpredictability of certain items.
  • Forward-looking statements are subject to risks and uncertainties.