SentinelOne Q3 2023 Earnings Report
Key Takeaways
SentinelOne announced strong financial results for the third quarter of fiscal year 2023, with revenue increasing by 106% year-over-year and ARR also up by 106% year-over-year. The company's customer base grew, and it maintained a strong gross margin. SentinelOne is focused on enhancing productivity and continuing to take market share in a dynamic environment.
Total revenue increased 106% to $115.3 million, compared to $56.0 million.
Annualized recurring revenue (ARR) increased 106% to $487.4 million as of October 31, 2022.
Total customer count grew about 55% to over 9,250 customers as of October 31, 2022.
Customers with ARR over $100,000 grew nearly 100% to 827 as of October 31, 2022.
SentinelOne
SentinelOne
Forward Guidance
The company provided guidance for the fourth quarter of fiscal year 2023 and full fiscal year 2023.
Positive Outlook
- Revenue Q4 is expected to be $125 million.
- Full year revenue is expected to be between $420-421 million.
- Non-GAAP gross margin Q4 is expected to be 72%.
- Full year non-GAAP gross margin is expected to be 71.0-71.5%.
- Full year Non-GAAP operating margin (51)-(50)%.
Challenges Ahead
- Q4 Non-GAAP operating margin is expected to be (39)%.
- These statements are forward-looking and actual results may differ materially as a result of many factors.
- Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets, and acquisition-related compensation costs.
- We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted.
- Accordingly, a reconciliation of non-GAAP gross margin and non-GAAP operating margin is not available without unreasonable effort.