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Oct 31, 2024

SentinelOne Q3 2025 Earnings Report

Reported strong execution and business momentum, exceeding topline growth expectations and re-accelerating new business growth.

Key Takeaways

SentinelOne announced its Q3 FY2025 financial results, demonstrating strong execution and business momentum. The company exceeded topline growth expectations and re-accelerated new business growth, achieving a 28% increase in total revenue and a 29% increase in ARR. For the first time, they delivered positive free cash flow on a trailing-twelve-month basis.

Total revenue increased 28% year-over-year to $210.6 million.

ARR increased 29% year-over-year to $859.7 million as of October 31, 2024.

Customers with ARR of $100,000 or more grew 24% year-over-year to 1,310 as of October 31, 2024.

GAAP gross margin was 75%, and non-GAAP gross margin was 80%.

Total Revenue
$211M
Previous year: $164M
+28.3%
EPS
-$0.21
Previous year: -$0.03
+600.0%
Annualized Recurring Revenue
$860M
Previous year: $664M
+29.5%
Customers Over $100K ARR
1.31K
Previous year: 1.06K
+23.6%
Gross Profit
$157M
Previous year: $120M
+30.7%
Cash and Equivalents
$236M
Previous year: $127M
+85.1%
Free Cash Flow
-$12.7M
Previous year: -$26.4M
-52.0%
Total Assets
$2.37B
Previous year: $2.2B
+7.8%

SentinelOne

SentinelOne

Forward Guidance

For Q4 2025, SentinelOne expects revenue of $222 million, a non-GAAP gross margin of 79%, and a non-GAAP operating margin of -3%. For the full fiscal year 2025, they anticipate revenue of $818 million, a non-GAAP gross margin of 79%, and a non-GAAP operating margin of -4%.

Positive Outlook

  • Revenue guidance of $222 million for Q4 FY25.
  • Full year revenue guidance of $818 million for FY25.
  • Non-GAAP gross margin guidance of 79% for Q4 FY25.
  • Non-GAAP gross margin guidance of 79% for full year FY25.
  • Non-GAAP operating margin guidance of -3% for Q4 FY25.

Challenges Ahead

  • Non-GAAP operating margin guidance of -3% for Q4 FY25.
  • Non-GAAP operating margin guidance of -4% for full year FY25.
  • Forward-looking statements are subject to many factors that could cause actual results to differ materially.
  • Guidance excludes stock-based compensation expense and other items.
  • A reconciliation of non-GAAP gross margin and non-GAAP operating margin is not available without unreasonable effort.