Tomer Weingarten is our co-founder and has served as our Chief Executive Officer and a member of our board of directors since our inception in January 2013, as our President since November 2018, and as our Chairman of the Board of Directors since March 2021. [Operator Instructions] The first question is from the line of Hamza Fodderwala with Morgan Stanley. 2023 He adds that SentinelOne stacks up favorably against any other data analytics vendor when it comes to both cost and performance. These as non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. As we look at customer acquisition, typically who are you going up again? Our strong channel metrics are leading pipeline and traction indicators. Why Is AT&T Cybersecurity Such a Good Acquisition Target? 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. 2023 Information Security Media Group, Corp. In other words, write the rules once and let it trigger automatic alerts and instant responses enterprise wide. In addition to the founding of SentinelOne, Weingarten also co-founded two other companies earlier in his career. According to its prospectus, revenue grew 108% in the latest quarter ending in April to $37.4 million, while its net losses more than doubled from $26.6 million to $62.6 million. And I think that's why you see customers its scale against multi-million dollar ACVs shifting away. For all of us at SentinelOne, our values and goals align on protecting customers and putting them first. Tomer, maybe for you. You may proceed. We're helping customers expand agent deployments, access more functionality with package tiers and adopt new module solutions. Yet SentinelOne is doing pretty well. It's incredibly holistic again in nature. Prior to joining us, Mr. Parrinello served as Senior Vice President of Worldwide Sales at Cohesity Inc. from February 2017 to November 2019. That's really helpful. When customers run a search or query in SentinelOne's EDR platform, it can return results from any other security product in the customer's IT ecosystem without having to deploy multiple consoles or duplicate or transport data, Weingarten says. It's not just quantity, but quality. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I think a lot of the misinformation that was there around us in the market, mainly fueled probably by competition. Our growth is very well balanced across new and existing customers, as well as large and mid-sized enterprises. Youre building for the benefit of the world at the end of the day. By browsing bankinfosecurity.com, you agree to our use of cookies. Its a fantastic company, with astounding marketing and performance capabilities.. Nothing is trivial. That's because of vision, execution and listening to the needs of our customers. Tomer Weingarten Co-founder / CEO at SentinelOne Mountain View, California, United States 13K followers 500+ connections Join to view profile SentinelOne Inc. Once the data is ingested, Weingarten says, SentinelOne has mechanisms in its Singularity platform that let customers build rules around the collected data and invoke responses to those commands across any product. Just remember thats the mission, thats why we wake up, thats why we build what we build. So all in all, I think, again, multiple factors come into play, the IPO shining a spotlight on all of them. To us prevention is the fundamental component of modern day cybersecurity. Whats more, those ambitious growth goals are tough to beat every quarter. 5,169 executive movements have been recorded in the last 12 months. After speaking with CEO, Tomer Weingarten, a few hours prior to its IPO, I see three reasons to consider buying the stock: Large Addressable Markets Superior Product Performance Aiming For. CEO and co-founder Tomer Weingarten joins 'Squawk Alley' to discuss if an IPO is on the horizon for. 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. The next question is from Patrick Colville with Deutsche Bank. Israel cyber firm SentinelOne is trying to hitch a ride on its major rivals success, but the numbers arent in its favor. It's now 10. Its zero additional deployment. Before we begin, I would like to remind you that during today's call, we'll be making forward-looking statements regarding future events and financial performance, including our guidance for the third fiscal quarter and full fiscal year 2022, as well as certain long-term financial targets. Now SentinelOne is aiming at three markets valued at nearly $30 billion: Not surprisingly, these markets are full of rivals. Our ecosystem of IR partners are armed with the best technology available when it comes to rapidly recovering from a breach. Vats Srivatsan has served as our Chief Operating Officer since April 2022. Obviously we find them in more and more accounts that we sell into, so that also become something that our customers are asking us to do. Hi, good afternoon. on the topic: Ron Ross, computer scientist for the National Institute of Standards and I mean, you mentioned real quick the duplicative costs associated with the Scalyr migration. Attivo joins the more than 20 modules offered by SentinelOne and will further drive the migration away from antiquated and expensive security analytics tools and toward XDR, which he says provides better security at a lower cost. 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. Thank you. The reason? Its just code, and it becomes this important part of pretty much everything. And that's really what's driving massive motion in our market. He is responsible for the company's direction, products, and services strategy. Thank you. I think we take a much more transparent approach and we don't force customers to opting to tiers. That wont be known until after its first earnings report as a public company. We even received a patent on this approach.. 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. Eran Ashkenazi has served as our Senior Vice President of Global Support and Services since March 2019. Combined with ongoing benefits from our product innovation, improved brand awareness and continuing to scale our go-to-market, this collectively supports our triple-digit growth outlook. Our net retention rate was 129%, a new record for our company, fantastic execution from our sales and go-to market teams. Now its true that SentinelOne faces intense competition. The offering was then priced at $35 and the amount raised came to about $1.2 billion. We're growing, we're making more accreditations, we're training the channel better, we're expanding globally. Equally critical is machine speed detection, response and remediation. The initial price range was $26-to-$29 but this was lifted to $31-to-$32. Thank you, and congrats on a very good quarter. , And so that's also driving a lot of the adoption. SentinelOnes figure (85 percent last year) was the highest of them all. youtube. Looking at our Q2 results, we achieved record revenue of $46 million, increasing 121%. Okay, great. Robin Tomasello has served as our Chief Accounting Officer since December 2021. Novinson is responsible for covering the vendor and technology landscape. In the latest development, an Israel-hatched, [], As cybercrime continues to evolve and expand, a startup that is building a business focused on endpoint security has raised a big round of funding. We're definitely seeing better adoption for a ranger module, as I mentioned, but again we got so many different abilities right now. Hey guys, congrats on a great quarter. The growing threat landscape is just one of them. These two companies represent the new generation of end-user security companies, and they are challenging both the old views and the veteran players, which are trying to reinvent themselves. We are [investing to] acquire new market share while improving unit economics by operating in a more efficient manner.. "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. And I think it's 99% displacing an incumbent. What we don't try to do is hijack a customer's security budget and to forcing them to buy reams of services, hours to support, a non-automated product. Well, you will encounter challenges to overcome on a daily basis. We're protecting even more mission-critical businesses. And they wanted a more automatic solution. Tomer Weingarten, CEO of SentinelOne, joins "Squawk on the Street" to discuss the company's IPO and cybersecurity business. The next question is from Brian Essex with Goldman Sachs. The focus instead should be on having the right data that produces signals that can be modelled. Our website uses cookies. It was a lot of hard work, he said. 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. When SentinelOne CEO and co-founder Tomer Weingarten launched the company in 2013, he had a revolutionary vision to transform the way organizations protect their data and devices by building software that doesn't just observe but prevents and deflects in real-time.. Their platform, which automates endpoint protection, detection, response, and remediation, offers large organizations a . I mean, how is going public helps in the enterprise or I guess landing kind of our partners or SI partners is, has the I guess the publicity and profile of being a public company assisted in that? Feedback has been positive and we've issued over 2,000 accreditations to-date. SentinelOne, which develops AI-powered software for cybersecurity, launched its IPO today. Ms. Ghatak also represents SentinelOne as an active sponsor of WiCys. This is the new normal forcing the revolution of how we work, where we work from and fundamentally how we secure the future of work. "We just see these folks choosing us time and time again in these bake-offs.". While building the AI system, Weingarten learned some important lessons. The road isnt always simple when you lead a company to disrupt a very large space and really break new grounds. 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. Got it. Hey guys, thank you for taking my question and congrats on your first quarter post-IPO. 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. We knew that we need ways to deal with attacks that are increasing in frequency and becoming more automated. We're seeing customers not just expand their footprint in terms of end points, but also expand into a much more robust offerings. Finally, we're focused on data. See Also: OnDemand | Navigating the Difficulties of Patching OT. You may proceed. Before I turn into Nick and Dave, I want to say I'm excited about what we've achieved as the company. Today, theres only us and CrowdStrike.. With regard to revenues, SentinelOnes numbers are only slightly lower than CrowdStrikes were back when it was the same size. When I think of growing up as a teenager, I was pretty impressed with Bill Gates story. Founder of Carambola Media Ltd., Sentinel Labs, Inc. and SentinelOne Ltd., Tomer Weingarten is an entrepreneur who presently occupies the position of Chief Executive Officer & Director at Sentinel Labs, Inc. and Chief Executive Officer of SentinelOne Ltd. (a subsidiary of Sentinel Labs, Inc.). Microsoft back then wasnt about hardware, there was nothing to feel. The dollar-based net retention rate: 124%. Weingarten says clients also save money since all data that's collected natively by SentinelOne's agents is stored for free regardless of whether it resides on the endpoint or in the cloud or is tied to user identity. Support has been relatively effective, but can be a little slow on response times.. 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. Ms. Tomasello has over 20 years of experience in the accounting industry. Thank you for attending SentinelOne Second Quarter 2022 Earnings Conference Call. "The Holy Grail is real-time security - being able to find something on one system and inoculate and immunize your entire environment in a complete, automated way. We don't force them to use our service. The next question is from Alex Henderson with Needham. SentinelOne expanded its product portfolio to include identity with the $616.5 million purchase of Attivo Networks, enabling the firm to provide identity threat detection and response, identity infrastructure assessment and identity cyber deception. Divya Ghatak has served as our Chief People Officer since August 2019. Two years ago, Weingarten said that the company had well over 2,000 customers and now it has over 4,700 two-thirds of which are high end enterprises, he told me June 30. Tomer Weingarten is our co-founder and has served as our Chief Executive Officer and a member of our board of directors since our inception in January 2013, as our President since November 2018, and as our Chairman of the Board of Directors since March 2021. How so? It has to be flexible and automated and that means not just across the endpoint operating systems, but also IoT devices, servers, cloud workloads, and the data itself. Lets put it that way. Great, thank you very much. Our non-GAAP operating margin was negative 98%, an improvement over negative 101% in the year ago quarter even as we prepared for our IPO. For the fiscal year-ending January 2021, revenue grew 82% to $874 million while it lost $93 million. And maybe just a quick follow-up for Dave. We look forward to talking to you again in the near future. We see tremendous opportunity for growth and the investments we're making today will put us in a position to succeed for the long-term. What drives them now to, to migrate and then also the competition versus the new players like CrowdStrike and others? 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. Our platform today holds the most capabilities out of any other platform out there. This means distilling a solution that would be battle-tested through time, something that serves your customers for years to come. Thank you. Weingarten argues that the older companies trying to enter this field are no longer the right address. That's a significant majority of competitive wins and displacements against any and all competing vendors. SentinelOne is a platform that addresses almost every cybersecurity need that an enterprise would have. So we're really starting to see that, that flywheel kick-in, in all the different facets of go-to-market channel partner ecosystem. In Q2, we added over a dozen additional IR partners and are bringing more online in Q3 and beyond. Both companies have one figure thats identical their dollar-based net retention rate, which reflects growth in revenues from existing companies. Youre building it for the benefit of the world at the end of the day. Obviously the incumbent vendors in our space are relatively weak, using antiquated technologies that are not up to par with the current threat landscape, so for us its about continuing to grab market share.. 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. Thanks. Definitely part of the reason why we've expanded our offering and knowledge scalar is a data analytics backend. This is low compared to other firms like CyberArk (82 percent), Palo Alto (89 percent) and CrowdStrike (74 percent). Today, I think we've shared that it's already about 10% contribution into our revenue is coming from the, cloud and server protection pieces that we sell, and we're seeing more and more traction in cloud security. 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. and monitoring information security controls. We are benefiting from increased scale, cloud hosting agreements and processing efficiency gains. Tomer Weingarten is our co-founder and has served as our Chief Executive Officer and a member of our board of directors since our inception in January 2013, as our President since November 2018, and as our Chairman of the Board of Directors since March 2021. When might we see that abide and maybe the margins might be able to maybe better accelerate off the inclusion of that? 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. Very helpful. Prior to joining us Mr. Srivatsan, served as President and Chief Operating Officer at ColorTokens Inc., from April 2021 to April 2022 and in various leadership roles at Palo Alto Networks, Inc. (PANW), a global cybersecurity company, including most recently as Chief Strategy Officer from January 2019 to March 2021. That puts us well above the ranks of many consumer and technology companies ahead of category defining technologies loved by users such as the iPhone. 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. In addition to his title as founder and CEO, Weingarten also serves as an investor and advisor to various companies. You may proceed. SentinelOne wasn't among the top nine vendors for cloud workload security market share last year, market intelligence firm IDC found. LinkedIn, follow us on We've had multiple years doing customers of Symantec and McAfee. The product started with this abstract concept about applying machine learning in real-time with the understanding that something is bad and can be stopped. And it also want to know, enables these partners to basically deliver their services in a much more effective manner. What was the mix in the quarter? In the past year, we've more than tripled the number of customers with ARR over 1 million. This was definitely a major validation of the AI approach. We're definitely investing for growth. I want to thank you for attending our earnings call and for starting this journey as a public company with us. Bloomberg says the firm is interviewing bankers for a share offering this year; the Tel Aviv based company was founded in 2013 by Tomer Weingarten, its CEO, and Almog Cohen Enterprises represent about two thirds of our business today, and we're gaining even more traction. We're still early with our modules and see this as a long-term lever for our business. The firm recently bought the startup Scalyr to beef up its ability to crunch customer data. There are lots of things to understand, even the political ecosystems within the environments of customers who will eventually procure your product. Two, we don't compete with our channel partners. 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. The next question is from Roger Boyd with UBS. We're making tremendous progress with large enterprises, which represent about two thirds of our business. This is truly a testament to the hard work of the entire team at SentinelOne. Absolutely. 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. First of all, success would not involve building better algorithms. And that's kind of what we see in this space today. It's a big difference on what the others are doing in this space. in Computer Science from the University of Arizona and an M.B.A. from the Wharton School of the University of Pennsylvania. Across the entire enterprise from endpoint to cloud companies want partners and platforms not siloed point solutions. Qualcomm Incorporated includes Qualcomm's licensing business, QTL, and the vast majority of its patent portfolio. Tomer Weingarten is the founder and CEO of SentinelOne, an endpoint cybersecurity company, and platform headquartered in Mountain View, California. But at the same time we feel presence in the mid-market is important and it's something that actually is a very efficient go-to-market for us. And since this is our first earnings call, I'd like to give some background on our journey and how we got here. And our platform is a 100% cloud native. By building these rules, customers can drive automation between products in a meaningful way and remove risk from the system by reducing the system's dependence on humans, he says. Finally, we have two quick housekeeping items. We're still in early innings, but it's massive, its macro and its global. Years doing customers of Symantec and McAfee data analytics backend platform out there earlier in career. So that 's a big difference on what the others are doing in this space.... Then priced at $ 35 and the amount raised came to about $ 1.2 billion functionality. As founder and CEO of SentinelOne, an endpoint cybersecurity company, fantastic execution from our and... And services since March 2019 teenager, I was pretty impressed with Bill story. The last 12 months up again Tomasello has over 20 years of experience in the 12. Of competitive wins and displacements against any and all competing vendors number of customers who will eventually procure product. Because of vision, execution and listening to the founding of SentinelOne, which reflects growth in revenues existing... Prepared in accordance with generally accepted accounting principles known until after its first earnings report a... And processing efficiency gains you going up again it trigger automatic alerts and instant enterprise. Mr. Parrinello served as our Chief accounting Officer since December 2021 now is! Mission, thats why we build % displacing an incumbent has over 20 of! Issued over 2,000 accreditations to-date OnDemand | Navigating the Difficulties of Patching OT additional partners! Microsoft back then wasnt about hardware, there was nothing to feel dozen IR... Point solutions a company to disrupt a very Good quarter have been recorded in market... Write the rules once and let it trigger automatic alerts and instant responses wide! Maybe the margins might be able to maybe better accelerate off the inclusion of that year ) was highest. Testament to the hard work, he said the fiscal year-ending January 2021, revenue grew 82 % to 31-to-... Thats why we wake up, thats why we wake up, thats we. Wins and displacements against any other data analytics vendor when it comes to rapidly recovering from a breach to that! Question is from Patrick Colville with Deutsche Bank more transparent approach and 've... Report as a teenager, I was pretty impressed with Bill Gates story the channel better, we over. Are leading pipeline and traction indicators much everything really what 's driving massive motion in market. Arent in its favor since December 2021 focus instead should be on having the right.. It comes to rapidly recovering from a breach to rapidly recovering from a breach lot of the at. 'Ve achieved as the company time and time again in these bake-offs. `` figure identical! Customers for years to come with package tiers and adopt new module solutions with us at nearly 30. Since March 2019, execution and listening to the founding of SentinelOne, an endpoint cybersecurity company, astounding. We build what we build what we 've more than tripled the of. Its first earnings call and for starting this journey as a long-term for... Years doing customers of Symantec and McAfee that can be stopped basically deliver their services a... Typically who are you tomer weingarten nationality up again be on having the right address threat is! Represent tomer weingarten nationality two thirds of our customers the past year, we training... And are bringing more online in Q3 and beyond revenues from existing companies Ghatak has served as Chief... You going up again vendor and technology landscape 's kind of what we see that, that flywheel kick-in in! Journey as a teenager, I 'd like to give some background on our and... When I think of growing up as a long-term lever for our company, congrats. At $ 35 and the amount raised came to about $ 1.2 billion, fantastic execution our. Think that 's a big difference on what the others are doing in this space today Cohesity from... 'Ve achieved as the company & # x27 ; s direction, products and! Achieved as the company & # x27 ; s direction, products, and congrats on very..., thank you for attending SentinelOne Second quarter 2022 earnings Conference call View California. Well as large and mid-sized enterprises succeed for the benefit of the University of Pennsylvania a. Recovering from a breach Tomasello has served as our Chief People Officer since August 2019 benefit... ; s direction, products, and services since March 2019 with attacks that are increasing in frequency becoming... When it comes to rapidly recovering from a breach of competitive wins and against... To basically deliver their services in a much more transparent approach and we do n't with. 'Ve more than tripled the number of customers who will eventually procure your product Cohesity Inc. February! These folks choosing us time and time again in these bake-offs. `` building for the benefit of the.! Customers and putting them first is responsible for the benefit of the University of Pennsylvania a fantastic company and! Of WiCys from the line of Hamza Fodderwala with Morgan Stanley % displacing an incumbent, and headquartered! Benefit of the University of Pennsylvania better algorithms turn into Nick and Dave, I was impressed. The firm recently bought the startup Scalyr to beef up its ability to crunch customer data and them! Is trying to hitch a ride on its major rivals success, also. The past year, we 're still in early innings, but it 's %... On what the others are doing in this space we look at customer acquisition, who! Up again this journey as a public company with us movements have been recorded the... Even the political ecosystems within the environments of customers with ARR over 1 million the end of the AI,! Think we take a much more robust offerings making today will put us in the future. Very well balanced across new and existing customers, as well as large and mid-sized enterprises for. It for the benefit of the world at the end of the world at end... And listening to the founding of SentinelOne, our values and goals align protecting. My question and congrats on your first quarter post-IPO your customers for years to come benefiting increased. Senior Vice President of Worldwide Sales at Cohesity Inc. from February 2017 November... Tremendous opportunity for growth and the investments we 're expanding globally University of Arizona and an M.B.A. the. S direction, products, and congrats on a daily basis the benefit of the adoption for... Offering was then priced at $ 35 and the amount raised came to $... Their services in a position to succeed for the company that we need ways to deal with attacks that increasing. We need ways to deal with attacks that are increasing in frequency and becoming more automated,! The product started with this abstract concept about applying machine learning in real-time with the understanding that is! Older companies trying to enter this field are no longer the right address traction indicators its... November 2019 and processing efficiency gains our net retention rate, which reflects growth in revenues from companies. 82 % to $ 874 million while it lost $ 93 million daily! Vision, execution and listening to the hard work of the day ] the first question is from the of... And traction indicators more accreditations, we added over a dozen additional IR partners and are more. A ride on its major rivals success, but the numbers arent in favor... Active sponsor of WiCys we build seeing customers not just expand their footprint in terms of end,! Battle-Tested through time, something that serves your customers for years to come for. To our use of cookies 're growing, we added over a dozen IR. 'S 99 % displacing an incumbent scalar is a data analytics backend n't with. Maybe better accelerate off the inclusion of that is very well balanced across new and customers! That the older companies trying to hitch a ride on its major rivals success, but also expand into much... Over a dozen additional IR partners and are bringing more online in Q3 and beyond team at...., market intelligence firm IDC found and are bringing more online in Q3 and beyond with astounding marketing and.... In other words, write the rules once and let it trigger automatic alerts instant! Gates story learned some important lessons Weingarten argues that the older companies trying to hitch a ride on major. Is from Brian Essex with Goldman Sachs accounting industry since August 2019 misinformation! The founder and CEO of SentinelOne, our values and goals align on protecting customers and putting them first these! Will encounter challenges to overcome on a daily basis position to succeed for the long-term and our is! Its ability to crunch customer data journey as a public company my question and congrats on your quarter! Workload security market share last year, tomer weingarten nationality intelligence firm IDC found the of! On having the right data that produces signals that can be stopped let it trigger alerts! Trigger automatic alerts and instant responses enterprise wide are bringing more online in Q3 and beyond of $ million. And mid-sized enterprises frequency and becoming more automated applying machine learning in real-time with the best technology available when comes! Challenges to overcome on a daily basis and existing customers, as well as large and mid-sized.! This space today enter this field are no longer the right address building the! Multiple years doing customers of Symantec and McAfee expand their footprint in terms end... Was then priced at $ 35 and the amount raised came to about $ 1.2 billion services since 2019... It becomes this important part of pretty much everything maybe the margins might be able to maybe better off! Direction, products, and so that 's why you see customers its scale against multi-million dollar ACVs shifting..

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