Sign In  |  Register  |  About Burlingame  |  Contact Us

Burlingame, CA
September 01, 2020 10:18am
7-Day Forecast | Traffic
  • Search Hotels in Burlingame

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

SentinelOne Announces Second Quarter Fiscal Year 2025 Financial Results

Revenue increased 33% year-over-year

ARR up 32% year-over-year

SentinelOne, Inc. (NYSE: S) today announced financial results for the second quarter of fiscal year 2025 ended July 31, 2024.

“Based on strong execution and broad based demand, SentinelOne delivered exceptional results with industry-leading growth and our first ever quarter of positive net income and earnings per share,” said Tomer Weingarten, CEO of SentinelOne. “We’re seeing a distinct rise in customer interest and appreciation for the advantages of our patented AI-powered Singularity Platform to help build higher quality and more durable cyber defense. We remain committed to an open ecosystem platform, superior technology, and earning customer trust through transparency.”

“We outperformed on all key metrics, including record margins and profitability. We continue to lead the industry in terms of technology, revenue growth, and margin expansion. Q2 marked our 12th consecutive quarter with double digit operating margin improvement,” said Dave Bernhardt, CFO of SentinelOne. “We continue to invest in innovation and scale, which will extend our competitive advantages and reach over time. Based on stronger execution and business momentum, we’re raising our revenue outlook for fiscal year ‘25.”

Letter to Shareholders

We have published a letter to shareholders on the Investor Relations section of our website at investors.sentinelone.com. The letter provides further discussion of our results for the second quarter of fiscal year 2025 as well as the financial outlook for our fiscal third quarter and full fiscal year 2025.

Second Quarter Fiscal Year 2025 Highlights

(All metrics are compared to the second quarter of fiscal year 2024 unless otherwise noted)

  • Total revenue increased 33% to $198.9 million, compared to $149.4 million.
  • Annualized recurring revenue (ARR) increased 32% to $806.0 million as of July 31, 2024.
  • Customers with ARR of $100,000 or more grew 24% to 1,233 as of July 31, 2024.
  • Gross margin: GAAP gross margin was 75%, compared to 70%. Non-GAAP gross margin was 80%, compared to 77%.
  • Operating margin: GAAP operating margin was (40)%, compared to (67)%. Non-GAAP operating margin was (3)%, compared to (22)%.
  • Cash flow margin: Operating cash flow margin was 1%, compared to (8)%. Free cash flow margin was (3)%, 7 percentage points higher compared to (10)%.
  • Cash, cash equivalents, and investments were $1.1 billion as of July 31, 2024.

Financial Outlook

We are providing the following guidance for the third quarter of fiscal year 2025, and for fiscal year 2025 (ending January 31, 2025).

 

Q3FY25

Guidance

 

Full FY2025

Guidance

Revenue

$209.5 million

 

$815 million

Non-GAAP gross margin

79%

 

79%

Non-GAAP operating margin

(3)%

 

(5)-(3)%

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets, acquisition-related compensation costs, restructuring charges, and gains and losses on strategic investments. 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.

Webcast Information

We will host a live audio webcast for analysts and investors to discuss our earnings results for the second quarter of fiscal year 2025 and outlook for third quarter of fiscal year 2025 and full fiscal year 2025 today, August 27, 2024, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The live webcast and a recording of the event will be available on the Investor Relations section of our website at investors.sentinelone.com.

We have used, and intend to continue to use, the Investor Relations section of our website at investors.sentinelone.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve risks and uncertainties, including but not limited to statements regarding our future growth, execution, competitive position, and future financial and operating performance, including our financial outlook for the third quarter of fiscal year 2025 and our full fiscal year 2025, including non-GAAP gross margin and non-GAAP operating margin; progress towards our long-term profitability targets; and general market trends. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms and similar expressions are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words.

There are a significant number of factors that could cause our actual results to differ materially from statements made in this press release, including but not limited to: our limited operating history; our history of losses; intense competition in the market we compete in; fluctuations in our operating results; actual or perceived network or security incidents against us; our ability to successfully integrate any acquisitions and strategic investments; actual or perceived defects, errors or vulnerabilities in our platform; risks associated with managing our rapid growth; general global market, political, economic, and business conditions, including those related to declining global macroeconomic conditions, the upcoming U.S. election, actual or perceived instability in the banking sector, supply chain disruptions, a potential recession, inflation, interest rate volatility, and geopolitical uncertainty, including the effects of the conflicts in the Middle East and Ukraine; our ability to attract new and retain existing customers, or renew and expand our relationships with them; the ability of our platform to effectively interoperate within our customers' IT infrastructure; disruptions or other business interruptions that affect the availability of our platform including cybersecurity incidents; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and risks of securities class action litigation.

Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our filings and reports with the Securities and Exchange Commission (SEC), including our most recently filed Annual Report on Form 10-K, dated March 27, 2024, subsequent Quarterly Reports on Form 10-Q and other filings and reports that we may file from time to time with the SEC, copies of which are available on our website at investors.sentinelone.com and on the SEC’s website at www.sec.gov.

You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information and estimates available to us as of the date hereof, and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date of this press release or to reflect new information or the occurrence of unexpected events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

Non-GAAP Financial Measures

In addition to our results being determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, with the financial information presented in accordance with GAAP, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period. Reconciliations between non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP are contained below. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

As presented in the “Reconciliation of GAAP to Non-GAAP Financial Information” table below, each of the non-GAAP financial measures excludes one or more of the following items:

Stock-based compensation expense

Stock-based compensation expense is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation expense provide investors with a basis to measure our core performance against the performance of other companies without the variability created by stock-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used.

Employer payroll tax on employee stock transactions

Employer payroll tax expenses related to employee stock transactions are tied to the vesting or exercise of underlying equity awards and the price of our common stock at the time of vesting, which varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for employer payroll taxes on employee stock transactions provide investors with a basis to measure our core performance against the performance of other companies without the variability created by employer payroll taxes on employee stock transactions as a result of the stock price at the time of employee exercise.

Amortization of acquired intangible assets

Amortization of acquired intangible asset expense is tied to the intangible assets that were acquired in conjunction with acquisitions, which results in non‑cash expenses that may not otherwise have been incurred. Management believes excluding the expense associated with intangible assets from non-GAAP measures allows for a more accurate assessment of our ongoing operations and provides investors with a better comparison of period-over-period operating results.

Acquisition-related compensation costs

Acquisition-related compensation costs include cash-based compensation expenses resulting from the employment retention of certain employees established in accordance with the terms of each acquisition. Acquisition-related cash-based compensation costs have been excluded as they were specifically negotiated as part of the acquisitions in order to retain such employees and relate to cash compensation that was made either in lieu of stock-based compensation or where the grant of stock-based compensation awards was not practicable. In most cases, these acquisition-related compensation costs are not factored into management's evaluation of potential acquisitions or our performance after completion of acquisitions, because they are not related to our core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related compensation costs from non-GAAP measures provides investors with a basis to compare our results against those of other companies without the variability caused by purchase accounting.

Restructuring charges

Restructuring charges primarily relate to severance payments, employee benefits, stock-based compensation, and inventory write-offs. These restructuring charges are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude restructuring charges from non-GAAP financial measures because it enables the comparison of period-over-period operating results from continuing operations.

Gains and losses on strategic investments

Gains and losses on strategic investments relate to the subsequent changes in the recorded value of our strategic investments. These gains and losses are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude gains and losses from strategic investments from non-GAAP financial measures because it enables the comparison of period-over-period net income (loss).

Non-GAAP Cost of Revenue, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss and Non-GAAP Net Loss Per Share

We define these non-GAAP financial measures as their respective GAAP measures, excluding the expenses referenced above. We use these non-GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance.

Free Cash Flow

We define free cash flow as cash provided by (used in) operating activities less purchases of property and equipment and capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors, and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.

Key Business Metrics

We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

Annualized Recurring Revenue (ARR)

We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription and consumption and usage-based customers, and to maintain and expand our relationship with existing customers. ARR represents the annualized revenue run rate of our subscription and consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates, usage, renewal rates, and other contractual terms.

Customers with ARR of $100,000 or More

We believe that our ability to increase the number of customers with ARR of $100,000 or more is an indicator of our market penetration and strategic demand for our platform. We define a customer as an entity that has an active subscription for access to our platform. We count Managed Service Providers, Managed Security Service Providers, Managed Detection & Response firms, and Original Equipment Manufacturers, who may purchase our products on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers.

Source: SentinelOne

NYSE: S

Category: Investors

SENTINELONE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

July 31,

 

January 31,

 

2024

 

2024

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

205,898

 

 

$

256,651

 

Short-term investments

 

502,274

 

 

 

669,305

 

Accounts receivable, net

 

155,148

 

 

 

214,322

 

Deferred contract acquisition costs, current

 

57,355

 

 

 

54,158

 

Prepaid expenses and other current assets

 

100,601

 

 

 

102,895

 

Total current assets

 

1,021,276

 

 

 

1,297,331

 

Property and equipment, net

 

64,257

 

 

 

48,817

 

Operating lease right-of-use assets

 

16,535

 

 

 

18,474

 

Long-term investments

 

417,161

 

 

 

204,798

 

Deferred contract acquisition costs, non-current

 

72,091

 

 

 

71,640

 

Intangible assets, net

 

120,307

 

 

 

122,903

 

Goodwill

 

629,636

 

 

 

549,411

 

Other assets

 

5,856

 

 

 

8,033

 

Total assets

$

2,347,119

 

 

$

2,321,407

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

6,746

 

 

$

6,759

 

Accrued liabilities

 

113,315

 

 

 

104,671

 

Accrued payroll and benefits

 

63,681

 

 

 

74,345

 

Operating lease liabilities, current

 

4,630

 

 

 

4,689

 

Deferred revenue, current

 

399,536

 

 

 

399,603

 

Total current liabilities

 

587,908

 

 

 

590,067

 

Deferred revenue, non-current

 

103,086

 

 

 

114,930

 

Operating lease liabilities, non-current

 

15,497

 

 

 

18,239

 

Other liabilities

 

6,941

 

 

 

4,128

 

Total liabilities

 

713,432

 

 

 

727,364

 

Stockholders’ equity:

 

 

 

Class A common stock

 

29

 

 

 

27

 

Class B common stock

 

3

 

 

 

3

 

Additional paid-in capital

 

3,110,843

 

 

 

2,934,607

 

Accumulated other comprehensive income (loss)

 

1,145

 

 

 

(1,550

)

Accumulated deficit

 

(1,478,333

)

 

 

(1,339,044

)

Total stockholders’ equity

 

1,633,687

 

 

 

1,594,043

 

Total liabilities and stockholders’ equity

$

2,347,119

 

 

$

2,321,407

 

SENTINELONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended July 31,

 

Six Months Ended July 31,

 

2024

 

2023

 

2024

 

2023

Revenue

$

198,937

 

 

$

149,421

 

 

$

385,292

 

 

$

282,814

 

Cost of revenue(1)

 

50,699

 

 

 

44,667

 

 

 

100,836

 

 

 

87,250

 

Gross profit

 

148,238

 

 

 

104,754

 

 

 

284,456

 

 

 

195,564

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

 

63,602

 

 

 

54,161

 

 

 

121,923

 

 

 

109,424

 

Sales and marketing(1)

 

119,617

 

 

 

98,262

 

 

 

235,447

 

 

 

197,433

 

General and administrative(1)

 

44,400

 

 

 

48,433

 

 

 

87,067

 

 

 

100,186

 

Restructuring(1)

 

 

 

 

4,255

 

 

 

 

 

 

4,255

 

Total operating expenses

 

227,619

 

 

 

205,111

 

 

 

444,437

 

 

 

411,298

 

Loss from operations

 

(79,381

)

 

 

(100,357

)

 

 

(159,981

)

 

 

(215,734

)

Interest income

 

12,853

 

 

 

11,489

 

 

 

24,935

 

 

 

22,024

 

Interest expense

 

(36

)

 

 

(605

)

 

 

(72

)

 

 

(1,212

)

Other income (expense), net

 

(421

)

 

 

1,409

 

 

 

(460

)

 

 

1,050

 

Loss before income taxes

 

(66,985

)

 

 

(88,064

)

 

 

(135,578

)

 

 

(193,872

)

Provision for income taxes

 

2,199

 

 

 

1,474

 

 

 

3,711

 

 

 

2,535

 

Net loss

$

(69,184

)

 

$

(89,538

)

 

$

(139,289

)

 

$

(196,407

)

Net loss per share attributable to Class A and Class B common stockholders, basic and diluted

$

(0.22

)

 

$

(0.31

)

 

$

(0.45

)

 

$

(0.68

)

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted

 

312,615,531

 

 

 

293,170,401

 

 

 

310,358,089

 

 

 

290,775,910

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation expense as follows:

 

 

 

 

 

 

 

Cost of revenue

$

5,564

 

 

$

4,068

 

 

$

10,433

 

 

$

8,241

 

Research and development

 

20,811

 

 

 

15,452

 

 

 

38,276

 

 

 

30,242

 

Sales and marketing

 

18,882

 

 

 

13,681

 

 

 

36,956

 

 

 

26,277

 

General and administrative

 

19,420

 

 

 

20,705

 

 

 

37,565

 

 

 

44,695

 

Restructuring

 

 

 

 

(1,060

)

 

 

 

 

 

(1,060

)

Total stock-based compensation expense

$

64,677

 

 

$

52,846

 

 

$

123,230

 

 

$

108,395

 

SENTINELONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

Six Months Ended July 31,

 

2024

 

2023

CASH FLOW FROM OPERATING ACTIVITIES:

 

 

 

Net loss

$

(139,289

)

 

$

(196,407

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

 

21,110

 

 

 

18,623

 

Amortization of deferred contract acquisition costs

 

31,252

 

 

 

22,263

 

Non-cash operating lease costs

 

1,939

 

 

 

1,973

 

Stock-based compensation expense

 

123,230

 

 

 

108,395

 

Accretion of discounts and amortization of premiums on investments, net

 

(7,420

)

 

 

(11,089

)

Net gain on strategic investments

 

(345

)

 

 

(2,000

)

Other

 

1,887

 

 

 

775

 

Changes in operating assets and liabilities, net of effects of acquisition

 

 

 

Accounts receivable

 

59,258

 

 

 

27,926

 

Prepaid expenses and other assets

 

8,942

 

 

 

6,291

 

Deferred contract acquisition costs

 

(34,901

)

 

 

(30,272

)

Accounts payable

 

10

 

 

 

1,044

 

Accrued liabilities

 

5,447

 

 

 

4,386

 

Accrued payroll and benefits

 

(10,645

)

 

 

(4,393

)

Operating lease liabilities

 

(2,800

)

 

 

(2,434

)

Deferred revenue

 

(12,583

)

 

 

15,101

 

Other liabilities

 

(789

)

 

 

(144

)

Net cash provided by (used in) operating activities

 

44,303

 

 

 

(39,962

)

CASH FLOW FROM INVESTING ACTIVITIES:

 

 

 

Purchases of property and equipment

 

(1,439

)

 

 

(494

)

Purchases of intangible assets

 

(133

)

 

 

(213

)

Capitalization of internal-use software

 

(14,544

)

 

 

(6,165

)

Purchases of investments

 

(442,629

)

 

 

(350,416

)

Sales and maturities of investments

 

404,677

 

 

 

371,996

 

Cash paid for acquisitions, net of cash acquired

 

(61,553

)

 

 

 

Net cash (used in) provided by investing activities

 

(115,621

)

 

 

14,708

 

CASH FLOW FROM FINANCING ACTIVITIES:

 

 

 

Repurchase of early exercised stock options

 

(21

)

 

 

 

Proceeds from exercise of stock options

 

12,813

 

 

 

13,845

 

Proceeds from issuance of common stock under the employee stock purchase plan

 

8,800

 

 

 

6,416

 

Net cash provided by financing activities

 

21,592

 

 

 

20,261

 

NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

 

(49,726

)

 

 

(4,993

)

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–Beginning of period

 

322,086

 

 

 

202,406

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–End of period

$

272,360

 

 

$

197,413

 

SENTINELONE, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(in thousands, except percentages and per share data)

(unaudited)

 

 

Three Months Ended July 31,

 

Six Months Ended July 31,

 

2024

 

2023

 

2024

 

2023

Cost of revenue reconciliation:

 

 

 

 

 

 

 

GAAP cost of revenue

$

50,699

 

 

$

44,667

 

 

$

100,836

 

 

$

87,250

 

Stock-based compensation expense

 

(5,564

)

 

 

(4,068

)

 

 

(10,433

)

 

 

(8,241

)

Employer payroll tax on employee stock transactions

 

(132

)

 

 

(76

)

 

 

(339

)

 

 

(126

)

Amortization of acquired intangible assets

 

(4,195

)

 

 

(5,139

)

 

 

(9,666

)

 

 

(10,111

)

Acquisition-related compensation

 

(39

)

 

 

(128

)

 

 

(312

)

 

 

(251

)

Inventory write-offs due to restructuring

 

 

 

 

(720

)

 

 

 

 

$

(720

)

Non-GAAP cost of revenue

$

40,769

 

 

$

34,536

 

 

$

80,086

 

 

$

67,801

 

 

 

 

 

 

 

 

 

Gross profit reconciliation:

 

 

 

 

 

 

 

GAAP gross profit

$

148,238

 

 

$

104,754

 

 

$

284,456

 

 

$

195,564

 

Stock-based compensation expense

 

5,564

 

 

 

4,068

 

 

 

10,433

 

 

 

8,241

 

Employer payroll tax on employee stock transactions

 

132

 

 

 

76

 

 

 

339

 

 

 

126

 

Amortization of acquired intangible assets

 

4,195

 

 

 

5,139

 

 

 

9,666

 

 

 

10,111

 

Acquisition-related compensation

 

39

 

 

 

128

 

 

 

312

 

 

 

251

 

Inventory write-offs due to restructuring

 

 

 

 

720

 

 

 

 

 

 

720

 

Non-GAAP gross profit

$

158,168

 

 

$

114,885

 

 

$

305,206

 

 

$

215,013

 

 

 

 

 

 

 

 

 

Gross margin reconciliation:

 

 

 

 

 

 

 

GAAP gross margin

 

75

%

 

 

70

%

 

 

74

%

 

 

69

%

Stock-based compensation expense

 

3

%

 

 

3

%

 

 

3

%

 

 

3

%

Employer payroll tax on employee stock transactions

 

%

 

 

%

 

 

%

 

 

%

Amortization of acquired intangible assets

 

2

%

 

 

4

%

 

 

3

%

 

 

4

%

Acquisition-related compensation

 

%

 

 

%

 

 

%

 

 

%

Inventory write-offs due to restructuring

 

%

 

 

%

 

 

%

 

 

%

Non-GAAP gross margin*

 

80

%

 

 

77

%

 

 

79

%

 

 

76

%

 

 

 

 

 

 

 

 

Research and development expense reconciliation:

 

 

 

 

 

 

 

GAAP research and development expense

$

63,602

 

 

$

54,161

 

 

$

121,923

 

 

$

109,424

 

Stock-based compensation expense

 

(20,811

)

 

 

(15,452

)

 

 

(38,276

)

 

 

(30,242

)

Employer payroll tax on employee stock transactions

 

(198

)

 

 

(149

)

 

 

(611

)

 

 

(351

)

Acquisition-related compensation

 

(789

)

 

 

(298

)

 

 

(1,576

)

 

 

(623

)

Non-GAAP research and development expense

$

41,804

 

 

$

38,262

 

 

$

81,460

 

 

$

78,208

 

 

 

 

 

 

 

 

 

Sales and marketing expense reconciliation:

 

 

 

 

 

 

 

GAAP sales and marketing expense

$

119,617

 

 

$

98,262

 

 

$

235,447

 

 

$

197,433

 

Stock-based compensation expense

 

(18,882

)

 

 

(13,681

)

 

 

(36,956

)

 

 

(26,277

)

Employer payroll tax on employee stock transactions

 

(370

)

 

 

(254

)

 

 

(1,293

)

 

 

(574

)

Amortization of acquired intangible assets

 

(2,253

)

 

 

(1,954

)

 

 

(4,457

)

 

 

(3,861

)

Acquisition-related compensation

 

(29

)

 

 

(164

)

 

 

(73

)

 

 

(413

)

Non-GAAP sales and marketing expense

$

98,083

 

 

$

82,209

 

 

$

192,668

 

 

$

166,308

 

 

 

 

 

 

 

 

 

General and administrative expense reconciliation:

 

 

 

 

 

 

 

GAAP general and administrative expense

$

44,400

 

 

$

48,433

 

 

$

87,067

 

 

$

100,186

 

Stock-based compensation expense

 

(19,420

)

 

 

(20,705

)

 

 

(37,565

)

 

 

(44,695

)

Employer payroll tax on employee stock transactions

 

(341

)

 

 

127

 

 

 

(983

)

 

 

(425

)

Amortization of acquired intangible assets

 

 

 

 

(1

)

 

 

 

 

 

(2

)

Acquisition-related compensation

 

1

 

 

 

(14

)

 

 

 

 

 

(382

)

Non-GAAP general and administrative expense

$

24,640

 

 

$

27,840

 

 

$

48,519

 

 

$

54,682

 

 

 

 

 

 

 

 

 

Restructuring expense reconciliation:

 

 

 

 

 

 

 

GAAP restructuring expense

$

 

 

$

4,255

 

 

$

 

 

$

4,255

 

Other restructuring charges

 

 

 

 

(5,315

)

 

 

 

 

 

(5,315

)

Stock-based compensation expense

 

 

 

 

1,060

 

 

 

 

 

 

1,060

 

Non-GAAP restructuring expense

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

Operating loss reconciliation:

 

 

 

 

 

 

 

GAAP operating loss

$

(79,381

)

 

$

(100,357

)

 

$

(159,981

)

 

$

(215,734

)

Stock-based compensation expense

 

64,677

 

 

 

52,846

 

 

 

123,230

 

 

 

108,395

 

Employer payroll tax on employee stock transactions

 

1,038

 

 

 

352

 

 

 

3,226

 

 

 

1,476

 

Amortization of acquired intangible assets

 

6,448

 

 

 

7,093

 

 

 

14,123

 

 

 

13,973

 

Acquisition-related compensation

 

858

 

 

 

604

 

 

 

1,961

 

 

 

1,669

 

Inventory write-offs due to restructuring

 

 

 

 

720

 

 

 

 

 

 

720

 

Other restructuring charges

 

 

 

 

5,315

 

 

 

 

 

 

5,315

 

Non-GAAP operating loss*

$

(6,359

)

 

$

(33,427

)

 

$

(17,440

)

 

$

(84,186

)

 

 

 

 

 

 

 

 

Operating margin reconciliation:

 

 

 

 

 

 

 

GAAP operating margin

 

(40

)%

 

 

(67

)%

 

 

(42

)%

 

 

(76

)%

Stock-based compensation expense

 

33

%

 

 

36

%

 

 

32

%

 

 

38

%

Employer payroll tax on employee stock transactions

 

1

%

 

 

%

 

 

1

%

 

 

1

%

Amortization of acquired intangible assets

 

3

%

 

 

5

%

 

 

4

%

 

 

5

%

Acquisition-related compensation

 

%

 

 

%

 

 

1

%

 

 

%

Inventory write-offs due to restructuring

 

%

 

 

%

 

 

%

 

 

%

Other restructuring charges

 

%

 

 

4

%

 

 

%

 

 

2

%

Non-GAAP operating margin*

 

(3

)%

 

 

(22

)%

 

 

(5

)%

 

 

(30

)%

 

 

 

 

 

 

 

 

Net loss reconciliation:

 

 

 

 

 

 

 

GAAP net loss

$

(69,184

)

 

$

(89,538

)

 

$

(139,289

)

 

$

(196,407

)

Stock-based compensation expense

 

64,677

 

 

 

52,846

 

 

 

123,230

 

 

 

108,395

 

Employer payroll tax on employee stock transactions

 

1,038

 

 

 

352

 

 

 

3,226

 

 

 

1,476

 

Amortization of acquired intangible assets

 

6,448

 

 

 

7,093

 

 

 

14,123

 

 

 

13,973

 

Acquisition-related compensation

 

858

 

 

 

604

 

 

 

1,961

 

 

 

1,669

 

Inventory write-offs due to restructuring

 

 

 

 

720

 

 

 

 

 

 

720

 

Other restructuring charges

 

 

 

 

5,315

 

 

 

 

 

 

5,315

 

Gain on strategic investments

 

(345

)

 

 

(2,000

)

 

 

(345

)

 

 

(2,000

)

Non-GAAP net income (loss)

$

3,492

 

 

$

(24,608

)

 

$

2,906

 

 

$

(66,859

)

 

 

 

 

 

 

 

 

Basic EPS:

 

 

 

 

 

 

 

Weighted-average shares used in computing basic net income (loss) per share (GAAP and Non-GAAP)

 

312,615,531

 

 

 

293,170,401

 

 

 

310,358,089

 

 

 

290,775,910

 

 

 

 

 

 

 

 

 

GAAP basic net loss per share

$

(0.22

)

 

$

(0.31

)

 

$

(0.45

)

 

$

(0.68

)

 

 

 

 

 

 

 

 

Non-GAAP basic net income (loss) per share

$

0.01

 

 

$

(0.08

)

 

$

0.01

 

 

$

(0.23

)

 

 

 

 

 

 

 

 

Diluted EPS reconciliation:

 

 

 

 

 

 

 

GAAP net loss per share, basic and diluted

$

(0.22

)

 

$

(0.31

)

 

$

(0.45

)

 

$

(0.68

)

Stock-based compensation expense

 

0.20

 

 

 

0.18

 

 

 

0.37

 

 

 

0.37

 

Employer payroll tax on employee stock transactions

 

 

 

 

 

 

 

0.01

 

 

 

0.01

 

Amortization of acquired intangible assets

 

0.02

 

 

 

0.03

 

 

 

0.04

 

 

 

0.05

 

Acquisition-related compensation

 

 

 

 

 

 

 

0.01

 

 

 

0.01

 

Inventory write-offs due to restructuring

 

 

 

 

 

 

 

 

 

 

 

Other restructuring charges

 

 

 

 

0.02

 

 

 

 

 

 

0.02

 

Gain on strategic investments

 

 

 

 

(0.01

)

 

 

 

 

 

(0.01

)

Adjustment to fully diluted earnings per share (1)

 

0.01

 

 

 

 

 

 

0.03

 

 

 

 

Non-GAAP net income (loss) per share, diluted

$

0.01

 

 

$

(0.08

)

 

$

0.01

 

 

$

(0.23

)

 

 

 

 

 

 

 

 

Weighted-average shares used in diluted net income (loss) per share calculation:

 

 

 

 

 

 

 

GAAP

 

312,615,531

 

 

 

293,170,401

 

 

 

310,358,089

 

 

 

290,775,910

 

Non-GAAP

 

328,123,817

 

 

 

293,170,401

 

 

 

329,568,644

 

 

 

290,775,910

 

*Certain figures may not sum due to rounding.

(1) For periods in which we had diluted non-GAAP net income per share, the sum of the impact of individual reconciling items may not total to diluted non-GAAP net income per share because the basic share counts used to calculate GAAP net loss per share differ from the diluted share counts used to calculate non-GAAP net income per share, and because of rounding differences. The GAAP net loss per share calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share.

SENTINELONE, INC.

SELECTED CASH FLOW INFORMATION

(in thousands)

(unaudited)

 

Reconciliation of cash provided by (used in) operating activities to free cash flow

 

 

Three Months Ended July 31,

 

Six Months Ended July 31,

 

2024

 

2023

 

2024

 

2023

GAAP net cash provided by (used in) operating activities

$

2,300

 

 

$

(11,903

)

 

$

44,303

 

 

$

(39,962

)

Less: Purchases of property and equipment

 

(553

)

 

 

(32

)

 

 

(1,439

)

 

 

(494

)

Less: Capitalized internal-use software

 

(7,183

)

 

 

(3,253

)

 

 

(14,544

)

 

 

(6,165

)

Free cash flow

$

(5,436

)

 

$

(15,188

)

 

$

28,320

 

 

$

(46,621

)

 

 

 

 

 

 

 

 

Net cash (used in) provided by investing activities

$

(9,357

)

 

$

(16,402

)

 

$

(115,621

)

 

$

14,708

 

 

 

 

 

 

 

 

 

Net cash provided by financing activities

$

15,059

 

 

$

10,499

 

 

$

21,592

 

 

$

20,261

 

 

 

 

 

 

 

 

 

Operating cash flow margin

 

1

%

 

 

(8

)%

 

 

11

%

 

 

(14

)%

Free cash flow margin

 

(3

)%

 

 

(10

)%

 

 

7

%

 

 

(16

)%

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Burlingame.com & California Media Partners, LLC. All rights reserved.