SentinelOne, Inc. (NYSE:S) Investor Technology Session at OneCon Conference Call October 16, 2024 4:00 PM ET Company Participants Doug Clark - Vice President, Investor Relations Tomer Weingarten - Chief Executive Officer Ric Smith - Chief Product and Technology Officer Michael Cremen - Chief Revenue Officer Barbara Larson - Chief Financial Officer Conference Call Participants Brad Zelnick - Deutsche Bank Brian Essex - JPMorgan John DiFucci - Guggenheim Securities Rob Owens - Piper Sandler Saket Kalia - Barc ...

Core Insights - Corelight has partnered with SentinelOne to enhance network detection and response (NDR) solutions by integrating endpoint and vulnerability management data, which will significantly reduce mean time to detect (MTTD) and mean time to recovery (MTTR) for security teams [1][2][3] Partnership Benefits - The integration allows for real-time enrichment of Corelight logs, simplifying alert triage and providing better context for threats, thus helping security operations center (SOC) teams manage the increasing volume of alerts more effectively [2][3] - By correlating data from Corelight and SentinelOne, SOC analysts gain a comprehensive view of network activity across all connected devices, including those that are unsecured or unmanaged, enhancing threat detection and prioritization [3][4] Industry Context - The partnership addresses a common concern among security analysts, as 84% of respondents in a recent report expressed worries about missing threats due to overwhelming alert volumes [2] - The collaboration aims to empower SOC teams to accelerate investigations, reduce false positives, and focus on critical indicators of compromise, ultimately leading to a more secure posture [3][4] Company Background - Corelight is recognized as a leading provider of network detection and response solutions, serving a diverse clientele that includes Fortune 500 companies and major government agencies [5]

Core Viewpoint - SentinelOne Inc is gaining attention due to increasing cybersecurity concerns among businesses, with analysts suggesting that current revenue estimates for the company are too low [1] Group 1: Analyst Upgrades and Price Target - Piper Sandler analyst Rob Owens upgraded SentinelOne's rating from Neutral to Overweight and raised the price target from $25 to $32 [1] Group 2: Key Catalysts for Growth - The first catalyst is the expanded partnership with Lenovo Group Ltd, which will integrate SentinelOne's Singularity Platform and Purple AI into new commercial PC shipments, along with a new MDR service [1] - The second catalyst is the potential performance boost from CrowdStrike Holdings Inc's recent outage, which is expected to cause customer churn that SentinelOne could capitalize on [2] - The third catalyst is the traction gained from Purple AI, which is believed to enhance SentinelOne's offerings and drive future growth [2] Group 3: Stock Performance - At the time of publication, shares of SentinelOne had increased by 2.84% to $26.44 [2]

Core Insights - SentinelOne Inc. is emerging as a strong competitor to CrowdStrike in the cybersecurity market, particularly in endpoint detection and response (EDR) and extended detection and response (XDR) solutions [1][2] - The North American cybersecurity market is projected to grow from $75.3 billion in 2023 to nearly $200 billion by 2030, with a compound annual growth rate (CAGR) of 14.3% [1] Company Overview - SentinelOne's strategy emphasizes the speed of machine responses to security breaches, utilizing its AI-driven Singularity platform for automated threat detection and response [3] - The company's business model integrates EDR, cloud workload protection, and IoT security into a centralized platform, enhancing its competitive edge [3] Product Innovations - The launch of Purple AI, an AI-powered virtual assistant, has improved threat hunting and incident remediation speed by 80% for early adopters, showcasing the company's commitment to user accessibility [4] - SentinelOne is focusing on runtime security and cloud workload protection to differentiate itself in a fragmented market [5] Go-To-Market Strategy - The company employs a land-and-expand strategy, starting with EDR solutions and upselling additional services to grow its presence within organizations [6] - SentinelOne is building a robust partner ecosystem to scale effectively, particularly in mid-sized businesses, and has strengthened its incident response capabilities through partnerships [7] Financial Performance - In Q2 FY25, SentinelOne reported a 33.1% year-over-year revenue growth to $199 million, achieving its first positive non-GAAP net income [8] - Annual recurring revenue (ARR) grew by 32% to $806 million, with significant increases in high-spending customers [8] - The company has a strong balance sheet with $700 million in cash and no debt, although it has a growing goodwill from acquisitions [9] Market Outlook - SentinelOne raised its FY 2025 revenue guidance to $815 million, indicating positive growth expectations despite some investor disappointment [10] - The company anticipates benefiting from increased pipeline activity and win rates due to disruptions faced by competitors like CrowdStrike [11] Competitive Landscape - The cybersecurity market is highly competitive, with larger players like Microsoft and CrowdStrike posing challenges due to their greater resources [13] - SentinelOne's reliance on channel partners introduces concentration risk, as a single partner accounted for 19% of revenue in FY24 [13][16] Valuation Metrics - SentinelOne has a market cap of $7.6 billion and trades at a P/S ratio of 10.6x, which is attractive compared to its peers [18] - The company is expected to grow its revenue significantly over the next two years, positioning it for potential multiple expansion [18] Future Prospects - The company is on track to achieve consistent profitability, with expectations for this milestone in Q2 or Q3 of the following year [29] - SentinelOne's focus on AI-driven automation and strategic partnerships positions it well for future growth and shareholder value [29]

Core Viewpoint - The article discusses the investment landscape and highlights the importance of understanding market dynamics and company fundamentals for making informed investment decisions [1] Group 1 - The article emphasizes the significance of thorough research and analysis in identifying potential investment opportunities [1] - It mentions that investors should be aware of the financial health and performance metrics of companies before making investment choices [1] - The piece suggests that market trends and economic indicators play a crucial role in shaping investment strategies [1] Group 2 - The article outlines the necessity for investors to stay updated with news and events that could impact stock performance [1] - It highlights the role of financial disclosures and transparency in building investor confidence [1] - The discussion includes the potential benefits of diversifying investment portfolios to mitigate risks [1]

Group 1 - The article discusses the potential for investing in undervalued stocks that are mispriced by the market as of the end of September [1] - It highlights the services offered by the investing group "Out Fox The Street," which includes stock picks, model portfolios, daily updates, and real-time alerts [1] - The leader of the group, Mark, aims to help readers uncover potential multibaggers while managing portfolio risk through diversification [1] Group 2 - There is a mention of a potential beneficial long position that may be initiated in a specific stock within the next 72 hours [1] - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [2] - It notes that past performance is not indicative of future results, and no specific investment recommendations are provided [2]

Industry Overview - Businesses are projected to spend a record amount on cybersecurity software, with a forecasted increase from $150 billion in 2021 to $239 billion by 2025, reflecting a 12.4% annual growth rate [1] - Cybercrime is expected to cost the global economy $10.5 trillion by 2025, indicating a significant need for increased cybersecurity investment [1] Company Analysis: SentinelOne - SentinelOne utilizes artificial intelligence in its Singularity platform to enhance threat detection and incident response, allowing for faster reactions to security breaches [3] - The company reported $199 million in revenue for Q2 2024, marking a 33% increase year-over-year, outpacing competitors like CrowdStrike and Palo Alto Networks [4] - Despite strong growth, SentinelOne's stock trades at a price-to-sales (P/S) ratio of 10.3, which is significantly lower than its competitors, suggesting potential undervaluation [5] Company Analysis: Tenable - Tenable specializes in vulnerability management with its Nessus platform, which is the most widely deployed tool in its category, boasting over 2 million downloads [6] - The company generated $221.2 million in revenue during Q2 2024, exceeding management's forecast and representing a 13% year-over-year growth [8] - Tenable has introduced new AI-driven products like ExposureAI and AI Aware, which could catalyze future growth, especially given its current P/S ratio of 5.5, which is lower than that of Palo Alto Networks [8]

Core Insights - The article emphasizes the importance of innovation and disruption in the financial sector, particularly focusing on high-tech and early growth companies [1] Group 1: Investment Focus - The company is keen on identifying growth buyouts and value stocks as potential investment opportunities [1] - There is a strong emphasis on monitoring the pace of technological advancements within the industry [1] Group 2: Research and Analysis - The article aims to provide readers with comprehensive research and insights into current events affecting the industry [1] - The focus is on delivering ample investment opportunities based on thorough analysis of market trends and company performance [1]

This quarter was a significant oneWhile the FY2Q25 results were not out of this world, I think we are seeing the start of an improving narrative for the second half for SentinelOne.Outperforming the MarketOutperforming the Market is focused on helping you outperform the market while having downside protection during volatile markets by providing you with comprehensive deep dive analysis articles, the AI deep dive report, and access to The Barbell Portfolio.The Barbell Portfolio outperformed the S&P 500 by 5 ...

Core Insights - SentinelOne has signed a multiyear partnership with Lenovo Group to provide AI-enhanced endpoint security solutions for Lenovo's PCs, which is a significant development for the company [2] - The cybersecurity industry has faced volatility recently, but SentinelOne's share price increased by nearly 11% week to date, indicating positive market sentiment [1] - Lenovo is the leading traditional PC maker globally, having shipped approximately 59 million units in 2023, which positions SentinelOne favorably in terms of client scale [2] Company Developments - The partnership with Lenovo involves SentinelOne providing its Singularity Platform and Purple AI for enhanced security solutions [2] - Details regarding the duration and financial specifics of the Lenovo deal were not disclosed, leaving some uncertainty about the contract's value [2][3] - The financial impact of the partnership may be clarified when SentinelOne reports its third-quarter results later this year [3] Industry Context - The cybersecurity sector has been experiencing a turbulent summer, with a significant outage affecting major players, which has had a ripple effect on stock performance [1] - Despite the challenges in the industry, SentinelOne's recent performance suggests resilience and potential growth opportunities [1]