Core Viewpoint - SentinelOne is positioned for stable growth in fiscal 2026, with expected revenue of $228 million for the first quarter, reflecting a 22% year-over-year increase, despite some near-term challenges related to the retirement of a legacy product [5][12][19]. Financial Performance - Fiscal 2025 ended strongly for SentinelOne, with Q4 revenue rising 29% year-over-year to $225.5 million, surpassing expectations [1][2]. - The company achieved a net new Annual Recurring Revenue (ARR) of $60 million, bringing total ARR to $920 million, a 27% increase year-over-year [2]. - Gross margin for Q4 was robust, and operating margin exceeded guidance by over 400 basis points due to effective cost management [2][13]. Earnings Estimates - The Zacks Consensus Estimate for Q1 fiscal 2026 EPS remains at 2 cents per share, with revenue expectations set at $228 million, indicating a 22.4% year-over-year growth [5][12]. - For fiscal 2026, revenue growth is projected at 22.7%, with a significant 280% year-over-year improvement in the bottom line anticipated [6][7]. Market Position and Strategy - SentinelOne is leveraging AI-driven solutions, with over 300 deals signed in the last quarter, indicating strong market traction [11][20]. - More than 40% of large enterprise customers are now utilizing three or more modules of the Singularity platform, showcasing effective cross-selling and customer engagement [11][20]. Valuation and Stock Performance - The company's stock has underperformed compared to industry peers, with a 2.8% decline over the past three months, while the broader industry saw an 8.3% increase [14][15]. - Currently, SentinelOne trades at a forward 12-month price-to-sales (P/S) ratio of 6.04X, slightly above the sector average of 6.12X, but below its three-year average [18]. Long-term Outlook - Despite short-term headwinds, the long-term investment case for SentinelOne remains strong, driven by sustained platform adoption, AI differentiation, and improving margins [21][22]. - The company is on track to exceed $1 billion in revenues and ARR this fiscal year, supported by innovation and operational discipline [21][22].

Core Viewpoint - SentinelOne's stock has significantly underperformed in the market, with a 22.7% decline over the past three months, contrasting with the broader industry and sector performance [1][3] Group 1: Stock Performance - The stock is currently 38.6% below its 52-week high of $29.29, indicating a substantial drop in value [1] - The technical setup shows a bearish trend, with the stock trading below both the 50-day and 200-day moving averages, suggesting limited upward momentum [2] Group 2: Revenue Growth and Projections - SentinelOne has projected a revenue growth of 23% for fiscal 2026, a decrease from the previous year's 32% growth, which raises concerns about valuation pressure [7] - The company added over 500 new customers and maintained a 115% net revenue retention rate, but experienced a decline in revenue per customer, indicating challenges in upselling [8] Group 3: Market Position and Strategy - Despite recent challenges, SentinelOne is transitioning from an endpoint-centric business to a broader AI-native cybersecurity platform, with over 50% of bookings in the fiscal fourth quarter coming from non-endpoint products [9] - The company has seen strong adoption of its AI-driven products, such as Purple AI, and significant traction in cloud security, contributing to customer expansion [10] Group 4: Financial Metrics - Annual recurring revenue (ARR) grew 27% year over year to $920 million, with $60 million in net new ARR added in the quarter, showcasing improved execution [12] - Remaining performance obligations (RPO) grew 30% to $1.2 billion, indicating strong future revenue visibility [13] Group 5: Valuation - SentinelOne is currently trading at a forward 12-month price-to-sales (P/S) ratio of 5.57X, slightly above the sector's 5.39X, reflecting a premium valuation [15]

SentinelOne (S) Q4 2025 Earnings Call March 12, 2025 04:30 PM ET Company Participants Douglas Clark - Vice President, Investor RelationsTomer Weingarten - Co-Founder and Chief Executive OfficerBarbara Larson - CFOBrian Essex - Executive DirectorGray Powell - Managing DirectorAnnick Baumann - VP - Equity ResearchJohn DiFucci - Senior Managing DirectorShaul Eyal - Managing Director - Equity ResearchTrevor Walsh - Director - Equity Research Conference Call Participants Jonathan Ho - Research AnalystZach Schnei ...