Key Takeaways SentinelOne is currently better positioned than FTNT to deliver stronger AI security platform growth in 2025. S' Purple AI, Athena and Unified Cloud Suite are driving adoption, deal size and workflow automation. FTNT's growth faces headwinds from macro uncertainty and cautious sales forecasts despite strong SecOps tools.SentinelOne (S) and Fortinet (FTNT) are two well-known names in the cybersecurity space, each offering a wide range of tools to protect businesses from growing digital threat ...

Financial Data and Key Metrics Changes - The company reported revenue of $229 million for Q1, representing a 23% year-over-year growth [26] - Total Annual Recurring Revenue (ARR) grew 24% to $948 million [27] - The gross margin maintained at 79%, with an operating margin improvement to negative 2% [29] - Free cash flow margin reached a record 20%, with a trailing twelve-month basis expansion of five percentage points [29][35] Business Line Data and Key Metrics Changes - Revenue from international markets grew 27%, accounting for 38% of total quarterly revenue [27] - Customers with ARR of $100,000 or more increased by 22% to 1,459 [28] - The data solutions segment surpassed $100 million in ARR during Q1 [10] Market Data and Key Metrics Changes - The company observed elongated sales cycles due to macroeconomic uncertainty, impacting Q1 net new ARR [19] - Despite the challenges, win rates remained strong, and there were no project cancellations [19][52] Company Strategy and Development Direction - The company is focusing on a platform sales strategy rather than a product-centric approach, aiming to enhance flexibility and customer adoption [23][75] - Recent innovations include the unified cloud security suite and advancements in AI capabilities, which are expected to drive future growth [9][34] - The company achieved FedRAMP high authorization for several products, enhancing its competitive position in the public sector [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted improved trends in May, with expectations for year-over-year net new ARR growth in Q2 to exceed Q1 [41][52] - The company remains cautious about macroeconomic conditions but is optimistic about the strength of its pipeline and demand [19][53] - The outlook for Q2 revenue is approximately $242 million, reflecting a 22% growth [31] Other Important Information - The company announced a $200 million open-ended share repurchase authorization, reflecting confidence in its long-term trajectory [36] - The company is committed to investing in AI-driven innovations while maintaining operational efficiency [33][84] Q&A Session Summary Question: Can you talk about incremental ARR in the quarter? - Management indicated that improved trends were observed in May and expects year-over-year net ARR growth in Q2 to improve relative to Q1, attributing Q1 challenges to macro volatility rather than elevated churn [41][43] Question: Can you clarify guidance assumptions? - Management acknowledged improved trends in May but is being cautious about potential external disruptions, which influenced the slight decrease in revenue guidance [48] Question: What are customers saying about slip deals? - Management noted that longer sales cycles were observed, particularly in April, but there have been no deal cancellations, and demand remains strong [51][52] Question: How is the productivity and bundle sale progressing? - Management highlighted that the breadth of the platform is significant, and efforts are being made to make it more flexible for customers [57] Question: What is the outlook for the SIEM market? - Management noted increasing interest in cloud-native SIEM solutions and the need for real-time threat addressing, which legacy systems struggle to provide [63] Question: What are the hiring plans for fiscal 2026? - Management indicated a focus on R&D hiring, with adjustments made based on business needs [105] Question: What is the impact of the share repurchase program on M&A? - Management stated that the strong liquidity position allows for opportunistic share repurchases while still having ample cash for potential M&A [93]