SentinelOne, Inc. (S): history, ownership, mission, how it works & makes money

A Brief History of SentinelOne, Inc.

SentinelOne, Inc. has experienced significant growth and transformation since its inception. As of July 31, 2024, the company reported a revenue of $198.9 million for the three months ended July 31, 2024, representing a 33% increase year-over-year from $149.4 million in the same period in 2023. For the six-month period ended July 31, 2024, revenue reached $385.3 million, a 36% increase from $282.8 million in 2023.

As of July 31, 2024, SentinelOne had 1,233 customers with annualized recurring revenue (ARR) of $100,000 or more, up from 994 a year prior. The company's ARR reached $806.0 million, a growth of 32% year-over-year.

In terms of operational performance, SentinelOne reported a net loss of $69.2 million for the three months ended July 31, 2024, compared to a net loss of $89.5 million for the same period in 2023. For the six months, the net loss was $139.3 million, down from $196.4 million in the prior year.

The company's operational expenses for the six months ended July 31, 2024, included $121.9 million for research and development, an increase of 11% from $109.4 million in 2023. Sales and marketing expenses rose to $235.4 million, up 19% from $197.4 million in the prior year. General and administrative expenses decreased to $87.1 million from $100.2 million, a reduction of 13%.

As of July 31, 2024, the company reported total assets of $2.35 billion and total liabilities of $713.4 million, resulting in total stockholders' equity of $1.63 billion.

In terms of stock performance, the net loss per share attributable to common stockholders for Q2 2024 was $(0.22), compared to $(0.31) for Q2 2023. The weighted-average shares used for this calculation were 312.6 million for Q2 2024, up from 293.2 million in Q2 2023.

A Who Owns SentinelOne, Inc. (S)

Major Shareholders

As of July 31, 2024, the ownership structure of SentinelOne, Inc. (S) is as follows:

Institutional Ownership

As of July 31, 2024, the following are the top institutional investors in SentinelOne, Inc.:

Insider Ownership

The following executives and board members hold significant shares in the company:

Stock Performance and Market Capitalization

As of July 31, 2024, the stock performance and key financial metrics for SentinelOne, Inc. are as follows:

Acquisitions Impacting Ownership Structure

SentinelOne, Inc. made two significant acquisitions in 2024:

• PingSafe Pte. Ltd. for approximately $83.0 million, including 2,354,607 shares of Class A common stock.
• Stride Security Ltd. for approximately $7.5 million.

These acquisitions have implications for the company's share structure and ownership distribution, particularly affecting insider holdings as new shares are issued.

Recent Developments Affecting Ownership

As of July 31, 2024, the company has been under scrutiny due to a securities class action lawsuit filed in June 2023, which may affect investor sentiment and stock ownership dynamics moving forward.

SentinelOne, Inc. (S) Mission Statement

Overview of Mission Statement

As of 2024, SentinelOne, Inc. emphasizes its commitment to delivering advanced cybersecurity solutions through its Singularity Platform. The mission statement articulates the goal of providing comprehensive protection against cyber threats, leveraging AI-driven technology to enhance security across various environments.

Key Components of the Mission Statement

• Cybersecurity Leadership: Striving to be at the forefront of cybersecurity innovation.
• AI-Driven Solutions: Utilizing artificial intelligence to automate threat detection and response.
• Global Reach: Serving a diverse clientele across multiple industries worldwide.
• Customer-Centric Approach: Focusing on customer needs and continuously improving service offerings.

Financial Performance Indicators

SentinelOne reported significant growth in its financial metrics for the period ending July 31, 2024. Key figures include:

Market Position and Strategy

SentinelOne's mission is further supported by its strategic positioning in the cybersecurity market, characterized by:

• Innovative Technology: Continuous investment in AI and machine learning to enhance product capabilities.
• Diverse Customer Base: Serving organizations of all sizes, with no single customer accounting for more than 3% of total ARR as of July 31, 2024.
• Global Operations: 37% of revenue derived from international markets, indicating strong global demand for its solutions.

Recent Developments

The company has made strategic acquisitions to bolster its product offerings and market presence:

• PingSafe Acquisition: Completed on February 1, 2024, for $83 million, enhancing automation capabilities.
• Stride Security Acquisition: Acquired for $7.5 million to integrate hyper-automation into the Singularity platform.

Stock Performance and Shareholder Value

As of July 31, 2024, SentinelOne's stock performance reflects its growth trajectory:

Conclusion on Mission Alignment with Financial Goals

SentinelOne's mission statement aligns with its financial performance, indicating a robust strategy focused on growth and customer satisfaction in the cybersecurity sector. The commitment to innovation and international expansion supports its vision for sustained success.

How SentinelOne, Inc. (S) Works

Business Model

SentinelOne, Inc. operates within the cybersecurity sector, primarily focusing on endpoint protection through its Singularity Platform. This platform utilizes AI to provide security solutions that protect against various cyber threats.

Financial Performance

As of July 31, 2024, SentinelOne reported revenue of $385.3 million for the six months ended July 31, 2024, representing a 36% increase from $282.8 million in the same period of 2023. For the three-month period ending July 31, 2024, revenue was $198.9 million, up 33% from $149.4 million in 2023.

Customer Metrics

As of July 31, 2024, SentinelOne had 1,233 customers with annualized recurring revenue (ARR) of $100,000 or more, a growth of 24% from 994 customers in the previous year. The total ARR reached $806.0 million, reflecting a 32% year-over-year increase from $612.2 million.

Operating Expenses

Operating expenses for the six months ending July 31, 2024, were categorized as follows:

Net Loss and Earnings Per Share

For the three months ended July 31, 2024, the net loss was $69.2 million, compared to a loss of $89.5 million for the same period in 2023. The basic and diluted net loss per share attributable to common stockholders was $(0.22) for the three months ended July 31, 2024, compared to $(0.31) in 2023.

Liquidity and Capital Resources

As of July 31, 2024, SentinelOne's cash, cash equivalents, and investments totaled $1.1 billion. The company has financed operations primarily through equity securities and customer payments. The accumulated deficit stood at $1.5 billion.

Market Trends and Economic Impact

The performance of SentinelOne is influenced by global economic conditions, including inflation and geopolitical tensions. The company noted a decline in usage patterns from larger enterprise customers and extended sales cycles due to the current macroeconomic climate.

How SentinelOne, Inc. (S) Makes Money

Revenue Generation Model

SentinelOne generates substantially all of its revenue from subscriptions to its Singularity Platform. The platform provides cybersecurity solutions through various subscription tiers, including Singularity Core, Singularity Control, and Singularity Complete. Additionally, customers can extend their subscriptions with Singularity Modules, which can be purchased on a per-agent basis, corresponding to endpoints, servers, or virtual machines.

As of July 31, 2024, the company reported an annualized recurring revenue (ARR) of $806.0 million, reflecting a 32% year-over-year growth from $612.2 million as of July 31, 2023. The number of customers with ARR of $100,000 or more increased by 24%, totaling 1,233 customers.

Cost Structure

The cost of revenue for SentinelOne primarily includes expenses related to third-party cloud infrastructure, personnel-related costs for customer support, and amortization of capitalized internal-use software. For the six months ended July 31, 2024, the cost of revenue was $100.8 million, compared to $87.3 million for the same period in 2023, representing a 16% increase.

Gross profit for the six months ended July 31, 2024, was $284.5 million, yielding a gross margin of 74%, up from 69% in the prior year.

Operating Expenses

Operating expenses consist of research and development, sales and marketing, and general and administrative expenses. For the six months ended July 31, 2024, total operating expenses were $444.4 million, compared to $411.3 million in 2023.

Research and development expenses increased to $121.9 million in 2024 from $109.4 million in 2023, while sales and marketing expenses rose from $197.4 million to $235.4 million.

Net Loss

For the three months ended July 31, 2024, SentinelOne reported a net loss of $69.2 million, compared to a net loss of $89.5 million in the same period of 2023. The net loss for the six months ended July 31, 2024, was $139.3 million, down from $196.4 million the previous year.

Market Trends and Customer Base

SentinelOne's customer base is diverse, with no single customer accounting for more than 3% of the ARR as of July 31, 2024. The company's revenue outside of the U.S. represented 37% of total revenue for the three months ended July 31, 2024.

The company continues to face challenges from macroeconomic conditions, but its operational metrics show resilience. The dollar-based net retention rate remains strong, indicating effective customer engagement and expansion.