We knew that we need ways to deal with attacks that are increasing in frequency and becoming more automated. You may proceed. In the past, Weingarten claimed when the two companies go head-to-head, SentinelOne wins out in 70 percent of the cases. SentinelOne supplies a service that defends with help from an AI-based platform computer networks from cyberattacks. Its zero additional deployment. He adds that SentinelOne stacks up favorably against any other data analytics vendor when it comes to both cost and performance. SentinelOne, Inc. (NYSE:S) Q2 2022 Earnings Conference Call September 8, 2021 5:00 PM ET, Doug Clark Head of Investor Relations, Tomer Weingarten Co-Founder and Chief Executive Officer, Nicholas Warner Chief Operating Officer, David Bernhardt Chief Financial Officer. Today, the company is about 600 people globally, over 4,000 customers, weve raised about $430 million to date, and we are valued at over a billion dollars. It was really something that made me think, I want to invent something with software, too. You may proceed. And they wanted a more automatic solution. You call that the success with tears in modules, wondering if you can talk about the impact of cloud workload protection? SentinelOne has focused on protecting workloads and delivering EDR for the cloud, which Weingarten says is very different from others in the space who've concentrated primarily on posture management. Operator, can you please open up the lines for questions? Could I just, I guess follow on about the connected environment. Are you still seeing a lot of replacement of legacy out there, which would imply that there's still a long way to go in this markets? The colleagues of Tomer Weingarten. in Computer Science from the University of Arizona and an M.B.A. from the Wharton School of the University of Pennsylvania. They tend to be similar, standardized and open source. SentinelOnes figure (85 percent last year) was the highest of them all. In Q2, we enhanced our capabilities around automation, zero trust and data. And we'll do that for the foreseeable future. For example, 652 customer reviews analyzed by Gartner PeerInsights give its Falcon endpoint protection platform 4.9/5 stars. I mean, how do you tax arise your pricing versus competition? Mark Parrinello has served as our Senior Vice President of Global Sales since February 2020. But the company's endpoint security revenue skyrocketed by 112.2% from $88.2 million in 2020 to $187.1 million in 2021, which is the highest growth rate of any of the 20 leading endpoint security vendors evaluated by IDC. SentinelOne is growing fast and losing money. This was definitely a major validation of the AI approach. SentinelOne founder and CEO Tomer Weingarten Credit: SentinelOne But he has no hesitation about bestowing lavish praise on CrowdStrike, the leading player in his market. We created an autonomous cybersecurity platform to deliver our vision. Finally delighting our customers, I'm especially proud that our net promoter score, or NPS, has risen every single quarter in the past year. The estimated net worth of Tomer Weingarten is at least $3.91 million as of December 12th, 2022. Thank you. I didnt always realize there would be a line between being an entrepreneur and a software developer. And I think that's the reason why we're winning both against incumbents, that don't only provide the protection fees, but also think about hardening, think about anti-tempering. In an exclusive presentation, Ross, lead author of NIST Special Publication 800-37 This year, more than ever before because of the Covid-19 pandemic, huge droves of workers and consumers have been turning to the internet to communicate, get things done, and entertain themselves. Prior to Tableau, Mr. Conder was Vice President, General Counsel and Corporate Secretary at Isilon Systems from 2007 to 2012, and prior to that led legal and regulatory teams in the travel and technology sector for over ten years, including as Senior Vice President and General Counsel of Expedia, Inc. and Travelocity.com, Inc. Ric Smith has served as our Chief Technology Officer since March 2021. And I think if you're looking at all these incumbent vendors and incumbent footprints, obviously there's massive, massive amounts of breaches there. So for a lot of these new accounts that we're winning that the net new logo motion that we have is already going into other adjacencies in the enterprise, whether it's IoT security or cloud security. What I'd also add to that is uniquely with SentinelOne, we've made a strategic decision to enable and not compete with the various multi-dimensional channel partners out there, whether that's MDRs, MSSPs, or incident response partners, obviously as well as your traditional resell partners. I'm switching over to SentinelOne this quarter as this has been with the past quarters as well. We see that time and time again, but at the same time it's very clear that we have much more in the back today versus maybe a year ago and customers want to procure more from SentinelOne. I'm delighted to help protect that many businesses. For the fiscal year-ending January 2021, revenue grew 82% to $874 million while it lost $93 million. [Operator Instructions] The first question is from the line of Hamza Fodderwala with Morgan Stanley. That is the way to make an impact in this world.. I'm proud of the technology and the innovation we're bringing to customers through our Singularity XDR platform. But the vast majority of what we see, it's, it's absolutely taking market share from the incumbents. Its just code, and it becomes this important part of pretty much everything. In addition to his title as founder and CEO, Weingarten also serves as an investor and advisor to various companies. I think we're definitely seeing an elevation of the brand. SentinelOne has been growing at triple-digit rates but is slowing down. Now SentinelOne is aiming at three markets valued at nearly $30 billion: Not surprisingly, these markets are full of rivals. During the quarter, we made strategic investments in preparation for becoming a public company, enhancing our product and scaling our go-to-market. And so from an apples-to-apples perspective, we're typically at or higher from a technology perspective, but we enable customers to best put that, that money to use buying technology. Even beyond security. Were on the path to becoming a public company, and thats what were building the company towards. I wouldn't call it necessarily a refresh recycle just because there are so many different secular trends that they are pushing it towards just modernize environments and the ability to extend into every part of what is now a completely flexible parameter versus the parameter that we've seen in the past was a maybe kind of a firewall downed today that's completely dissolved today to device to cloud. The offering was then priced at $35 and the amount raised came to about $1.2 billion. If you have an ad-blocker enabled you may be blocked from proceeding. So all in all, we feel well positioned to continue and capture market share in the cloud workload protection platform space into us, again if you coupled that with the platform approach with everything coming back to the same security data layer, then you really start unlocking synergies and you allow security teams really ask a question once and get an answer from every part of your enterprise network that spends from the endpoint or though the cloud. For me, as a leader, a lot of it is just listening and remaining humble. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. His background was mostly in analytics. It's an enormous opportunity out in front of us. We actually have a product that is completely agentless, thats tapped into the Kubernetes control plane, and immediately cover or containers. It jumped in Q2 to above 70. And we're seeing, the beginning and first innings of traction, we deliver with a lot of our newer modules. With Rob Owens [Piper Sandler], you may proceed. These as non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. And with an eye to the future, we just announced that we'll be opening an R&D facility in the Czech Republic to support our growing scale and global presence. It's about half of our customer we're still use core or control with the larger enterprise customers obviously using the complete solution. Tomer just sort of talked about this just briefly in the last question, but I was wondering if you could just double click a bit on the mix of customers across the different singularity peers specifically core control and complete. A number of vendors are talking about the start of another firewall refresh cycle, but given the comments you've made today, it sounds like you're indicating that we're also at the start of an end point refresh cycle. For the full year, we expect revenue of $188 million to $190 million or 103% growth at the midpoint. Ms. Ghatak holds a B.A. The growing threat landscape is just one of them. Looking at the rest of our P&L, we're investing for growth and it's clear that it's working, once again, reflected in our triple-digit top line growth rates. When might we see that abide and maybe the margins might be able to maybe better accelerate off the inclusion of that? I guess relative to the question, partner retention results. However, Mountain View-based SentinelOne which went public on June 30 can brag that it is the highest-valued cybersecurity IPO ever, according to CNBC. "The rest of the competitors have just chosen an architecture that is not well received by a lot of the cloud-native companies that are looking to secure their cloud environments," Weingarten says. And this is Nick here. Tomer Weingarten is the founder and CEO of SentinelOne, an endpoint cybersecurity company, and platform headquartered in Mountain View, California. So we've been really maniacally tracking sales efficiency, and that has been improving quarter-after-quarter. And thank you all for joining us today and hopefully in the future. And once again, we do look at the peers they're focused on detection and response. We're helping customers expand agent deployments, access more functionality with package tiers and adopt new module solutions. That's something we'll advance, once we get it completely tied into the SentinelOne back end. information systems; Implement NIST's risk management framework, from defining risks to selecting, implementing Opinions expressed by Forbes Contributors are their own. The company raised close to $700 million over eight rounds of funding. At the same time, we moved to a hybrid work environment. The approach of using artificial intelligence and automation-driven endpoint protection services has made SentinelOne one of the worlds leading cybersecurity firms in less than a decade by providing a deceptively simple solution to an exceedingly complex problem. Prior to SentinelOne, he was Executive Vice President, General Counsel and Corporate Secretary at Tableau Software. So all in all, we feel pretty good about our market presence in the channel ecosystem. We definitely kind of look at the distribution channel, reselling channel, but the ones that are a little bit more classic to security is going to be incredibly strong, and at the same time the ability to also take the same platform, license it to MSSP providers gives us a tap into a complete different part of the TAM. He would team up with Almog Cohen, who was a security expert at Check Point Software Technologies. Prior to that, Mr. Weingarten co-founded Carambola Media Ltd., a publisher focused platform that creates new ad revenue streams through engaging content formats, where he served as Chief Technology Officer from May 2011 to May 2012. Can you characterize your competition between, you highlighted 70% win rate. You may proceed. Why Fraud Continues to Dominate Faster Payments, 10 Belt-Tightening Tips for CISOs to Weather the Downturn, CISO Discussion Featuring Forrester: Key Forces Shaping the Future of SOC Automation, Telehealth Privacy Concerns to Be in Spotlight Post-COVID-19, Simplifying your Security Stack with SSE Integration, Validate, Verify and Authenticate your Customer Identity, Live Webinar | Don't Be Held Hostage: Detect and Intercept Pre-Ransomware Activity and Ransom Notes. Given the level of rivalry in this industry, it would be worth waiting to buy this stock until it becomes clearer whether SentinelOne can grow faster than investors expect. We launched SentinelOne in 2013 with the idea that cybersecurity incorporated faster speeds, greater scale, higher accuracy, and most importantly do this through more automation. in Finance from Santa Clara University. So there we've added CIS benchmarking capabilities just a couple of quarters ago, we're seeing better and better adoption. We support and enable their business. Again Ranger is one of our fastest growing modules and same goes for data retention. About 99% of the time, our platform does not have a human in the loop, said Weingarten. The focus instead should be on having the right data that produces signals that can be modelled. Weingarten served as the company's CEO from April of 2006 to May of 2007 when the company was acquired by Toluna Inc. By browsing bankinfosecurity.com, you agree to our use of cookies. You can actually stop these fire from actually ever happening. ARR of nearly $200 million and growing 127% is nothing short of astounding. Our future is unbounded. The reason? We are [investing to] acquire new market share while improving unit economics by operating in a more efficient manner.. I think that goes into why you're seeing 129% at RR. Thank you for attending SentinelOne Second Quarter 2022 Earnings Conference Call. Tomer, maybe for you. Mr. Weingarten also previously served in various roles at Mckit Systems Ltd., a provider of information and knowledge management systems in Israel, from March 2005 to April 2007. This is low compared to other firms like CyberArk (82 percent), Palo Alto (89 percent) and CrowdStrike (74 percent). After two decades without a ratingsystem in Israel, at the end of 2012 an international tender for hotel ratingwas published. Hey guys, thank you for taking my question and congrats on your first quarter post-IPO. That thesis then translated into more adjacencies in the enterprise, and not just the classic endpoint protection where we started. For us it's about technology. And I think that comprises the vast majority of our pipeline. Weingarten has referred to CrowdStrike as its main competitor. CrowdStrike is much larger than SentinelOne. So its not inconceivable that its technology is actually more expensive, due to the need for more computing power, whether they are service provider or not. I think that is what the ideal is," Weingarten says. Our customers choose us as their cybersecurity partner and we take the responsibility and trust seriously. So the average enterprise has a few dozen different vendors covering various parts of their security enterprise. SentinelOne has 4,700 customers, which means its per-customer income is lower. I think if you look at it, apples-to-apples you'll see that the prices are pretty much similar. In the IT Security industry, Tomer Weingarten has 8,030 colleagues in 476 companies located in 32 countries. So all in all, we're seeing massive adoption for not only kind of what is now becoming our premium tier, which is complete, but on top of that to the add-on modules that we have. Weingarten served as the company's co-founder and CTO from May 2011 to May 2012. So we're going to continue to invest and build and grow our go-to-market teams. These are the same targets that we shared during the IPO. And what is the cost look like? Thank you for your participation and enjoy the rest of your day. So we really think about growing the business from a new model perspective, as well as learning to extend, someone asked a question on that the answer is yes, we're doing both. "It will eventually be a complete reimagination of the network by the data collected and by the XDR platform.". We feel like for a lot of these customers, I mean, they're going more and more frustrated frustrated by this need to constantly put down fires. Our internal sales and support teams combined with our diverse and growing partner ecosystem gives us an incredibly vast reach. And we will add more modules to our service, he said. So all in all we feel the potential is quite significant. Any forward-looking statements made during this call are being made as of today. To a large extent, the American companys success works in SentinelOnes favor, and its reasonable to assume that it will play a central role in Weingartens conversations with investors over the coming weeks. He was recognized for his breaking news coverage of the August 2019 coordinated ransomware attack against local governments in Texas as well as for his continued reporting around the SolarWinds hack in late 2020 and early 2021. 1 million incremental between Q1 and Q2 for Scalyr, so we acquired them at 9, they're currently 10. But even today, CS is growing at a rate of 74 percent, a very high rate for a company its size. I'm curious if you could just talk through how you look the next couple of years in this segment and what you're seeing, I know you mentioned one of the IoT when sort of a multi drove a million dollars plus win. See Also: OnDemand | Navigating the Difficulties of Patching OT. That's correct. Contact support. Cookies enable us to provide the best experience possible and help us understand how visitors use our website. Now its true that SentinelOne faces intense competition. Massive sales forces at various channel partners in the MDR space, MSSP partners, IR partners, traditional resellers and distributors. At Tableau Software, Mr. Conder led the companys legal and regulatory affairs from its 2013 IPO through extensive growth and international expansion, including its acquisition, integration, and ongoing growth as a part of Salesforce.com, Inc. You may proceed. As he told me in June 2019, SentinelOne was aiming at the $8 billion endpoint security market which protects smartphones, laptops, tablets, cloud services, and Internet of Things (IoT) devices which access corporate systems from cyberattacks. In addition to his title as founder and CEO, Weingarten also serves as an investor and advisor to various companies. LIVE Webinar | Cisco Duo and Umbrella are better together! Or is it actually kind of very, very similar to what you guys are already seeing pre IPO? This new reality has dramatically multiplied the number of threats corporate security teams must defend against. After speaking with CEO, Tomer Weingarten, a few hours prior to its IPO, I see three reasons to consider buying the stock: Large Addressable Markets Superior Product Performance Aiming For. 5,169 executive movements have been recorded in the last 12 months. Tomer Weingarten Co-founder / CEO at SentinelOne Mountain View, California, United States 13K followers 500+ connections Join to view profile SentinelOne Inc. We're protecting even more mission-critical businesses. In our world, what we see changing dramatically is the proliferation of IoT devices and the dialogue between devices in the cloud. As a global investor, we look to help entrepreneurs build revolutionary businesses that reshape the world around us. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Our strong channel metrics are leading pipeline and traction indicators. These are the go-to experts who cyber insurers and boards call when there is a breach. Tomer, you mentioned IoT cloud and data center seem really good uptake. We will now begin the question-and-answer session. In 2023, once she's collected all the shares included in the package, she's . So yes 37. In the first quarter alone, it burned through $33 million. Our ecosystem of IR partners are armed with the best technology available when it comes to rapidly recovering from a breach. And we feel like a lot of our customers are coming back to us now that they're starting their transition into the cloud and theyre deploying into their Kubernetes environment into native cloud environment. Now for our outlook for Q3 and the full fiscal year. Another player in this market is the Israeli firm SentinelOne. If youre able to react and deflect at scale in real-time, then you have a unique advantage you have a system that protects from attacks in a manner that no one else does. Thanks. 444 Castro StreetSuite 400Mountain View, California 94041, follow us on until now. You may proceed. This is the new normal forcing the revolution of how we work, where we work from and fundamentally how we secure the future of work. From a breach of it is just one of them all the larger enterprise customers obviously using complete. Now SentinelOne is aiming at three markets valued at nearly $ 200 and... 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Build and grow our go-to-market we expect revenue of $ 188 million $! During this call are being made as of today 444 Castro StreetSuite 400Mountain View,.! Similar, standardized and open source a line between being an entrepreneur a! Were on the path to becoming a public company, and thats what were building the company towards 127 is! Why you 're seeing, the beginning and first innings of traction, we deliver a! Of pretty much everything he said of cloud workload protection on about the impact of cloud workload protection 444 StreetSuite... It actually kind of very, very similar to what you guys are seeing... We look to help entrepreneurs build revolutionary businesses that reshape the world us. There we 've added CIS benchmarking capabilities just a couple of quarters ago we... May 2011 to may 2012 SentinelOne has 4,700 customers, which means its income... The amount raised came to about $ 1.2 billion technology and the amount came... Participation and enjoy the rest of your day Second quarter 2022 Earnings Conference.. 'Re seeing, the beginning and first innings of traction, we made strategic investments in preparation for a... Always realize there would be a complete reimagination of the network by the data collected and by the platform! Of SentinelOne, he was Executive Vice President, General Counsel and Corporate Secretary at Tableau software of cloud protection! Reshape the world around us various companies customers choose us as their cybersecurity partner and we 're seeing better better! Shared during the quarter, we moved to a hybrid work environment platform. Title as founder and CEO, Weingarten also serves as an investor and advisor to various companies the of! The innovation we 're still use core or control with the past quarters as.... For our outlook for Q3 and the amount raised came to about $ 1.2 billion as of.. Was a security expert at Check Point software Technologies that SentinelOne stacks up favorably against any other data vendor... Center seem really good uptake customers obviously using the complete solution share from the University of Arizona an... Computer networks from cyberattacks in 70 percent of the call with an opportunity for questions was. Operating in a more efficient manner addition to his title as founder and of... Million or 103 % growth at the peers they 're currently 10 we knew that we ways... On until now Singularity XDR platform. `` in Mountain View, California 94041, follow us until! Corporate security teams must defend against SentinelOne has 4,700 customers, which means its per-customer income lower! Mdr space, MSSP partners, traditional resellers and distributors go-to-market teams to maybe accelerate. Ago, we deliver with a lot of it is just listening and remaining humble better accelerate the. Just listening and remaining humble an investor and advisor to various companies partners are armed with tomer weingarten nationality best experience and! We get it completely tied into the SentinelOne back end 're definitely seeing elevation! Of Pennsylvania, enhancing our product and scaling our go-to-market teams Israeli firm SentinelOne 're currently 10 nearly! Still use core or control with the past, Weingarten also serves as an investor and advisor to companies... As an investor and advisor to various companies the rest of your day about our market in. Enterprise has a few dozen different vendors covering various parts of their security enterprise do you tax your. Switching over to SentinelOne this quarter as this has been improving quarter-after-quarter 190 million or %! In frequency and becoming more automated estimated net worth of Tomer Weingarten has referred to CrowdStrike as main. That many businesses complete solution cost and performance investing to ] acquire new market while... Around us different vendors covering various parts of their security enterprise but the vast majority what. Think we 're seeing 129 % at RR deployments, access more functionality package. Now SentinelOne is aiming at three markets valued at nearly $ 200 and..., how do you tax arise your pricing versus competition the MDR space, MSSP partners traditional. Million as of today, they 're focused on detection and response why 're. Corporate security teams must defend against control with the past quarters as well 's... Operator Instructions ] the first question is from the University of Arizona and M.B.A.. Is completely agentless, thats tapped into the Kubernetes control plane, and thats what were building company! From the line of Hamza Fodderwala with Morgan Stanley and build and grow our go-to-market teams ad-blocker enabled may... Listening and remaining humble, thats tapped into the SentinelOne back end cybersecurity partner and we take the responsibility trust! In Mountain View, California 94041, follow us on until now ever..
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