Exhibit 99.1
s1_logoxhorzxrgbxblka.jpg
SentinelOne Announces Second Quarter Fiscal Year 2022 Financial Results
Revenue increased 121% year-over-year
ARR up 127% year-over-year


MOUNTAIN VIEW, Calif. - September 8, 2021 - SentinelOne, Inc. (NYSE: S) today announced financial results for the second quarter of fiscal year 2022 ended July 31, 2021.

“We’re devoted to protecting our customers and our way of life from cyberattacks in an increasingly digital society. Cybersecurity must be autonomous - that’s what we’ve built. It must perform at a faster speed, greater scale, and higher accuracy than what exists today,” said Tomer Weingarten, Co-Founder and CEO of SentinelOne. “Our IPO was a significant milestone and is only the beginning of the opportunity in front of us. I’m pleased with the success and growth we delivered in Q2.”
SentinelOne executed extremely well in Q2. Our annualized recurring revenue reached $198 million, with growth accelerating to 127% year-over-year, said Dave Bernhardt, CFO. It’s especially encouraging to see the broad based strength of our business, with record customer additions, large customer transactions, and net retention rates.
Letter to Shareholders
We have also published a letter to shareholders on the Investor Relations section of our website at investors.sentinelone.com. The letter provides further discussion of our results for the second quarter of fiscal year 2022 as well as our full fiscal year 2022 financial outlook.
Second Quarter Fiscal 2022 Highlights
Total revenue was $45.8 million in the second quarter of fiscal year 2022, a 121% increase compared to $20.7 million for the same period of fiscal 2021.

Annualized recurring revenue (ARR)
increased 127% year-over-year and grew to $198.0 million as of July 31, 2021.

Total customer count grew more than 75% year-over-year to over 5,400 customers as of July 31, 2021. Customers with ARR over $100K grew 140% year-over-year to over 345 as of July 31, 2021. Dollar-based net revenue retention rate reached a new high and exceeded 125%.

Gross margin: GAAP gross margin was 59% in the second quarter of fiscal year 2022, compared to 64% for the same period of fiscal 2021. Non-GAAP gross margin was 62%, compared to 64% for the same period of fiscal 2021.

Loss from operations: GAAP loss from operations was $67.2 million in the second quarter of fiscal year 2022 compared to $22.6 million for the same period of fiscal year 2021. Non-GAAP loss from operations was $45.0 million in the second quarter of fiscal year 2022, compared to $21.0 million for the same period of fiscal year 2021.

Cash, cash equivalents and short-term investments were $1.7 billion as of July 31, 2021, which now includes $1.4 billion of net proceeds from our initial public offering and the concurrent private placement.






Financial Outlook
We are providing the following guidance for the third quarter of fiscal 2022, ending October 31, 2021, and for the full fiscal year 2022, ending January 31, 2022:

Q3 FY22
Guidance
Full Year FY22
Guidance
Revenue$49-50 million$188-190 million
Non-GAAP gross margin58-59%58-60%
Non-GAAP operating margin(99)-(96)%(104)-(99)%
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP financial measures excludes stock-based compensation expense and amortization expense of acquired intangible assets. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP gross margin and non-GAAP operating margin is not available without unreasonable effort.

Webcast information
We will host a live audio webcast for analysts and investors to discuss our earnings results for the second quarter of fiscal 2022 and outlook for the third quarter of fiscal 2022 and full fiscal year 2022 today, September 8, 2021, at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). The live webcast and a recording of the event will be available on the Investor Relations section of our website at investors.sentinelone.com.
We have used, and intend to continue to use, the Investor Relations section of our website at investors.sentinelone.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.
Forward-looking statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve risks and uncertainties, including statements regarding our future growth, and future financial and operating performance, including our financial outlook for the third quarter of fiscal 2022 and full year fiscal 2022, including non-GAAP gross profit and non-GAAP operating margin, business strategy, the COVID-19 pandemic, our reputation and performance in the market, general market trends, and our objectives are forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms and similar expressions are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words.

There are a significant number of factors that could cause our actual results to differ materially from statements made in this press release, including: our limited operating history; our history of losses; intense competition in the market we compete in; fluctuations in our operating results; network or security incidents against us; defects, errors or vulnerabilities in our platform; risks associated with managing our rapid growth; the continuing impact of the COVID-19 pandemic on our and our customers’ business; our ability to attract new and retain existing customers, or renew and expand our relationships with them; the ability of our platform to effectively interoperate within our customers IT infrastructure; our ability to successfully integrate any acquisitions; disruptions or other business




interruptions that affect the availability of our platform; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; general market, political, economic, and business conditions, including those related to the continuing impact of COVID-19.

Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our filings and reports with the Securities and Exchange Commission (“SEC”), including our final prospectus filed with the SEC pursuant to Rule 424(b), dated June 29, 2021, copies of which are available on our website at investors.sentinelone.com and on the SEC’s website at www.sec.gov.
You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date of this press release or to reflect new information or the occurrence of unexpected events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. Non-GAAP financial information excludes stock-based compensation expense, employer payroll tax expense related to employee equity transactions and amortization of acquired intangible assets. We believe that non-GAAP financial information, when taken collectively, with the financial information presented in accordance with GAAP, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period.

Reconciliations between non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP are contained at the end of this press release following the accompanying financial data. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss and Non-GAAP Net Loss Per Share

We define these non-GAAP financial measures as their respective GAAP measures, excluding expenses related to stock-based compensation expense and amortization of acquired intangible assets. We use these non-GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance.




Free Cash Flow

We define free cash flow as cash used in operating activities less purchases of property and equipment and capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors, and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.
Key Business Metrics
We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

Annualized Recurring Revenue

We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription customers and to maintain and expand our relationship with existing subscription customers. ARR represents the annualized revenue run rate of our subscription contracts at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under subscription contracts with us.

Customers with ARR of $100,000 or More

We believe that our ability to increase the number of customers with ARR of $100,000 or more is an indicator of our market penetration and strategic demand for our platform. We define a customer as an entity that has an active subscription for access to our platform. We count MSPs, MSSPs, MDRs, and OEMs, who may purchase our products on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers.

Dollar-Based Net Retention Rate

We believe that our ability to retain and expand our revenue generated from our existing customers is an indicator of the long-term value of our customer relationships and our potential future business opportunities. Dollar-based net retention rate measures the percentage change in our ARR derived from our customer base at a point in time. To calculate these metrics, we first determine Prior Period ARR, which is ARR from the population of our customers as of 12 months prior to the end of a particular reporting period. We calculate Net Retention ARR as the total ARR at the end of a particular reporting period from the set of customers that is used to determine Prior Period ARR. Net Retention ARR includes any expansion, and is net of contraction and attrition associated with that set of customers. NRR is the quotient obtained by dividing Net Retention ARR by Prior Period ARR.

Source String: SentinelOne
Category: Investors

Contact
Investor relations:
Doug Clark
E: investors@sentinelone.com
Press:
Jake Schuster
fama PR for SentinelOne
P: 617-986-5000
E: S1@famapr.com


SENTINELONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
July 31,
January 31,
2021
2021
Assets
Current assets:
Cash and cash equivalents$1,684,702 $395,472 
Short-term investments
370 364 
Accounts receivable, net
53,318 39,315 
Deferred contract acquisition costs, current
17,564 14,733 
Prepaid expenses and other current assets
26,145 14,173 
Total current assets
1,782,099 464,057 
Property and equipment, net
18,892 13,373 
Operating lease right-of-use assets
21,453 18,026 
Deferred contract acquisition costs, non-current
26,500 21,940 
Restricted cash, non-current
2,722 2,694 
Intangible assets, net
16,705 470 
Goodwill
108,193 — 
Total assets
$1,976,564 $520,560 
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable
9,615 11,822 
Accrued liabilities
11,141 3,671 
Accrued payroll and benefits
26,583 20,134 
Operating lease liabilities, current
3,976 3,634 
Deferred revenue, current
121,883 89,645 
Total current liabilities
173,198 128,906 
Deferred revenue, non-current
62,701 52,190 
Long-term debt
— 19,621 
Operating lease liabilities, non-current
21,448 18,839 
Other liabilities
3,249 401 
Total liabilities
260,596 219,957 
Redeemable convertible preferred stock
— 621,139 
Stockholders’equity (deficit):
Preferred stock
— — 
Class A common stock
— 
Class B common stock
13 
Additional paid-in capital
2,196,865 29,869 
Accumulated other comprehensive income
455 165 
Accumulated deficit
(481,369)(350,572)
Total stockholders’ equity (deficit)
1,715,968 (320,536)
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)$1,976,564 $520,560 



SENTINELONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

Three Months Ended July 31,Six Months Ended July 31,
2021202020212020
Revenue$45,750 $20,674 $83,145 $38,631 
Cost of revenue
18,788 7,543 37,071 15,156 
Gross profit26,962 13,131 46,074 23,475 
Operating expenses:
Research and development31,037 13,476 58,857 27,341 
Sales and marketing40,970 16,302 77,150 34,053 
General and administrative22,110 5,914 38,834 10,871 
Total operating expenses94,117 35,692 174,841 72,265 
Loss from operations(67,155)(22,561)(128,767)(48,790)
Interest income21 46 44 196 
Interest expense(479)(477)(782)(777)
Other income (expense), net(373)182 (966)(11)
Loss before provision for income taxes(67,986)(22,810)(130,471)(49,382)
Provision for income taxes177 128 326 194 
Net loss$(68,163)$(22,938)$(130,797)$(49,576)
Net loss per share attributable to common stockholders, basic and diluted
$(0.57)$(0.67)$(1.59)$(1.45)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
120,520,061 34,480,356 82,394,440 34,229,843 




SENTINELONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)


Six Months Ended July 31,
2021
2020
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss$(130,797)$(49,576)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
3,637 1,298 
Amortization of deferred contract acquisition costs
9,087 4,758 
Non-cash operating lease costs
1,408 1,855 
Stock-based compensation expense
34,830 5,239 
Other
105 206 
Changes in operating assets and liabilities, net of effects of acquisition
Accounts receivable(10,339)8,696 
Prepaid expenses and other current assets
(11,190)(248)
Deferred contract acquisition costs
(16,477)(6,749)
Accounts payable(5,108)643 
Accrued liabilities6,559 419 
Accrued payroll and benefits
6,864 124 
Operating lease liabilities(1,919)(1,955)
Deferred revenue
37,707 9,783 
Other liabilities2,842 — 
Net cash used in operating activities
(72,791)(25,507)
CASH FLOW FROM INVESTING ACTIVITIES:
Purchases of property and equipment(1,685)(401)
Purchases of intangible assets
— (126)
Capitalization of internal-use software
(2,852)(1,292)
Cash paid for acquisition, net of cash and restricted cash acquired
(3,449)— 
Net cash used in investing activities
(7,986)(1,819)
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from initial public offering and private placements, net of underwriting discounts and commissions1,388,563 — 
Proceeds from issuance of Series E redeemable convertible preferred stock, net of issuance costs— 152,539 
Payments of deferred offering costs(5,068)— 
Proceeds from revolving line of credit— 19,857 
Repayment of term loan(20,000)(20,000)
Proceeds from exercise of stock options
5,827 900 
Net cash provided by financing activities
1,369,322 153,296 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
1,146 
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
1,289,691 125,978 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–Beginning of period
399,112 47,680 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–End of period
$1,688,803 $173,658 


SENTINELONE, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except percentages, share and per share data)
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2021
2020
2021
2020
(in thousands)
Stock-based compensation by function:
Cost of revenue$840 $65 $1,223 $135 
Research and development8,823 261 15,962 3,024 
Sales and marketing3,905 606 5,952 1,067 
General and administrative7,825 656 11,693 1,013 
   Total stock-based compensation expense$21,393 $1,588 $34,830 $5,239 
Amortization of acquired intangible assets by function:
Cost of revenue$558 $— $1,049 $— 
Sales and marketing189 — 355 — 
General and administrative19 — 36 — 
   Total amortization of acquired intangible assets$766 $— $1,440 $— 

Reconciliation of gross profit and gross margin

Three Months Ended July 31,
Six Months Ended July 31,
2021
2020
2021
2020
GAAP revenue$45,750 $20,674 $83,145 $38,631 
GAAP gross profit$26,962 $13,131 $46,074 $23,475 
   Add: Stock-based compensation expense840 65 1,223 135 
   Add: Amortization of acquired intangible assets 558 — 1,049 — 
Non-GAAP gross profit$28,360 $13,196 $48,346 $23,610 
GAAP gross margin59 %64 %55 %61 %
Non-GAAP gross margin62 %64 %58 %61 %

Reconciliation of operating expenses
Three Months Ended July 31,
Six Months Ended July 31,
2021
2020
2021
2020
(in thousands)
GAAP revenue$45,750 $20,674 $83,145 $38,631 
GAAP operating expenses$94,117 $35,692 $174,841 $72,265 
   Less: Stock-based compensation expense20,553 1,523 33,607 5,104 
   Less: Amortization of acquired intangible assets208 — 391 — 
Non-GAAP operating expenses$73,356 $34,169 $140,843 $67,161 
GAAP % of revenue206 %173 %210 %187 %
Non-GAAP % of revenue160 %165 %169 %174 %






SENTINELONE, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except percentages, share and per share data)
(unaudited)
Reconciliation of loss from operations and operating margin

Three Months Ended July 31,
Six Months Ended July 31,
2021
2020
2021
2020
GAAP revenue$45,750 $20,674 $83,145 $38,631 
GAAP loss from operations$(67,155)$(22,561)$(128,767)$(48,790)
   Add: Stock-based compensation expense21,393 1,588 34,830 5,239 
   Add: Amortization of acquired intangible assets766 — 1,440 — 
Non-GAAP loss from operations$(44,996)$(20,973)$(92,497)$(43,551)
GAAP operating margin(147)%(109)%(155)%(126)%
Non-GAAP operating margin(98)%(101)%(111)%(113)%

Reconciliation of net loss and net loss per share
Three Months Ended July 31,
Six Months Ended July 31,
2021
2020
2021
2020
GAAP net loss $(68,163)$(22,938)$(130,797)$(49,576)
   Add: Stock-based compensation expense21,393 1,588 34,830 5,239 
   Add: Amortization of acquired intangible assets766 — 1,440 — 
Non-GAAP net loss$(46,004)$(21,350)$(94,527)$(44,337)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted120,520,061 34,480,356 82,394,440 34,229,843 
GAAP net loss per share attributable to common stockholders, basic and diluted $(0.57)$(0.67)$(1.59)$(1.45)
Non-GAAP net loss per share attributable to common stockholders, basic and diluted$(0.38)$(0.62)$(1.15)$(1.30)





SENTINELONE, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except percentages, share and per share data)
(unaudited)

Reconciliation of proforma net loss per share

The following table sets forth the computation of pro forma basic and diluted non-GAAP net loss per share attributable to common stockholders to provide a supplemental bridge between our actual results and proforma amounts as presented in our final prospectus:

Three Months Ended July 31,
Six Months Ended July 31,
2021
2021
Non-GAAP net loss$(46,004)$(94,527)
Weighted-average shares used in computing pro forma net loss per share(1) :
Weighted-average shares used in computing net loss per share65,154,671 54,252,916 
Pro forma adjustment to reflect conversion of redeemable convertible preferred stock into common stock169,787,200 169,787,200 
Weighted-average shares used in computing pro forma net loss per share attributable to common stockholders, basic and diluted234,941,871 224,040,116 
Pro forma net loss per share attributable to common stockholders, basic and diluted (1)
$(0.20)$(0.42)

(1) Basic and diluted pro forma non-GAAP net loss per share attributable to common stockholders for the three months and six months ended July 31, 2021 gives effect to the conversion of redeemable convertible preferred stock into common stock as though the conversion had occurred as of the beginning of the period.


Reconciliation of cash used in operating activities to free cash flow

Three Months Ended July 31,
Six Months Ended July 31,
2021
2020
2021
2020
GAAP net cash used in operating activities$(41,993)$(13,712)$(72,791)$(25,507)
   Less: Purchases of property and equipment(905)(123)(1,685)(401)
   Less: Capitalized internal-use software(1,839)(645)(2,852)(1,292)
Free cash flow$(44,737)$(14,480)$(77,328)$(27,200)
Net cash used in investing activities$(2,744)$(894)$(7,986)$(1,819)
Net cash provided by financing activities$1,367,405 $117 $1,369,322 $153,296 



View differences made from one to another to evaluate Sentinelone, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Sentinelone, Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account