Q1 2025 SentinelOne Inc Earnings Call Transcript
Key Points
- Revenue grew 40% year over year, making SentinelOne Inc (S) one of the fastest-growing companies in the public markets.
- Gross margin increased to a record high of 79%, marking the 11th consecutive quarter with more than 25 points of operating margin expansion.
- Achieved positive free cash flow margin for the first time in the company's history, with a substantial positive 18% free cash flow margin.
- Strong demand for SentinelOne Inc (S)'s AI-driven autonomous cybersecurity platform, with significant growth in endpoint, cloud, and data solutions.
- Momentum with large enterprises remains strong, with customers generating more than $100,000 in ARR growing 30% year over year.
- Macroeconomic uncertainty and tighter financial conditions continue to impact customer buying behavior.
- Seasonally small quarter with timing and sizes of large deals affecting performance.
- Go-to-market transition and enhancements are still in progress, which may cause some disruption.
- ARR growth of 35% was impacted by macroeconomic challenges and go-to-market revamping.
- Modestly revised full-year revenue outlook range to reflect persistent macro uncertainty and go-to-market transition.
Good afternoon. Thank you for attending the Sentinel first quarter fiscal year 2025 earnings conference call. My name is Cameron, and I'll be your moderator for today. (Operator Instructions)
I would now like to pass the conference over to your host, Doug Clark, Vice President of Investor Relations. You may proceed.
Good afternoon, everyone, and welcome to SentinelOne's earnings call for the first quarter and fiscal year '25 which ended April 30. With us today are Tomer Weingarten, CEO; and Dave Bernhardt, our CFO. Our press release in the shareholder letter were issued earlier today and are posted on the Investor Relations section of our website. This call is being broadcast live via webcast and an audio replay will be available on our website after the call concludes.
Before we begin, I would like to remind you that during today's call, we will be making forward-looking statements about future events and financial performance, including our guidance for the second fiscal
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