SentinelOne Reports 28% Revenue Growth to $210.6M in Q3 Fiscal 2025

SentinelOne, Inc. reported significant financial results for the third quarter of fiscal 2025, ending October 31, 2024, with total revenue reaching $210.6 million, a 28% increase from $164.2 million in the same period last year. For the nine months ended October 31, 2024, revenue was $595.9 million, up 33% from $447.0 million in the prior year. Despite this growth, the company recorded a net loss of $78.4 million for the quarter, compared to a loss of $70.3 million in the same quarter of the previous year. The nine-month net loss was $217.7 million, an improvement from a loss of $266.7 million in the prior year.

The increase in revenue was attributed to new customer acquisitions and additional sales to existing customers, particularly in endpoint and module subscriptions. The company's annualized recurring revenue (ARR) grew to $859.7 million, a 29% increase year-over-year, with the number of customers generating $100,000 or more in ARR rising to 1,310 from 1,060. The gross profit margin improved to 75% for the quarter, up from 73% a year earlier, driven by revenue growth outpacing the increase in cost of revenue, which rose to $53.3 million from $43.8 million.

Operationally, SentinelOne has been active in expanding its capabilities through acquisitions, including the recent purchases of PingSafe and Stride Security, aimed at enhancing its cybersecurity offerings. The company also reported a restructuring plan initiated in June 2023, which involved a workforce reduction of approximately 5% to improve operational efficiency and reduce costs. As of October 31, 2024, the company had 1,310 customers with ARR of $100,000 or more, reflecting a strong demand for its AI-powered cybersecurity solutions.

In terms of financial health, SentinelOne's total assets increased to $2.37 billion, with cash and cash equivalents at $235.7 million. The company reported a total stockholders' equity of $1.64 billion, up from $1.59 billion at the beginning of the fiscal year. However, the company continues to face challenges, including longer sales cycles and deal downsizing among larger enterprise customers, attributed to the current macroeconomic environment.

Looking ahead, SentinelOne remains focused on leveraging its AI-driven platform to capture market share in the cybersecurity space. The company anticipates continued investment in research and development, sales, and marketing to drive growth. However, it acknowledges potential risks from global economic conditions and geopolitical events that could impact customer behavior and overall business performance.