S - SentinelOne: Executing Well Toward Becoming A Best-Of-Breed In Cybersecurity

2024-04-12 11:14:32 ET

Summary

• SentinelOne, Inc. is executing well and remains one of the best cybersecurity solutions, although it trails behind CrowdStrike and Palo Alto Networks in terms of platform story.
• The revenue growth guidance of 31% for FY2025 was disappointing to the market, but my model was already forecasting 31% growth for FY2025, so it is in line with my expectations.
• SentinelOne is bringing in new and large customers, showing success in pushing upmarket.
• The focus for FY2025 will be to achieve profitability, and that will bring flexibility and durability to its business model.
• Solutions outside of endpoint security solutions already made up a third of its bookings in FY2024, and I expect this mix to continue to grow in the next few years.

I think SentinelOne, Inc. ( S ) continues to execute well, and I continue to see it as one of the best-of-breed cybersecurity solutions out there.

That said, the supporting evidence and report card that SentinelOne has shown thus far continues to trail behind CrowdStrike ( CRWD ) and Palo Alto Networks ( PANW ) in terms of the platform story, although to give management credit, it continues to be improving....

For further details see: