Summary
SentinelOne's fiscal 2025 first quarter carried the same theme as recent periods: rapid growth with losses that keep shrinking. Revenue reached $186.4 million in the quarter ended April 30, 2024, up 39.7% from $133.4 million in the prior-year quarter. Gross profit rose to $136.2 million from $90.8 million, and gross margin reached 73.1% from 68.1%. GAAP operating margin improved to negative 43.3% from negative 86.5%. The operating loss narrowed to $80.6 million from $115.4 million, and the net loss narrowed to $70.1 million from $106.9 million. Diluted loss per share was $0.23, narrower than the $0.37 loss a year earlier.
Annualized recurring revenue grew 35% to $762 million as of April 30, 2024, up from $564 million a year earlier. Customers spending $100,000 or more in ARR rose 30% to 1,193 from 917. Management credited new customer adds, renewals, and upsells, and noted that no single end customer accounted for more than 3% of ARR. Singularity Data Lake was again the fastest-growing solution, expanding triple digits. International revenue represented 37% of the total and grew 44% year over year. A larger portion of the business mix came from new customer additions, which the company expects to open doors for expansion later.
Cash generation was the standout. Operating cash flow was $42.0 million for the quarter, a swing from $28.1 million used in the prior-year quarter. Capital expenditures were $0.9 million, up from $0.5 million. Free cash flow, which the company defines as operating cash flow less purchases of property and equipment and capitalized internal-use software, was $34 million, compared with negative $31 million a year earlier. Operating cash flow margin was 23% and free cash flow margin was 18%, both turning positive from negative margins a year earlier. Cash, cash equivalents, and investments stood at $1.1 billion as of April 30, 2024, giving the company room to fund investment while the losses persist.
Deferred revenue was $493.1 million, up 20.7% from $408.5 million a year earlier, and remaining performance obligations were $874.9 million, up 44.9% from $603.7 million. Both measures point to a book of business that keeps building beyond what reported revenue captures in a single quarter.
Non-GAAP results exclude stock-based compensation, employer payroll taxes on stock transactions, amortization of acquired intangibles, and acquisition-related compensation. On that basis, gross margin was 79% against 75%, and operating margin was negative 6% against negative 38%. Non-GAAP operating expenses were $158 million, or 85% of revenue, compared with $151 million, or 113% of revenue, a year earlier. Non-GAAP sales and marketing expense rose 12% to $95 million, non-GAAP research and development expense was flat at $40 million, and non-GAAP general and administrative expense fell 11% to $24 million.
Guidance for the fiscal second quarter calls for revenue growth of 32% year over year, a non-GAAP gross margin of about 79%, and a non-GAAP operating margin of negative 6%. For the full fiscal year 2025, management guided to revenue growth of 31% at the midpoint and a non-GAAP gross margin between 78% and 79%, with a non-GAAP operating margin that points to meaningful year-over-year improvement. Management said both outlooks reflect continued gross margin expansion from increasing scale, better data processing efficiencies, and platform expansion, and that the company is investing in data, AI, cloud, and endpoint.
The risk list is familiar. Management described a dynamic global macroeconomic environment that limits IT budget flexibility, even as cybersecurity stays a top priority for buyers. The 10-Q points to longer sales cycles, deal downsizing by new customers, smaller renewals from larger enterprises, and lower usage and consumption from some big accounts. Competition is intense, the company has a history of losses, and litigation risk remains. About 12% of personnel are based in Israel, and the company continues to monitor the armed conflict in the Middle East along with the war in Ukraine and tensions between China and Taiwan. Executives also said they are streamlining go-to-market work across renewals, sales, the partner ecosystem, and marketing, and the quarter included the closings of the PingSafe and Stride acquisitions, adding integration work on top of an already busy product roadmap.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $186.4M | $174.2M | +7.0% | $133.4M | +39.7% |
| Gross profit | $136.2M | $125.9M | +8.2% | $90.8M | +50.0% |
| Gross margin | 73.1% | 72.3% | +0.8 pp | 68.1% | +5.0 pp |
| Research & development | $58.3M | $56.4M | +3.3% | $55.3M | +5.5% |
| Sales & marketing | $115.8M | $101.5M | +14.1% | $99.2M | +16.8% |
| General & administrative | $42.7M | $46.8M | -8.9% | $51.8M | -17.6% |
| Total operating expenses | $216.8M | $207.1M | +4.7% | $206.2M | +5.2% |
| Operating income (loss) | -$80.6M | -$81.2M | +0.8% | -$115.4M | +30.1% |
| Operating margin | -43.3% | -46.6% | +3.4 pp | -86.5% | +43.2 pp |
| Net income (loss) | -$70.1M | -$72.0M | +2.6% | -$106.9M | +34.4% |
| Net margin | -37.6% | -41.3% | +3.7 pp | -80.1% | +42.5 pp |
| Diluted EPS | -$0.23 | -$0.24 | +$0.01 | -$0.37 | +$0.14 |
Risks
MD&A says the current macroeconomic environment has caused a decline in usage and consumption patterns from certain customers, especially larger enterprise customers, longer sales cycles, and deal downsizing by new customers and of renewals by existing customers, especially larger enterprises. Risk Factors also state adverse global macroeconomic conditions or reduced information technology spending could harm results.
The filing adds a dedicated risk that the company may not be successful in AI initiatives, including Purple AI, due to flawed or misinterpreted generative AI outputs, reliance on third-party foundation models that may change availability or commercial model, and competitors incorporating AI more quickly or successfully. It also says AI may negatively impact gross margins and create litigation or regulatory exposure.
The company completed the acquisitions of PingSafe and Stride in February 2024 and KSG in November 2023, and risk factors highlight difficulties integrating acquisitions, retaining key employees, and potential unanticipated write-offs or liabilities. MD&A reports $61.6 million of net cash paid for the PingSafe and Stride acquisitions in the three months ended April 30, 2024.
Risk factors say cybersecurity companies face particularly intense attack efforts and SentinelOne's product has highly privileged access, making it a valuable target for lateral attacks. The filing also notes bad actors are beginning to use AI-based tools to execute attacks, creating unprecedented cybersecurity challenges.
The company had approximately 12% of personnel in Israel as of April 30, 2024, and is monitoring the armed conflict in the Middle East that began in October 2023. While the conflict has not had an adverse impact to date, risk factors state that if it worsens or continuity measures fail, business interruptions could occur.
Risk factors state the company is currently subject to securities class action litigation, which can result in substantial costs and divert management attention and resources. The filing also notes that increased directors' and officers' liability insurance costs could make it more difficult to attract and retain qualified executives and board members.
SaaS KPIs
All quarters →Non-GAAP gross margin
Annualized recurring revenue (ARR)
Customers with ARR of $100,000 or more
Free cash flow margin
Summary, forecast, risks and KPIs are extracted from SentinelOne, Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.