Summary
SentinelOne closed fiscal year 2024 with fourth quarter revenue of $174.2 million, up 38.1% from a year earlier. Full year revenue was $621.2 million, up 47.1%. The company exited the year with annualized recurring revenue of $724.4 million, up 39% year over year. Net new ARR in the quarter was $61 million. Customers with annualized recurring revenue of $100,000 or more grew 30% to 1,133. Dollar-based net retention rate was approximately 115%. ARR per customer rose double digits year over year, and platform solutions beyond endpoint were more than a third of bookings in fiscal year 2024. Management credited record customer additions, expansion within existing accounts, and broader adoption of the Singularity Platform across endpoint, cloud, data, and identity.
Margins improved sharply. GAAP gross margin was 72.3%, up 3.8 percentage points year over year, and GAAP gross profit was $125.9 million, up 45.9%. GAAP operating loss was $81.2 million, and the loss narrowed from a year earlier. GAAP operating margin was -46.6%, up 32.7 percentage points. GAAP net loss was $72.0 million, another narrower loss. On a full year basis, GAAP net loss was $338.7 million and the loss narrowed, while diluted EPS was -$1.15, up $0.21. Full year GAAP gross margin was 71.1%, up 5.3 percentage points, and full year GAAP operating margin was -60.9%, up 34.4 percentage points. Non-GAAP operating margin came in at negative 9%, against negative 35% a year earlier. Non-GAAP net loss was $7 million, against $37 million. The company said revenue growth outpaced expense increases, and that it posted a tenth consecutive quarter of more than 25 percentage points of year-over-year improvement in non-GAAP operating margin.
Cash generation improved with the rest of the model. Fourth quarter operating cash flow was -$6.2 million, up 72.0% from a year earlier, and full year operating cash flow was -$68.4 million, up 64.6%. Free cash flow, a non-GAAP measure, was negative $11 million for the quarter and negative $83.6 million for the full year. Deferred revenue was $514.5 million, up 26.6%, and remaining performance obligations were $896.2 million, up 47.1%. Full year capital expenditures were $1.3 million, down 73.7%. Non-GAAP gross profit was $136 million for the quarter, or 78% of revenue, up from 75%.
Guidance frames fiscal 2025. For the first quarter, the company guided revenue to about $181 million, which it said reflects 36% year-over-year growth. For the full fiscal year 2025, revenue guidance is $812 million to $818 million, reflecting 31% growth at the midpoint. Non-GAAP gross margin guidance is about 77.5% for the first quarter and 77.5% to 78.5% for the full year. Non-GAAP operating margin guidance is negative 14% for the first quarter and negative 6% to negative 2% for the full year. Management said it aims to reach positive free cash flow and non-GAAP operating income by the end of fiscal year 2025, and that it expects the broader demand environment to stay consistent with recent trends.
Risks remain. SentinelOne cited global macroeconomic conditions, enterprise focus on cost and efficiency, longer sales cycles, and deal downsizing by new customers and on renewals by existing customers, especially larger enterprises. It also flagged intense competition, integration of acquisitions, and geopolitical uncertainty, including the conflict in the Middle East. About 13% of personnel were in Israel as of January 31, 2024. A restructuring plan announced in June 2023 was meant to improve operational efficiencies, and the company added capabilities through the PingSafe and Stride acquisitions. It added a record number of customers with ARR of $1 million or more in the quarter and said Purple AI would become generally available in the coming weeks.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $174.2M | $164.2M | +6.1% | $126.1M | +38.1% |
| Gross profit | $125.9M | $120.4M | +4.6% | $86.3M | +45.9% |
| Gross margin | 72.3% | 73.3% | -1.0 pp | 68.5% | +3.8 pp |
| Research & development | $56.4M | $52.3M | +7.9% | $53.9M | +4.7% |
| Sales & marketing | $101.5M | $98.2M | +3.3% | $87.3M | +16.3% |
| General & administrative | $46.8M | $51.2M | -8.6% | $45.2M | +3.6% |
| Total operating expenses | $207.1M | $201.9M | +2.6% | $186.4M | +11.1% |
| Operating income (loss) | -$81.2M | -$81.5M | +0.3% | -$100.0M | +18.8% |
| Operating margin | -46.6% | -49.6% | +3.0 pp | -79.3% | +32.7 pp |
| Net income (loss) | -$72.0M | -$70.3M | -2.4% | -$93.7M | +23.2% |
| Net margin | -41.3% | -42.8% | +1.5 pp | -74.3% | +33.0 pp |
| Diluted EPS | -$0.24 | -$0.24 | ±$0.00 | -$0.34 | +$0.10 |
| Net retention rate | 114.0% | 115.0% | -1.0 pp | 132.0% | -18.0 pp |
Risks
SentinelOne has recently begun incorporating generative AI into offerings such as Purple AI, and the risk factors state that competitors may incorporate AI into their products more quickly or more successfully, potentially impairing its ability to compete and recoup AI investments. The filing also cites AI-related litigation, privacy, and regulatory risk, including the October 2023 Executive Order on AI safety, security, and privacy.
MD&A states that due to the current macroeconomic environment, SentinelOne has recently experienced 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. The filing expects global macroeconomic conditions impacting demand to persist in the near term.
The risk factors state that customers have no obligation to renew subscriptions, which generally have one to three year terms, and some customers have elected not to renew or may renew for shorter lengths. MD&A reports a dollar-based net retention rate of 114% as of January 31, 2024, compared with 132% as of January 31, 2023, and notes a larger portion of business mix was driven by new customers.
MD&A discloses that the company discovered historical upsell and renewal recording inaccuracies relating to ARR on certain contracts and made a one-time adjustment to ARR of $27 million, or approximately 5% of total ARR, reflected in ARR as of January 31, 2023. This raises internal control and key metric reporting risk.
Risk factors emphasize that sales cycles can be long and unpredictable and require considerable time and expense, and MD&A reports longer sales cycles and deal downsizing in the current macro environment. This can delay revenue recognition and increase sales costs.
The cybersecurity market is intensely competitive, fragmented, and rapidly evolving, with competitors that have greater financial, technical, and marketing resources. The filing highlights market consolidation and competitors' use of open artificial intelligence applications as pressures that could reduce revenue and gross margin.
SentinelOne acquired KSG in November 2023 and both PingSafe and Stride in February 2024, and risk factors warn that acquisitions may be difficult to integrate, divert management attention, dilute stockholders, and expose the company to unknown liabilities. Due diligence may fail to identify all challenges or shortcomings.
The risk factors state that SentinelOne is currently subject to securities class action litigation, which could result in substantial costs and divert management attention. MD&A reports that general and administrative expenses increased $35.5 million in fiscal 2024, including a $9.7 million increase in litigation expenses due to settlements made during the period.
As a cybersecurity vendor, SentinelOne faces particularly intense attack efforts, and its platform has highly privileged access that may make it a valuable target for lateral attacks. The filing notes bad actors are beginning to use AI-based tools to execute attacks, increasing cybersecurity challenges.
The company maintains an office in Tel Aviv, Israel and had approximately 13% of personnel in Israel as of January 31, 2024, and it is monitoring the armed conflict in the Middle East that began in October 2023. MD&A states the conflict has not had an adverse impact to date but warns that worsening or spillover effects could harm operations.
SaaS KPIs
All quarters →Non-GAAP gross margin
Customers with ARR of $100,000 or more
Net New ARR
Dollar-Based Net Retention Rate (NRR)
ARR
Summary, forecast, risks and KPIs are extracted from SentinelOne, Inc.'s SEC filings for Q4 FY2024 (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.