The cybersecurity vendor enjoyed a series of large customer wins on cloud security during its latest quarter, SentinelOne CEO Tomer Weingarten said.
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“The cloud security market has the potential to become even larger than the endpoint market over time,” he said.
Weingarten made the comments as SentinelOne reported results for the fourth quarter of its fiscal 2023, ended Jan. 31, which surpassed Wall Street analyst estimates. SentinelOne’s stock price rose 6.4 percent in after-hours trading Tuesday, to $15.39 a share.
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Q4 was SentinelOne’s “strongest ever quarter for cloud security,” representing 15 percent of its quarterly annual contract value, Weingarten said. The results have been buoyed by “multiple million-dollar wins,” including a deal with an unnamed “global internet platform” that replaced a competitive cloud security product with SentinelOne during the quarter, he said.
“Cloud is opening new customer opportunities for us, regardless of endpoint incumbency,” Weingarten said. “The growth potential is substantial.”
The cloud security deals that SentinelOne is now closing “can easily match or exceed the size of the endpoint deployment for these customers,” he said.
‘Comprehensive Cloud Protection’
Last week, SentinelOne announced a new “exclusive” partnership with cloud security firm Wiz, which recently became the top-valued venture-backed cybersecurity startup with a valuation of $10 billion. Wiz is “the leader in CSPM” (cloud security posture management), Weingarten said, and the partnership will provide customers with “more comprehensive cloud protection.”
“This combination creates a far superior cloud security offering [compared to] any other single vendor on the market,” he said during the call Tuesday.
For SentinelOne’s fiscal Q4, revenue surged 92 percent, year-over-year, to $126.1 million, the company reported. That surpassed analyst expectations for the quarter of $124.7 million.
The company also reported a non-GAAP net loss of 13 cents per share for its fiscal Q4, beating the analyst consensus estimate of a 16-cent net loss per share.
Enabling Partners
During the call Tuesday, Weingarten gave much credit to SentinelOne’s channel partnerships for the continued strong growth of the company, saying that “our competitive advantages also extend to our partner ecosystem.”
SentinelOne’s focus has long been to “enable their business instead of competing against them, [which] is especially important for strategic partnerships like MSSPs,” he said.
Ultimately, “we’ve cultivated an extensive and diverse network of channel partners that’s very hard to replicate,” Weingarten said.
The company is “enabling our partners through thousands of accreditations and technical training,” he said. “And these initiatives drive more channel engagement, more deal registrations [and] larger pipeline, and continue to expand the SentinelOne brand and platform.”