Mountain View, California-based SentinelOne Inc. (S, Financial) released impressive fourth-quarter and full-year fiscal 2022 results on Tuesday (the company's fiscal year ended Jan. 31, 2022). It also announced an acquisition that aims to extend its artificial intelligence-powered prevention, detection and response capabilities to identity-based threats.
SentinelOne’s fiscal 2022 fourth-quarter highlights included total revenue of $65.6 million, a 120% increase compared to $29.9 million for the same period of fiscal year 2021. Annualized recurring revenue increased 123% year-over-year to $292.3 million, the autonomous cybersecurity platform company said.
SentinelOne reported “good Q4 results, with revenue exceeding the high-end of guidance by 8%, though the stock traded down," Wells Fargo (WFC, Financial) analyst Andrew Nowinski said in a report to his clients. "There really weren't any negatives to highlight, with all key metrics coming in better than expected. The Q1 guidance was certainly better than expected for revenue, though operating loss was slightly higher than the street was expecting."
Just after midday on Wednesday, shares were trading at about $34.69, up 12% after the initial knee-jerk decline.
The total customer count grew more than 70% year-over-year to over 6,700 customers. Customers with annual recurring revenue (ARR) over $100,000 grew 137% year-over-year to 520. The dollar-based net revenue retention rate was 129%.
GAAP gross margin was 63% in the fourth quarter of fiscal year 2022, compared to 54% for the same period of fiscal year 2021. Non-GAAP gross margin was 66%, compared to 54% for the same period of fiscal year 2021.
The GAAP operating margin was -108% compared to -124% for the 2021 period. Cash, cash equivalents and short-term investments were $1.7 billion.
For all of fiscal 2022, total revenue was $204.8 million, a 120% increase compared to $93.1 million in fiscal year 2021. The GAAP gross margin was 60%, compared to 58% in fiscal year 2021. The non-GAAP gross margin was 63%, compared to 58% in fiscal 2021. The GAAP operating margin was -130% compared to -124% in fiscal year 2021, while the non-GAAP operating margin was -85% compared to -107%.
Executives also said they had entered into a definitive agreement to acquire Attivo Networks, a leading identity security and lateral movement protection company. Under the terms of the agreement, SentinelOne will acquire Attivo Networks in a cash and stock transaction valued at $616.5 million. The acquisition is expected to close in SentinelOne’s upcoming fiscal second quarter, subject to regulatory approval and customary closing conditions.
“We delivered ARR (Annual Recurring Revenue) growth in the triple digits for a fourth consecutive quarter. Our extraordinary performance was driven by the strength of our XDR platform coupled with relentless focus on innovation and execution,” said Tomer Weingarten, CEO of SentinelOne. “With our planned acquisition of Attivo Networks, we’re excited to add leading identity threat detection and response to our Zero Trust capabilities.”
“The shift to hybrid work and increased cloud adoption has established identity as the new perimeter, highlighting the importance of visibility into user activity. Identity Threat Detection and Response (ITDR) is the missing link in holistic XDR and zero trust strategies,” said Nicholas Warner, chief operating officer of SentinelOne. “Our Attivo acquisition is a natural platform progression for protecting organizations from threats at every stage of the attack lifecycle.”
