SentinelOne Q3 FY1/25 Earnings Review

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Set to Automatic

By HermitWarrior a.k.a. Richard Iacuelli

To read one cybersecurity vendor's earnings call transcript is to read them all, almost like someone 'cut & paste' between them. In the prepared remarks, management point to the same highlights: superior technology, large customer wins, displacing competitors' products, ARR on the up... oh, and of course the mandatory buzzword in the cybersecurity marketing playbook: platform.

Look a little closer though and we start to see shards of light between the same, closely packed talking points. For SentinelOne ($S) this is particularly striking in two distinct but related themes: AI and automation.

Before we look at these in detail, let's review the headlines.

Similar to their larger competitors, revenue growth continued to decelerate year on year, with Q4 guidance showing a further - albeit mild - slowdown, while EBITDA and unlevered pre-tax cashflow (UFCF) margins continued their slow climb towards positive territory. So far 'so what'?

The 'so what' factor boils down to those two themes highlighted earlier: AI and automation.