SentinelOne COO: Our Partner Growth ‘Is Really Unbounded’
Non-traditional channels such as MSSPs, incident response firms, and managed detection and response (MDR) providers now make up more than 20 percent of SentinelOne’s business.
The Mountain View, Calif.-based endpoint security vendor is leveraging hundreds of exclusive MSSP partnerships to reach underpenetrated segments of the market, according to COO Nicholas Warner. SentinelOne has also teamed up with many of the world’s largest and most sophisticated incident response providers, which he said is made possible by the company not offering IR services of its own.
“Leading MSSPs are choosing SentinelOne because of our technology leadership, ease of management, and multi-tenancy capabilities,” Warner told investors Tuesday. “It just gives us exposure to a broad set of customers – especially with MSSPs – that we wouldn’t normally touch … The growth environment on the partner side is really unbounded.”
SentinelOne under the MSSP banner includes its relationships with distributors like Pax8, remote monitoring and management (RMM) providers like ConnectWise and N-able, and telecom vendors like AT&T. Warner said many of SentinelOne’s top-tier MSSP partnerships are exclusive, meaning these companies have forgone relationships with competitors like CrowdStrike.
“These relationships have helped us achieve significant scale and exposure, complementing our enterprise sales success,” Warner said. “Looking at just a few of our top MSSP partners like N-able and Pax8, they represent millions of endpoints now secured by SentinelOne.”
SentinelOne’s Singularity Complete advanced EDR offering accounts for three-quarters of the company’s enterprise sales today, and CEO Tomer Weingarten said the company is focused on making complete the base package for its platform. The lone exceptions are the MSSP channel and other parts of the market that might not need the full-fledged protection and control that comes in Singularity Complete.
Warner said SentinelOne’s proposed acquisition of Attivo Networks for $616.5 million will give the company more modules in its portfolio to upsell to partners and customers. SentinelOne today has modules that sit atop Singularity Complete and provide additional protection around cloud, IoT and data, and buying Attivo will allow SentinelOne to roll out modules focused on safeguarding identity.
“These [channel] partnerships create hundreds of high-value and fast-moving opportunities every quarter,” Warner said. “This is significantly more coverage than any single vendor could hope to gain on its own.”
SentinelOne’s sales for the quarter ended Jan. 31 skyrocketed to $65.6 million, up 119.8 percent from $29.9 million a year earlier. That beat analysts revenue projections of $60.7 million, according to Seeking Alpha.
Net loss worsened to $71.7 million, or $0.27 per diluted share, 89.5 percent greater than a net loss of $37.8 million, or $1 per diluted share, a year earlier. On a non-GAAP basis, net loss increased to $44 million, or $0.17 per diluted share, 38.5 percent worse than a net loss of $31.8 million, or $0.84 per diluted share, last year. That edged out non-GAAP loss estimates of $0.18 per share, Seeking Alpha said.
SentinelOne’s stock fell $1.48 (4.79 percent) to $29.41 in after-hours trading Tuesday. That’s the lowest the company’s stock has ever traded since going public in June 2021.
On a full-year basis, SentinelOne’s revenue skyrocketed to $204.8 million, up 120.1 percent from $93.1 million last year. Net loss, meanwhile, skyrocketed to $271.1 million, some 130.6 percent worse than a net loss of $117.6 million the year prior.
In the quarter ended April 30, SentinelOne expects revenue of between $74 million and $75 million. That crushed analyst sales projections of $68.8 million, according to Seeking Alpha.
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