SentinelOne far exceeded expectations in the third quarter of fiscal 2025. The company posted revenue growth of 28% to $211 million, compared with $164 million in the same period last year.
This growth was supported by a 29% increase in Annual Recurring Revenue (ARR), which now stands at $860 million, up from $664 million last year.
One of the most notable results was the recovery in Net New ARR, which turned positive again. This highlights the company’s stronger competitive position and increasing customer interest in SentinelOne‘s products and services. The company added a record number of customers with an ARR over $100,000, representing 24% year-over-year growth. Clients with an ARR of more than $1 million also increased, indicating continued expansion of the client base at the highest level.
Company raises revenue forecast
SentinelOne raised its revenue forecast for fiscal 2025 to 32%, up from its previous forecast of 31%. This highlights the company’s positive outlook despite increasing competition in the cybersecurity sector. In addition, the company achieved a positive net profit for the second consecutive quarter and positive free cash flow for the past 12 months for the first time in its history. This is an important milestone, as the company now expects free cash flow to remain positive for the entire fiscal year 2025.
Financial Highlights Q3 FY25
SentinelOne’s financial performance in Q3 exceeded analysts’ consensus expectations. Revenue of $210.6 million was 1% above the FactSet consensus of $209.7 million, while total ARR of $860 million was slightly above the expected $857 million. Net New ARR of $54 million also exceeded the consensus of $51 million. Gross margin came in at 75% (GAAP), up from 73% last year, while non-GAAP gross margin was at 80%, above the expected 79%.
Although operating margins were still negative (GAAP operating margin of -42%), they improved over the previous year (-50%). The non-GAAP operating margin also improved, with a loss of -5%, better than the expected -11%.
Financial outlook
For the fourth quarter of fiscal 2025, SentinelOne expects revenue of $222 million, slightly above the consensus of $220.6 million. Non-GAAP gross margin is forecast at 79%, while non-GAAP operating margin is expected to be -3%.
For the full fiscal year 2025, the company raised its revenue forecast to $818 million, implying 32% year-over-year growth. This exceeds the previous forecast of $815 million and exceeds the consensus expectation of $815.6 million. The non-GAAP gross margin remains at 79%, while the non-GAAP operating margin is expected to be -4%.