Security vendor SentinelOne recorded sales of $78 million in the past quarter, more than twice as much as the same quarter of last year.
SentinelOne develops an XDR platform (extended detection and response). Threats in applications, endpoints and network traffic are intercepted. The platform secures entire infrastructures.
The first quarterly results of 2022 are out. SentinelOne exceeded expectations. Market researcher Zacks Investment Research predicted sales of $75 million. Definitive sales totalled $78 million, an annual increase of 109 percent.
Current customers bring in $339 million annually, more than twice as much as last year. The number of customers increased to 7,450, up 55 percent. Nearly 600 customers bring in more than $100,000 a year.
Where’s the profit?
The growth figures are strong, but that’s expected from security vendors. SentinelOne needs more to win investors over. Profit is an important factor, but the organization operates at a loss. In the latest quarter, SentinelOne lost $90 million dollars, nearly $30 million more than last year.
There’s a good reason for SentinelOne’s growth. The organization invests heavily in research and development (R&D), marketing and sales. Growth comes at a cost. Investors wonder if and when the company will become profitable. The share price rose after the announcement, but SentinelOne has to make do with a few percent.
SentinelOne is optimistic about the remaining year. The profit forecast was increased to 407 million dollars. The acquisition of Attivo Networks plays a leading role.
In May 2022, SentinelOne acquired Attivo Networks for 562 million euros. The organization develops identity and access management solutions. The technology protects against leaked passwords, unauthorized access and misconfigurations in Active Directories.
Attivo Networks will contribute to SentinelOne’s sales before the end of the year. In addition, the technology will be incorporated into SentinelOne’s XDR platform over time.