So it’s also a slightly different use case. But I think what you can kind of gather about SentinelOne is that we’re very partner-friendly, no matter who the partner is. We are guided by what customers want to do and we will always stand by that, and we will always support customers. So in that, we — Wiz is another great partner of ours from many other partners that we have. So there’s no reason for us not to partner with them.
Operator: Our next question is from Joshua Tilton with Wolfe Research. Your line is now open.
Unidentified Analyst: Hi, this is Patrick on for Josh. So you mentioned last quarter after the adjustments to ARR that the revenue to ARR correlation should be tighter moving forward. But if you look at that historical delta, it actually ticked up a bit here in 2Q from 1Q and is a little closer to what we saw last year. So curious, did you see some shrink to come back in that consumption part of the business? And then has anything changed from last quarter with how you factor that consumption part into the guidance? Thanks.
David Bernhardt: I’d say we’re still very closely aligned. I think revenue increase year-over-year was 47%, and the ARR was 46%. And I’d say that’s pretty close. So we expect that to continue to be aligned for the rest of the year.
Unidentified Analyst: I guess, I meant.
Operator: Our next question is from Saket Kalia with Barclays. Your line is now open.
Saket Kalia: Okay, great. Hey guys thanks for having me on the call. Tomer, I kind of have a two-part question for you, if I may. The first one is on the competitive environment. I know we talked about the other endpoint player out there. But I want to ask specifically on Microsoft. One of the things that came out on another conference call was maybe you’re starting to see customers question the real price, the real underlying price of Microsoft Defender, do you agree with that? Are you hearing that from customers? That’s the first part. The second part of the question is more of an industry question on CNAP. There are endpoint players that have CNAP, there are firewall players that have CNAP and then there are individual vendors that have CNAP.
What are you hearing from customers on their preference to buy from one category versus another. Is there a natural, I don’t know, tendency to buy from an endpoint or for a firewall vendor? Or is that still something that’s being determined?
Tomer Weingarten: So on Microsoft, we definitely see more customers starting to understand that the lack of price transparency is causing them to actually overpay for what they would actually get from another vendor at a lower price point. I mean if you bundle together the workload pricing, the login pricing, the service pricing, all of that together comes up to a pretty hefty price tag if you’re going with Microsoft. And I think we can all agree not to best-of-breed security. So we’re definitely seeing more of that. I think there is a slight dynamic change there. I wouldn’t call any of that right now, transformative or pieces changing, I think, it’s just starting to trickle. I think if you couple that with the fact that not only Microsoft is not the cheapest solution, Microsoft also doesn’t really care as much about customers just under sheer scale, right?
I mean we’re talking about a complete different level of support if you’re going with a stand-alone cybersecurity provider like our — like us and some of our peers, I think you’re just getting a completely different level of service, and that is something that is also starting to resonate with customers out there. And lastly, I think it’s just the complexity. Microsoft has a lot of different ingredients in what they call security. It’s not one platform. It’s a bundle of solutions, and I think that also matters significantly. If we want to touch on CNAP, I think your observation is 100% correct. And I think that a lot of folks gravitated towards the stand-alone CNAP vendors on the back of just great UI. I think there’s no deep IP in CNAP, inventory, attack graph visualization, like all these things, that’s not AI.
That’s not deep IP. And I think that’s where you’re seeing this commoditization where everybody is coming up with their own capabilities to achieve that. And I think it really is what flavor that the customer wants to go with. And once again, we’re flexible. I mean if you want to get that out of us, we will definitely build the best platform that we can. But if you rather have a different flavor, that’s fine, too. We’re focusing where there’s deep technology and workload protection, run time protection. This is where you can actually and meaningfully differentiate. This is non-commoditized. This is where our years of research, supporting Linux environment, containerized environments, bringing best-of-breed telemetry, best to be performance, that’s where it matters.
And that’s where we win the most. And that’s why that remains our focus as we build these other capabilities to get to this holistic approach to cloud security. But once again, you get different flavors of customers. You’re going to get fewer public cloud customers, you’re going to get private cloud customers, you’re going to get on-prem workload customers. It’s not one size fits all in some of these stand-alone offerings, they’re not really relevant in any other setting other than a public cloud setting.
Operator: Our next question is from Trevor Walsh with JMP Securities. Your line is now open.
Trevor Walsh: Great, thanks for taking my question. Tomer, on the subject of the Ranger insights that you announced earlier in the month, can you just walk us through maybe what the kind of, I guess, 1.0 or first type of — how that opportunity looks initially vis-a-vis kind of other players in that vulnerability management space and then kind of where you’re looking to maybe go with that product and kind of what the opportunity looks like kind of in six, 12 months? Thanks.
Tomer Weingarten: Yes. I mean great traction already. I think it’s something that we kind of vetted and built with customers, and it’s focused on identifying vulnerabilities, prioritizing vulnerabilities and allowing you to gain full context on vulnerabilities together with endpoint data in one same place. And given that most vulnerabilities actually lie on endpoints and servers, it really is a very, very natural place for it to live together. And now we’re working on adding more and more remediation capabilities that can inform you, once you get informed on a vulnerability, you can automatically remediate it. So I think for a lot of these vendors right now in that space using all kinds of scanning tools and you need to deploy another agent.
And sometimes you need an incumbent vendor that adds just another overhead on the machine with us. I mean, if you’re an existing customer, you’re just getting it. It’s already there. And I think the most important part of it is that it’s also done in a complete continuous manner. So this is not a onetime skin type of a thing. It’s a continuous profile of your environment. And we can highlight all these vulnerabilities the moment that they pop up, and we can offer up remediation the moment that something pops up. So to me, it’s a very natural expansion. It’s a great little TAM that we can now also serve between $5 billion to $7 billion. And it’s just, again, something that we believe will streamline operations significantly for a lot of customers out there.
The one last thing I want to say about this is that it’s also highly strategic for our MSSP segment, the MSSP partners are always looking for ways to, you know, get to better hygiene to patch customer machines and by allowing them to the same remote management platform that they’re using today our SentinelOne Singularity platform to now also cover vulnerabilities, we’re lying for extreme cost efficiency for them and obviously an avenue for expansion. So strategic on both fronts, and we’re very, very proud of launching vulnerability management into our endpoint management suite.
Operator: Our next question is from Jonathan Ho with William Blair. Your line is now open.
