SentinelOne, Inc. (NYSE:S) Q3 2023 Earnings Call Transcript

Tomer Weingarten: First, on the first question, honestly, we haven’t seen that and our cash balance is incredibly strong by I think any degree. So we haven’t heard that from customers at all. I think customers still look at us as a very cost effective solution and one that on the TCO perspective helps them more than almost any other vendor out there and that comes again on the back of a public company with transparent financials and that has been, I think, just a stellar for in cybersecurity. To the second question, I think, we are seeing large enterprises react and they react by really right-sizing. I think if you couple the pipeline, you really understand that the customer intent is still there. Cybersecurity is not something they can push or punt.

They actually want to buy it, but they want to optimize on costs at the same time. So if you couple the pipeline strength and you couple the trends in deal right-sizing, I think, that’s the right dynamic that you are going to see and it’s something that we have seen, I think, even starting a little bit last quarter, it did show up this quarter even in a more pronounced way and now we are kind of factoring it in. So, all in all, I don’t feel like you are going to see large enterprises saying, I don’t want to spend their security. They have to spend on the security, whether it’s with the incumbent that they currently have or with a new vendor that can supply better security, probably, right around the same cost structure, they are going to have to spend it.

So I don’t foresee any further tapering or any further slowdown in how they are thinking about purchasing. I think we will see a continued trend to right-size deals. And I think that SentinelOne is very well positioned to deal with that. We have always been the more cost-optimized solution in the market. It bodes incredibly well with our business model. That’s why you see us, even in this macro environment improving on gross margin. That couldn’t have happened if we haven’t had really robust and healthy pricing to couple with that.

Tal Liani: Great. Thank you.

Operator: There are no more questions. I will pass the call back over to the management team for closing remarks.

Tomer Weingarten: Thank you, everybody. Really appreciate your time today.

Operator: That concludes the conference call. Thank you for your participation. You may now disconnect your lines.