SentinelOne, Inc. (NYSE:S) Q4 2023 Earnings Call Transcript

So, for us, it’s the capability to really hone in on what we have been doing today before we run into more capabilities. But at the same time, we are going to be looking into more capabilities that’s going to underscore what we do into the future. Last point about that, if you again go back and look at the Gartner Magic Quadrant and the Gartner Critical Capabilities research paper, SentinelOne was highlighted number one in the amount, breadth and depth of capabilities it has and its relevance to each and every customer type out there from the smallest customers to the biggest customers. We are today the broadest, most relevant platform out there according to Gartner. So, to us, a lot of what we do now is really look into the future into the next 3 years, and what else do we want to have in our portfolio to really complete the image of what we feel enterprise security should look like.

Operator: Thank you. The following question comes from Brad Zelnick with Deutsche Bank. You may proceed.

Brad Zelnick: Great. Thank you so much. Tomer, in your remarks, you said that win rates had increased in Q4, which is great to hear. What exactly is driving that? Is it in any particular area of the market or against any particular competitors that you would call?

Tomer Weingarten: It’s been across all competitors, and it’s been more evident in the high end of the market. And a lot of it is just the work that we have done internally to hone in on our processes, put new discipline, new methodology as to how we go about enterprise sales. I think shifting our messaging has also helped significantly. All-in-all, I am very, very encouraged by the performance of the sales team specifically. As we mentioned, we have a new leader for the Americas. That’s been just a great progression on how we go about that segment of the market, specifically, the enterprise. So all-in-all, we definitely think this is a trend that’s here to stay. Our win rates have always been high, that’s something to remember and seeing them go even up, up and above in Q4, has again been just a testament to the changes that we have been leading in the past couple of quarters.

So, all-in-all, very encouraging across all competitors, we have seen some competitive displacements. I think more than ever before, seen more displacements of Microsoft. So all-in-all, I feel like our technology is really starting to shine and customers are starting to understand better and better that they can just get superior value out of SentinelOne versus anybody else in the market.

Brad Zelnick: Great to hear. And if I could just follow-up, Tomer, I have got a couple of investors pinging me on a question that I figure will just ask out in the open. I think people are just trying to reconcile your comments from last quarter talking about 50% ARR for the year as a floor, the bullish comments about Q4, the great pipeline in Q1, stable ASP, good linearity, but now you are talking about an ARR guide that’s a little bit below the floor. Just what is it that’s changed from 90 days ago that you would point our attention to, to just think about the delta? Thank you.