SentinelOne, Inc. (NYSE:S) Q4 2024 Earnings Call Transcript

And our Data Lake vision, coupled with hyperautomation, delivers on that promise in a very substantial way. So when you look at what these enterprises are looking to move away from an antiquated old-gen same solution and into a new Data Lake hyper-automated approach, I think you’re just seeing that need to move faster, to react faster and to modernize your environment. And if they can do so while also saving dollars in the process, I mean, that’s obviously a win-win. And we’re seeing those conversations transpire in an incredible way across the board. I think we mentioned about 10% of our quarterly ACV for Q4 actually came from data. That is huge growth for us year-over-year for our data solution. And we definitely expect further acceleration in our data unit.

Last thing I want to say about that is the data for us, again, being that additional center of gravity is really driving more platform adoption regardless of just the data analytics capability. So it really is an incredibly strategic growth vector for us in the years to come. It’s a $40 billion TAM across data analytics and security analytics, and we believe it’s ripe for disruption.

Operator: Next question today is from the line of Fatima Boolani of Citi. Your line is now open. Please go ahead.

Fatima Boolani: Good afternoon. Thank you for taking my question. Tomer, for you. I was hoping you could give some airtime to PinnacleOne. And I’m specifically curious about how the addition of PinnacleOne as a service offering has impacted your transaction velocity, especially vis-à-vis your traditional very software-first go-to-market motion. And if you can comment on to what extent your PinnacleOne engagements are impacting your software sell-through for the rest of the platform?

Tomer Weingarten: Of course. And PinnacleOne is definitely getting plenty of airtime. I think that for us, PinnacleOne is really the topmost layer of our strategy and philosophy as a company. If you kind of think about that shift from just selling security products, point solutions, chasing malware, PinnacleOne is really about shifting the strategy and allowing customers and enterprises out there to think about risk mitigation instead of just stopping incidents. And I think that for us represents a whole new approach on how you think about cybersecurity. Whether you buy products from us or not, I think there is an unbelievable amount of value that PinnacleOne brings to Board out there that uses to get both the Geopolitical elements and the Technical capability that you might want to reduce the risk in your environment and how you design your security strategy.

And for us, I mean, we’re already seeing significant traction with both I think, direct engagement with PinnacleOne, but also the derivative product sales that might come with it. We’re already seeing quite a lot of deals influenced by PinnacleOne. Customers, I think, always come out of this conversation, as a complete eye opener for them as to what they should be concerned about. Not every capability in cybersecurity is the most pressing one. Not all pain points are created equal. And PinnacleOne is an incredibly strategic ally to these boards, these executive teams and definitely to the CISO and to understand and parse through where should I be investing? Where is the biggest bang for the buck? And where do — where can I mitigate risk the most?

So can’t underestimate the importance that something like PinnacleOne has. And it stitches together both our Incident Response capabilities and our Research capabilities and our Threat Intelligence capabilities into one offering that’s holistic for the customer. And across all of these avenues, it’s a very unique offering in the market that currently no other vendor offers.

Operator: Thank you. Our next question is from the line of Shaul Eyal of TD Cowen. Your line is open. Please go ahead.

Shaul Eyal: Thank you. Hi. Good afternoon. A question for Dave, I want to double-click back on the Enterprise and Commercial bundles. How is the sales force being incentivized, any deviation from kind of selling the unbundled product, or pretty much the same?

Tomer Weingarten: It’s the same. We don’t have any different Incentivation strategy. But we always take the lead from the customer. And I think that in many cases, the Enterprise bundle just makes a whole lot more sense for certain customers. For others, I mean, we always try and again be flexible in work with what they need. So we don’t want to incentivize our sellers to go in a different thing, in a specific route. We just wanted to do what’s right for the customer. And the Enterprise bundle is designed to deliver a ton of value. So it kind of speaks for itself.