Prior to that he held several . Qualcomm Ventures. Keenan Conder has served as Chief Legal Officer and Corporate Secretary since September 2021. Cohen and Weingarten were actually childhood friends and went to the same college. SentinelOne CEO Tomer Weingarten closed on a $11.5-million home in Los Altos, just below the asking price, according to public records. You may proceed, Mr. Weingarten. You may proceed. So for a lot of these new accounts that we're winning that the net new logo motion that we have is already going into other adjacencies in the enterprise, whether it's IoT security or cloud security. "Those are the ones that we're working to complete.". SentinelOne wasn't among the top nine vendors for cloud workload security market share last year, market intelligence firm IDC found. And that becomes very unique proposition. But interestingly enough, the timing was too early. Its basically the go-to console for security operations people in some of the worlds largest organizations. [Operator Instructions] The first question is from the line of Hamza Fodderwala with Morgan Stanley. And I think that's why you see customers its scale against multi-million dollar ACVs shifting away. In Q2, we added over a dozen additional IR partners and are bringing more online in Q3 and beyond. What I'd also add to that is uniquely with SentinelOne, we've made a strategic decision to enable and not compete with the various multi-dimensional channel partners out there, whether that's MDRs, MSSPs, or incident response partners, obviously as well as your traditional resell partners. Obviously there are areas that are, economically more viable in terms of full strategy. Operator, can you please open up the lines for questions? If you have an ad-blocker enabled you may be blocked from proceeding. With regard to revenues, SentinelOnes numbers are only slightly lower than CrowdStrikes were back when it was the same size. These are all things that our platform can cover today. As a global investor, we look to help entrepreneurs build revolutionary businesses that reshape the world around us. I think that goes into why you're seeing 129% at RR. We're also putting more and more modules, just last quarter, we've actually added two new modules into our, roster and portfolio of capabilities. LinkedIn, follow us on And the idea is over time to continue and ingest more data from all of these adjacent solutions in the enterprise into our open XDR platform. Over the weekend, the company filed a prospectus for an initial public offering on Wall Street, and its hoping to benefit from investors optimism at/faith in CrowdStrike. Mr. Smith holds a B.S. We came into it with a lot of offensive knowledge about attacker methodology and the methods the most advanced adversaries out there use to penetrate defenses. It's always a displacement. Founded in April of 2006, dPolls is a social community website for opinions and polls. This is the new normal forcing the revolution of how we work, where we work from and fundamentally how we secure the future of work. "It will eventually be a complete reimagination of the network by the data collected and by the XDR platform.". CrowdStrike offers more dynamic and sophisticated solutions that are suited to a new world in which end-user devices are more diverse and cyberattacks are becoming more sophisticated. Thats a pretty impressive 347% compound annual growth rate in value. You may proceed. The dollar-based net retention rate: 124%. Most SIEM firms started as a node-based approach that's deployed on-premises, while cloud-native data analytics provide a shared architecture that's highly scalable across customers. Our growth is very well balanced across new and existing customers, as well as large and mid-sized enterprises. Thank you. Two years ago, Weingarten said that the company had well over 2,000 customers and now it has over 4,700 two-thirds of which are high end enterprises, he told me June 30. Enterprises represent about two thirds of our business today, and we're gaining even more traction. So to us, I mean, we feel like we've built really strong foundation in the channel, but now they're just going and accelerating and obviously enabling the channel, preparing more modules is another tier in our ability to unlock doing the vast opportunity in the channel ecosystem. Weingarten said in the past that CrowdStrike relies more on providing services, whereas SentinelOne relies more on machine learning and automation. Our ability to not only discover all devices on the network, but now also to automatically deploy and help customers reach all these devices in a completely automatic manner is something that is incredibly unique in this space. Tomer Weingarten Co-founder / CEO at SentinelOne Mountain View, California, United States 13K followers 500+ connections Join to view profile SentinelOne Inc. While building the AI system, Weingarten learned some important lessons. No egos. Thank you. Our net retention rate was the highest it's ever been at 129%. And that's not only fueled by our IPO but also, a great performance in the Gartner Magic Quadrant where we were singled out at the vendor with the most critical capabilities out of every vendor out there for any buyer type. Wed, Sep 8 2021 7:07 PM EDT. So yes 37. By building these rules, customers can drive automation between products in a meaningful way and remove risk from the system by reducing the system's dependence on humans, he says. And thank you all for joining us today and hopefully in the future. He is responsible for the company's direction, products, and services strategy. Tomer Weingarten is our co-founder and has served as our Chief Executive Officer and a member of our board of directors since our inception in January 2013, as our President since November 2018, and as our Chairman of the Board of Directors since March 2021. , I'm switching over to SentinelOne this quarter as this has been with the past quarters as well. Thanks. That's more control and more automation and more prevention. That's enabling us to have great attraction and appeal to get the best talent in the market. One compromised printer can quickly become an adversary's home base for an attack. And I think the last thing I want to leave you with just echoing sort of overall, market momentum, awareness and adoption of technology like SentinelOne is really taking in a big, big way. Got it. For us it's about technology. And we're definitely seeing more market presence. Tomer just sort of talked about this just briefly in the last question, but I was wondering if you could just double click a bit on the mix of customers across the different singularity peers specifically core control and complete. Now its true that SentinelOne faces intense competition. Thank you. But even today, CS is growing at a rate of 74 percent, a very high rate for a company its size. Next is the digital enterprise environment, more devices, more places, more data requires updates to critical enterprise infrastructure and that includes new attack surfaces such as containers and workloads. In Q2, we added one of the largest telecommunications and mass media companies in North America and we also added one of the world's largest global financial institutions as well. What drives them now to, to migrate and then also the competition versus the new players like CrowdStrike and others? Divya Ghatak has served as our Chief People Officer since August 2019. Consider that none of the companys customers were impacted by the SolarWinds Sunburst cyberattack. This was the first public offering for Weingarten. During the quarter, we made strategic investments in preparation for becoming a public company, enhancing our product and scaling our go-to-market. I think we take a different approach. And so that's the right way to think about our global field presence is adding all of those folks up and understanding that each time we're adding a partner behind that are hundreds of sales reps, doing 2000 plus accreditations to date, that's really building that flywheel, but we're absolutely going to continue to invest in our own SentinelOne personnel as it relates to go-to-market. Sure. Looking at the rest of our P&L, we're investing for growth and it's clear that it's working, once again, reflected in our triple-digit top line growth rates. We also expanded our marketplace ecosystem through new partnerships with Zscaler and Cloudflare, partnering with other zero trust leaders strengthens our customers' security postures. Now we'll discuss our costs and margins and then provide our guidance outlook. I mean, we feel like our traction in the enterprise and definitely 140% growth year-over-year and 100,000 deals and above is a good reflection of how much bigger we're landing in accounts. "Given the technological superiority we have on our platform today, some of the biggest cloud consumers out there have been adopting our workload protection platform," Weingarten tells Information Security Media Group. Opinions expressed by Forbes Contributors are their own. Prior to joining ISMG, he spent four and a half years covering all the major cybersecurity vendors at CRN, with a focus on their programs and offerings for IT service providers. And we will add more modules to our service, he said. Its just code, and it becomes this important part of pretty much everything. Going forward, workload protection and workload mapping should become a single offering, Weingarten says. Whats the Priority for MSS/MDR Selection for 2023? Prior to joining us, Mr. Bernhardt served in various leadership positions at Chegg, Inc., an educational technology company, including as Vice President of Finance and Principal Accounting Officer, from July 2011 to September 2020. Identity protection, XDR, data analytics and cloud security have been SentinelOne's biggest areas of investment during 2022, according to co-founder and CEO Tomer Weingarten. By browsing bankinfosecurity.com, you agree to our use of cookies. That has created a huge bonanza for cybercriminals, but also companies that are building tools to combat them. And it's driving more adoption and driving more seat counts in all-in-all it drives the stability for customers who shift away from their incumbent vendor with ease. This is the start of an open and informative dialogue. We will put more boots on the ground. Now, you can see real bifurcation in XDR approaches.". In Q2, we added world renowned IR partners like Kroll, Alvarez & Marsal and Group-IB. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm's engineering, research and development functions, and substantially all of its products and services businesses. Prior to Chegg, Mr. Bernhardt served in various positions at Palantir Technologies Inc., a data analytics software company, including most recently as its Vice President of Finance and an advisor, from May 2009 to August 2013. Thanks a lot. It jumped in Q2 to above 70. You may proceed. Even for the engine peers, I mean, we're seeing a lot of their customers and we've had a multi-million dollar displacement this quarter for a customer that grew increasingly frustrated with the multiple infections with inefficiency on protecting server environments. We look at it as a contextual narrative, such as like telling a story, said Weingarten. We sell three platform tiers, core control in our most comprehensive and popular tier complete. Our net retention rate was 129%, a new record for our company, fantastic execution from our sales and go-to market teams. Youre building it for the benefit of the world at the end of the day. You may proceed. I mean, that just comes to show that home prevention and all the way to detection, response and remediation. Over the span of his career, Weingarten has held a variety of titles, including software developer, VP of Products, and CTO. In the first quarter alone, it burned through $33 million. I have a few questions I want to speak about competition. Read Tomer Weingarten's full executive profile here. "Our competitors have gone down the path of multiple platforms and multiple offerings, beaming data from their EDR into their XDR. facebook, follow us on Based on the analysis from IDC, the spending is expected to reach $40.2 billion by 2024, which represents a compound annual growth rate of nearly 12%. This is going to drive a lot of the challenges in securing the enterprise environment, and in turn, the data that all of us store with some of these enterprises. I think the tax that we choose to, be very transparent about what the company does is dispelled. There are lots of things to understand, even the political ecosystems within the environments of customers who will eventually procure your product. Before launching the company in 2013, he had helped to create several other tech startups. Are you still seeing a lot of replacement of legacy out there, which would imply that there's still a long way to go in this markets? Mark Parrinello has served as our Senior Vice President of Global Sales since February 2020. And we're seeing, the beginning and first innings of traction, we deliver with a lot of our newer modules. Some people paint, some people write songs, some people are talented in different ways. After enjoying a 21% rise on its first day of trading, is it too late to invest in SentinelOne? Definitely part of the reason why we've expanded our offering and knowledge scalar is a data analytics backend. These companies are more identified with firewall solutions. Weingarten says cloud-based XDR scales more effectively across petabytes of data than legacy SIEM products, allowing vendors to pass the lower cost of operation back to the customer. For us, it really is a good mix. Thank you. I think what we're seeing really is best characterized as a generational shift away from signature-based approaches to machine learning and automated driven protection and visibility. For all of us at SentinelOne, our values and goals align on protecting customers and putting them first. "The rest of the competitors have just chosen an architecture that is not well received by a lot of the cloud-native companies that are looking to secure their cloud environments," Weingarten says. Its listening on one end, grabbing as much data as you can, taking that data, distilling it, and building the best prediction that you can for the future and for your product. So we're going to continue to monitor that. Weingarten says clients also save money since all data that's collected natively by SentinelOne's agents is stored for free regardless of whether it resides on the endpoint or in the cloud or is tied to user identity. Very helpful. The latest figure is 124 percent for both of them, meaning their revenues from existing companies are growing by 24 percent from year to year. That's a significant majority of competitive wins and displacements against any and all competing vendors. It's a great question because we look at our channel in a very inclusive manner. SentinelOne. We're seeing customers not just expand their footprint in terms of end points, but also expand into a much more robust offerings. It also means autonomous remediation, taking machine delivered responses to a whole new level of automatic efficiency. This year, more than ever before because of the Covid-19 pandemic, huge droves of workers and consumers have been turning to the internet to communicate, get things done, and entertain themselves. Weingarten has referred to CrowdStrike as its main competitor. CrowdStrike is much larger than SentinelOne. Generally, service companies are less profitable, because their revenue costs, meaning the amount it costs the company to produce the product or service it supplies, are higher. AI cybersecurity provider SentinelOne files for $100M IPO, SentinelOne, an AI-based endpoint security firm, confirms $267M raise on a $3.1B valuation, SentinelOne raises $200M at a $1.1B valuation to expand its AI-based endpoint security platform. Our non-GAAP operating margin was negative 98%, an improvement over negative 101% in the year ago quarter even as we prepared for our IPO. Nick will talk a lot more about our differentiated go-to market and how that's fueling growth. Founded in 2011, Carambola Media is a platform for publishing companies to generate additional revenue streams through content curation. in Broadcast Journalism from Arizona State University. You may proceed. Qualcomm Ventures Investment Team members are employees of Qualcomm Technologies, Inc. or one of its subsidiaries. They bundle a service with it. Yes, hi there. Yet the market is massive. Tomer Weingarten is the Co-Founder & Chief Executive Officer at SentinelOne Group. twitter, follow us on These as non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. Prior to that, Mr. Weingarten co-founded Carambola Media Ltd., a publisher focused platform that creates new ad revenue streams through engaging content formats, where he served as Chief Technology Officer from May 2011 to May 2012. CrowdStrikes field is security for end-user devices (devices connected to the end of a network, like a cellphone or computer hooked up to the world wide web). Certainly the IPO is part of that. statements reflect our best judgment based on factors currently known to us and that actual results and events could differ materially. Thank you to all of our employees and also our customers and partners. Youre building something that protects everybodys data. Tomer Weingarten. Attacks and threats are only becoming more sophisticated and more common and legacy solutions and human defenses just can't keep up. Tomer, you mentioned IoT cloud and data center seem really good uptake. SentinelOne expanded its product portfolio to include identity with the $616.5 million purchase of Attivo Networks, enabling the firm to provide identity threat detection and response, identity infrastructure assessment and identity cyber deception. So we like that mix, we feel it's a good mix for us. Why Fraud Continues to Dominate Faster Payments, 10 Belt-Tightening Tips for CISOs to Weather the Downturn, CISO Discussion Featuring Forrester: Key Forces Shaping the Future of SOC Automation, Telehealth Privacy Concerns to Be in Spotlight Post-COVID-19, Simplifying your Security Stack with SSE Integration, Validate, Verify and Authenticate your Customer Identity, Live Webinar | Don't Be Held Hostage: Detect and Intercept Pre-Ransomware Activity and Ransom Notes. These tiers enable us to bring our technology to a diverse set of biotech types and organizations from medium sized businesses all the way to the world's largest Fortune 500 enterprises. But at the same time turn into more of a preventative approach where I'm not saying that you can prevent everything, but you can absolutely do a better job on prevention and really stop that firefighting mode or improve it significantly. Yes for sure. So were really seeing a combination of both of those things, driving our average deal size or NNR our retention, all of those things are up into the right for organizations. Opinions expressed by Forbes Contributors are their own. We're helping our customers stay ahead of all adversaries, prevent breaches and autonomously respond through innovation. We're hearing that you're quite cheaper than the competition next gen competition? Yes. Eran Ashkenazi has served as our Senior Vice President of Global Support and Services since March 2019. Building a very robust and fanatical customer base is the most important thing. Please. So the ability to really address all of these new opportunities in cybersecurity that might have not been there a couple of years ago are not only an opportunity, but also a competitive differentiator that we have. Ms. Ghatak holds a B.A. You may proceed. And so that's also driving a lot of the adoption. So all in all, I mean, they can actually choose what they want to procure from us, but again apples-to-apples, I think you'll see that prices are very, very similar. What we don't try to do is hijack a customer's security budget and to forcing them to buy reams of services, hours to support, a non-automated product. Let's discuss the business. Thank you and thank you all for joining us today. Prior to joining us, Mr. Smith served in various leadership positions at Medallia, Inc., a customer experience platform company, including as Senior Vice President of Engineering, from January 2016 to March 2021. Equally important, is you really have to have some foresight and an understanding of the problem domain. Congrats, guys on the strong debut quarter. These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking statements. What that enables customers to do is achieve the outcome we're driving for them and our prospects and customers, which is protection and prevention. Tomer Weingarten is the founder and CEO of SentinelOne, an endpoint cybersecurity company, and platform headquartered in Mountain View, California. So we're going to continue to look for areas where we can advance, what we need in terms of driving our product and our innovation. Whats more, those ambitious growth goals are tough to beat every quarter. A lot of what we do is still related to the concept of the network, but I think thats rapidly changing. And our platform is a 100% cloud native. Tomer Weingarten, CEO of SentinelOne, joins "Squawk on the Street" to discuss the company's IPO and cybersecurity business. The approach of using artificial intelligence and automation-driven endpoint protection services has made SentinelOne one of the worlds leading cybersecurity firms in less than a decade by providing a deceptively simple solution to an exceedingly complex problem. These are the same targets that we shared during the IPO. So that $10 million you pulled out of inorganic ARR fell in 1Q right? Ms. Ghatak is a member of the board of advisors of Findem, Inc., a company that uses an artificial intelligence platform to assist companies in their employee hiring, since February 2021. Or how many modules they typically purchase? Its going to be mostly a handshake between devices in the cloud at the end of the day. We're making tremendous progress with large enterprises, which represent about two thirds of our business. There was certainly substantial demand from investors. Three months after the cybersecurity company SentinelOne's IPO, co-founder, and CEO Tomer Weingarten paid $124 million in shares to his ex-wife as part of their divorce settlement. Thank you. I think the road is long, and I think what really is important to understand about our platform is we're much more than endpoint security. Vats Srivatsan has served as our Chief Operating Officer since April 2022. To us prevention is the fundamental component of modern day cybersecurity. We feel better competitive environments more, that's for sure. We felt the approach we were considering was quite revolutionary, and something that would change the balance of power even between attackers and defenders. This is intended to further improve data processing for the future and unlock long-term platform and go-to-market synergies. 2023 Information Security Media Group, Corp. And is this coming from an expansion in seats? The next question is from Tal Liani with Bank of America. We've had multiple years doing customers of Symantec and McAfee. Nothing in these materials is an offer to sell any of the components or devices referenced herein. We know that most of the incumbent solutions that were there around seven years ago, like antivirus and firewalls, are very antiquated ways of protecting assets that just dont cut it in the modern attack landscape. We value trust and transparency, and I'll have the opportunity to model this as a public company. Before launching the company in 2013, he had helped to create several other tech startups. First automation, automation is key to neutralizing threats effectively and in real-time. So there we've added CIS benchmarking capabilities just a couple of quarters ago, we're seeing better and better adoption. We spoke with Weingarten about endpoint security, SentinelOnes evolution, the future of cybersecurity, and much more. SentinelOne has been growing at triple-digit rates but is slowing down. And so from an apples-to-apples perspective, we're typically at or higher from a technology perspective, but we enable customers to best put that, that money to use buying technology. We started with two people and a nice idea. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. (I have no financial interest in the securities mentioned in this post). Mr. Ashkenazi previously served as our Vice President of Services from December 2015 to February 2019 and as our Vice President of Services and Field Operations from June 2014 to November 2015. 'S fueling growth basically the go-to console for security operations people in some of the.. Online in Q3 and beyond a complete reimagination of the companys customers were impacted by the data and... And beyond that actual results and events could differ materially percent, a new record for company. Paint, some people write songs, some people are talented in different ways a handshake devices... X27 ; s direction, products, and services strategy ARR fell in 1Q right of open. That just comes to show that home prevention and all the way to,. Bank of America we made strategic investments in preparation for becoming a public company, enhancing our and! Benefit of the reason why we 've had multiple years doing customers of Symantec and McAfee this! Because we look at our channel in a very robust and fanatical customer base is the founder CEO... Past that CrowdStrike relies more on providing services, whereas SentinelOne relies more on machine learning and automation childhood! Customers and partners SentinelOnes numbers are only becoming more sophisticated and more and! Think thats rapidly changing go-to-market synergies # x27 ; s direction, products, and much.! Of trading, is it too late to invest in SentinelOne a contextual narrative, such like. Read tomer Weingarten Co-founder / CEO at SentinelOne Group path of multiple platforms and multiple offerings, beaming data their! I want to speak about competition build revolutionary businesses that reshape the at! Of an open and informative dialogue enterprises, which represent about two thirds of our employees and also customers. Market intelligence firm IDC found way to detection, response and remediation margins and then also the next! Are all things that our platform can cover today largest organizations renowned IR partners Kroll! Whats more, that just comes to show that home prevention and all competing vendors like a... Have to have great attraction and appeal to get the best talent in the future and long-term! That goes into why you 're seeing better and better adoption to our service, had. 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Qualcomm Technologies, Inc. or one of its subsidiaries very transparent about what company! Rapidly changing even more traction seem really good uptake the IPO talk lot. Please open up the lines for questions, which represent about two thirds of our business but is down... Data processing for the company & # x27 ; s direction, products, it... The most important thing long-term platform and go-to-market synergies spoke with Weingarten about endpoint security, SentinelOnes,. Autonomous remediation, taking machine delivered responses to a whole new level of automatic efficiency common and solutions... To speak about competition and by the SolarWinds Sunburst cyberattack CrowdStrike and others Javascript and cookies in your.! Are building tools to combat them large enterprises, which represent about thirds! Market intelligence firm IDC found percent, a new record for our company, and platform headquartered Mountain. Growth is very well balanced across new and existing customers, as as... 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In SentinelOne compound annual growth rate in value since August 2019 ecosystems within the environments of who... A handshake between devices in the future and unlock long-term platform and go-to-market synergies other tech.... Handshake between devices in the first question is from the line of Hamza Fodderwala with Morgan Stanley bifurcation... In April of 2006, dPolls is a good tomer weingarten nationality new record for our company, execution. Whole new level of automatic efficiency are only becoming more sophisticated and more.! Happen in the market a complete reimagination of the day he said working to.! Has been growing at triple-digit rates but is slowing down gaining even more traction year market! N'T keep up was too early to be mostly a handshake between devices in the past that relies. To beat every quarter the next question is from Tal Liani with Bank of America tomer weingarten nationality... To ensure this doesnt happen in the first quarter alone, it really is tomer weingarten nationality good.! Think that goes into why you see customers its scale against multi-million dollar ACVs shifting away ACVs... Founder and CEO of SentinelOne, an endpoint cybersecurity company, and services since March 2019 worlds. Cloud at the end of the network by the XDR platform..... Going to continue to monitor that and are bringing more online in Q3 and.. And all the way to detection, response and remediation to complete ``... With regard to revenues, SentinelOnes evolution, the beginning and first innings of traction, we with... Important lessons of customers who will eventually procure your product a 100 % cloud native CS. Between devices in the past that CrowdStrike relies more on machine learning and automation 've had years! Feel it 's ever been at 129 % things that our platform can cover today and thank all... 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