But starting in February and continuing through today, Bernhardt said, many customers have cut their use of products with consumption-based pricing back to the contractual minimum. "I can't say it's a lot of fun right now, but at the end of the day, we keep on growing." Data Consumption Falls as Customers Are 'Under the Gun to Save'Ĭustomers using SentinelOne's data ingestion, security data lake and data set consumption products have in recent years steadily and increasingly input more data than they were contractually obligated to, Bernhardt said. None of us expected to IPO the company and go home. SentinelOne expects to spend between $3 million and $5 million on employee severance and also will have inventory write-off, according to Bernhardt. 31, 2024 - and $15 million in future fiscal years, said CFO David Bernhardt. The workforce reduction, facilities consolidation and spending cuts will allow SentinelOne to achieve a $40 million cost savings in the current fiscal year - which ends Jan. "This is not the economy to put the pedal to the metal and run fast. What you're seeing is our real-time adjustment from a full-on growth company into a more balanced approach, disciplined growth company," CEO Tomer Weingarten told investors Thursday. "This is not the best market to operate in for a growth company. The layoffs are part of a broader cost-cutting effort that includes prioritizing core products and reducing cloud hosting costs and future hiring (see: SentinelOne CEO: Cloud Security May Be Bigger Than Endpoint). The Silicon Valley-based endpoint security stalwart on Thursday revealed plans to reduce its 2,100-person staff by approximately 5% - or about 105 positions - to remain on track with achieving non-GAAP profitability next year despite slower-than-expected sales growth. See Also: Live Webinar | Best Strategies for Transferring Sensitive Financial Data SentinelOne plans to ax approximately 105 workers after a significant drop in data usage for products with consumption-based pricing caused revenue to fall short of expectations. And after the coronavirus pandemic arrived, Palo Alto Networks CEO Nikesh Arora began talking about SentinelOne in conversations with analysts - he referenced the company three times on a recent earnings call.Tomer Weingarten, co-founder and CEO, SentinelOne (Image: SentinelOne) In the past few months, CrowdStrike and Qualys for the first time called out SentinelOne as a competitor in their annual reports. But more of its competitors are also now talking about the threat posed by SentinelOne. SentinelOne competitors have been among the big IPO winners in recent years, with CrowdStrike - which Weingarten has referred to as its "main competitor" - now valued at over $46 billion. customers are transitioning into the cloud and that creates a big opportunity for us to expand all these different footprints in the enterprise." "As you see this massive wave of digital transformation. "The market we address is huge," CEO Tomer Weingarten said on CNBC's " Squawk on the Street" Wednesday morning before shares started trading. In its IPO prospectus, SentinelOne disclosed revenue growth of 108% year over year to $37.4 million, while net losses more than doubled from $26.6 million to $62.6 million. It's a two-time CNBC Disruptor 50 company that ranked No. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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