# EDGAR Filing Document

**Accession Number:** 0001583708
**File Stem:** 0001583708-23-000007
**Filing Date:** 2023-3
**Character Count:** 97652
**Document Hash:** a3b8798ce150ce540e20813eeec65334
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001583708-23-000007.hdr.sgml**: 20230314

**ACCESSION NUMBER**: 0001583708-23-000007

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 43

**CONFORMED PERIOD OF REPORT**: 20230314

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**FILED AS OF DATE**: 20230314

**DATE AS OF CHANGE**: 20230314

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SentinelOne, Inc.
- **CENTRAL INDEX KEY:** 0001583708
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 990385461
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40531
- **FILM NUMBER:** 23730886

**BUSINESS ADDRESS:**
- **STREET 1:** 444 CASTRO STREET
- **STREET 2:** SUITE 400
- **CITY:** MOUNTAIN VIEW
- **STATE:** CA
- **ZIP:** 94041
- **BUSINESS PHONE:** 855-868-3733

**MAIL ADDRESS:**
- **STREET 1:** 444 CASTRO STREET
- **STREET 2:** SUITE 400
- **CITY:** MOUNTAIN VIEW
- **STATE:** CA
- **ZIP:** 94041

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Sentinel Labs, Inc.
- **DATE OF NAME CHANGE:** 20210405

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SentinelOne, Inc.
- **DATE OF NAME CHANGE:** 20210402

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Sentinel Labs, Inc.
- **DATE OF NAME CHANGE:** 20130805

?xml version="1.0" ? s-20230314

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **March 14, 2023**

**SENTINELONE, INC.** 

(Exact name of registrant as specified in its charter)

_____________________________________________________________________________________________

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-40531** | **99-0385461** |
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |

---

---

| | | |
|:---|:---|:---|
| | **444 Castro Street** | |
| | **Suite 400** | |
| **Mountain View** | **California** | **94041** |
| (Address of principal executive offices) | | (Zip Code) |

---

Registrant's telephone number, including area code: **(855) 868-3733**

**Not Applicable**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange on which registered** |
| Class A common stock, par value $0.0001 | S | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

---

| | |
|:---|:---|
| Emerging growth company | ☐ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |

---

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**Item 2.02 Results of Operations and Financial Condition.**

On March 14, 2023, SentinelOne, Inc. (the "Company") announced its financial results for the fourth quarter of fiscal year 2023 ended January 31, 2023, by issuing a letter to shareholders and a press release. The Company also announced that it would hold a webcast to discuss its financial results for the fourth quarter of fiscal year 2023 ended January 31, 2023. A copy of the press release and the letter to shareholders is furnished herewith as Exhibit 99.1 and 99.2, respectively.

The Company makes reference to non-GAAP financial information in the Company's press release, letter to shareholders and the webcast call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release and letter to shareholders.

The information contained herein and in the accompanying exhibits are "furnished" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

**Item 7.01 Regulation FD Disclosure.**

On March 14, 2023, the Company posted supplemental investor materials on the Investors Relations section of its website, available at investors.sentinelone.com. The Company announces material information to the public through filings with the Securities and Exchange Commission, the investor relations page on the Company's website, press releases, public conference calls, webcasts, the Company's news website, available at sentinelone.com/press and blog posts on the Company's corporate website at sentinelone.com/blog in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.

The information disclosed by the foregoing channels could be deemed to be material information. As such, the Company encourages investors, the media and others to follow the channels listed above and to review the information disclosed through such channels.

Any updates to the list of disclosure channels through which the Company announces information will be posted on the investor relations page on the Company's website.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

*(d) Exhibits*

---

| | |
|:---|:---|
| **Exhibit Number** | **Exhibit Description** |
| <u>[99.1](sentineloneq423exhibit991.htm)</u> | <u>[Press Release issued by SentinelOne, Inc. dated March 14, 2023.](sentineloneq423exhibit991.htm)</u> |
| <u>[99.2](q4fy23shareholderletter-.htm)</u> | <u>[Letter to Shareholders, dated March 14, 2023.](q4fy23shareholderletter-.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **SENTINELONE, INC.** | **SENTINELONE, INC.** |
| Date: March 14, 2023 | By: | /s/ David Bernhardt |
|  |  | David Bernhardt |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![s1_logoxhorzxrgbxblka.jpg](s1_logoxhorzxrgbxblka.jpg)

**SentinelOne Announces Fourth Quarter Fiscal Year 2023 Financial Results**

***Revenue increased 92% year-over-year***

***ARR up 88% year-over-year***

MOUNTAIN VIEW, Calif. - March 14, 2023 - SentinelOne, Inc. (NYSE: S) today announced financial results for the fourth quarter of fiscal year 2023 ended January 31, 2023.

"We continued to deliver leading growth and margin improvement, a result of stronger execution and our competitive position. Our ARR crossed half a billion dollars, and our global customer-base exceeded 10,000 - two major milestones. Our sights are set much higher," said Tomer Weingarten, CEO of SentinelOne. "We continue to strengthen our technology leadership. Once again, we are a leader in Gartner's Magic Quadrant for Endpoint Protection Platform and achieved the top ranking across all three Gartner's Critical Capabilities for Endpoint Protection Platforms."

"Our fourth quarter results exceeded expectations across all key metrics, indicating strength of our competitive position and unit economics," said Dave Bernhardt, CFO of SentinelOne. "Evident in our fiscal year 2024 outlook, we expect to deliver compelling top line growth with consistent margin improvement."

**Letter to Shareholders**

We have also published a letter to shareholders on the Investor Relations section of our website at investors.sentinelone.com. The letter provides further discussion of our results for the fourth quarter of fiscal year 2023 as well as our full fiscal year 2024 financial outlook.

**Fourth Quarter Fiscal 2023 Highlights**

*(All metrics are compared to the fourth quarter of fiscal year 2022 unless otherwise noted)* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Total revenue** increased 92% to $126.1 million, compared to $65.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Annualized recurring revenue (ARR)** increased 88% to $548.7 million as of January 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Total customer count** grew about 50% to over 10,000 customers as of January 31, 2023. Customers with ARR over $100,000 grew 74% to 905 as of January 31, 2023. Dollar-based net revenue retention rate remained above 130%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Gross margin:** GAAP gross margin was 68%, compared to 63%. Non-GAAP gross margin was 75%, compared to 66%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Operating margin:** GAAP operating margin was (79)%, compared to (108)%. Non-GAAP operating margin was (35)%, compared to (66)%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Cash, cash equivalents, and investments** were $1.2 billion as of January 31, 2023.

------

**Full Year Fiscal 2023 Highlights**

*(All metrics are compared to fiscal year 2022 unless otherwise noted)* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* **Total revenue** increased 106% to $422.2 million, compared to $204.8 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Gross margin:** GAAP gross margin was 66%, compared to 60%. Non-GAAP gross margin was 72%, compared to 63%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Operating margin:** GAAP operating margin was (95)%, compared to (130)%. Non-GAAP operating margin was (49)%, compared to (85)%.

**Financial Outlook**

We are providing the following guidance for the first quarter of the fiscal year 2024 (ending April 30, 2023), and for the fiscal year 2024 (ending January 31, 2024).

---

| | | |
|:---|:---|:---|
| | **Q1FY24<br>Guidance** | **Full FY2024<br>Guidance** |
| Revenue | $137 million | $631-640 million |
| Non-GAAP gross margin | 73.5% | 73.5-74.5% |
| Non-GAAP operating margin | (41)% | (29)-(25)% |

---

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets, and acquisition-related compensation costs. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP gross margin and non-GAAP operating margin is not available without unreasonable effort.

**Webcast Information** 

We will host a live audio webcast for analysts and investors to discuss our earnings results for the fourth quarter of fiscal year 2023, outlook for the first quarter of fiscal year 2024 and our full fiscal year 2024 today, March 14, 2023, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The live webcast and a recording of the event will be available on the Investor Relations section of our website at investors.sentinelone.com.

We have used, and intend to continue to use, the Investor Relations section of our website at investors.sentinelone.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

**Forward-Looking Statements**

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve risks and uncertainties, including statements regarding our future growth, execution, competitive position, and future financial and operating performance, including our financial outlook for the first quarter of fiscal year 2024 and our full fiscal year 2024, including non-GAAP gross profit and non-GAAP operating margin; progress towards our long-term profitability targets; and general market trends. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target," "plan," "expect," or the

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negative of these terms and similar expressions are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words.

There are a significant number of factors that could cause our actual results to differ materially from statements made in this press release, including but not limited to: our limited operating history; our history of losses; intense competition in the market we compete in; fluctuations in our operating results; network or security incidents against us; our ability to successfully integrate acquisitions and strategic investments; defects, errors or vulnerabilities in our platform; risks associated with managing our rapid growth; general market, political, economic, and business conditions, including those related to declining macroeconomic condition, rising interest rates, supply chain disruptions and inflation, recent banking sector issues, the continuing impact of COVID-19 and geopolitical uncertainty, including the effects of the conflict in Ukraine and the proposed judicial reform in Israel; our ability to attract new and retain existing customers, or renew and expand our relationships with them; the ability of our platform to effectively interoperate within our customers' IT infrastructure; disruptions or other business interruptions that affect the availability of our platform; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and risks of securities class action litigation.

Additional risks and uncertainties that could affect our financial results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" set forth in our filings and reports with the Securities and Exchange Commission ("SEC"), including our most recently filed Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other filings and reports that we may file from time to time with the SEC, copies of which are available on our website at investors.sentinelone.com and on the SEC's website at www.sec.gov.

You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof, and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date of this press release or to reflect new information or the occurrence of unexpected events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

**Non-GAAP Financial Measures**

In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, with the financial information presented in accordance with GAAP, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period.

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Reconciliations between non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP are contained below. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

As presented in the "Reconciliation of GAAP to Non-GAAP Financial Information" table below, each of the non-GAAP financial measures excludes one or more of the following items:

***Stock-based compensation expense***

***Employer payroll tax on employee stock transactions***

***Amortization of acquired intangible assets***

Amortization of acquired intangible assets expense are tied to the intangible assets that were acquired in conjunction with acquisitions, which results in non-cash expenses that may not otherwise have been incurred. Management believes excluding the expense associated with intangible assets from non-GAAP measures allows for a more accurate assessment of our ongoing operations and provides investors with a better comparison of period-over-period operating results.

***Acquisition-related compensation costs***

Acquisition-related compensation costs include cash-based compensation expense resulting from the employment retention of certain employees established in accordance with the terms of the Attivo acquisition. Acquisition-related cash-based compensation costs have been excluded as they were specifically negotiated as part of the Attivo acquisition in order to retain such employees and relate to cash compensation that was made either in lieu of stock-based compensation or where the grant of stock-based compensation awards was not practicable. In most cases, these acquisition-related compensation costs are not factored into management's evaluation of potential acquisitions or our performance after completion of acquisitions, because they are not related to our core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related compensation costs from non-GAAP measures provides investors with a basis to compare our results against those of other companies without the variability caused by purchase accounting.

***Income tax provision (benefit)***

We believe that excluding the tax benefit associated with the partial reversal of the valuation allowance against our deferred tax assets during the second quarter of fiscal year 2023 provides our senior management as well as other users of our financial statements with a valuable perspective on the performance and health of the business. This

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partial reversal relates to realization of our deferred tax assets used to offset deferred tax liabilities recorded in the Attivo acquisition. This one-time benefit is not indicative of current or future operations and expenses.

***Non-GAAP Cost of Revenue, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss and Non-GAAP Net Loss Per Share***

We define these non-GAAP financial measures as their respective GAAP measures, excluding the expenses referenced above. We use these non-GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance.

***Free Cash Flow***

We define free cash flow as cash used in operating activities less purchases of property and equipment and capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors, and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.

**Key Business Metrics**

We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

***Annualized Recurring Revenue***

We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription and capacity customers and to maintain and expand our relationship with existing customers. ARR represents the annualized revenue run rate of our subscription and capacity contracts at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates.

***Customers with ARR of $100,000 or More***

We believe that our ability to increase the number of customers with ARR of $100,000 or more is an indicator of our market penetration and strategic demand for our platform. We define a customer as an entity that has an active subscription for access to our platform. We count Managed Service Providers (MSPs), Managed Security Service Providerse (MSSPs), Managed Detection & Response firms (MDRs), and Original Equipment Manufacturers (OEMs), who may purchase our products on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers.

***Dollar-Based Net Retention Rate (NRR)***

We believe that our ability to retain and expand our revenue generated from our existing customers is an indicator of the long-term value of our customer relationships and our potential future business opportunities. Dollar-based net retention rate measures the percentage change in our ARR derived from our customer base at a point in time. To calculate these metrics, we first determine Prior Period ARR, which is ARR from the population of our customers as of 12 months prior to the end of a particular reporting period. We calculate Net Retention ARR as the total ARR at the end of a particular reporting period from the set of customers that is used to determine Prior Period ARR. Net Retention ARR includes any expansion, and is net of contraction and attrition associated with that set of customers. NRR is the quotient obtained by dividing Net Retention ARR by Prior Period ARR.

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Source: SentinelOne

NYSE: S

Category: Investors

**Contact**

Investor relations:

Doug Clark

E: investors@sentinelone.com

Press:

Ted Weismann

fama PR for SentinelOne

P: 617-986-5000

E: S1@famapr.com

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**SENTINELONE, INC.** 

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(in thousands)**

**(unaudited)**

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| | | |
|:---|:---|:---|
| | **January 31,**<br>**2023** | **January 31,**<br>**2022** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $137941 | $1669304 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 485584 | 374 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 151492 | 101491 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred contract acquisition costs, current | 37904 | 27546 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 101812 | 18939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 914733 | 1817654 |
| Property and equipment, net | 38741 | 24918 |
| Operating lease right-of-use assets | 23564 | 23884 |
| Long-term investments | 535422 | 6000 |
| Deferred contract acquisition costs, non-current | 55536 | 41022 |
| Intangible assets, net | 145093 | 15807 |
| Goodwill | 540308 | 108193 |
| Other assets | 5516 | 4703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2258913 | $2042181 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $11214 | $9944 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 100015 | 22657 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and benefits | 54955 | 61150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 3895 | 4613 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, current | 303200 | 182957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 473279 | 281321 |
| Deferred revenue, non-current | 103062 | 79062 |
| Operating lease liabilities, non-current | 23079 | 24467 |
| Other liabilities | 2788 | 6543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 602208 | 391393 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A common stock | 21 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class B common stock | 8 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 2663394 | 2271980 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (6367) | 454 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (1000351) | (621673) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 1656705 | 1650788 |
| Total liabilities and stockholders' equity | $2258913 | $2042181 |

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**SENTINELONE, INC.** <br>**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**<br>**(in thousands, except share and per share data)**<br>**(unaudited)**<br>

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended January 31,** | **Three Months Ended January 31,** | **Twelve Months Ended January 31,** | **Twelve Months Ended January 31,** |
| | **2023** | **2022** | **2023** | **2022** |
| Revenue | $126096 | $65636 | $422179 | $204799 |
| Cost of revenue<sup>(1)</sup> | 39771 | 24249 | 144177 | 81677 |
| Gross profit | 86325 | 41387 | 278002 | 123122 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development<sup>(1)</sup> | 53904 | 42644 | 207008 | 136274 |
| &nbsp;&nbsp;&nbsp;Sales and marketing<sup>(1)</sup> | 87254 | 42115 | 310848 | 160576 |
| &nbsp;&nbsp;&nbsp;General and administrative<sup>(1)</sup> | 45197 | 27719 | 162722 | 93504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 186355 | 112478 | 680578 | 390354 |
| Loss from operations | (100030) | (71091) | (402576) | (267232) |
| Interest income | 9906 | 59 | 21408 | 202 |
| Interest expense | (605) | (2) | (1830) | (787) |
| Other income (expense), net | (648) | (259) | (1293) | (2280) |
| Loss before income taxes | (91377) | (71293) | (384291) | (270097) |
| Provision (benefit) for income taxes | 2303 | 416 | (5613) | 1004 |
| Net loss | $(93680) | $(71709) | $(378678) | $(271101) |
| Net loss per share attributable to Class A and Class B common stockholders, basic and diluted | $(0.33) | $(0.27) | $(1.36) | $(1.56) |
| Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted | 283545048 | 265775986 | 277802861 | 174051203 |
| <sup>(1)</sup> Includes stock-based compensation expense as follows: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue | $3011 | $1192 | $10093 | $3618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 13817 | 10361 | 51771 | 35358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 11138 | 4660 | 40115 | 15460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 18182 | 9483 | 62487 | 33453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense | $46148 | $25696 | $164466 | $87889 |

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**SENTINELONE, INC.** 

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(in thousands)**

**(unaudited)**

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| | | |
|:---|:---|:---|
| | **Twelve Months Ended January 31,** | **Twelve Months Ended January 31,** |
| | **2023** | **2022** |
| CASH FLOW FROM OPERATING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(378678) | $(271101) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 29721 | 7909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred contract acquisition costs | 36417 | 21670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash operating lease costs | 3559 | 2862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 164466 | 87889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on investments, accretion of discounts, and amortization of premiums on investments, net | (12217) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (1187) | (456) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, net of effects of acquisition |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (44442) | (59082) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (14499) | (7319) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred contract acquisition costs | (61289) | (53565) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 3670 | (2076) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 4976 | 18080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and benefits | (7205) | 41462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (5320) | (3139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 92496 | 115142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (3755) | 6136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (193287) | (95588) |
| CASH FLOW FROM INVESTING ACTIVITIES:  |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (4953) | (3653) |
| &nbsp;&nbsp;&nbsp;Purchases of intangible assets | (407) | (802) |
| &nbsp;&nbsp;&nbsp;Capitalization of internal-use software | (13452) | (5839) |
| &nbsp;&nbsp;&nbsp;Purchases of investments | (1938007) | (6000) |
| &nbsp;&nbsp;&nbsp;Maturities of investments | 925185 |  |
| &nbsp;&nbsp;&nbsp;Cash paid for acquisition, net of cash and restricted cash acquired | (281032) | (3449) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (1312666) | (19743) |
| CASH FLOW FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Payments of deferred offering costs | (186) | (7416) |
| &nbsp;&nbsp;&nbsp;Repayment of debt |  | (20000) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 17335 | 14622 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock under the employee stock purchase plan | 19159 | 11356 |
| &nbsp;&nbsp;&nbsp;Proceeds from initial public offering and private placement, net of underwriting discounts and commissions |  | 1388562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 36308 | 1387124 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |  | 1146 |
| NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (1469645) | 1272939 |
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–Beginning of period | 1672051 | 399112 |
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–End of period | $202406 | $1672051 |

---

------

**SENTINELONE, INC.**

**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION**

**(in thousands, except percentages and per share data)** 

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended January 31,** | **Three Months Ended January 31,** | **Twelve Months Ended January 31,** | **Twelve Months Ended January 31,** |
| | **2023** | **2022** | **2023** | **2022** |
| **Cost of revenue reconciliation:** |  |  |  |  |
| GAAP cost of revenue | $39771 | $24249 | $144177 | $81677 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | (3011) | (1192) | (10093) | (3618) |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions | (35) |  | (85) |  |
| &nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | (5139) | (558) | (15957) | (2165) |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | (130) |  | (424) |  |
| Non-GAAP cost of revenue | $31456 | $22499 | $117618 | $75894 |
| **Gross profit reconciliation:** |  |  |  |  |
| GAAP gross profit | $86325 | $41387 | $278002 | $123122 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 3011 | 1192 | 10093 | 3618 |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions | 35 |  | 85 |  |
| &nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 5139 | 558 | 15957 | 2165 |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | 130 |  | 424 |  |
| Non-GAAP gross profit | $94640 | $43137 | $304561 | $128905 |
| **Gross margin reconciliation:** |  |  |  |  |
| GAAP gross margin | 68% | 63% | 66% | 60% |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 2% | 2% | 2% | 2% |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions | —% | —% | —% | —% |
| &nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 4% | 1% | 4% | 1% |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | —% | —% | —% | —% |
| Non-GAAP gross margin | 75% | 66% | 72% | 63% |
| **Research and development expense reconciliation:** |  |  |  |  |
| GAAP research and development expense | $53904 | $42644 | $207008 | $136274 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | (13817) | (10361) | (51771) | (35358) |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions | (86) | (154) | (250) | (201) |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | (437) |  | (1165) |  |
| Non-GAAP research and development expense | $39564 | $32129 | $153822 | $100715 |
| **Sales and marketing expense reconciliation:** |  |  |  |  |
| GAAP sales and marketing expense | $87254 | $42115 | $310848 | $160576 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | (11138) | (4660) | (40115) | (15460) |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions | (127) | (949) | (505) | (1234) |
| &nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | (2143) | (189) | (6613) | (734) |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | (706) |  | (1780) |  |

---

------

**SENTINELONE, INC.**

**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION**

**(in thousands, except percentages and per share data)** 

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Non-GAAP sales and marketing expense | $73140 | $36317 | $261835 | $143148 |
| **General and administrative expense reconciliation:** |  |  |  |  |
| GAAP general and administrative expense | $45197 | $27719 | $162722 | $93504 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | (18182) | (9483) | (62487) | (33453) |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions | (1002) | (161) | (1395) | (348) |
| &nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | (19) | (19) | (75) | (73) |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | (320) |  | (999) |  |
| Non-GAAP general and administrative expense | $25674 | $18056 | $97766 | $59630 |
| **Operating loss reconciliation:** |  |  |  |  |
| GAAP operating loss | $(100030) | $(71091) | $(402576) | $(267232) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 46148 | 25696 | 164466 | 87889 |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions | 1250 | 1264 | 2235 | 1783 |
| &nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 7301 | 766 | 22645 | 2972 |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | 1594 |  | 4369 |  |
| Non-GAAP operating loss | $(43737) | $(43365) | $(208861) | $(174588) |
| **Operating margin reconciliation:** |  |  |  |  |
| GAAP operating margin | (79)% | (108)% | (95)% | (130)% |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 36% | 39% | 39% | 43% |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions | 1% | 2% | 1% | 1% |
| &nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 6% | 1% | 5% | 1% |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | 1% | —% | 1% | —% |
| Non-GAAP operating margin | (35)% | (66)% | (49)% | (85)% |
| **Net loss reconciliation:** |  |  |  |  |
| GAAP net loss | $(93680) | $(71709) | $(378678) | $(271101) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 46148 | 25696 | 164466 | 87889 |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions | 1250 | 1264 | 2235 | 1783 |
| &nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 7301 | 766 | 22645 | 2972 |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | 1594 |  | 4369 |  |
| &nbsp;&nbsp;&nbsp;Income tax provision (benefit) |  |  | (9667) |  |
| Non-GAAP net loss | $(37387) | $(43983) | $(194630) | $(178457) |

---

------

**SENTINELONE, INC.**

**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONTINUED)**

**(in thousands, except percentages and per share data)** 

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Basic and diluted EPS reconciliation:** | | | | |
| GAAP net loss per share, basic and diluted | $(0.33) | $(0.27) | $(1.36) | $(1.56) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 0.16 | 0.10 | 0.58 | 0.50 |
| &nbsp;&nbsp;&nbsp;Employer payroll tax on employee stock transactions |  |  | 0.01 | 0.01 |
| &nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 0.03 |  | 0.08 | 0.02 |
| &nbsp;&nbsp;&nbsp;Acquisition-related compensation | 0.01 |  | 0.02 |  |
| &nbsp;&nbsp;&nbsp;Income tax provision (benefit) |  |  | (0.03) |  |
| Non-GAAP net loss per share, basic and diluted | $(0.13) | $(0.17) | $(0.70) | $(1.03) |

---

------

**SENTINELONE, INC.**

**SELECTED CASH FLOW INFORMATION**

**(in thousands)**

**(unaudited)**

**Reconciliation of cash used in operating activities to free cash flow**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended January 31,** | **Three Months Ended January 31,** | **Twelve Months Ended January 31,** | **Twelve Months Ended January 31,** |
| | **2023** | **2022** | **2023** | **2022** |
| &nbsp;&nbsp;GAAP net cash used in operating activities | $(22069) | $(5585) | $(193287) | $(95588) |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Purchases of property and equipment | (126) | (385) | (4953) | (3653) |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Capitalized internal-use software | (3173) | (1106) | (13452) | (5839) |
| &nbsp;&nbsp;Free cash flow | $(25368) | $(7076) | $(211692) | $(105080) |
| &nbsp;&nbsp;Net cash used in investing activities | $(66674) | $(7773) | $(1312666) | $(19743) |
| &nbsp;&nbsp;Net cash provided by financing activities | $16530 | $17348 | $36308 | $1387124 |

---

## Exhibit 99.2

![](q4fy23shareholderletter-001.jpg)

Se nt in el O ne Q 4 F Y 20 23 Q4 FY2023 Letter to Shareholders March 14, 2023

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![](q4fy23shareholderletter-002.jpg)

Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 1 To Our Shareholders Our Q4 results demonstrate strong execution and success in delivering high growth with substantial margin improve- ment. Our market position is strengthening across both endpoint and cloud security. Our ARR per customer expanded, NRR remained above 130%, and our win rates increased. Macroeconomic headwinds remained, yet we delivered excellent quarterly performance that exceeded our expectations across the board. These results reflect the focus, teamwork, and customer-first mentality of the SentinelOne culture. ARR grew 88% year-over-year to $549 million, crossing the half-a-billion dollar mark. Revenue for fiscal year 2023 grew 106% year-over-year to $422 million. This is tremendous progress in terms of the scale and speed in which we achieved it. Our sights are set much higher. Once again, we exceeded the Rule of 50 in Q4, indicating strong unit economics and scalability of our business model. Our GAAP and non-GAAP gross margin expanded by 5 and 9 per- centage points year-over-year, respectively. Similarly, our GAAP and non-GAAP operating margin expanded by 29 and 31 percentage points year-over-year, respectively. We are making meaningful progress toward our profitability targets as we strategically balance investments with the pace of growth. In Q4, we reached another milestone as our customer base now exceeds 10,000. Our competitive differentiation is resonating with businesses across all sizes and geographies. We are winning in a significant majority of competitive situations—our win rates increased in the fourth quarter, including against large next-gen competitors. Customers most commonly select SentinelOne for leading security performance and breadth, ease of use, and superior platform value. Our momentum with large enterprises and expanding platform adoption continues to drive increasing ARR per customer. We secured many prominent large wins ranging from U.S. federal agencies to global financial institutions and technology pioneers, spanning both endpoint and cloud footprints. Existing customers are doubling down on their commitment and consolidating on the Singularity platform. Our gross retention rate (GRR) improved sequentially, and net retention rate (NRR) remained above 130% driven by footprint expansion and module adoption. Singularity Cloud had a record quarter and remained our fastest-growing solution in Q4, followed by strong contributions from other adjacent capabilities. Finally, our diverse and expansive partner eco- system continues to magnify and strengthen our market presence. We achieved another quarter of standout growth from our MSSP partners as businesses are increasingly turning to managed security protection, where our differen- tiated technology architecture is extremely well positioned to deliver superior platform value to our partners and their customers. Together, we are driving meaningful and resilient growth by providing enterprise grade protection to customers of all sizes. 01

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![](q4fy23shareholderletter-003.jpg)

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![](q4fy23shareholderletter-004.jpg)

Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 3 Q4 FY2023 Highlights • Annualized Recurring Revenue (ARR) grew 88% year-over-year to $549 million at the end of our fiscal fourth quarter. Revenue in the quarter grew 92% year-over-year to $126 million. • We added about 750 customers in our fiscal fourth quarter. Total customer count grew ~50% year-over-year to over 10,000 at quarter-end. Customers with ARR over $100,000 grew 74% year-over-year to 905. Dollar-based net revenue retention rate (NRR) remained above 130%. • Fiscal fourth quarter GAAP gross margin was 68%, up 5 percentage points year-over-year. Non-GAAP gross margin reached a new record of 75%, up 9 percentage points year-over-year. • Fiscal fourth quarter GAAP operating margin was (79)%, up 29 percentage points year-over- year. Non-GAAP operating margin was (35)%, up 31 percentage points year-over-year. Helping Customers in a Dynamic Demand Environment Global economic conditions remained similar to last quarter. We continue to see customer cost-consciousness and prudence around IT budgets, which has led to longer sales cycles and deal right-sizing. We expect these dynamics to persist. Customers are evaluating deals to ensure they are getting the best product and value at a rational price. Fundamentally, the enterprise need for cybersecurity remains mission critical. Our AI-based security and platform approach allows us to be flexible in meeting diverse budgetary needs and deliver our customers a favorable cost of ownership, especially important in today's environment. Our platform solutions including endpoint, cloud, identity, and security data are among the top IT spending priorities. Entering FY24, our pipeline nearly doubled year-over-year and continued to build at a record pace thus far. Our competitive position is stronger, and we are proud to protect over 10,000 enterprises around the world. Our top priority is securing tomorrow, with a relentless focus on technology leadership, trust, and transparency. Broadly, the world is going through a seachange on geopolitical, economic, and technological fronts. Right before our eyes, we've seen AI evolve significantly, unlocking massive opportunities across endless applications. Left unchal- lenged, there can be serious and potentially dangerous externalities. Responsibility, good business practices, and safeguarding operations are essential. In positive ways, AI can be harnessed to help with cybersecurity and safety. This is how we are using AI in a directed, structured, and targeted way. From early on, we developed a fully automat- ed, AI-based security platform, integrating neural networks to serve a specific use case and function to combat cyber attacks and protect our digital way of life—as a force for good.

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![](q4fy23shareholderletter-005.jpg)

Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 4 Full Year FY2023 Highlights • Revenue grew by 106% to $422 million compared to $205 million in fiscal year 2022. • GAAP gross margin was 66%, compared to 60% in fiscal year 2022. Our non-GAAP gross margin was 72%, compared to 63% in fiscal year 2022. • GAAP operating margin was (95)%, compared to (130)% in fiscal year 2022. Our non-GAAP operating margin was (49)%, compared to (85%) in fiscal year 2022. Annualized Recurring Revenue (ARR) $ million, year over year growth Revenue $ million, year over year growth Gross Margin % of revenue, GAAP & Non-GAAP Operating Margin % of revenue, GAAP & Non-GAAP 60% 63% 58% 58% FY21 FY22 66% 72% FY23 GAAP Non-GAAP (130)% (85)% (124)% (107)% FY21 FY22 (95)% (49)% FY23 GAAP Non-GAAP FY21 $131 $292 FY22 $549 FY23 96% 123% 88% $93 $205 100% 120% FY21 FY22 $422 106% FY23

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![](q4fy23shareholderletter-006.jpg)

Operating as an open venue for threat researchers, SentinelLabs is committed to sharing the latest in threat intelligence with a broader community of cyber defenders. The SentinelLabs team helps global enterprises and government bodies stay ahead of their adversaries by providing novel findings from malware, exploits, advanced persistent threats (APTs), and cybercrime. The SentinelLabs team works closely with government and industry-wide collaborators to further our shared goal of a safer cyberspace for all users. The battle never ends, and the below showcases several discoveries we made last year. January Identified new variants of the PowGoop malware belonging to Iranian-linked threat actor MuddyWater, describing how this adversary used tunneling tools and likely exploited CVE-2020-0688 on Exchange servers to compromise governmental organizations. February SentinelLabs dubbed Hermetic Wiper, a signed driver targeting Windows devices in Ukrainian organizations. Also exposed a decade-old state-sponsored adversary named ModifiedElephant targeting human rights activists, lawyers, academics involved in civilian dissent in India. March Reported on a Chinese threat actor Scarab APT attempting to infect organizations in Ukraine with HeaderTip malware. Disclosed multiple critical severity flaws in Microsoft Azure's Defender for IoT that could allow unauthenticated attackers to remotely compromise devices. April Discovered that threat actors were sideloading Cobalt Strike beacons via a signed VMware xfer logs command line utility. Also discovered this technique was connected with an affiliate Microsoft tracks as DEV-0401, a threat actor that had not previously been known to use LockBit. May Reported on CrateDepression, a supply-chain attack against the Rust development community. Also, threat actors targeted PyPI with a malicious Python package in a typosquatting campaign. We noted how the macOS payload used a similar obfuscation technique to OSX.Zuru in 2021 to drop a Cobalt Strike beacon on infected devices. June Our research revealed a newly-discovered APT dubbed Aoqin Dragon that had been quietly spying on government, education, and telecommunication organizations in Southeast Asia and Australia for over a decade. July Discovered that a Chinese state-sponsored cyber espionage group had set its sights on Russian targets in the midst of the Ukraine war. Also explored how malicious Windows applications created as APPX and MISIX packages were being used by threat actors as an alternative infection vector to Office macros. August In light of Microsoft's announced lockdown of Office Macros, we published on how Windows shortcuts, LNK files, were being abused by threat actors. Discovered that Windows Explorer was the top LOLBin (living off the land binary) in the chain of LOLBins that threat actors use to execute malware via LNK files. September Uncovered Metador, a mysterious threat actor that SentinelLabs found had been targeting telecommunications, internet service providers, and universities in several countries in the Middle East and Africa. Also published research on Void Balaur, a cyber mercenary group running hack-for-hire campaigns on targets in the United States, Russia, Ukraine, and other countries. October Published research on Chinese-linked APTs with research on a new threat cluster we track as WIP19. WIP19 has been targeting telecommunications and IT service providers in the Middle East and Asia using a stolen digital certificate signed by a company called "DEEPSoft". November Published research on how SocGholish had significantly diversified and expanded their infrastructure for staging malware with new servers, many of which were located in Europe, with the Netherlands, the United Kingdom, and France at the top of the list. December Published research into crimeware group Vice Society, revealing how the group had pivoted to using a custom- branded ransomware variant we dubbed 'PolyVice'. We also dug deeper into Metador, exploring the anti-analysis techniques used in one of the actor's backdoors, Mafalda.

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![](q4fy23shareholderletter-007.jpg)

Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 6 Highest Score in All Critical Capabilities Use Cases TYPE A USE CASE Lean Forward Organizations Highest Score TYPE B USE CASE Blended Approach Organizations Highest Score TYPE C USE CASE Prevention Focused Organizations Highest Score Disclaimer—Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as state- ments of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 02 Technology Highlights Superior technology is the foundation of how we help our partners and our customers succeed against adversaries every day. A platform is only as good as the sum of its parts. Our goal is to deliver best-of-breed capabilities in all aspects of our unified, easy-to-use Singularity platform. We will continue to advance our capabilities, enabling us to deliver superior enterprise value and better business outcomes. In FY24, our focus will be on three core areas of product innovation: 1) Advancing our leadership in endpoint se- curity, 2) Solidifying our competitive advantage in cloud security, and 3) Expanding our platform capabilities and market opportunity. Secure Tomorrow: Maintaining Security Leadership Our top priority is to ensure enterprises are secure and protected today and for the future. Building upon three consecutive years of leading in MITRE ATT&CK Evaluations, we're committed to staying ahead of the threat landscape, adversaries, and our competitors. Once again, Garnter recognized SentinelOne as a Leader in the 2022 Gartner Magic Quadrant for Endpoint Protection Platforms. We believe our placement in the Magic Quadrant validates our go-to-market execution and vision of AI- based modern cybersecurity. More importantly, of the 18 vendors evaluated, SentinelOne again ranked the highest across all three customer use cases in the 2022 Gartner Critical Capabilities for Endpoint Protection Platforms. These top rankings emphasize our superior platform depth, breadth, and relevance for organizations of every size, maturity and industry. We're delivering on our mission to be a force for good—fortifying customer defenses against the most sophisticated threats at machine speed.

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![](q4fy23shareholderletter-008.jpg)

Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 7 Strengthen Our Cloud Security Advantage Q4 was a record quarter for our cloud security solution. Superior technology, high win rates, and addressing key enterprise needs have resulted in marquee early adopters and competitive displacements. Our cloud security solution more than doubled quarter-over-quarter that included multiple million-dollar customer wins, contributing about 15% of our quarterly ACV. Cloud security is a critical enterprise need with a potentially unbounded greenfield addressable market. The number of cloud workloads can easily surpass the number of employees at any enterprise. Enterprises should never have to compromise between security and the risk of operational disruption or downtime. Our cloud workload protection gives enterprises clear technological advantages including superior operational stability, real time visibility, business agility, and system resource efficiencies. We are innovating and expanding our product offering and market presence in cloud security. Expanding into CSPM with Wiz Partnership: We are excited to announce the expansion of our cloud security portfolio. As a technology leader in cloud workload protection (CWP), we are partnering with Wiz, the leader in cloud security posture management (CSPM). This is more than just a collaboration, it is an exclusive strategic and go-to-market partnership giving enterprises access to best-of-breed cloud security solutions. The joint offerings will provide cus- tomers with enhanced visibility and protection of their cloud workloads, streamlined procurement, and simplified deployment. This will enable our existing and new customers to better secure their cloud infrastructure and work- loads without hampering the speed or agility of their application development teams. Expand Platform Capabilities and Market Opportunity Our security platform extends well beyond endpoint and cloud security, which both represent large and growing market opportunities. We will continue to extend the breadth of our platform capabilities, specifically around security data lake, identity security, and vulnerability management. Our platform approach enhances the enterprise's ability to access a broad range of security tools, consolidate point solutions, and gain favorable total cost of ownership. These innovations will magnify our competitive differentiation in the coming years. With an increasing platform breadth, we currently address multiple and growing address markets likely to exceed $100 billion in the coming years. Singularity Platform

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![](q4fy23shareholderletter-009.jpg)

Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 8 As one innovation example, we are just scratching the surface of a massive security data market opportunity. The ability to integrate all enterprise data in one place through a single pane of glass is critical for a security platform to deliver the benefits of cost, performance, and scale. Our Singularity platform has the first and only unified security data lake with EDR hunting and querying capabilities. Our platform ingests petabytes of data across hundreds of trillions of events, serving millions of queries in just sec- onds. Disparate solutions and vendors for EDR and security data lakes saddle enterprises with high costs and com- plexity. Every SentinelOne customer gets access to our unified Singularity data lake. There is no separate solution. Agnostic to source or vendor, our platform can ingest, correlate, and query all types of enterprise data at a significant scale—all in one place. This unique innovation is driven by a single query language that delivers AI-driven automation, actionability and seamless integration with other products across an enterprise. It provides meaningful business val- ue and outcomes by delivering cost and performance benefits for security data analytics, data storage, and extended data retention. SentinelOne's Unified Security Data Lake

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![](q4fy23shareholderletter-010.jpg)

Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 9 Go-To-Market Highlights We continued to scale our business through a leading data and security platform and our powerful partner-supported go-to-market. In Q4, our ARR grew 88% year-over-year, driven by a combination of new customer growth and existing customer renewals and upsells. We saw broad-based strength across geographies. Our channel continues to magnify our reach and drive platform adoption. Customer Growth Q4 was one of our strongest quarters of win rates and customer additions, including enterprises with ARR of over a million-dollars. We added about 750 new customers in the quarter, and our total customer count grew ~50% year-over-year, exceeding 10,000. We continued to secure businesses of all sizes across geographies driven by stronger sales execution and higher win rates against legacy and large next-gen security vendors. Our momentum with large enterprises was particularly strong as our customers with ARR over $100,000 grew 74% year-over-year to 905, much higher than total customer count. Our business mix from customers with ARR of over $100,000 continued to increase due to success with larger enterprises, channel ecosystem, and increasing adoption of platform capabilities. We secured many prominent large wins ranging from large U.S. federal agencies to global financial institutions and technology pioneers, spanning both endpoint and cloud footprints. Large enterprises continue to select SentinelOne for leading performance, platform breadth, and a superior return on security investments. Customer Growth 520 Q4'22 74% 6,700+ Q4'22 905 Q4'23 10,000+ Q4'23 ~50% Customers > $100K ARR at quarter end Total Customers at quarter end 03

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 10 Retention & Expansion Retention and expansion among our existing customers were extremely strong, proving resilient despite tight macroe- conomic conditions. Our GRR improved and our NRR remained above 130% which is well above our long-term target of over 120%. Our NRR was driven by strong subscription expansion and cross-sell of adjacent solutions, including cloud, data retention, and others. We continue to balance customer growth with cross-selling new capabilities. We are pleased with customer interest and the adoption of our broader platform solutions. Singularity Cloud once again remained our fastest-growing solution in Q4, followed by strong contributions from other emerging solutions like Data Retention, Vigilance MDR, and Identity Security. We have just begun to scratch the surface of a significant cloud security opportunity. We're winning sizable deals, including several multi-million dollar wins that can easily match or exceed the size of the endpoint deployment for these customers. Early deployments for many customers are just a fraction of their total cloud footprints. We're excited to expand our cloud security portfolio by partnering with Wiz. Given our expanding customer base and growth opportunities, we believe we are still in the early innings of a large expansion opportunity. 130%+ 130%+ 120% Target 130%+ 135%+ 125%+ Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Net Retention Rate (NRR) Partner Ecosystem Our partner-supported go-to-market model continues to unlock meaningful scale and enhance our market position. Our channel leadership and momentum is strong. Most recently, several SentinelOne sales leaders were named to the 2023 CRN Channel Chiefs List. These recognitions are a testament to our teams' ability to execute successful partner programs and strategies. We believe we are the technology partner of choice for value-added resellers, MSSPs, global system integrators, distributors and incident response partners worldwide. For years, we've taken a partner friendly go-to-market approach, where we enable their business instead of compet- ing against them. This is especially important for strategic partnerships like MSSPs. We've architecturally designed capabilities that enhance these relationships, like multi-tenancy, automation, and role-based access control. Many of the leading MSSP providers have built successful practices on top of our Singularity platform. Our extensive and diverse network of channel partners that's very hard to replicate. It's not just a package design - but a true competitive technology moat. These product-driven differentiators fuel ease of deployment, scaled management, and robust inte- gration capabilities. We believe this makes SentinelOne the partner of choice for MSSPs across the globe.

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 11 We are partnering with most of the leading MSSPs, giving us a runway for meaningful and resilient growth. We achieved another quarter of standout growth from our MSSP partners as businesses are increasingly turning to managed securi- ty protection. We are also starting to see early adoption of modules through the MSSP channel, adding another growth driver in this channel. Together, we are providing enterprise grade protection to customers of all sizes. We launched a partner enablement program in June 2021 to build a collaborative go-to-market approach. In Q4, we crossed a milestone with over 20,000 partner accreditations across our sales and technical training courses. Enabling our partners this way drives more channel engagement, more deal registrations, and larger pipeline as we continue to expand our brand and platform. We are fully engaged with our partners and customers—businesses from around the world will join SentinelOne's inaugural Global Customer Conference to gain the best-in-class cybersecurity tools needed to stay cybersecure. Q4 FY2023 Financials Our fourth quarter performance was driven by strong demand from new and existing customers as well as large and mid-sized enterprises seeking to modernize and automate their cybersecurity technology. We delivered significant margin improvement year-over-year, driven by increased scale, and operational efficiencies. Annualized Recurring Revenue (ARR) & Revenue ARR grew 88% year-over-year to $549 million at the end of our fiscal fourth quarter, crossing the half-a-billion dollar mark. Net new ARR was $61 million, driven by stronger execution and fourth quarter seasonality. The strength was broad-based across new customer adds, existing customer renewals, and upsells. Total revenue grew 92% year-over-year to $126 million in our fourth quarter. International revenue represented 35% of total revenue, reflecting growth of 125% year-over-year. Annual Recurring Revenue Revenue $292 $339 $487 $115 $78 Q4'22 Q1'23 Q3'23Q2'23 Q4'22 Q1'23 Q3'23Q2'23 $439 $66 $103 $549 $126 Q4'23 Q4'23 88% 92% Annualized Recurring Revenue $ million, year over year growth Revenue $ million, year over year growth 04

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 12 Gross Profit & Margin Gross profit was $86 million, or 68% of revenue, an improvement of 5% compared to a year ago. Non-GAAP gross profit reached a new record of $95 million, or 75% of revenue, compared to 66% of revenue a year ago. This significant year-over-year increase was primarily driven by increasing scale, data efficiencies, and growing platform adoption. Our fourth quarter gross margin also benefited from a one-time true-up related to cloud hosting costs. Gross Margin GAAP Non-GAAP 63% 66% Q4'22 Q1'23 Q2'23 65% 68% 65% 72% Q3'23 64% 71% Q4'23 68% 75% Gross Margin % of revenue, GAAP & Non-GAAP \*\*A reconciliation of non-GAAP financial measures used in this letter to their nearest GAAP equivalents is provided at the end of this letter. Operating Expenses Total operating expenses were $186 million, including $48 million of stock-based compensation expense (SBC), em- ployer payroll tax on employee stock transactions, amortization of acquired intangible assets, and acquisition-related compensation costs. Total operating expenses increased 66% year-over-year, primarily due to an increase in head- count and SBC. Non-GAAP operating expenses were $138 million, representing 110% of revenue compared to $87 million or 132% of revenue a year ago. Non-GAAP operating expenses grew 59% year-over-year. The growth was driven by an increase in headcount. Research and development expenses were $54 million, up 26% year-over-year. On a non-GAAP basis, research and development expenses increased 23% year-over-year to $40 million and represented 31% of revenue, compared to 49% a year ago. The year-over-year increase was primarily due to a higher headcount. Sales and marketing expenses were $87 million, up 107% year-over-year. On a non-GAAP basis, sales and marketing expenses increased 101% year-over-year to $73 million and represented 58% of revenue, compared to 55% a year ago. The year-over-year increase was primarily due to a higher headcount. General and administrative expenses were $45 million, up 63% year-over-year. On a non-GAAP basis, general and administrative expenses grew 42% year-over-year to $26 million and represented 20% of revenue, compared to 28% a year ago. The year-over-year increase was primarily due to a higher headcount.

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 13 GAAP NON-GAAP Q4'22 Q4'23 49% 31% 55% 58% 28% 20% Q4'22 Q4'23 65% 43% 64% 69% 42% 36% R&D S&M G&A Operating Expenses % of revenue, GAAP & Non-GAAP \*\*A reconciliation of non-GAAP financial measures used in this letter to their nearest GAAP equivalents is provided at the end of this letter. Operating & Net Income (Loss) GAAP operating margin was (79)%, compared to (108)% a year ago. Non-GAAP operating margin was (35)% com- pared to (66)% a year ago. The improvement in operating margin resulted from revenue growth outpacing the increase in our expenses. GAAP net loss was $94 million, compared to $72 million a year ago. The larger loss reflects an increase in headcount and SBC. Non-GAAP net loss was $37 million compared to $44 million a year ago. The smaller loss resulted from revenue growth outpacing the increase in our expenses. $(71) $(100) Q4'22 Q4'23 EBIT EBIT Margin % $(43) $(44) Q4'22 Q4'23 GAAP NON-GAAP (66)% (35)% (79)% (108)% Operating Income (Loss) & Margin $ million and % of revenue, GAAP & Non-GAAP \*\*A reconciliation of non-GAAP financial measures used in this letter to their nearest GAAP equivalents is provided at the end of this letter.

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 14 Balance Sheet and Cash Flows We ended the year with approximately $1.2 billion in cash, cash equivalents, and investments. Our strong balance sheet provides flexibility and support to drive sustainable growth while delivering meaningful margin expansion. Net cash used in operating activities for the three months ended January 31, 2023, was $(22) million, compared to $(6) million a year ago. Free cash flow was $(25) million in the fourth quarter, compared to $(7) million a year ago. Guidance We are providing the following guidance for the first quarter of the fiscal year 2024 (ending April 30, 2023) and for the fiscal year 2024 (ending January 31, 2024): Q1 FY24 Full-Year FY24 Revenue $137 million $631-640 million Non-GAAP gross margin 73.5% 73.5-74.5% Non-GAAP operating margin (41)% (29)-(25)% In the first fiscal quarter, we expect revenue of about $137 million, reflecting growth of 75% year-over-year. For the full fiscal year 2024, we expect revenue of $631-640 million, reflecting growth of 51% at the midpoint. Cyber security remains a top IT priority, driven by a fervent and evolving threat landscape. At the same time, we are mindful of the near-term challenges impacting IT budgets. We expect the macro-related uncertainties to persist for the full year, which is factored into our guidance. We expect our first fiscal quarter non-GAAP gross margin to be about 73.5%. For the full fiscal year 2024, we expect non-GAAP gross margin to be between 73.5-74.5%. Both our quarterly and full-year outlook reflect significant year- over-year gross margin expansion. We expect to continue benefiting from increasing scale, better data processing efficiencies, and module expansion. Finally, we expect a non-GAAP operating margin of (41)% for our first fiscal quarter and (29)-(25)% for the full fiscal year 2024. Both our quarterly and full-year outlook represent a meaningful year-over-year improvement, reflecting the increasing scale and efficiency of our business. Looking ahead, we are committed to achieving our long-term prof- itability targets by balancing strong top-line growth with consistent margin improvement. We are continuing to make meaningful progress towards profitability and our long-term target EBIT margin of 20%+. The above statements are based on current targets as of the date of this letter, and we undertake no obligation to update them after such date. These statements are forward-looking, and actual results may differ materially due to many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our action results to differ materially from these forward-looking statements. Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets, and acquisition-related compen- sation costs. We have not provided the forward-looking, most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP gross mar- 05

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 15 gin and non-GAAP operating margin is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided a reconciliation of other GAAP to non-GAAP metrics in tables at the end of this letter. Closing We will host a conference call at 2:00 pm Pacific Time / 5:00 pm Eastern Time today to discuss further details of our fiscal fourth quarter results. A live webcast and replay will be available on SentinelOne's Investor Relations website at investors.sentinelone.com. Thank you for taking the time to read our shareholder letter. We look forward to your questions on our call this afternoon. Sincerely, Tomer Weingarten Dave Bernhardt President and CEO CFO 06

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 16 Forward-Looking Statements This letter and the live webcast, which will be held at 2:00 pm Pacific Time / 5:00 pm Eastern Time on March 14, 2023, contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve risks and uncer- tainties, including statements regarding our future growth, execution, competitive position, and future financial and operating performance, including our financial outlook for the first quarter of fiscal year 2024 and full fiscal year 2024 (including non-GAAP gross profit and non-GAAP operating margin); our total addressable market, business strategy, acquisitions, and strategic investments; our reputation and performance in the market; general market trends; and our objectives. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target," "plan," "expect," or the negative of these terms and similar expressions are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. There are a significant number of factors that could cause our actual results to differ materially from statements made in this letter and live webcast, including but not limited to our limited operating history; our history of losses; intense competition in the market we compete in; fluctuations in our operating results; network or security incidents against us; our ability to successfully integrate any acquisitions and strategic investments; defects, errors or vul- nerabilities in our platform; risks associated with managing our rapid growth; general market, political, economic, and business conditions, including those related to declining macroeconomic condition, rising interest rates, supply chain disruptions and inflation, recent banking sector issues, the continuing impact of COVID-19 and geopoitical uncertainty, including the effects of the conflict in Ukraine and the proposed judicial reform in Israel; our ability to at- tract new and retain existing customers, or renew and expand our relationships with them; the ability of our platform to effectively interoperate within our customers' IT infrastructure; disruptions or other business interruptions that affect the availability of our platform; the failure to timely develop and achieve market acceptance of new products, and subscriptions as well as existing products, subscriptions and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and risks of securities class action litigation. Additional risks and uncertainties that could affect our financial results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" set forth in our filings and reports with the Securities and Exchange Commission (SEC), including our most recently filed Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and other filings and reports that we may file from time to time with the SEC, copies of which are available on our website at investors.sentinelone.com and on the SEC's website at www.sec.gov. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-look- ing statements in this letter and the live webcast are based on information and estimates available to us at the time of this letter and the live webcast, respectively, and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date of this let- ter and live webcast or to reflect new information or the occurrence of unexpected events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 17 Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. Non-GAAP financial information excludes stock-based compensation expense, employer payroll tax expense related to employee stock transactions and amor- tization of acquired intangible assets. We believe that non-GAAP financial information, when taken collectively, with the financial information presented in accordance with GAAP, may be helpful to investors because it provides con- sistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period. Reconciliations between non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP are contained at the end of the earnings press release following the accompanying financial data. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non- GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single finan- cial measure to evaluate our business. Non-GAAP Gross Profit and Non-GAAP Gross Margin We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respec- tively, excluding stock-based compensation expense, employer payroll tax on employee stock transactions, and amortization of acquired intangible assets. We believe non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate peri- od-to-period comparisons of operations, as these measures eliminate the effects of certain variables unrelated to our overall operating performance. Non-GAAP Loss from Operations and Non-GAAP Operating Margin We define non-GAAP loss from operations and non-GAAP operating margin as GAAP loss from operations and GAAP operating margin, respectively, excluding stock-based compensation expense, employer payroll tax on employee stock transactions, and amortization of acquired intangible assets. We believe non-GAAP loss from operations and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables unrelated to our overall operating performance. Non-GAAP Net Loss and Non-GAAP Net Loss per Share, Basic and Diluted We define non-GAAP net loss as GAAP net loss excluding stock-based compensation expense, employer payroll tax on employee stock transactions, and amortization of acquired intangible assets. We define non-GAAP net loss per share, basic and diluted, as non-GAAP net loss divided by the weighted-average common shares outstanding. Since

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 19 Acquisition-Related Compensation Costs Acquisition-related compensation costs include cash-based compensation expense resulting from the employment retention of certain employees established in accordance with the terms of the Attivo acquisition. Acquisition-related cash-based compensation costs have been excluded as they were specifically negotiated as part of the Attivo acqui- sition in order to retain such employees and relate to cash compensation that was made either in lieu of stock-based compensation or where the grant of stock-based compensation awards was not practicable. In most cases, these acquisition-related compensation costs are not factored into management's evaluation of potential acquisitions or our performance after completion of acquisitions, because they are not related to our core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related compensation costs from non- GAAP measures provides investors with a basis to compare our results against those of other companies without the variability caused by purchase accounting. Income Tax Provision (benefit) We believe that excluding the tax benefit associated with the partial reversal of the valuation allowance against our deferred tax assets during the second quarter of fiscal year 2023 provides our senior management as well as other users of our financial statements with a valuable perspective on the performance and health of the business. This par- tial reversal relates to realization of our deferred tax assets used to offset deferred tax liabilities recorded in the Attivo acquisition. This one-time benefit is not indicative of current or future operations and expenses. Key Business Metrics We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formu- late business plans and make strategic decisions. Annualized Recurring Revenue (ARR) We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription and capacity customers and to maintain and expand our relationship with existing customers. ARR represents the annualized revenue run rate of our subscription and capacity contracts at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates.

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 20 Customers with ARR of $100,000 or More We believe that our ability to increase the number of customers with ARR of $100,000 or more is an indicator of our market penetration and strategic demand for our platform. We define a customer as an entity that has an active sub- scription for access to our platform. We count Managed Service Providers (MSPs), Managed Security Service Providers (MSSPs), Managed Detection & Response firms (MDRs), and Original Equipment Manufacturers (OEMs), who may pur- chase our products on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers. Dollar-Based Net Retention Rate (NRR) We believe that our ability to retain and expand the revenue generated from our existing customers is an indicator of the long-term value of our customer relationships and our potential future business opportunities. Dollar-based net retention rate measures the percentage change in our ARR derived from our customer base at a point in time. To calculate these metrics, we first determine Prior Period ARR, which is ARR from the population of our customers as of 12 months prior to the end of a particular reporting period. We calculate Net Retention ARR as the total ARR at the end of a particular reporting period from the set of customers that is used to determine Prior Period ARR. Net Retention ARR includes any expansion and is net of contraction and attrition associated with that set of customers. NRR is the quotient obtained by dividing Net Retention ARR by Prior Period ARR. Definitions Customers: We define a customer as an entity that has an active subscription for access to our platform. We count MSPs, MSSPs, MDRs, and OEMs, who may purchase our product on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers.

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 21 January 31, January 31, 2023 2022 Assets: Current assets: Cash and cash equivalents $137,941 $1,669,304 Short-term investments 485,584 374 Accounts receivable, net 151,492 101,491 Deferred contract acquisition costs, current 37,904 27,546 Prepaid expenses and other current assets 101,812 18,939 Total current assets 914,733 1,817,654 Property and equipment, net 38,741 24,918 Operating lease right-of-use assets 23,564 23,884 Long-term investments 535,422 6,000 Deferred contract acquisition costs, non-current 55,536 41,022 Intangible assets, net 145,093 15,807 Goodwill 540,308 108,193 Other assets 5,516 4,703 Total assets $2,258,913 $2,042,181 Liabilities and Stockholders' Equity: Current liabilities: Accounts payable $11,214 $9,944 Accrued liabilities 100,015 22,657 Accrued payroll and benefits 54,955 61,150 Operating lease liabilities, current 3,895 4,613 Deferred revenue, current 303,200 182,957 Total current liabilities 473,279 281,321 Deferred revenue, non-current 103,062 79,062 Operating lease liabilities, non-current 23,079 24,467 Other liabilities 2,788 6,543 Total liabilities 602,208 391,393 Stockholders' Equity: Preferred stock — — Class A common stock 21 16 Class B common stock 8 11 Additional paid-in capital 2,663,394 2,271,980 Accumulated other comprehensive income (loss) (6,367) 454 Accumulated deficit (1,000,351) (621,673) Total stockholders' equity 1,656,705 1,650,788 Total liabilities and stockholders' equity $2,258,913 $2,042,181 SENTINELONE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 22 Three Months Ended January 31, Twelve Months Ended January 31, 2023 2022 2023 2022 Revenue $126,096 $65,636 $422,179 $204,799 Cost of revenue(1) 39,771 24,249 144,177 81,677 Gross profit 86,325 41,387 278,002 123,122 Operating Expenses: Research and development(1) 53,904 42,644 207,008 136,274 Sales and marketing(1) 87,254 42,115 310,848 160,576 General and administrative(1) 45,197 27,719 162,722 93,504 Total operating expenses 186,355 112,478 680,578 390,354 Loss from operations (100,030) (71,091) (402,576) (267,232) Interest income 9,906 59 21,408 202 Interest expense (605) (2) (1,830) (787) Other income (expense), net (648) (259) (1,293) (2,280) Loss before income taxes (91,377) (71,293) (384,291) (270,097) Provision (benefit) for income taxes 2,303 416 (5,613) 1,004 Net loss $(93,680) $(71,709) $(378,678) $(271,101) Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $(0.33) $(0.27) $(1.36) $(1.56) Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 283,545,048 265,775,986 277,802,861 174,051,203 (1) Includes Stock-based Compensation Expense as Follows: Cost of revenue $3,011 $1,192 $10,093 $3,618 Research and development 13,817 10,361 51,771 35,358 Sales and marketing 11,138 4,660 40,115 15,460 General and administrative 18,182 9,483 62,487 33,453 Total stock-based compensation expense $46,148 $25,696 $164,466 $87,889 SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited)

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 23 Twelve Months Ended January 31, 2023 2022 CASH FLOW FROM OPERATING ACTIVITIES Net loss $(378,678) $(271,101) Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities Depreciation and amortization 29,721 7,909 Amortization of deferred contract acquisition costs 36,417 21,670 Non-cash operating lease costs 3,559 2,862 Stock-based compensation expense 164,466 87,889 Loss on investments, accretion of discounts, and amortization of premiums on investments, net (12,217) — Other (1,187) (456) Changes in Operating Assets and Liabilities, Net of Effects of Acquisition Accounts receivable (44,442) (59,082) Prepaid expenses and other assets (14,499) (7,319) Deferred contract acquisition costs (61,289) (53,565) Accounts payable 3,670 (2,076) Accrued liabilities 4,976 18,080 Accrued payroll and benefits (7,205) 41,462 Operating lease liabilities (5,320) (3,139) Deferred revenue 92,496 115,142 Other liabilities (3,755) 6,136 Net cash used in operating activities (193,287) (95,588) CASH FLOW FROM INVESTING ACTIVITIES Purchases of property and equipment (4,953) (3,653) Purchases of intangible assets (407) (802) Capitalization of internal-use software (13,452) (5,839) Purchases of investments (1,938,007) (6,000) Maturities of investments 925,185 — Cash paid for acquisition, net of cash and restricted cash acquired (281,032) (3,449) Net cash used in investing activities (1,312,666) (19,743) CASH FLOW FROM FINANCING ACTIVITIES Payments of deferred offering costs (186) (7,416) Repayment of debt — (20,000) Proceeds from exercise of stock options 17,335 14,622 Proceeds from issuance of common stock under the employee stock purchase plan 19,159 11,356 Proceeds from initial public offering and private placement, net of underwriting discounts and commissions — 1,388,562 Net cash provided by financing activities 36,308 1,387,124 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — 1,146 NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (1,469,645) 1,272,939 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–Beginning of period 1,672,051 399,112 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–End of period $202,406 $1,672,051 SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 24 Three Months Ended January 31, Twelve Months Ended January 31, 2023 2022 2023 2022 Cost of Revenue Reconciliation: GAAP cost of revenue $39,771 $24,249 $144,177 $81,677 Stock-based compensation expense (3,011) (1,192) (10,093) (3,618) Employer payroll tax on employee stock transactions (35) — (85) — Amortization of acquired intangible assets (5,139) (558) (15,957) (2,165) Acquisition-related compensation (130) — (424) — Non-GAAP cost of revenue $31,456 $22,499 $117,618 $75,894 Gross Profit Reconciliation: GAAP gross profit $86,325 $41,387 $278,002 $123,122 Stock-based compensation expense 3,011 1,192 10,093 3,618 Employer payroll tax on employee stock transactions 35 — 85 — Amortization of acquired intangible assets 5,139 558 15,957 2,165 Acquisition-related compensation 130 — 424 — Non-GAAP gross profit $94,640 $43,137 $304,561 $128,905 Gross Margin Reconciliation: GAAP gross margin 68% 63% 66% 60% Stock-based compensation expense 2% 2% 2% 2% Employer payroll tax on employee stock transactions —% —% —% —% Amortization of acquired intangible assets 4% 1% 4% 1% Acquisition-related compensation —% —% —% —% Non-GAAP gross margin 75% 66% 72% 63% Research and Development Expense Reconciliation: GAAP research and development expense $53,904 $42,644 $207,008 $136,274 Stock-based compensation expense (13,817) (10,361) (51,771) (35,358) Employer payroll tax on employee stock transactions (86) (154) (250) (201) Acquisition-related compensation (437) — (1,165) — Non-GAAP research and development expense $39,564 $32,129 $153,822 $100,715 Sales and Marketing Expense Reconciliation: GAAP sales and marketing expense $87,254 $42,115 $310,848 $160,576 Stock-based compensation expense (11,138) (4,660) (40,115) (15,460) Employer payroll tax on employee stock transactions (127) (949) (505) (1,234) Amortization of acquired intangible assets (2,143) (189) (6,613) (734) Acquisition-related compensation (706) — (1,780) — Non-GAAP sales and marketing expense $73,140 $36,317 $261,835 $143,148 SENTINELONE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except percentages and per share data) (unaudited)

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 25 Three Months Ended January 31, Twelve Months Ended January 31, 2023 2022 2023 2022 General and Administrative Expense Reconciliation: GAAP general and administrative expense $45,197 $27,719 $162,722 $93,504 Stock-based compensation expense (18,182) (9,483) (62,487) (33,453) Employer payroll tax on employee stock transactions (1,002) (161) (1,395) (348) Amortization of acquired intangible assets (19) (19) (75) (73) Acquisition-related compensation (320) — (999) — Non-GAAP general and administrative expense $25,674 $18,056 $97,766 $59,630 Operating Loss Reconciliation: GAAP operating loss $(100,030) $(71,091) $(402,576) $(267,232) Stock-based compensation expense 46,148 25,696 164,466 87,889 Employer payroll tax on employee stock transactions 1,250 1,264 2,235 1,783 Amortization of acquired intangible assets 7,301 766 22,645 2,972 Acquisition-related compensation 1,594 — 4,369 — Non-GAAP operating loss $(43,737) $(43,365) $(208,861) $(174,588) Operating Margin Reconciliation: GAAP operating margin (79)% (108)% (95)% (130)% Stock-based compensation expense 36% 39% 39% 43% Employer payroll tax on employee stock transactions 1% 2% 1% 1% Amortization of acquired intangible assets 6% 1% 5% 1% Acquisition-related compensation 1% —% 1% —% Non-GAAP operating margin (35)% (66)% (49)% (85)% Net Loss Reconciliation: GAAP net loss $(93,680) $(71,709) $(378,678) $(271,101) Stock-based compensation expense 46,148 25,696 164,466 87,889 Employer payroll tax on employee stock transactions 1,250 1,264 2,235 1,783 Amortization of acquired intangible assets 7,301 766 22,645 2,972 Acquisition-related compensation 1,594 — 4,369 — Income tax provision (benefit) — — (9,667) — Non-GAAP net loss $(37,387) $(43,983) $(194,630) $(178,457) Basic and Diluted EPS Reconciliation: GAAP net loss per share, basic and diluted $(0.33) $(0.27) $(1.36) $(1.56) Stock-based compensation expense 0.16 0.10 0.58 0.50 Employer payroll tax on employee stock transactions — — 0.01 0.01 Amortization of acquired intangible assets 0.03 — 0.08 0.02 Acquisition-related compensation 0.01 — 0.02 — Income tax provision (benefit) — — (0.03) — Non-GAAP net loss per share, basic and diluted $(0.13) $(0.17) $(0.70) $(1.03) SENTINELONE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except percentages and per share data) (unaudited)

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Q4 FY2023 LETTER TO SHAREHOLDERSSENTINELONE 26 Three Months Ended January 31, Twelve Months Ended January 31, 2023 2022 2023 2022 GAAP net cash used in operating activities $(22,069) $(5,585) $(193,287) $(95,588) Less: Purchases of property and equipment (126) (385) (4,953) (3,653) Less: Capitalized internal-use software (3,173) (1,106) (13,452) (5,839) Free cash flow $(25,368) $(7,076) $(211,692) $(105,080) Net cash used in investing activities $(66,674) $(7,773) $(1,312,666) $(19,743) Net cash provided by financing activities $16,530 $17,348 $36,308 $1,387,124 SENTINELONE, INC. Reconciliation of Cash Used in Operating Activities to Free Cash Flow (in thousands) (unaudited)

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