SentinelOne said it has experienced heightened demand for its security platform as companies look to diversify their vendors after the global IT outage in July linked to a faulty software update at CrowdStrike.
During an earnings call Tuesday, CEO Tomer Weingarten said SentinelOne spoke to a number of companies during the Black Hat conference that were looking to mitigate the risk of another possible IT outage, and are actively considering a move.
“Companies do not make snap decisions,” Weingerten said. “They need to figure out how to make the transition, but this shift is positive for SentinelOne in the broader enterprise security landscape."
Weingarten said this scenario will “play out for years as companies dig through the web of liabilities and risks uncovered by this historic outage.”
SentinelOne, based in Mountain View, California, is the second major competitor of CrowdStrike to report increased customer interest in the weeks since the July outage. Palo Alto Networks early last week reported it has entered talks with a number of customers looking to diversify security vendors.
The outage led to more than 8.5 million Microsoft Windows devices malfunctioning and caused widespread disruption across a swath of critical industries. Thousands of commercial airlines canceled flights, major hospitals were forced to cancel surgeries and defer other procedures and several 911 emergency systems were temporarily knocked offline.
Outside of the post-outage demand increase, SentinelOne reported record financial results for the quarter, outperforming its prior expectations.
Fiscal second-quarter revenue rose 33% to $198.9 million, compared with $149.4 million in the year-ago period. Annualized recurring revenue rose 32% to $806 million as of the end of July.
The company now expects fiscal third-quarter revenue to reach $209.5 million and fiscal 2025 revenue to reach $815 million.
The company in July entered an agreement with the Cybersecurity and Infrastructure Security Agency to provide threat detection across federal agencies, as part of CISA’s Persistent Access Capability initiative.
