SentinelOne prices IPO -- eyes $7 billion+ valuation.
Revenues, losses both rising fast.
SentinelOne, the autonomous endpoint protection platform provider, has priced its IPO at $26-$29 per share, which would raise up to $928 million at a valuation of potentially over $7.3 billion, an SEC filing reveals.
The company names 4,700 customers. It boasts that none suffered from the recent SolarWinds/SUNBURST attack, as the malicious payload failed to trigger when detecting its agents.
SentinelOne is growing revenue at 96% year-on-year in 2021, the prospects notes. The cybersecurity firm runs AI models in a single software agent on each endpoint and cloud workload to detect attacks.
SentinelOne’s Singularity platform aims to furnish uses with a single focal point for endpoint and cloud protection, detection and (where desired automated) response, firewall, device control, malware kill/quarantine/isolation, app inventory, network visibility and control.
Customers include Aston Martin and Estée Lauder. SentinelOne was named a Leader in the 2021 Gartner Magic Quadrant for Endpoint Protection Platforms report and also recently performed very strongly in recent MITRE ATT&CK Engenuity testing, but faces strong competition.
Citing IDC data, SentinelOne's IPO filing saw it claiming an addressable market worth $40.2 billion by 2024. The company, founded in January 2013 and which released its first endpoint security solution in February 2015, remains heavily loss-making, with net losses spiralling from $76 million in 2020 to $117 million in 2021 as the company grew, the filing reveals.
The company cited sustained investment "in growing our business to capitalise on our market opportunity" as behind the losses, saying revenue for calender Q1 2020 and 2021 was $18.0 million and $37.4 million, respectively, representing year-over-year growth of 108%.
SentinelOne's key rivals, as highlighted in the filing, are CrowdStrike, Palo Alto Networks, Microsoft and VMware. As the IPO prospectus notes: "The market for cybersecurity products and services is intensely competitive, fragmented and characterized by rapid changes in technology, customer requirements, industry standards, increasingly sophisticated attackers and by frequent introductions of new or improved products and services."
