The global cyber security industry is expected to grow at 9.7% CAGR to reach $345.4 billion by 2026. Newly public Mountain View-based SentinelOne (NYSE:S) is expanding its partnerships and product offerings to grow its reach in the market.

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SentinelOne’s Offerings

Founded in 2013 by Almog Cohen, Ehud Shamir, and Tomer Weingarten, SentinelOne provides autonomous endpoint protection that prevents, detects, and responds to attacks from all major vectors. The founders wanted to create a data and artificial intelligence solution where technology alone could independently prevent, detect, and respond to cyberattacks.

SentinelOne became one of the first purpose-built AI-powered extended detection and response (XDR) system that was able to make cyber security defense autonomous, from the endpoint and beyond. It has built a solution that specializes in attacks that utilize evasion techniques by ingesting, correlating, and analyzing petabytes of structured and unstructured data from ever-expanding disparate external and internal sources in real-time.

Traditional endpoint security offerings require organizations to continuously deploy and develop new skills and solutions. SentinelOne, on the other hand, runs optimized AI models on each endpoint and cloud workload to identify issues and provide remedies. It uses its integrated platform that combines behavioral-based detection, advances mitigation, and forensics to offer customers full protection against malware, exploit, and insider-based attacks.

It is known for its Singularity Platform that can be deployed on cloud, on-prem or hybrid environments. It is OS agnostic and offers equal protection, visibility, and control across Windows, macOS, Linux, and Kubernetes environments. By offering multi-tenancy, it enables organizations, managed security providers, and incident response partners to deliver improved cyber security capabilities with fewer people and lesser investment.

Earlier last quarter, SentinelOne announced a partnership with Blackpanda and Pandamatics Underwriting. The partnership will allow Blackpanda to deploy SentinelOne’s cloud-based Singularity XDR in incident response cases to gain comprehensive visibility and automate response to compromised endpoint devices in distributed environments. SentinelOne’s AI-powered automated technology gives customers threat mitigation, remediation, and ransomware rollback capabilities and gives Blackpanda the ability to accelerate the response.

It also announced the SentinelOne App for Azure Active Directory, a solution combining endpoint security and identity capabilities to advance Zero Trust architecture. The solution allows organizations that use SentinelOne to alert Azure AD when an endpoint is at risk, allowing organizations to enforce principles of Zero Trust.

SentinelOne’s Financials

SentinelOne has seen revenues grow rapidly over the past few years. For the year ended January 2021, revenues doubled to $93.1 million. But losses have mounted as well, and they grew from $76.6 million a year ago to $117.6 million.

Recently, SentinelOne announced its second-quarter earnings. It reported revenues of $45.8 million, growing 121%, and a net loss per share of $0.57. ARR grew 127% to $198 million.

For the current quarter, it expects revenues between $49-$50 million. It forecast revenues between $188-$190 million for the fiscal year.

According to IDC, the corporate endpoint security market is estimated to grow from $9.7 billion in 2021 to $12 billion by 2024. Overall cyber security analytics, response, and orchestration is expected to grow from $13.1 billion this year to $17.1 billion by 2024. During the same period, the IT Operations Management market is estimated to grow from $5.9 billion to $11.1 billion. SentinelOne pegs its addressable opportunity at $40.2 billion by 2024. But it is not the only player in the market. CrowdStrike is a leading competitor that offers similar capabilities through its Falcon solution. Besides niche players like CrowdStrike, SentinelOne also faces competition from the likes of VMWare, which offers similar services through its Carbon Black offering.

SentinelOne went public in June this year. Prior to going public, it had raised $696.5 million in eight rounds of funding. The most recent round was held in November 2020 for $267 million. It listed at $35 and raised $1.2 billion at a valuation of $10 billion. It is currently trading at $78.87 with a market capitalization of $18.74 billion.