10q10k10q10k.net

What changed in SentinelOne, Inc.'s 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of SentinelOne, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+563 added−599 removedSource: 10-K (2025-03-26) vs 10-K (2024-03-27)

Top changes in SentinelOne, Inc.'s 2025 10-K

563 paragraphs added · 599 removed · 478 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

137 edited+26 added−31 removed62 unchanged
Biggest changeWe received multiple workplace accolades in 2023. • Fortune recognized SentinelOne as a Best Workplace in Technology, Best Medium Workplace, Best Workplace for Millennials, and Best Workplace in the Bay Area. • Dun’s 100 list acknowledged SentinelOne as one of the Best High Tech Companies to Work for in 2023. • SentinelOne also achieved Great Place to Work certification (December 2023 - December 2024) for the US, UK, France, India, Netherlands, Australia, Canada, Slovakia, Germany, Italy, UAE, Poland, Spain, Czechia, and Singapore. • SentinelOne received the Best Workplaces in Tech in the UK, Best Workplaces for Women in the UK and Best workplaces in Technology in France.
Biggest changeNews & World Report recognized SentinelOne as a Best Companies To Work For, Best Companies to Work For in IT, Software & Services and Best Companies to Work For in the West. • Built In acknowledged SentinelOne as a 2024 Best Places to Work Remote. • SentinelOne also achieved Great Place to Work certification (December 2024 - December 2025) for the U.S., U.K., France, India, Netherlands, Australia, Canada, Costa Rica, Japan, Slovakia, Germany, Italy, UAE, Poland, Spain, Czechia, and Singapore. • SentinelOne received the Best Workplaces in Tech in the U.K., Best Workplaces for Wellbeing in the U.K., Best Workplaces in Technology in Spain, Best Workplaces in Technology in GCC, Best Workplaces in Technology in Australia, and Best Workplaces in Poland.
Our proprietary data stack, Singularity Data Lake, and cloud architecture enable us to retain this rich, contextual data on behalf of our customers for extended periods of 4 Table of Contents time in a highly cost-efficient manner.
Our proprietary data stack, Singularity 4 Table of Contents Data Lake, and cloud architecture enable us to retain this rich, contextual data on behalf of our customers for extended periods of time in a highly cost-efficient manner.
Security and compliance is a shared responsibility model between cloud infrastructure providers and their customers, and organizations are looking for technology solutions that protect their growing cloud workloads while enabling flexible deployment options across public, private and hybrid clouds. • The operating system landscape is more complex than ever before .
Security and compliance are a shared responsibility model between cloud infrastructure providers and their customers, and organizations are looking for technology solutions that protect their growing cloud workloads while enabling flexible deployment options across public, private and hybrid clouds. • The operating system landscape is more complex than ever before .
We also deliver targeted and situational content to demonstrate thought leadership in the security industry, including speaking engagements with the security industry’s foremost organizations to provide expert advice, educating the public about the cyber threats, and identifying threat research discoveries that illustrate the business outcomes and differentiation of our solution.
We also deliver targeted and situational content to demonstrate thought leadership in the security industry, including speaking engagements with the security industry’s foremost organizations to provide expert advice, educating the public about cyber threats, and identifying threat research discoveries that illustrate the business outcomes and differentiation of our solution.
A combination of our powerful Static AI and Behavioral AI locally on the device with Streaming AI models in the cloud addresses the spectrum of attacks in an evolving threat landscape, including ransomware, known and unknown malware, trojans, hacking tools, memory exploits, script misuse, bad macros, and “living off the land,” or file-less, attacks.
A combination of our powerful Static AI and Behavioral AI locally on the device with Streaming AI models in the cloud addresses the spectrum of attacks in an evolving threat landscape, including ransomware, known and unknown malware, trojans, hacking tools, memory exploits, script misuse, bad macros, and “living off the land,” file-less, or AI-based attacks.
Limited historical EDR data makes full incident investigation challenging for security personnel, as they are unable to go back in time and see how the attack breached the organization and progressed. • Struggle to protect complex modern IT environments. Legacy tools were not designed to protect today’s multi-cloud, multi-device, and multi-operating system IT environments.
Limited historical data makes full incident investigation challenging for security personnel, as they are unable to go back in time and see how the attack breached the organization and progressed. • Struggle to protect complex modern IT environments. Legacy tools were not designed to protect today’s multi-cloud, multi-device, and multi-operating system IT environments.
Our platform approach helps enterprise consolidate security tools while enhancing enterprise-wide coverage. • Provides autonomous protection and remediation . Powered by our AI and Storyline technology, our agents defend and heal endpoints autonomously and in real-time by stopping malicious processes, quarantining, remediating, and even rolling back events to surgically keep endpoints clean.
Our platform approach helps enterprise consolidate security tools while enhancing enterprise-wide coverage. • Provides autonomous protection and remediation . Powered by our AI and Storyline technology, our agents can defend and heal endpoints autonomously and in real-time by stopping malicious processes, quarantining, remediating, and even rolling back events to surgically keep endpoints clean.
First, organizations need to ingest, normalize, and correlate petabytes of structured and unstructured data from a myriad of external and internal data in a cost efficient manner. Second, organizations need to apply powerful AI models on this high-fidelity contextual data to automatically detect known and unknown threats, then autonomously remediate and neutralize such threats.
First, organizations need to ingest, normalize, and correlate petabytes of structured and unstructured data from a myriad of external and internal data in a cost efficient manner. Second, organizations need to apply powerful AI models to this high-fidelity contextual data to automatically detect known and unknown threats, then autonomously remediate and neutralize such threats.
A unified platform approach is needed to deliver comprehensive protection, visibility, and user experience. As a result, despite deploying a myriad of point solutions, organizations have continued to suffer huge losses from cyberattacks. • Utilize AI approaches that rely on humans to power protection mechanisms .
A unified AI-based platform approach is needed to deliver comprehensive protection, visibility, and user experience. As a result, despite deploying a myriad of point solutions, organizations have continued to suffer huge losses from cyberattacks. • Utilize AI approaches that rely on humans to power protection mechanisms .
As a pioneer in autonomous and AI-based cybersecurity, we have established a track record for expanding our platform capabilities with new modules. Through convergence of cybersecurity and data, we intend to bring our customers and prospects a variety of differentiated cybersecurity-first, AI powered, and enhanced data analytics offerings.
As a pioneer in autonomous and AI-based cybersecurity, we have established a track record for expanding our platform capabilities with new modules. Through the convergence of cybersecurity and data, we intend to bring our customers and prospects a variety of differentiated cybersecurity-first, AI-powered, and enhanced data analytics offerings.
It is critical that we harness the power of data and AI to protect our digital way of life. Stakes are high for organizations and cybercriminals. The exponential growth of sensitive customer and business data has simultaneously made many organizations and governments the target of highly sophisticated cybercriminals.
It is critical that we harness the power of data and AI to protect our digital way of life. Stakes are high for organizations and cybercriminals alike. The exponential growth of sensitive customer and business data has simultaneously made many organizations and governments the target of highly sophisticated cybercriminals.
Advances in AI, specifically machine learning, where algorithms use data to make decisions with minimal human intervention, are already revolutionizing fields such as healthcare, advertising, and securities trading. We believe that AI is ripe for revolutionizing cybersecurity.
Advances in AI, specifically machine learning (ML), where algorithms use data to make decisions with minimal human intervention, are already revolutionizing fields such as healthcare, advertising, and securities trading. We believe that AI is ripe for revolutionizing cybersecurity.
Ranger leverages the presence of our software in an organization’s network to track assets, create an Enterprise Asset Map, perform network segmentation, deploy our agents to unprotected devices, and provide risk scores. Ranger provides organization-wide inventory and control of IoT devices by discovering connected devices, including virtual machines, containers, and IoT devices such as printers, smart TVs, and thermostats.
Exposure Management leverages the presence of our software in an organization’s network to track assets, create an Enterprise Asset Map, perform network segmentation, deploy our agents to unprotected devices, and provide risk scores. Ranger provides organization-wide inventory and control of IoT devices by discovering connected devices, including virtual machines, containers, and IoT devices such as printers, smart TVs, and thermostats.
We have deep partnerships with many of the leading Independent Software Vendors (ISVs), alliance partners whom we engage with on joint technology and/or go-to-market strategies; and channel partners, such as distributors, resellers, Managed Service Providers (MSPs), Managed Security Service Providers (MSSPs), Managed Detection and Response Providers (MDRs), Original Equipment Manufacturers (OEMs), and Incident Response (IR) firms.
We have deep partnerships with many of the leading Independent Software Vendors (ISVs), alliance partners with whom we engage in joint technology and/or go-to-market strategies; and channel partners, such as distributors, resellers, Managed Service Providers (MSPs), Managed Security Service Providers (MSSPs), Managed Detection and Response Providers (MDRs), Original Equipment Manufacturers (OEMs), and Incident Response (IR) firms.
Purple AI unifies the entire platform experience, supercharges the security operations, and delivers improved efficiency with threat-hunting capabilities across multiple attack vectors. Our Singularity Platform ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of ever-expanding disparate external and internal sources in real-time.
Our generative AI technology, Purple AI, unifies the entire platform experience, supercharges the security operations, and delivers improved efficiency with threat-hunting capabilities across multiple attack vectors. Our Singularity Platform ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of ever-expanding disparate external and internal sources in real-time.
We correlate events from multiple sources into Storylines which contains event data, both benign and malicious, in a context-rich format for easy understanding. • Analyze . Our Singularity Platform enriches and visualizes every Storyline with information from Threat Intelligence sources, both homegrown and through integrations with third-party intelligence information services.
We correlate events from multiple sources into Storylines which contain event data, both benign and malicious, in a context-rich format for easy understanding. • Analyze . Our Singularity Platform enriches and visualizes every Storyline with information from Threat Intelligence sources, both homegrown and through integrations with third-party intelligence information services.
Our headquarters in Mountain View, California is where the majority of our executive team, marketing, finance, legal, people and talent, and sales operations is located, which supports cross functional collaboration. Our office in Tel Aviv, Israel benefits from Israel’s concentration of cybersecurity experts.
Our headquarters in Mountain View, California is where the majority of our executive, marketing, finance, legal, people and talent, and sales operations team members are located, which supports cross-functional collaboration. Our office in Tel Aviv, Israel benefits from Israel’s concentration of cybersecurity experts.
Attacks can inflict damages that span operational disruption, leadership change, loss of customer trust, and intellectual property theft, among others. The rise and persistence of cyberattacks clearly shows that there is a long way to go from here.
Attacks can inflict damages that span operational disruption, leadership change, loss of customer trust, and intellectual property theft, among others. The persistence and speed of cyberattacks clearly shows that there is a long way to go from here.
Visibility across connected devices and continuous assessment of their risk profiles have become top priorities for organizations. • Remote and hybrid work is here to stay. As companies continue to adopt and maintain remote work practices, the risk of cyberattacks has increased.
As a result, visibility across connected devices and continuous assessment of their risk profiles have become top priorities for organizations. • Remote and hybrid work is here to stay. As companies continue to adopt and maintain remote and hybrid work practices, the risk of cyberattacks has increased.
In addition to base salary, these programs, which vary by country and region, include bi-annual bonuses, equity awards, an employee stock purchase plan, a 401(k) plan, including a 401(k) match in the US, healthcare and insurance benefits, health savings and flexible spending accounts, unlimited vacation, wellness reimbursement, 16 weeks of gender-neutral parental leave and more.
In addition to base salary, these programs, which vary by country and region, include bi-annual bonuses, equity awards, an employee stock purchase plan, a 401(k) plan, including a 401(k) match in the U.S., healthcare and insurance benefits, health savings and flexible spending accounts, unlimited vacation, wellness reimbursement, 16 weeks of gender-neutral parental leave and more.
This approach enables us to build trusted relationships with a large and rapidly growing group of highly influential managed service and incident response providers, as opposed to creating a dynamic of competition that creates friction between product vendors and service providers.
This approach enables us to build trusted relationships with a large and rapidly growing group of highly influential managed service and incident response providers, as opposed to creating a dynamic of competition that generates friction between product vendors and service providers.
(Carbon Black); • legacy antivirus providers such as Trellix (formerly McAfee Corp.), Symantec (a subsidiary of Broadcom, Inc.) (Symantec), and Microsoft Corporation (Microsoft); and • providers of general network security products and services who offer a broad portfolio of solutions, such as Palo Alto Networks, Inc.
(CrowdStrike) and Carbon Black (within Broadcom, Inc.); • legacy antivirus providers such as Trellix (formerly McAfee Corp.), Symantec (a subsidiary of Broadcom, Inc.) (Symantec), and Microsoft Corporation (Microsoft); • providers of general network security products and services who offer a broad portfolio of solutions, such as Palo Alto Networks, Inc.
Powered by very large networks of individual attackers distributed worldwide, cybercrime is practically infinite in scale and transcends geographical boundaries. To gain access to an organization’s data, cybercriminals target endpoints, applications, and user credentials and deploy a variety of sophisticated methods in the form of attack frameworks, machine learning, weaponized exploits, fileless techniques, and social engineering.
Powered by very large networks of individual attackers distributed worldwide, cybercrime is practically infinite in scale and transcends geographical boundaries. To gain access to an organization’s data, cybercriminals target endpoints, applications, and user credentials and deploy a variety of sophisticated methods in the form of attack frameworks, ML, weaponized exploits, fileless techniques, and social engineering.
Although certain of our competitors enjoy greater brand awareness and recognition, deep customer relationships, and larger existing customer bases, we believe that we compete favorably with respect to our autonomous and AI-powered threat prevention, detection, response, and hunting capabilities. 20 Table of Contents Intellectual Property The protection of our technology and intellectual property is an important aspect of our business.
Although certain of our competitors enjoy greater brand awareness and recognition, deep customer relationships, and larger existing customer bases, we believe that we compete favorably with respect to our autonomous and AI-powered threat prevention, detection, response, and hunting capabilities. Intellectual Property The protection of our technology and intellectual property is an important aspect of our business.
As a result, solutions that help strengthen and scale cyber defenses cost effectively is a top-level priority for organizations today. Tectonic shifts in IT require a “Zero Trust” operating procedure.
As a result, solutions that help strengthen and scale cyber defenses cost effectively are a top-level priority for organizations today. Tectonic shifts in IT require a “Zero Trust” operating procedure.
We also engage temporary employees and consultants as needed to support our operations. Our US-based employees include team members in all key functions, including go-to-market, customer success, technology, product, and support. Each of our US offices has a different functional focus but shares a driven, customer-centric culture.
We also engage temporary employees and consultants as needed to support our operations. Our U.S.-based employees include team members in all key functions, including go-to-market, customer success, technology, product, and support. Each of our U.S. offices has a different functional focus but shares a driven, customer-centric culture.
Solely for convenience, our trademarks and trade names referred to in this prospectus appear without the ® and ™ symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights, or the right of the applicable licensor, to these trademarks and trade names.
Solely for convenience, our trademarks and trade names 20 Table of Contents referred to in this prospectus appear without the ® and ™ symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights, or the right of the applicable licensor, to these trademarks and trade names.
Available Information 21 Table of Contents We file electronically with the SEC our Annual Report on Form 10-K, Definitive Proxy Statements on Schedule 14A, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act.
Available Information We file electronically with the SEC our Annual Report on Form 10-K, Definitive Proxy Statements on Schedule 14A, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act.
Existing endpoint detection and response (EDR) tools lack the capability to store large sets of historical data cost efficiently, and consequently often only offer limited data retention capabilities. This results in only partial datasets being available for threat hunting and time bound retrospective forensic analysis.
Many existing detection and response tools lack the capability to store large sets of historical data cost efficiently, and consequently often only offer limited data retention capabilities. This results in only partial datasets being available for threat hunting and time bound retrospective forensic analysis.
We also had 60 trademark registrations and applications in certain foreign jurisdictions. Additionally, we are the registered holder of a number of domain names, including sentinelone.com and dataset.com.
We also had 94 trademark registrations and applications in certain foreign jurisdictions. Additionally, we are the registered holder of a number of domain names, including sentinelone.com and dataset.com.
The contents of the websites referred to above are not incorporated into this filing. Further, our references to the URLs for these websites are intended to be inactive textual references only. 22 Table of Contents
The contents of the websites referred to above are not incorporated into this filing. Further, our references to the URLs for these websites are intended to be inactive textual references only. 21 Table of Contents
The new challenges in security landscape require autonomous security powered by AI and machine learning. Cybersecurity teams are unable to scale. While the number of connected devices, applications and cyber threats have increased exponentially, organizations are facing an acute shortage of skilled cybersecurity talent.
The new challenges in the security landscape require autonomous security powered by AI and ML. Cybersecurity teams are unable to scale. While the number of connected devices, applications and cyber threats have increased exponentially, organizations are facing an acute shortage of skilled cybersecurity talent.
They cannot take action at machine speed and are thus unable to detect and prevent or stop many fast-acting 6 Table of Contents attacks. Additionally, due to communication latency with the cloud, these tools cannot generate actionable insights in real-time, which is required to stop many current threats. • Lack long-term data visibility to proactively investigate advanced threats.
They cannot take action at machine speed and are thus unable to detect and prevent or stop many fast-acting attacks. Additionally, due to communication latency with the cloud, these tools cannot generate actionable insights in real-time, which is required to stop many current threats. • Lack long-term data visibility to proactively investigate advanced threats.
Our platform can ingest structured and unstructured data from any source, with little to no manual configuration and at unprecedented speed and scale. 10 Table of Contents • Normalize . Aligns every data point to extract the shared elements regardless of origin and to produce true insights. • Correlate .
Our platform can ingest structured and unstructured data from any source, with little to no manual configuration and at unprecedented speed and scale. • Normalize . Aligns every data point to extract the shared elements regardless of origin and to produce true insights. • Correlate .
The main capabilities of ActiveEDR are: • Deep Visibility Threat Hunting . Deep Visibility Threat Hunting provides an easy-to-use search interface on top of our Deep Visibility dataset. The Storylines shown within Deep Visibility hunts enable one-click responses, which are far easier and faster to execute than manually scripting responses.
Deep Visibility Threat Hunting provides an easy-to-use search interface on top of our Deep Visibility dataset. The Storylines shown within Deep Visibility hunts enable one-click responses, which are far easier and faster to execute than manually scripting responses.
Alternatively, some attacks, such as advanced persistent attacks and targeted attacks, are designed to breach the organization and stealthily infiltrate across assets to steal data, facilitate future attacks, or cause other harm over a long period of time, all while operating undetected. In addition, threat actors are using generative AI to increase the sophistication, frequency, and speed of cyberattacks.
Alternatively, some attacks, such as advanced persistent attacks and targeted attacks, are designed to breach organizations and stealthily infiltrate across assets, steal data, facilitate future attacks, or cause other harm over a long period while operating undetected. In addition, threat actors are using generative AI to increase the sophistication, frequency, and speed of cyberattacks.
In addition, they lack the ability to detect and prevent an increasing number of fileless attacks, that deposit no malware, but instead exploit operating system vulnerabilities and use trusted tools within IT environments. In general, enterprises need to take a more holistic view of security protection across endpoints, cloud environments, and identity credentials.
They also lack the ability to detect and prevent an increasing number of fileless attacks, that deposit no malware, but instead exploit operating system vulnerabilities and use trusted tools within IT environments. In general, we believe enterprises need to take a more holistic view of security protection across endpoints, cloud environments, and identity credentials.
We have successfully grown our revenue from our customer base as they deploy additional licenses and expand the use of our platform by adoption of adjacent solutions.
We have successfully grown our revenue from our customer base as they deploy additional licenses and expand the use of our platform by adopting adjacent solutions.
(Palo Alto Networks) We compete on the basis of a number of factors, including but not limited to our: • ability of our technology to detect, prevent, and block threats; • breadth of our functionality; • ability to automate threat prevention and remediation with limited human intervention; • performance of our platform; • speed of our threat hunting capabilities; • support for cloud, hybrid, and on-premise deployments; • support for various operating systems; • platform data retention capabilities; • ability to integrate with other participants in the security ecosystem; • ease of use to deploy, manage, and maintain our platform; • quality of our MDR service; • strength of sales, marketing, and channel partner relationships; and • customer support.
We compete on the basis of a number of factors, including but not limited to our: • ability of our technology to detect, prevent, and block threats; • breadth of our functionality; • ability to automate threat prevention and remediation with limited human intervention; • performance of our platform; • speed of our threat hunting capabilities; • support for cloud, hybrid, and on-premise deployments; • support for various operating systems; • platform data retention capabilities; • ability to integrate with other participants in the security ecosystem; • ease of use to deploy, manage, and maintain our platform; • quality of our MDR service; 19 Table of Contents • strength of sales, marketing, and channel partner relationships; and • customer support.
As we grow and expand our geographical reach, we may become subject to additional regulations in the US and internationally. These laws often require companies to implement specific information security controls to protect certain types of information, such as personal data.
As we grow and expand our geographical reach, we may become subject to additional regulations in the U.S. and internationally. These laws often require companies to implement specific information security controls to protect certain types of information, such as personal data.
Our platform offers true multi-tenancy, which enables the world’s largest organizations and provides our managed security providers and incident response partners with an excellent management experience. Our customers realize improved cybersecurity outcomes with fewer people. Our Singularity Platform is used globally by organizations of all sizes across a broad range of industries.
Our platform offers true multi-tenancy, which enables the world’s largest organizations, managed security providers and incident response partners with an excellent management experience. Our customers are able to realize improved cybersecurity outcomes with fewer people. Singularity is used globally by organizations of all sizes across a broad range of industries.
Our Singularity Platform Our Singularity Platform delivers AI-powered autonomous threat prevention, detection, and response capabilities across an organization’s endpoints, cloud workloads, and identity credentials, enable seamless and autonomous protection against a full spectrum of cyber threats. We built our platform to be deployed as a cloud service in public, private, and hybrid cloud environments.
Our Singularity Platform Our Singularity Platform delivers AI-powered autonomous threat prevention, detection, response, and exposure management capabilities across an organization’s endpoints, cloud workloads, and identity credentials, enabling seamless and autonomous protection against a full spectrum of cyber threats. We built our platform to be deployed as a cloud service in public, private, and hybrid cloud environments.
Our Static AI model is the output of a supervised machine learning cycle that is trained on a continuously evolving data set from billions of files coupled with the data from multiple threat intelligence sources, including our proprietary Embedded Threat Intelligence. • Behavioral AI.
Our Static AI model is the output of a supervised ML cycle that is trained on a continuously evolving data set from billions of files coupled with data from multiple threat intelligence sources, including our proprietary Embedded Threat Intelligence. • Behavioral AI.
Endpoint Protection (EPP) Our next-generation cybersecurity technology provides autonomous real-time protection across all operating systems, including Windows, Linux, macOS, and cloud-native and containerized workloads. Our endpoint protection is powered by distributed AI which resides both on devices as well as in the cloud for always-on, machine-speed protection.
Endpoint Security (EPP and EDR) Our next-generation endpoint security provides autonomous real-time protection across all operating systems, including Windows, Linux, macOS, and cloud-native and containerized workloads. Our endpoint protection is powered by distributed AI which resides both on devices as well as in the cloud for always-on, machine-speed protection.
We build rich context and deliver greater visibility by constructing a dynamic representation of data across an organization. As a result, our AI models are highly accurate, actionable, and autonomous. Our distributed AI models run both locally on every endpoint and every cloud workload, as well as on our cloud platform.
We aim to build rich context and deliver greater visibility by constructing a dynamic representation of data across an organization. As a result, our AI models are able to be highly accurate, actionable, and autonomous. Our distributed AI models run both locally on every endpoint and every cloud workload, as well as on our cloud platform.
Identity Security Our identity security portfolio acts as a force multiplier for security teams, allowing them to assume a more robust security posture and extend the capabilities of the Singularity Platform to protect user credentials. Our Singularity Identity solution detects and responds to identity-based attacks and finds attackers early, before they can exploit identities.
Identity Security Our identity security solutions act as a force multiplier for security teams, allowing them to assume a more robust security posture and extend the capabilities of the Singularity Platform to protect user credentials. Our Singularity Identity solution detects and responds to identity-based attacks and finds attackers early, before they can exploit identities.
Furthermore, our platform provides visibility across an organization’s digital assets through one console, making it easy and very fast for analysts to search through petabytes of data to investigate incidents and hunt threats. Our Singularity Platform offers multi-tenancy and can be deployed on a diverse range of environments that our customers choose, including public, private, or hybrid clouds.
Furthermore, our platform provides visibility across an organization’s digital assets through one console, making it easier and faster for analysts to search through petabytes of data to investigate incidents and hunt threats. Singularity offers multi-tenancy and can be deployed on a diverse range of environments that our customers choose, including public, private, or hybrid clouds.
When our on-device machine learning models assess how an endpoint behaves, they are completely independent of the attack vector itself or any further updates and configurations. 7 Table of Contents • One Platform approach enables protection and visibility across all digital assets .
When 7 Table of Contents our on-device ML models assess how an endpoint behaves, they are completely independent of the attack vector itself or any further updates and configurations. • Platform approach enables protection and visibility across all digital assets .
As a result, our Behavioral AI is attack vector agnostic because it is not limited to any particular pathway used by attackers to penetrate a system, such as zero-day vulnerability exploits and living off the land attacks. • Embedded Threat Intelligence .
As a 12 Table of Contents result, our Behavioral AI is attack vector agnostic because it is not limited to any particular pathway used by attackers to penetrate a system, such as zero-day vulnerability exploits and living off the land attacks. • Embedded Threat Intelligence .
We intend to continue to grow our international customer base by increasing our investments in international operations. We are continuing to invest and hire talent to expand our business in Asia-Pacific and Europe, the Middle East and Africa, and Latin America. • Expand our total addressable market through acquisitions .
We intend to continue to grow our international customer base by increasing our 9 Table of Contents investments in international operations. We are continuing to invest and hire talent to expand our business in Asia-Pacific and Europe, the Middle East and Africa, and Latin America. • Expand our total addressable market through acquisitions .
Enables customers to store and download copies of any file that has been executed in their environment for forensic review and reverse engineering. Binary Vault can store a copy of every known binary, both benign and malicious, that executes across an enterprise.
Enables customers to store and download copies of any file that has been executed in their environment for forensic review and reverse engineering. Binary Vault can store a copy of every known binary, both benign and malicious, that executes across an enterprise. • Remote Script Orchestration (RSO) .
Our platform can also be hosted in Google Cloud, as well as customers’ on-premise data centers, and private and hybrid cloud environments for organizations with specialized hosting and data sovereignty needs. Our Singularity Platform provides feature parity across Windows, macOS, and Linux.
Our platform can also be hosted in Google Cloud, as well as customers’ on-premise data centers, and private and hybrid cloud environments for organizations with specialized hosting and data sovereignty needs. 11 Table of Contents Our Singularity Platform provides feature parity across Windows, macOS, and Linux.
As we enhance our platform functionality and value proposition, we expect many of our customers to adopt additional platform functionalities and Singularity modules to address all of their cybersecurity use cases through the same platform. Our customers can seamlessly activate additional modules to adopt more platform capabilities.
As we enhance our platform functionality and value proposition, we expect many of our customers to adopt additional platform functionalities and Singularity modules to address all of their cybersecurity use cases through the same platform. Our customers can seamlessly activate additional platform solutions to adopt more product offerings.
Cyberattacks have evolved from malware to highly sophisticated, organized and large-scale attacks by malicious insiders, criminal syndicates, and nation-states seeking to circumvent existing security controls and undermine critical societal functions through a variety of attacks that are fast acting that take only seconds to breach organizations, exfiltrate data, demand ransoms, and disrupt operations.
Cyberattacks have evolved from malware to highly sophisticated, organized and large-scale attacks by malicious insiders, criminal syndicates, and nation-states seeking to circumvent existing security controls and undermine critical societal functions through a variety of attacks. Modern attacks are fast acting and can breach organizations, exfiltrate data, demand ransoms, and disrupt operations within seconds.
During this period, we continued to invest in growing our business to capitalize on our market opportunity. As a result, our net loss for fiscal 2024 was $338.7 million compared with net loss of $378.7 million in fiscal 2023. Industry Background Cybersecurity is fundamentally a data problem.
During this period, we continued to invest in growing our business to capitalize on our market opportunity. As a result, our net loss for fiscal 2025 was $288.4 million compared with a net loss of $338.7 million in fiscal 2024. Industry Background Cybersecurity is fundamentally a data problem.
These tools often rely on ineffective pattern-matching algorithms in the cloud that generate so much “noise” that human intervention is required to extract useful “signals.” Without curated, contextual data, these tools only generate more alerts that need to be analyzed by humans.
These tools often rely on ineffective pattern-matching algorithms in the cloud 6 Table of Contents that generate so much “noise” that human intervention is required to extract useful “signals.” Without curated, contextual data, these tools generate more alerts that need to be analyzed by humans.
Our Singularity Platform can be quickly and easily deployed on a diverse range of environments of our customers, and without extensive configuration or maintenance, including the public, private or hybrid cloud, making it relevant for organizations of all sizes with varying compliance and regulatory requirements. 8 Table of Contents • Rich partner ecosystem .
Our Singularity Platform can be quickly and easily deployed on a diverse range of environments for our customers, and without extensive configuration or maintenance, including the public, private or hybrid cloud, making it relevant for organizations of all sizes with varying compliance and regulatory requirements.
We typically receive a higher percentage of our annual orders from new customers, as well as renewal orders from existing customers, in our fourth fiscal quarter as compared to other quarters due to the annual budget approval process of many of our customers. Human Capital Resources Our Team As of January 31, 2024, we had over 2,300 full-time employees worldwide.
We typically receive a higher percentage of our annual orders from new customers, as well as renewal orders from existing customers, in our fourth fiscal quarter as compared to other quarters due to the annual budget approval process of many of our customers. 15 Table of Contents Human Capital Resources Our Team As of January 31, 2025, we had over 2,800 full-time employees worldwide.
Our protection and visibility extend across critical enterprise surfaces, including traditional endpoints, cloud workloads, identity credentials, unmanaged devices, and Internet of Things (IoT) devices. This empowers security analysts of all skill levels to hunt, investigate, and remediate even the most sophisticated threats across the network leveraging automated context provided by our Storylines.
Singularity’s protection and visibility extend across critical enterprise surfaces, including traditional endpoints, cloud workloads, identity credentials, unmanaged devices, and Internet of Things (IoT) devices. This can empower security analysts of all skill levels to hunt, investigate, and remediate even the most sophisticated threats across the network leveraging automated context provided by our AI-powered security.
We believe our leading security and platform breadth position us well to consolidate and unify cybersecurity spend across multiple categories. Over time, we believe this unification and re-architecture of the prevention, detection and response paradigm will create new opportunities for additional products and features.
We believe our leading security and platform breadth positions us well to consolidate and elevate cybersecurity spend across multiple categories. Over time, we believe this unification of the prevention, detection and response paradigm will create new opportunities for additional products and features.
Our AI and automation driven approach to cybersecurity has been adopted by some of the world’s largest organizations. As a result, we have grown rapidly since our inception. Our revenue for fiscal 2024 and 2023 was $621.2 million and $422.2 million, respectively, representing year-over-year growth of 47%.
Our AI and automation driven approach to cybersecurity has been adopted by some of the world’s largest organizations. As a result, we have grown rapidly since our inception. Our revenue for fiscal 2025 and 2024 was $821.5 million and $621.2 million, respectively, representing year-over-year growth of 32%.
ITEM 1. BUSINESS Overview Cybersecurity is indispensable to our digital way of life, with millions of cyberattacks occurring every year resulting in trillions of dollars in damages. We are in the midst of a generational shift in cybersecurity, ushered in by the ongoing digital transformation of the enterprise.
ITEM 1. BUSINESS Overview Cybersecurity is indispensable to our digital way of life, with millions of cyberattacks resulting in trillions of dollars in damages. We are in the midst of a generational shift in cybersecurity, ushered in by the ongoing digital transformation of the enterprise and the rise of AI.
Key limitations of legacy tools are that they: • Cover a limited spectrum of cyber threats . Legacy tools, such as signature-based approaches, human-powered monitoring, application whitelisting and sandboxing, are each effective under limited circumstances, but lack the ability to detect the full spectrum of threats that organizations face.
The result is a rising number of successful high-profile attacks. Key limitations of legacy tools are that they: • Cover a limited spectrum of cyber threats . Legacy tools, such as signature-based approaches, human-powered monitoring, application whitelisting and sandboxing, are each effective under limited circumstances, but lack the ability to detect the full spectrum of threats that organizations face.
All of this threat intelligence is fed back into our AI model and further strengthens our algorithms, creating a strong flywheel effect and deepening our competitive moat. Our Singularity Platform can be flexibly deployed on the environments that our customers choose, including public, private, or hybrid clouds.
All of this threat intelligence is fed back into our AI models and Purple AI, further strengthening our algorithms and creating a strong flywheel effect that deepens our competitive moat. Singularity can be flexibly deployed on the environments that our customers choose, including public, private, or hybrid clouds.
Government Regulation We are subject to many varying laws and regulations in the US, the United Kingdom (UK), the European Union (EU) and throughout the world, including those related to privacy, data protection, intellectual property, consumer protection, marketing, advertising, employment and labor, competition, customs and international trade, taxation, and more.
Government Regulation We are subject to many varying laws and regulations in the U.S., the United Kingdom (U.K.), the European Union (E.U.), and throughout the world, including those related to privacy, data protection, intellectual property, AI, consumer protection, marketing, advertising, employment and labor, competition, customs and international trade, taxation, and more.
These patents and patent applications seek to protect our proprietary inventions relevant to our business. These issued patents are scheduled to expire on or around the years between 2034 and 2042 and cover various aspects of our platform and technology. As of January 31, 2024, we had 11 trademark registrations in the US, including registrations for “SentinelOne” and our logo.
These patents and patent applications seek to protect our proprietary inventions relevant to our business. These issued patents are scheduled to expire on or around the years between 2034 and 2044 and cover various aspects of our platform and technology. As of January 31, 2025, we had 12 trademark registrations in the U.S., including registrations for “SentinelOne” and our logo.
We generally enter into confidentiality agreements and invention or work product assignment agreements with our officers, employees, agents, contractors, and business partners to control access to, and clarify ownership of, our proprietary information. As of January 31, 2024, we had 66 issued patents and 5 pending patent applications in the US and abroad.
We generally enter into confidentiality agreements and invention or work product assignment agreements with our officers, employees, agents, contractors, and business partners to control access to, and clarify ownership of, our proprietary information. As of January 31, 2025, we had 82 issued patents and 35 pending patent applications in the U.S. and abroad.
Proprietary Security Data Lake Singularity Data Lake (SDL), formerly DataSet, is our fully integrated security data lake that seamlessly fuses together the data, access, control, and integration planes of EPP, EDR, CWS, Identity Protection, and IoT security into a centralized platform.
Proprietary Security Data Lake Singularity Data Lake (SDL) is our fully integrated security data lake that seamlessly fuses together the data, access, control, and integration planes of Endpoint Protection (EPP), Endpoint Detection and Response (EDR), Cloud Workload Security (CWS), Identity Protection, and IoT security into a centralized platform.
In the cloud, our platform aggregates Storylines. Our Streaming AI detects anomalies that surface when multiple data feeds are correlated with additional external and internal data.
In the cloud, our platform can aggregate Storylines. Our Streaming AI can detect anomalies that surface when multiple data feeds are correlated with additional external and internal data.
By providing full visibility into the Storyline of every secured device across the organization through one console, our platform makes it very fast for analysts to easily search through petabytes of data to investigate incidents and proactively hunt threats.
By providing full visibility into the Storyline of every secured device across the organization through one console, our platform enables analysts to quickly and easily search through petabytes of data to investigate incidents and proactively hunt threats.
Limitations of Legacy Solutions Organizations must deploy solutions that enable them to stay one step ahead of attackers and address intrusion attempts in real-time. As attackers up the ante, developing new skills and deploying new tactics and techniques, legacy tools are often unable to prevent and respond effectively to breaches. The result is a rising number of successful high-profile attacks.
Limitations of Legacy Solutions Organizations must deploy solutions that enable them to stay one step ahead of attackers and address intrusion attempts in real-time. As attackers up the ante by developing new skills and deploying new tactics and techniques, legacy tools are often unable to prevent and respond effectively to breaches.
Because Storylines contain a complete record of unauthorized changes made during an attack, we are ready to remediate or roll back these changes. The power to turn back time on a device is unique in the market. It is the ultimate safety net and exemplifies autonomous cybersecurity. Therefore, our software eliminates manual, expensive, and time-consuming incident cleanup.
Because Storylines contain a complete record of unauthorized changes made during an attack, users can remediate or roll back unauthorized changes with a single click. The power to turn back time on a device is unique in the market. It is the ultimate safety net and exemplifies autonomous cybersecurity. Therefore, our software can eliminate manual, expensive, and time-consuming incident cleanup.
The attack surface has expanded considerably, and the notion of a corporate perimeter protected by firewalls is a relic of the past, making the endpoint the epicenter, and endpoint protection software the first, and last, line of defense. Several tectonic shifts in IT have increasingly left companies vulnerable including: • Rapid adoption of cloud computing .
The attack surface continues to expand rapidly, and the notion of a corporate perimeter protected by firewalls is a relic of the past, making endpoints and cloud workloads the epicenter, and protection software the first, and last, line of defense. Several tectonic shifts in IT have increasingly left companies vulnerable including: • Rapid adoption of cloud computing .
Module-driven growth has been broad-based with notable strength from our cloud and data modules. Our platform also enables us to show in-product promotions and trials and to drive the expansion of our Singularity Modules.
Platform-driven growth has been broad-based with notable strength from our cloud security, data, and Purple AI solutions. Our platform also enables us to show in-product promotions and trials and drive the expansion of our Singul arity Modules.
STAR gives users the capability to set custom Indicators of Compromise (IOC) based rules for real-time analysis, alerting, and automatic response workflows. Our STAR module is also capable of ingesting threat intelligence feeds to enhance and correlate analyses.
STAR gives users the capability to set custom Indicators of Compromise (IOC) based rules for real-time analysis, alerting, and automatic response workflows. Our STAR module is also capable of ingesting threat intelligence feeds to enhance and correlate analyses. • Data Retention . Modern attacks can take days and weeks to initiate after infiltration.
Billions of connected devices are online today and the numbers are only expected to increase. Many of these devices will have little to no built-in security capabilities. Cybercriminals are increasingly exploiting inherent vulnerabilities in these devices to breach organizations. Unmanaged devices are especially vulnerable. As a result, the attack surface has exploded.
Many of these devices have little to no built-in security capabilities. Cybercriminals are increasingly exploiting inherent vulnerabilities in these devices to breach organizations. Unmanaged devices are especially vulnerable. As a result, the attack surface has exploded.
Our identity solution also reduces the potential attack surface and proactively increases security by identifying misconfigurations and credential exposures that create attack paths for attackers to move laterally. Our identity security portfolio includes: • Singularity Identit y detects real-time identity attacks across the enterprise that target Active Directory and Active Directory (Azure AD).
Our identity solution also reduces the potential attack surface and proactively increases security by identifying misconfigurations and credential exposures that create attack paths for attackers to move laterally. Our identity security portfolio includes: • Singularity Identit y Threat Detection and Response (ITDR) detects real-time identity attacks across the enterprise that target identity access management services like Entra ID.
Our partner integrations deliver more secure solutions and an improved end user experience to their customers. Our ISV and alliance partnerships focus on security analytics, network and infrastructure security, threat platforms and orchestration, automation, and other mainstream technology integrations. Singularity Marketplace Singularity Marketplace is an open application ecosystem that enables customers to seamlessly integrate dozens of applications.
Our ISV and alliance partnerships focus on security analytics, network and infrastructure security, threat platforms and orchestration, automation, and other mainstream technology integrations. 18 Table of Contents Singularity Marketplace Singularity Marketplace is an open application ecosystem that enables customers to seamlessly integrate dozens of applications.
Customers receive protection from malicious files in Amazon Simple Storage Service (S3) and NetApp. Our AI-powered threat detection delivers unparalleled visibility and proactive protection against advanced threats, ensuring security and compliance.
Customers receive protection from malicious files in Amazon Simple Storage Service (S3) and NetApp. Our AI-powered threat detection delivers unparalleled visibility and proactive protection against advanced threats, ensuring security and compliance. • AI Security Posture Management (AI-SPM) helps address the evolving risks associated with generative AI.
The success of our land-and-expand strategy is evidenced by our dollar-based net retention rate of 114% as of January 31, 2024 . 9 Table of Contents • Expand our global footprint. Revenue generated outside of the US was 36% for fiscal 2024, compared to 35% for fiscal 2023.
The success of our land-and-expand strategy is evidenced by our dollar-based net retention rate of 110% as of January 31, 2025. • Expand our global footprint. Revenue generated outside of the U.S. was 37% for fiscal 2025, compared to 36% for fiscal 2024.

… 114 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

245 edited+47 added−65 removed271 unchanged
Biggest changeOur quarterly financial results may fluctuate as a result of a number of factors, many of which are outside of our control and may be difficult to predict, including, without limitation: • general global macroeconomic and political conditions, both domestically and in our foreign markets that could impact some or all regions where we operate, including global economic slowdowns, actual or perceived global banking and finance related issues, increased risk of inflation, potential uncertainty with respect to the federal debt ceiling and budget and potential government shutdowns related thereto, interest rate volatility, supply chain disruptions, labor shortages and potential global recession; • the impact of natural or man-made global events on our business, including wars and other armed conflict, such as the conflicts in the Middle East, Ukraine and tensions between China and Taiwan; • our ability to attract new and retain existing customers or sell additional features to existing customers; • the budgeting cycles, seasonal buying patterns, and purchasing practices of customers; • the timing and length of our sales cycles; • changes in customer or channel partner requirements or market needs; • changes in the growth rate of the cybersecurity market generally and market for endpoint security; • the timing and success of new product and service introductions by us, including PinnacleOne, our strategic risk analysis and advisory group, and Singularity Data Lake, our live enterprise data platform for data queries, analytics, insights, and retention, or our competitors or any other competitive developments, including consolidation among our customers or competitors; • the level of awareness of cybersecurity threats, particularly advanced cyberattacks, and the market adoption of our platform; 27 Table of Contents • our ability to successfully expand our business domestically and internationally; • decisions by organizations to purchase security solutions from larger, more established security vendors or from their primary IT equipment vendors; • changes in our pricing policies or those of our competitors; • any disruption in our relationship with ISVs, channel partners, MSPs, MSSPs, MDRs, OEMs, and IR firms; • insolvency or credit difficulties confronting our customers, affecting their ability to purchase or pay for our solution; • significant security breaches of, technical difficulties with, or interruptions to, the use of our platform or other cybersecurity incidents; • extraordinary expenses such as litigation or other dispute-related settlement payments or outcomes, taxes, regulatory fines or penalties; • future accounting pronouncements or changes in our accounting policies or practices; • negative media coverage or publicity; • the amount and timing of operating costs and capital expenditures related to the expansion of our business; and • increases or decreases in our expenses caused by fluctuations in foreign currency exchange rates.
Biggest changeOur quarterly financial results may fluctuate as a result of a number of factors, many of which are outside of our control and may be difficult to predict, including, without limitation: • general global macroeconomic and political conditions, both domestically and in our foreign markets that could impact some or all regions where we operate, including the changes in U.S. federal spending, changes in tariffs and trade restrictions, global economic slowdowns, actual or perceived global banking and finance related issues, increased risk of inflation, interest rate volatility, supply chain disruptions, labor shortages and potential global recession; • the impact of natural or man-made global events on our business, including regional geopolitical conflicts around the world; • our ability to attract new and retain existing customers or sell additional features to existing customers; • the budgeting cycles, seasonal buying patterns, and purchasing practices of customers; including decisions by organizations to purchase security solutions from larger, more established security vendors or from their primary IT equipment vendors and insolvency or credit difficulties confronting our customers, affecting their ability to purchase or pay for our solution • the timing and length of our sales cycles; • changes in customer or channel partner requirements or market needs; • changes in the growth rate of the cybersecurity market generally and market for endpoint security; • the timing and success of new product and service introductions by us, or any other competitive developments, including consolidation among our customers or competitors and changes in our pricing policies or those of our competitors; 26 Table of Contents • the level of awareness of cybersecurity threats, particularly advanced cyberattacks, and the market adoption of our platform; • our ability to successfully expand our business domestically and internationally, including the impact of the amount and timing of operating costs and capital expenditures related to the expansion of our business; • any disruption in our relationship with ISVs, channel partners, MSPs, MSSPs, MDRs, OEMs, and IR firms; • significant security breaches of, technical difficulties with, or interruptions to, the use of our platform or other cybersecurity incidents; • extraordinary expenses such as litigation or other dispute-related settlement payments or outcomes, taxes, regulatory fines or penalties; • future accounting pronouncements or changes in our accounting policies or practices; • negative media coverage or publicity; and • increases or decreases in our expenses caused by fluctuations in foreign currency exchange rates.
Traditional computer “hackers,” malicious code (such as viruses and worms), phishing attempts, ransomware, account takeover, business email compromise, employee fraud, theft or misuse, denial of service attacks, and sophisticated nation-state and nation-state supported actors engage in intrusions and attacks that create risks for our internal networks and cloud deployed products and the information they store and process.
Traditional computer “hackers,” malicious code (such as viruses and worms), phishing attempts, ransomware, account takeover, business email compromise, employee fraud, theft or misuse, denial of service attacks, and sophisticated nation-state and nation-state supported actors engage in intrusions and attacks that create risks for our internal networks, cloud deployed products and the information they store and process.
State-supported and geopolitical-related cyberattacks may rise in connection with regional geopolitical conflicts such as the conflicts in the Middle East, Ukraine and tensions between China and Taiwan. In addition, our cybersecurity product is likely considered a valuable target for lateral attacks because of its highly privileged access.
State-supported and geopolitical-related cyberattacks may rise in connection with regional geopolitical conflicts such as the conflicts in the Middle East and Ukraine, and tensions between China and Taiwan. In addition, our cybersecurity product is likely considered a valuable target for lateral attacks because of its highly privileged access.
Protecting our own assets has become more expensive from a dollar investment and time perspective and these costs may increase as the threat landscape increases, including as a result of use by bad actors of AI.
Protecting our own assets has become more expensive from a dollar investment and time perspective and these costs may increase as the threat landscape increases, including as a result of the use of AI by bad actors.
We also provide limited liability in the event of certain breaches of our master subscription agreement. Certain of these contractual provisions survive termination or expiration of the applicable agreement. However, as we continue to grow, indemnification claims against us for the obligations listed may increase.
We also provide limited liability in the event of certain breaches of our master subscription agreement. Certain of these contractual provisions survive the termination or expiration of the applicable agreement. However, as we continue to grow, indemnification claims against us for the obligations listed may increase.
Risks Related to our People We rely on our management team and other key employees and will need additional personnel to grow our business, and the loss of one or more key employees or our inability to hire, integrate, train, manage, retain, and motivate qualified personnel, including members of our board of directors, could harm our business.
Risks Related to our People We rely on our management team and other key employees and will need additional personnel to grow our business, and the loss of one or more key employees or our inability to hire, integrate, train, manage, retain, and motivate qualified personnel, including members of our board of directors, could harm our business.
For example, in recent years, recruiting, hiring and retaining employees with expertise in the cybersecurity industry has become increasingly difficult as the demand for cybersecurity professionals has increased as a result of recent cybersecurity attacks on global corporations and governments. We may be required to provide more training to our personnel than we currently anticipate.
For example, in recent years, recruiting, hiring and retaining employees with expertise in the cybersecurity industry has become increasingly difficult as the demand for cybersecurity professionals has increased as a result of the recent cybersecurity attacks on global corporations and governments. We may be required to provide more training to our personnel than we currently anticipate.
We have in the past, and may in the future, be subject to allegations that employees we hire have been improperly solicited, or that they have divulged proprietary or other confidential information or that their former employers own such employees’ inventions or other work product, or that they have been hired in violation of non-compete provisions or non-solicitation provisions.
We have in the past, and may in the future, be subject to allegations that employees we hire have been improperly solicited, or that they have divulged proprietary or other confidential information or that their former employers own such employees’ inventions or other work product, or that they have been hired in violation of non-compete or non-solicitation provisions.
Changes in our platform, and changes in or promulgation of new export and import regulations may create delays in the introduction of our platform into international markets, prevent our customers with international operations from deploying our platform globally or, in some cases, prevent the export or import of our platform to certain countries, governments or persons altogether.
Changes in our platform, and changes in or promulgation of new export and import regulations may create delays in the introduction of our platform into certain international markets, prevent our customers with international operations from deploying our platform globally or, in some cases, prevent the export or import of our platform to certain countries, governments or persons altogether.
As a result, the dual class structure of our common stock may make us ineligible for inclusion in certain indices, may discourage such indices from selecting us for inclusion (notwithstanding our automatic termination provision) may cause stockholder advisory firms to publish negative commentary about our corporate governance practices or otherwise seek to cause us to change our capital structure, and may result in large institutional investors not purchasing shares of our Class A common stock.
As a result, the dual class structure of our common stock may make us ineligible for inclusion in certain indices and may discourage such indices from selecting us for inclusion, notwithstanding our automatic termination provision, may cause stockholder advisory firms to publish negative commentary about our corporate governance practices or otherwise seek to cause us to change our capital structure, and may result in large institutional investors not purchasing shares of our Class A common stock.
Further, acts of war, armed conflict, terrorism and other geopolitical unrest, such as the conflicts in the Middle East, Ukraine and tensions between China and Taiwan, could cause disruptions in our business or the businesses of our partners or the economy as a whole.
Further, acts of war, armed conflict, terrorism and other geopolitical unrest, such as the conflicts in the Middle East and Ukraine, and tensions between China and Taiwan, could cause disruptions in our business or the businesses of our partners or the economy as a whole.
If we combine and distribute our proprietary software with open source software in a certain manner, we could, under certain open source licenses, be required to release combined the source code of our proprietary software to the public, including authorizing further modification and redistribution, or otherwise be limited in the licensing of our services, each of which could provide an advantage to our competitors or other entrants to the market, create security vulnerabilities in our solution, require us to re-engineer all or a portion of our platform, and reduce or eliminate the value of our services.
If we combine and distribute our proprietary software with open source software in a certain manner, we could, under certain open source licenses, be required to release the source code of our proprietary software to the public, including authorizing further modification and redistribution, or otherwise be limited in the licensing of our services, each of which could provide an advantage to our competitors or other entrants to the market, create security vulnerabilities in our solution, require us to re-engineer all or a portion of our platform, and reduce or eliminate the value of our services.
If our public statements about our use, collection, disclosure and other processing of personal information, whether made through our privacy policies, information provided on our website, press statements or otherwise, are alleged to be deceptive, unfair or misrepresentative of our actual practices, we may be subject to potential government or legal investigation or action, including by the FTC or applicable state attorneys general.
If our public statements about our use, collection, disclosure and other processing of personal data, whether made through our privacy policies, information provided on our website, press statements or otherwise, are alleged to be deceptive, unfair or misrepresentative of our actual practices, we may be subject to potential government or legal investigation or action, including by the FTC or applicable state attorneys general.
While these numbers are based on what we believe to be reasonable estimates for the applicable period of measurement at the time of reporting, there are inherent challenges in such measurements. If we fail to maintain effective processes and systems, our key metrics calculations may be inaccurate, and we may not be able to identify those inaccuracies.
While these numbers are based on what we believe to be reasonable estimates for the applicable period of measurement at the time of reporting, there are inherent challenges in such measurements. If we fail to maintain effective processes and systems, our metrics calculations may be inaccurate, and we may not be able to identify those inaccuracies.
It is not uncommon for tax authorities in different countries to have conflicting views, for instance, with respect to, among other things, the manner in which the arm’s length standard is applied for transfer pricing purposes, the transfer pricing and charges for intercompany services and other intercompany transactions, or with respect to the valuation of our intellectual property and the manner in which our intellectual property is utilized within our group.
It is not uncommon for tax authorities in different countries to have conflicting views, for instance, with respect to, among other things, the manner in which the arm’s length standard is applied for transfer pricing purposes, the transfer pricing and charges for intercompany services and other intercompany transactions, or with respect to the valuation of our intellectual property for tax purposes and the manner in which our intellectual property is owned and utilized within our group.
We or our service providers may also suffer security breaches or unauthorized access to personal information, financial account information, and other confidential information due to employee error, rogue employee activity, unauthorized access by third parties acting with malicious intent or who commit an inadvertent mistake or social engineering.
We or our service providers may also suffer security breaches or unauthorized access to personal data, financial account information, and other confidential information due to employee error, rogue employee activity, unauthorized access by third parties acting with malicious intent or who commit an inadvertent mistake or social engineering.
While we have implemented certain procedures to facilitate compliance with applicable laws and regulations in connection with the collection and distribution of this information, we cannot assure you that these procedures have been effective or that we, or third parties who we do not control, have complied with all laws or regulations in this regard.
While we have implemented certain procedures to facilitate compliance with applicable laws and regulations in connection with the collection and distribution of this information, we cannot assure you that these procedures have been fully effective or that we, or third parties who we do not control, have complied with all laws or regulations in this regard.
If we experience, or our service providers experience, any breaches of security measures or sabotage or otherwise suffer unauthorized use or disclosure of, or access to, personal information, financial account information or other confidential information, we might be required to expend significant capital and resources to address these problems.
If we experience, or our service providers experience, any breaches of security measures or sabotage or otherwise suffer unauthorized use or disclosure of, or access to, personal data, financial account information or other confidential information, we might be required to expend significant capital and resources to address these problems.
For example, although we are 38 Table of Contents currently FedRAMP authorized, such authorization is costly to maintain and subject to rigorous compliance and if we lose our authorization, it will restrict our ability to sell to government customers; • government demand and payment for our platform may be impacted by public sector budgetary cycles and funding authorizations, with funding reductions or delays adversely affecting public sector demand for our platform, including as a result of sudden, unforeseen and disruptive events such as government shutdowns, governmental defaults on indebtedness, war, regional geopolitical conflicts around the world, incidents of terrorism, natural disasters, and public health concerns or epidemics; • governments routinely investigate and audit government contractors’ administrative processes, and any unfavorable audit could result in the government refusing to continue buying our platform, which would adversely impact our revenue and operating results, or institute fines or civil or criminal liability if an investigation, audit, or other review, were to uncover improper or illegal activities; • governments may require certain products to be manufactured, produced, hosted or accessed solely in their country or in other relatively high-cost locations, and we may not produce or host all products in locations that meet these requirements, affecting our ability to sell these products to governmental agencies; and • refusal to grant certain certifications or clearance by one government agency, or decision by one government agency that our products do not meet certain standards, may cause reputational harm and cause concern with other government agencies.
For example, although we are currently FedRAMP authorized, such authorization is costly to maintain and subject to rigorous compliance and if we lose our authorization, it will restrict our ability to sell to government customers; • government demand and payment for our platform may be impacted by public sector budgetary cycles and funding authorizations, with funding reductions or delays adversely affecting public sector demand for our platform, including as a result of sudden, unforeseen and disruptive events such as government shutdowns, government defaults on indebtedness, war, regional geopolitical conflicts around the world, incidents of terrorism, natural disasters, and public health concerns or epidemics; • governments routinely investigate and audit government contractors’ administrative processes, and any unfavorable audit could result in the government refusing to continue buying our platform, which would adversely impact our revenue and operating results, or institute fines or civil or criminal liability if an investigation, audit, or other review, were to uncover improper or illegal activities; • governments may require certain products to be manufactured, produced, hosted or accessed solely in their country or in other relatively high-cost locations, and we may not produce or host all products in locations that meet these requirements, affecting our ability to sell these products to government agencies; and • refusal to grant certain certifications or clearance by one government agency, or decision by one government agency that our products do not meet certain standards, may cause reputational harm and cause concern with other government agencies.
If taxing authorities in any of the jurisdictions in which we conduct our international operations were to successfully challenge our transfer pricing, we could be required to reallocate part or all of our income to reflect transfer pricing adjustments, which could result in an increased tax liability to us.
In addition, if taxing authorities in any of the jurisdictions in which we conduct our international operations were to successfully challenge our transfer pricing, we could be required to reallocate part or all of our income to reflect transfer pricing adjustments, which could result in an increased tax liability to us.
Further, the current global macroeconomic environment may make it more difficult to raise additional capital on favorable terms, it at all. Such terms may involve restrictive covenants making it difficult to engage in capital raising activities and pursue business opportunities, including potential acquisitions.
Further, the current global macroeconomic environment may make it more difficult to raise additional capital on favorable terms, if at all. Such terms may involve restrictive covenants making it difficult to engage in capital raising activities and pursue business opportunities, including potential acquisitions.
Risks Related to Ownership of Our Class A Common Stock • The market price of our Class A common stock may be volatile, and you could lose all or part of your investment. • The dual class structure of our common stock has the effect of concentrating voting control with certain stockholders who held our capital stock prior to the completion of our IPO, including our directors, executive officers, and other beneficial owners who hold in the aggregate approximately 72% of the voting power of our capital stock, which will limit or preclude your ability to influence corporate matters, including the election of directors and the approval of any change of control transaction.
Risks Related to Ownership of Our Class A Common Stock • The market price of our Class A common stock may be volatile, and you could lose all or part of your investment. • The dual class structure of our common stock has the effect of concentrating voting control with certain stockholders who held our capital stock prior to the completion of our IPO, including our directors, executive officers, and other beneficial owners who hold in the aggregate approximately 48% of the voting power of our capital stock, which will limit or preclude your ability to influence corporate matters, including the election of directors and the approval of any change of control transaction.
We believe that our tax and financial accounting positions are reasonable and our tax reserves are adequate to cover any potential liability. We also believe that our assumptions, judgements, and estimates are reasonable and that our transfer pricing for these intercompany transactions are on arm’s-length terms.
We believe that our tax and financial accounting positions are reasonable and our tax reserves are adequate to cover any potential liability. We believe that our assumptions, judgements, and estimates are reasonable and that our transfer pricing for these intercompany transactions are on arm’s-length terms.
A successful assertion by a US state or local government, or other country or jurisdiction that we should have been or should be collecting additional sales, use, value added, digital services or other similar taxes could, among other things, result in substantial tax payments, create significant administrative burdens for us, discourage potential customers from subscribing to our platform due to the incremental cost of any such sales or other related taxes, or otherwise harm our business.
A successful assertion by a U.S. state or local government, or other country or jurisdiction that we should have been or should be collecting additional sales, use, value added, digital services or other similar taxes could, among other things, result in substantial tax payments, create significant administrative burdens for us, discourage potential customers from subscribing to our platform due to the incremental cost of any such sales or other related taxes, or otherwise harm our business.
In addition to the foregoing, a breach of the GDPR or UK GDPR could result in regulatory investigations, reputational damage, orders to cease or change our processing of our data, enforcement notices, and/or assessment notices (for a compulsory audit).
In addition to the foregoing, a breach of the GDPR could result in regulatory investigations, reputational damage, orders to cease or change our processing of our data, enforcement notices, and/or assessment notices (for a compulsory audit).
We regularly review our processes for calculating these metrics, and from time to time we make adjustments to improve their accuracy. Moreover, we may periodically change the definition or methodology underlying our key metrics.
We regularly review our processes for calculating these metrics, and from time to time we make adjustments to improve their accuracy. Moreover, we may periodically change the definition or methodology underlying our metrics.
Obtaining the necessary authorizations, including any required license, for a particular transaction may be time-consuming, is not guaranteed and may result in the delay or loss of sales opportunities. 49 Table of Contents Various countries regulate the import of certain encryption technology, including through import permit and license requirements, and have enacted laws that could limit our ability to distribute our platform or could limit our customers’ ability to implement our platform in those countries.
Obtaining the necessary authorizations, including any required license, for a particular transaction may be time-consuming, is not guaranteed and may result in the delay or loss of sales opportunities. 48 Table of Contents Various countries regulate the import of certain encryption technology, including through import permit and license requirements, and have enacted laws that could limit our ability to distribute our platform or could limit our customers’ ability to implement our platform in those countries.
If we are unable to achieve, or are delayed in achieving, compliance with these certifications and standards, we may be disqualified from selling our platform to such customers, or may otherwise be at a competitive disadvantage, either of which could adversely affect our business, operating results, and financial condition. 35 Table of Contents Disruptions or other business interruptions that affect the availability of our platform could adversely impact our customer relationships and overall business.
If we are unable to achieve, or are delayed in achieving, compliance with these certifications and standards, we may be disqualified from selling our platform to such customers, or may otherwise be at a competitive disadvantage, either of which could adversely affect our business, operating results, and financial condition. 34 Table of Contents Disruptions or other business interruptions that affect the availability of our platform could adversely impact our customer relationships and overall business.
However, the relevant tax authorities may disagree with our tax positions, including any assumptions, judgements or estimates used for these transfer pricing matters and intercompany transactions.
However, the relevant tax authorities may disagree with our tax positions, including any assumptions, judgements, valuations or estimates used for these transfer pricing matters and intercompany transactions.
We also offer certain customers a ransomware warranty in addition to their subscriptions, providing coverage in the form of a limited monetary payment if they are affected by a ransomware attack (as specified in our ransomware warranty agreement), and though the terms of the warranty do not allow those customers to use warranty claim payments to fund payments to persons on OFAC’s list of Specially Designated Nationals and Blocked Persons or who are otherwise prohibited to receive such payments under US sanctions, we cannot assure you that all of our customers will comply with our warranty terms or refrain from taking actions in violation of our warranty and applicable law.
We also offer certain customers a ransomware warranty in addition to their subscriptions, providing coverage in the form of a limited monetary payment if they are affected by a ransomware attack (as specified in our ransomware warranty agreement), and though the terms of the warranty do not allow those customers to use warranty claim payments to fund payments to persons on OFAC’s list of Specially Designated Nationals and Blocked Persons or who are otherwise prohibited to receive such payments under U.S. sanctions, we cannot assure you that all of our customers will comply with our warranty terms or refrain from taking actions in violation of our warranty and applicable law.
For additional information regarding these litigation matters, see the section titled “Legal Proceedings.” Regardless of the outcome, legal proceedings can have an adverse impact on us because of legal costs and diversion of management attention and resources, and could cause us to incur significant expenses or liability, adversely affect our brand recognition or require us to change our business practices.
For additional information regarding these litigation matters, see the section titled “Legal Proceedings.” Regardless of the outcome, legal proceedings can have an adverse impact on us because of legal costs and diversion of management’s attention and resources, and could cause us to incur significant expenses or liability, adversely affect our brand recognition or require us to change our business practices.
Any failure or perceived failure by us to comply with our privacy policies, or applicable data privacy and security laws, rules, regulations, standards, certifications or contractual obligations, or any compromise of security that results in unauthorized access to, or unauthorized loss, destruction, use, modification, acquisition, disclosure, release or transfer of personal information, may result in requirements to modify or cease certain operations or practices, the expenditure of substantial costs, time and other resources, proceedings or actions against us, legal liability, governmental investigations, enforcement actions, claims, fines, judgments, awards, penalties, sanctions, and costly litigation (including class actions).
Any failure or perceived failure by us to comply with our privacy policies, or applicable data privacy and security laws, rules, regulations, standards, certifications or contractual obligations, or any compromise of security that results in unauthorized access to, or unauthorized loss, destruction, use, modification, acquisition, disclosure, release or transfer of personal data, may result in requirements to modify or cease certain operations or practices, the expenditure of substantial costs, time and other resources, proceedings or actions against us, legal liability, government investigations, enforcement actions, claims, fines, judgments, awards, penalties, sanctions, and costly litigation (including class actions).
Because AI is an emerging technology, there is not a mature body of case law construing the appropriateness of certain of its uses of data - whether through the employment of large language models or other models leveraging data found on the Internet - and the evolution of this law may limit our ability to exploit artificial intelligence tools, or expose us to litigation.
Because AI is an emerging technology, there is not a mature body of case law construing the appropriateness of certain of its uses of data whether through the employment of large language models or other models leveraging data found on the Internet and the evolution of this law may limit our ability to exploit AI tools, or expose us to litigation.
Any failure or perceived failure by us, even if unfounded, to comply with applicable privacy and data security laws and regulations, our privacy policies, or our privacy-related obligations to customers, users or other third parties, or any compromise of security that results in the unauthorized release or transfer of personal information or other customer data, may result in governmental enforcement actions, fines, penalties, litigation, or public statements against us by consumer advocacy groups or others and could cause our users to lose trust in us, which would have an adverse effect on our reputation and business.
Any failure or perceived failure by us, even if unfounded, to comply with applicable privacy and data security laws and regulations, our privacy policies, or our privacy-related obligations to customers, users or other third parties, or any compromise of security that results in the unauthorized release or transfer of personal data or other customer data, may result in government enforcement actions, fines, penalties, litigation, or public statements against us by consumer advocacy groups or others and could cause our users to lose trust in us, which would have an adverse effect on our reputation and business.
Our revenue growth is expected to slow as we grow and our revenue may decline for a number of other reasons, including reduced demand for our platform, increased competition, a decrease in the growth or reduction in size of our overall market, or if we cannot capitalize on growth opportunities, including acquisitions, new products, services, and feature releases.
Our revenue growth is expected to slow as we scale and our revenue may decline for a number of other reasons, including reduced demand for our platform, increased competition, a decrease in the growth or reduction in the size of our overall market, or if we cannot capitalize on growth opportunities, including acquisitions, new products, services, and feature releases.
Further, AI presents emerging ethical issues and if our use of AI algorithms draws controversy due to their perceived or actual impact on society, we may experience brand or reputational harm, competitive harm or legal liability. In addition, given the complex nature of AI technology, we face an evolving regulatory landscape.
Further, AI presents emerging ethical issues and if our use of AI algorithms draws controversy due to their perceived or actual impact on society, we may experience brand or reputational harm, or competitive harm. In addition, given the complex nature of AI technology, we face an evolving regulatory landscape.
Moreover, many of our customers operate in markets characterized by rapidly changing technologies and business plans, which require 36 Table of Contents them to add numerous network-connected endpoints and adapt to increasingly complex IT environments, incorporating a variety of hardware, software applications, operating systems, and networking protocols.
Moreover, many of our customers operate in markets characterized by rapidly changing technologies and business plans, which require 35 Table of Contents them to add numerous network-connected endpoints and adapt to increasingly complex IT environments, incorporating a variety of hardware, software applications, operating systems, and networking protocols.
Noncompliance with these laws could subject us to investigations, severe criminal or civil sanctions, settlements, prosecution, loss of export privileges, suspension or debarment from US government contracts, other enforcement actions, disgorgement of profits, significant fines, damages, other civil and criminal penalties or injunctions, whistleblower complaints, adverse media coverage and other consequences.
Noncompliance with these laws could subject us to investigations, severe criminal or civil sanctions, settlements, prosecution, loss of export privileges, suspension or debarment from U.S. government contracts, other enforcement actions, disgorgement of profits, significant fines, damages, other civil and criminal penalties or injunctions, whistleblower complaints, adverse media coverage and other consequences.
Our long-term success depends, in part, on our ability to expand the sale of our platform to customers located outside of the US and our current, and any further, expansion of our international operations exposes us to risks that could have a material adverse effect on our business, operating results, and financial condition.
Our long-term success depends, in part, on our ability to expand the sale of our platform to customers located outside of the U.S. and our current, and any further, expansion of our international operations exposes us to risks that could have a material adverse effect on our business, operating results, and financial condition.
Our business is subject to the risks of warranty claims, product returns and product defects from real or perceived defects in our solutions or their misuse by our customers or third parties and indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement and other losses.
Our business is subject to the risks of liability, indemnity and warranty claims, from real or perceived defects in our solutions or their misuse by our customers or third parties and indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement and other losses.
Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy aspects of our platform or obtain and use information that we regard as proprietary. We generally enter into confidentiality or license agreements with our employees, consultants, vendors, and customers, and generally limit access to and distribution of our proprietary information.
Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy aspects of our platform or obtain and use information that we regard as proprietary. We generally enter into confidentiality or license agreements with our employees, consultants, vendors, channel partners, and customers, and generally limit access to and distribution of our proprietary information.
In addition, we cannot assure you that any limitation of liability provisions in our customer agreements, contracts with third-party vendors and service providers, or other contracts would be enforceable or adequate or would otherwise protect us from any liabilities or damages with respect to any particular claim relating to a security breach or other security-related matter or as a result of federal, state, or local laws or ordinances, or unfavorable judicial decisions in the US, or other countries.
In addition, we cannot assure that any limitation of liability provisions in our customer agreements, contracts with third-party vendors and service providers, or other contracts would be enforceable or adequate or would otherwise protect us from any liabilities or damages with respect to any particular claim relating to a security breach or other security-related matter or as a result of federal, state, or local laws or ordinances, or unfavorable judicial decisions in the U.S., or other countries.
Sales to governmental organizations are subject to a number of challenges and risks that may adversely affect our business and operating results, including the following risks: • selling to governmental agencies can be highly competitive, expensive, and time consuming, often requiring significant upfront time and expense without any assurance that such efforts will generate a sale; • government certification, software supply chain or source code transparency requirements applicable to us or our platform may change and, in doing so, restrict our ability to sell into the governmental sector until we have attained the revised certification or meet other new requirements.
Sales to government organizations are subject to a number of challenges and risks that may adversely affect our business and operating results, including the following risks: • selling to government agencies can be highly competitive, expensive, and time consuming, often requiring significant upfront time and expense without any assurance that such efforts will generate a sale; 37 Table of Contents • government certification, software supply chain or source code transparency requirements applicable to us or our platform may change and, in doing so, restrict our ability to sell into the government sector until we have attained the revised certification or meet other new requirements.
Some countries (including some outside the EEA) also are considering or have passed legislation requiring local storage and processing of data, or similar requirements, which could increase the cost and complexity of delivering our products and services if we were to operate in those countries.
Further, some countries (including some outside the EEA) also considering or have passed legislation requiring local storage and processing of data, or similar requirements, which could increase the cost and complexity of delivering our products and services if we were to operate in those countries.
A successful assertion by one or more US states requiring us to collect taxes where we presently do not do so, or to collect more taxes in a jurisdiction in which we currently do collect some taxes, could result in substantial liabilities, including taxes on past sales, as well as interest and penalties.
A successful assertion by one or more U.S. states requiring us to collect taxes where we presently do not do so, or to collect more taxes in a jurisdiction in which we currently do collect some taxes, could result in substantial liabilities, including taxes on past sales, as well as interest and penalties.
In addition, we may incur significant financial and operational costs to investigate, remediate, eliminate and put in place additional tools and devices designed to prevent actual or perceived security breaches and other security incidents, as well as costs to comply with any notification obligations resulting from any security incidents.
We may also incur significant financial and operational costs to investigate, remediate, eliminate and put in place additional tools and devices designed to prevent actual or perceived security breaches and other security incidents, as well as costs to comply with any notification obligations resulting from any security incidents.
If any of these tax authorities determine that our transfer pricing for these intercompany transactions do not meet arm’s-length criteria, and were successful in challenging our positions, we could be required to pay additional taxes, interest and penalties related thereto, which could be in excess of any reserves established therefore, and which could result in higher effective tax rates, reduced cash flows, and lower overall profitability of our operations.
If any of these tax authorities determine that our transfer pricing for these intercompany transactions do not meet arm’s-length criteria, and were successful in challenging our positions, we could be required to pay additional taxes, interest, indexation charges and/or penalties related thereto, which could be in excess of any reserves established therefore, and which could result in higher effective tax rates, reduced cash flows and lower overall profitability of our operations.
Risks Related to Legal and Regulatory Matters We are subject to laws and regulations, including governmental export and import controls, sanctions and anti-corruption laws, that could impair our ability to compete in our markets and subject us to liability if we are not in full compliance with applicable laws.
Risks Related to Legal and Regulatory Matters We are subject to laws and regulations, including government export and import controls, sanctions and anti-corruption laws, that could impair our ability to compete in our markets and subject us to liability if we are not in full compliance with applicable laws.
As a result, management’s attention may be diverted from other business concerns, which could harm our business, operating results, and financial condition. We could be subject to additional tax liabilities and US federal and global income tax reform could adversely affect us.
As a result, management’s attention may be diverted from other business concerns, which could harm our business, operating results, and financial condition. We could be subject to additional tax liabilities and United States federal and global income tax reform could adversely affect us.
In recent years, the increased availability of hybrid or remote working arrangements has expanded the pool of companies that can compete for our employees and employment candidates. 44 Table of Contents Although we have entered into employment agreements with our key employees, these agreements are on an “at-will” basis, meaning they are able to terminate their employment with us at any time.
In recent years, the increased availability of hybrid or remote working arrangements has expanded the pool of companies that can compete for our employees and employment candidates. Although we have entered into employment agreements with our key employees, these agreements are on an “at-will” basis, meaning they are able to terminate their employment with us at any time.
Regulation of cookies and similar technologies, and any decline of cookies or similar online tracking technologies as a means to identify and potentially target users, may lead to broader restrictions and impairments on our marketing and personalization activities and may negatively impact our efforts to understand users.
Regulation of cookies and similar technologies, and any decline of cookies or similar online tracking technologies as a means to identify and potentially target users, may lead to broader restrictions and impairments on our marketing and personalization activities and may negatively impact our efforts to understand and acquire new users.
As a result, if we earn net taxable income, our ability to use our pre-change US net operating loss carryforwards to offset US federal taxable income may be subject to limitations, which could potentially result in increased future tax liability to us.
As a result, if we earn net taxable income, our ability to use our pre-change U.S. net operating loss carryforwards to offset U.S. federal taxable income may be subject to limitations, which could potentially result in increased future tax liability to us.
We also expect our operating expenses to increase in the future as we continue to invest for our future growth, including expanding our research and development function to drive further development of our platform, expanding our sales and marketing activities, developing the functionality to expand into adjacent markets, and reaching customers in new geographic locations, which will negatively affect our operating results if our total revenue does not increase.
We also expect our operating expenses to increase in the future as we continue to invest in our future growth, including expanding our research and development function to drive further development of our platform, expanding our sales and marketing activities, developing the functionality to expand into adjacent markets, and reaching customers in new geographic locations, which could negatively affect our operating results if our total revenue does not increase.
Our customer retention and expansion may decline or fluctuate as a result of a number of factors, including our customers’ satisfaction with our services, our pricing, customer security and networking issues and requirements, our customers’ spending levels, decreases in the number of endpoints to which our customers deploy our solution, mergers and acquisitions involving our customers, industry developments, competition, general economic conditions, or the perceived decline in the incidence of cyberattacks.
Our customer retention and expansion may decline or fluctuate as a result of a number of factors, including our customers’ satisfaction with our services, our pricing, customer security and networking issues and requirements, our customers’ spending levels, our channel partner strategy and pricing, decreases in the number of endpoints to which our customers deploy our solution, mergers and acquisitions involving our customers, industry developments, competition, general economic conditions, or the perceived decline in the incidence of cyberattacks.
If we are unable to protect our proprietary rights (including aspects of our software and platform protected other than by patent rights), we will find ourselves at a competitive disadvantage to others who need not incur the additional expense, time and effort required to create our platform and other innovative products that have enabled us to be successful to date.
If we are unable to protect our proprietary rights (including aspects of our software and platform protected other than by patent rights), we will find ourselves at a competitive disadvantage to others who need not incur the additional expense, time and effort required to create our platform and 45 Table of Contents other innovative products that have enabled us to be successful to date.
The amount of taxes we pay in different jurisdictions will depend on the application of the tax laws of the various jurisdictions, including the US, to our intercompany transactions, international business activities, changes in tax rates, new or revised tax laws or interpretations of existing tax laws and policies by taxing authorities and courts in various jurisdictions, and our ability to operate our business in a manner consistent with our corporate structure and intercompany arrangements.
The amount of taxes we pay in different jurisdictions will depend on the application of the tax laws of the various jurisdictions, including the U.S., to our intercompany transactions, international business activities, changes in tax rates, new or revised tax laws or interpretations of existing tax laws and policies by taxing authorities and courts in various jurisdictions, and our ability to operate our business in a manner consistent with our corporate structure and intercompany arrangements.
In addition, under Sections 382 and 383 of the Internal Revenue Code, if a corporation undergoes an “ownership change,” generally defined as a greater than 50% change (by value) in ownership by “5 percent 57 Table of Contents shareholders” over a rolling three-year period, the corporation’s ability to use its pre-change net operating loss carryovers and other pre-change tax attributes, such as research and development credits, to offset its post-change income or taxes may be limited.
In addition, under Sections 382 and 383 of the Internal Revenue Code, if a corporation undergoes an “ownership change,” generally defined as a greater than 50% change (by value) in ownership by “5% shareholders” over a rolling three-year period, the corporation’s ability to use its pre-change net operating loss carryovers and other pre-change tax attributes, such as research and development credits, to offset its post-change income or taxes may be limited.
Certain jurisdictions in which we do not collect such taxes may seek to impose incremental or new sales, use, value added, digital services, or assert other tax collection obligations on us that such taxes are applicable, which could result in tax assessments, penalties and interest, to us or our customers for the past amounts, and we may be required to collect such taxes in the future.
Certain jurisdictions in which we do not collect such taxes may seek to impose incremental or new sales, use, value added, digital services, or assert other tax collection obligations on us that such taxes are applicable, which could result in tax assessments, penalties and interest, to us or our customers for the past amounts.
A wide variety of state, national, and international laws, as well as regulations and industry standards apply to the collection, use, retention, protection, disclosure, transfer and other processing of personal information and other information, the scope of which are changing, subject to differing interpretations, and may be inconsistent across countries or conflict with other rules.
A wide variety of state, national, and international laws, as well as regulations and industry standards apply to the collection, use, retention, protection, disclosure, transfer and other processing of personal data and other confidential or sensitive information, the scope of which are changing, subject to differing interpretations, and may be inconsistent across countries or conflict with other rules.
In addition, pursuant to our amended and restated investors’ rights agreement, dated October 28, 2020, certain stockholders have the right, subject to certain conditions, to require us to file a registration statement for the public resale of such capital stock or to include such shares in registration statements that we may file for us or other 61 Table of Contents stockholders.
In addition, pursuant to our amended and restated investors’ rights agreement, dated October 28, 2020, certain stockholders have the right, subject to certain conditions, to require us to file a registration statement for the public resale of such capital stock or to include such shares in registration statements that we may file for us or other stockholders.
Additionally, we typically provide indemnification to customers, partners or other third parties we do business with for certain losses suffered or expenses incurred as a result of third-party claims arising from our infringement of a third party’s intellectual property. We also provide unlimited liability for certain breaches of confidentiality, as defined in our master subscription agreement.
Additionally, we typically provide indemnification to customers and partners we do business with for certain losses suffered or expenses incurred as a result of third-party claims arising from our infringement of a third party’s intellectual property. We also provide unlimited liability for certain breaches of confidentiality, as defined in our master subscription agreement.
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes.
Negative publicity about us, including about our management, the efficacy and reliability of our platform, our products offerings, our professional services, and the customers we work with, even if inaccurate, could adversely affect our reputation and brand. 37 Table of Contents If we are unable to maintain successful relationships with our channel partners and alliance partners, or if our channel partners or alliance partners fail to perform, our ability to market, sell and distribute our platform will be limited, and our business, operating results, and financial condition will be harmed.
Negative publicity about us, including about our management, the efficacy and reliability of our platform, our product offerings, our professional services, and the customers we work with, even if inaccurate, could adversely affect our reputation and brand. 36 Table of Contents If we are unable to maintain successful relationships with our channel partners and alliance partners, or if our channel partners or alliance partners fail to perform, our ability to market, sell and distribute our platform will be limited, and our business, operating results, and financial condition will be harmed.
The terms of many open source licenses have not been interpreted by US courts, and there is a risk that these licenses could be construed in ways that could impose unanticipated conditions or restrictions on our ability to commercialize products and subscriptions incorporating such software.
The terms of many open source licenses have not been interpreted by U.S. courts, and there is a risk that these licenses could be construed in ways that could impose unanticipated conditions or restrictions on our ability to commercialize products and subscriptions incorporating such software.
Although we anticipate that they may increase in the future, sales to governmental organizations have not accounted for, and may never account for, a significant portion of our revenue.
Although we anticipate that they may increase in the future, sales to government organizations have not accounted for, and may never account for, a significant portion of our revenue.
If any of the analysts who cover us issues an inaccurate or unfavorable opinion regarding our stock price, our stock price would likely decline. If our financial results fail to meet, or significantly exceed, our announced guidance or the expectations of analysts or public investors, analysts could downgrade our Class A common stock or publish unfavorable research about us.
If any of the analysts who cover us issues an inaccurate or unfavorable opinion regarding our stock price, our stock price could potentially decline. If our financial results fail to meet, or significantly exceed, our announced guidance or the expectations of analysts or public investors, analysts could downgrade our Class A common stock or publish unfavorable research about us.
As a result of the continued rapid innovations in the technology industry, including the rapid growth of smartphones, tablets and other devices, enterprise employees using personal devices for work, the rapidly evolving Internet of Things and AI, we expect the networks of our customers to continue to change rapidly and become more complex.
As a result of the continued rapid innovations in the technology industry, including the rapid growth of smartphones, tablets and other devices, enterprise employees using personal devices for work, the rapidly evolving IoT and AI, we expect the networks of our customers to continue to change rapidly and become more complex.
We would also be exposed to a risk of loss or litigation and potential liability under laws, regulations, and contracts that protect the privacy and security of personal information.
We would also be exposed to a risk of loss or litigation and potential liability under laws, regulations, and contracts that protect the privacy and security of personal data.
The loss of key personnel, including key members of our management team or members of our board of directors, as well as certain of our key marketing, sales, finance, support, product development, people team, or technology personnel, could disrupt our operations and have an adverse effect on our ability to grow our business.
The loss of key personnel, 42 Table of Contents including key members of our management team or members of our board of directors, as well as certain of our key marketing, sales, finance, support, product development, people team, or technology personnel, could disrupt our operations and have an adverse effect on our ability to grow our business.
From time to time, we may face claims from third parties asserting ownership of, or demanding release of, the open source software or derivative works that we developed using such software (which could include our proprietary source 48 Table of Contents code), or otherwise seeking to enforce the terms of the applicable open source license.
From time to time, we may face claims from third parties asserting ownership of, or demanding release of, the open source software or derivative works that we developed using such software (which could include our proprietary source code), or otherwise seeking to enforce the terms of the applicable open source license.
For example, in 2017, we reached a consent agreement with the FTC, to resolve an investigation relating to certain disclosures in our privacy policy. The consent agreement requires us, among other things, to provide information to the FTC about our compliance with the FTC order and about representations made in our marketing materials.
For example, in 2017, we reached a consent agreement with the Federal Trade Commission (FTC), to resolve an investigation relating to certain disclosures in our privacy policy. The consent agreement requires us, among other things, to provide information to the FTC about our compliance with the FTC order and about representations made in our marketing materials.
These factors would also 56 Table of Contents make it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit committee and compensation committee, and qualified executive officers. Being a public company requires significant resources and management oversight.
These factors would also make it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit committee and compensation committee, and qualified executive officers. Being a public company requires significant resources and management oversight.
Any exclusion from certain stock indices could result in less demand for our Class A common stock. Any actions or publications by stockholder advisory firms or institutional investors critical of our 62 Table of Contents corporate governance practices or capital structure could also adversely affect the value of our Class A common stock.
Any exclusion from certain stock indices could result in less demand for our Class A common stock. Any actions or publications by stockholder advisory firms or institutional investors critical of our corporate governance practices or capital structure could also adversely affect the value of our Class A common stock.
For example, as a result of current uncertainty in macroeconomic conditions and related higher cost consciousness around IT budgets, we have recently experienced certain impacts on our business, including a decline in usage and consumption patterns from certain customers, especially larger enterprise customers, longer sales cycles, and deal downsizing by new customers and of renewals by existing 28 Table of Contents customers, especially larger enterprises.
For example, as a result of current uncertainty in macroeconomic conditions and related higher cost consciousness around IT budgets, we have experienced certain impacts on our business, including a decline in usage and consumption patterns from certain customers, especially larger enterprise customers, longer sales cycles, and deal downsizing by new customers and of renewals by existing customers, especially larger enterprises.
Loss, retention or misuse of certain information and alleged violations of laws and regulations relating to privacy and data security, and any relevant claims, may expose 52 Table of Contents us to potential liability and may require us to expend significant resources on data security and in responding to and defending such allegations and claims.
Loss, retention or misuse of certain information and alleged violations of laws and regulations relating to privacy and data security, and any relevant claims, may expose us to potential liability and may require us to expend significant resources on data security and in responding to and defending such allegations and claims.
Because litigation is inherently unpredictable, we cannot assure you that the results of any of these actions will not have a material adverse effect on our business, operating results, 55 Table of Contents financial condition, and prospects. Any of these consequences could adversely affect our business, operating results, and financial condition.
Because litigation is inherently unpredictable, we cannot assure you that the results of any of these actions will not have a material adverse effect on our business, operating results, financial condition, and prospects. Any of these consequences could adversely affect our business, operating results, and financial condition.
Furthermore, certain jurisdictions, such as the UK, France and Canada, have enacted a digital services tax, which is generally a tax on gross revenue generated from users or customers located in in those jurisdictions, and other jurisdictions are considering enacting similar laws.
Furthermore, certain jurisdictions, such as the U.K., France and Canada, have enacted a digital services tax, which is generally a tax on gross revenue generated from users or customers located in in those jurisdictions, and other jurisdictions are considering enacting similar laws.
We are also subject to the United States Foreign Corrupt Practices Act of 1977 (FCPA), as amended, the United Kingdom Bribery Act 2010 (the Bribery Act), and other anti-corruption, sanctions, anti-bribery, anti-money laundering and similar laws in the US and other countries in which we conduct activities.
We are also subject to the United States Foreign Corrupt Practices Act of 1977 (FCPA), as amended, the United Kingdom Bribery Act 2010 (the Bribery Act), and other anti-corruption, sanctions, anti-bribery, anti-money laundering and similar laws in the U.S. and other countries in which we conduct activities.
Our restated certificate of incorporation provides that the federal district courts of the US will, to the fullest extent permitted by law, be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act (Federal Forum Provision).
Our restated certificate of incorporation provides that the federal district courts of the U.S. will, to the fullest extent permitted by law, be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act (Federal Forum Provision).
The dual class structure of our common stock has the effect of concentrating voting control with the holders of our Class B common stock who held, in the aggregate, approximately 72% of the voting power of our capital stock as of January 31, 2024, which will limit or preclude your ability to influence corporate matters, including the election of directors and the approval of any change of control transaction.
The dual class structure of our common stock has the effect of concentrating voting control with the holders of our Class B common stock who held, in the aggregate, approximately 48% of the voting power of our capital stock as of January 31, 2025, which will limit or preclude your ability to influence corporate matters, including the election of directors and the approval of any change of control transaction.

… 277 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+3 added−0 removed10 unchanged
Biggest changeAlthough we have continued to invest in our diligence, onboarding, and monitoring capabilities over our critical third parties, including our third-party vendors and service providers, our control over the security posture of our critical third parties is limited, and there can be no assurance that we can prevent or mitigate the risk of any compromise or failure in the information assets owned or controlled by such third parties. 66 Table of Contents A cross-functional incident response team, comprised of representatives from information security, information technology, privacy and legal, is responsible for the monitoring and disposition of potential occurrences such as data breaches, intrusions, and other security incidents and implementing our detailed incident response plan.
Biggest changeAlthough we have continued to invest in our diligence, onboarding, and monitoring capabilities over our critical third parties, including our third-party vendors and service providers, our control over the security posture of our critical third parties is limited, and there can be no assurance that we can prevent or mitigate the risk of any compromise or failure in the information assets owned or controlled by such third parties.
In fiscal 2024, and through the filing of this Annual Report on Form 10-K, cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected our business strategy, operating results, and/or financial condition.
In fiscal 2025, and through the filing of this Annual Report on Form 10-K, cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected our business strategy, operating results, and/or financial condition.
Our cybersecurity program provides a foundation for identifying, monitoring, evaluating, and responding to cybersecurity threats and incidents, including those associated with our use of software, applications, services, and cloud infrastructure developed or provided by third-party vendors and service providers.
Our cybersecurity program provides a foundation for identifying, monitoring, evaluating, and responding to cybersecurity threats and incidents, including those associated with our use of 63 Table of Contents software, applications, services, and cloud infrastructure developed or provided by third-party vendors and service providers.
Our cybersecurity programs are under the direction of our Chief Information Officer, who is a member of our executive management team and closely coordinates as needed with other senior management personnel including the Deputy Chief Information Security Officer, the Chief Product and Technology Officer and the Chief Legal Officer, who collectively possess significant experience in evaluating, managing and mitigating security and other risks, including cybersecurity risks.
Our cybersecurity programs are under the direction of our CISO, who is a member of our executive management team and closely coordinates as needed with other senior management personnel including the President of Product, Technology, and Operations and the Chief Legal Officer, who collectively possess significant experience in evaluating, managing and mitigating security and other risks, including cybersecurity risks.
We review and update our cybersecurity policies, standards and procedures as needed, to account for changes in the threat and operational landscapes, as well as in response to legal and regulatory developments. Further, we require mandatory training for all employees and contractors on our cybersecurity and privacy policies.
We review and update our cybersecurity policies, standards and procedures as needed, to account for changes in the threat and operational landscapes, as well as in response to legal and regulatory developments.
Management regularly reports to the Audit Committee regarding its process and procedures to mitigate or remediate cybersecurity risks, threats and incidents, along with monitoring activities of the cybersecurity team.
Management regularly reports to the Audit Committee regarding its process and procedures to mitigate or remediate cybersecurity risks, threats and incidents, along with monitoring activities of the cybersecurity team. Our Audit Committee provides oversight of our cybersecurity program and receives quarterly cybersecurity updates from our Chief Information Security Officer (CISO) through written reports and presentations.
Management is responsible for day-to-day risk management activities, including identifying and assessing cybersecurity risks, establishing processes to ensure that potential cybersecurity risk exposures are monitored, implementing appropriate mitigation or remediation measures, and maintaining cybersecurity programs.
The CISO’s leadership team consists of seasoned information security professionals with experience at globally recognized organizations, ensuring a robust and comprehensive approach to cybersecurity oversight. 64 Table of Contents Management is responsible for day-to-day risk management activities, including identifying and assessing cybersecurity risks, establishing processes to ensure that potential cybersecurity risk exposures are monitored, implementing appropriate mitigation or remediation measures, and maintaining cybersecurity programs.
Added
Our team has established a continuous improvement process through which we regularly update our risk register against the evolving capabilities of adversaries and incorporate findings from internal and external testing. Further, we require mandatory training for all employees and contractors on our cybersecurity and privacy policies.
Added
A cross-functional incident response team, comprised of representatives from information security, information technology, privacy and legal, is responsible for the monitoring and disposition of potential occurrences such as data breaches, intrusions, and other security incidents and implementing our detailed incident response plan.
Added
Our CISO has over 20 years of experience in cybersecurity, and has held senior leadership positions at publicly traded companies in the technology industry, bringing extensive expertise in managing cybersecurity risks.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed1 unchanged
Biggest changeWe lease additional offices in the US and around the world, including the Czech Republic, France, India, Israel, Netherlands, United Arab Emirates, and other countries. We believe that our current facilities are adequate to meet our current needs.
Biggest changeWe lease additional offices in the U.S. and around the world, including the Czech Republic, France, India, Israel, Netherlands, United Arab Emirates, and other countries. We believe that our current facilities are adequate to meet our current needs.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeFor more information regarding legal proceedings and other claims in which we are involved, see Note 15, Commitments and Contingencies , to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K, and is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 67 Table of Contents PART II.
Biggest changeFor more information regarding legal proceedings and other claims in which we are involved, see Note 15, Commitments and Contingencies, to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K, and is incorporated herein by reference.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+1 added−2 removed4 unchanged
Biggest changeStock Performance Graph This performance graph shall not be deemed “soliciting material” or be “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability under that Section, and shall not be deemed to be incorporated by reference into any filing of SentinelOne, Inc. under the Securities Act or Exchange Act generally. 68 Table of Contents We have presented below the cumulative total return to our holders of our Class A common stock between June 30, 2021 (the date our Class A common stock commenced trading on the NYSE) through January 31, 2024 in comparison to the Standard & Poor’s 500 Index and Standard & Poor Information Technology Index.
Biggest changeStock Performance Graph This performance graph shall not be deemed “soliciting material” or be “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability under that Section, and shall not be deemed to be incorporated by reference into any filing of SentinelOne, Inc. under the Securities Act or Exchange Act generally.
All values assume a $100 initial investment and data for the Standard & Poor’s 500 Index and Standard & Poor Information Technology Index assume reinvestment of dividends. Such returns are based on historical data and are not indicative of, nor intended to forecast, the future performance of our Class A common stock. ITEM 6. [RESERVED]
All values assume a $100 initial investment and data for the Standard & Poor’s 500 Index and Standard & Poor Information Technology Index assume reinvestment of dividends. Such returns are based on historical data and are not indicative of, nor intended to forecast, the future performance of our Class A common stock. 66 Table of Contents ITEM 6. [RESERVED]
Securities Authorized for Issuance Under Equity Compensation Plans The information required by this item will be included in our Proxy Statement for the 2024 Annual Meeting to be filed with the SEC within 120 days of the fiscal year ended January 31, 2024, and is incorporated herein by reference.
Securities Authorized for Issuance Under Equity Compensation Plans The information required by this item will be included in our Proxy Statement for the 2025 Annual Meeting to be filed with the SEC within 120 days of the fiscal year ended January 31, 2025, and is incorporated herein by reference. Unregistered Sales of Equity Securities None.
Our Class B common stock is not listed or traded on any stock exchange. Holders of Record As of March 22, 2024, we had 116 holders of record of our Class A common stock and 52 holders of record of our Class B common stock.
Our Class B common stock is not listed or traded on any stock exchange. Holders of Record As of March 21, 2025, we had 120 holders of record of our Class A common stock and 45 holders of record of our Class B common stock.
We believe this transaction was exempt from registration under the Securities Act in reliance on the exemptions provided by Rule 501(a) of Regulation D under the Securities Act and Rule 902(k) of Regulation S under the Securities Act. Issuer Purchases of Equity Securities None. Use of Proceeds from Initial Public Offering of Common Stock and Concurrent Private Placement None.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers None. Use of Proceeds from Initial Public Offering of Common Stock and Concurrent Private Placement None.
Removed
Unregistered Sales of Equity Securities On February 1, 2024, we completed the acquisition of PingSafe.
Added
We have presented below the cumulative total return to our holders of our Class A common stock between June 30, 2021 (the date our Class A common stock commenced trading on the NYSE) through January 31, 2025 in comparison to the Standard & Poor’s 500 Index and Standard & Poor Information Technology Index.
Removed
Under the terms of the Purchase Agreement, we acquired 100% of the outstanding shares of PingSafe for total consideration of approximately $57.5 million in cash and 2,354,607 shares of our Class A common stock, subject to customary adjustments set forth in the Purchase Agreement, to the former shareholders of PingSafe.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

76 edited+8 added−22 removed40 unchanged
Biggest changeIn connection with our global consolidated losses, we maintain a full valuation allowance against our US and Israel deferred tax assets because we have concluded that it is more likely than not that the deferred tax assets will not be realized. 76 Table of Contents Results of Operations The following table sets forth our results of operations for the periods presented: Year Ended January 31, 2024 2023 2022 (in thousands) Revenue $ 621,154 $ 422,179 $ 204,799 Cost of revenue (1) 179,281 144,177 81,677 Gross profit 441,873 278,002 123,122 Operating expenses: Research and development (1) 218,176 207,008 136,274 Sales and marketing (1) 397,160 310,848 160,576 General and administrative (1) 198,247 162,722 93,504 Restructuring (1) 6,706 — — Total operating expenses 820,289 680,578 390,354 Loss from operations (378,416) (402,576) (267,232) Interest income 45,880 21,408 202 Interest expense (1,216) (1,830) (787) Other income (expense), net 918 (1,293) (2,280) Loss before income taxes (332,834) (384,291) (270,097) Provision for (benefit from) income taxes 5,859 (5,613) 1,004 Net loss $ (338,693) $ (378,678) $ (271,101) __________________ (1) Includes stock-based compensation expense as follows: Year Ended January 31, 2024 2023 2022 (in thousands) Cost of revenue $ 17,187 $ 10,093 $ 3,618 Research and development 61,055 51,771 35,358 Sales and marketing 55,798 40,115 15,460 General and administrative 83,890 62,487 33,453 Restructuring (1,060) — — Total stock-based compensation expense $ 216,870 $ 164,466 $ 87,889 77 Table of Contents The following table sets forth the components of our consolidated statements of operations as a percentage of revenue for each of the periods presented: Year Ended January 31, 2024 2023 2022 (as a percentage of total revenue) Revenue 100% 100% 100% Cost of revenue 29 34 40 Gross profit 71 66 60 Operating expenses: Research and development 35 49 67 Sales and marketing 64 74 78 General and administrative 32 39 46 Restructuring 1 — — Total operating expenses 132 161 191 Loss from operations (61) (95) (130) Interest income 7 5 — Interest expense — — — Other income (expense), net — — (1) Loss before income taxes (54) (91) (132) Provision (benefit) for income taxes 1 (1) — Net loss (55) % (90) % (132) % Note: Certain figures may not sum due to rounding.
Biggest changeIf we agree to an APA, we may, as part of that agreement, be required to make significant payments to the Israeli government. 73 Table of Contents Results of Operations The following table sets forth our results of operations for the periods presented: Year Ended January 31, 2025 2024 2023 (in thousands) Revenue $ 821,461 $ 621,154 $ 422,179 Cost of revenue (1) 211,106 179,281 144,177 Gross profit 610,355 441,873 278,002 Operating expenses: Research and development (1) 267,002 218,176 207,008 Sales and marketing (1) 487,225 397,160 310,848 General and administrative (1) 185,487 198,247 162,722 Restructuring (1) — 6,706 — Total operating expenses 939,714 820,289 680,578 Loss from operations (329,359) (378,416) (402,576) Interest income 50,100 45,880 21,408 Interest expense (171) (1,216) (1,830) Other income (expense), net (2,177) 918 (1,293) Loss before income taxes (281,607) (332,834) (384,291) Provision for (benefit from) income taxes 6,834 5,859 (5,613) Net loss $ (288,441) $ (338,693) $ (378,678) __________________ (1) Includes stock-based compensation expense as follows: Year Ended January 31, 2025 2024 2023 (in thousands) Cost of revenue $ 22,105 $ 17,187 $ 10,093 Research and development 83,957 61,055 51,771 Sales and marketing 80,496 55,798 40,115 General and administrative 80,973 83,890 62,487 Restructuring — (1,060) — Total stock-based compensation expense $ 267,531 $ 216,870 $ 164,466 74 Table of Contents The following table sets forth the components of our consolidated statements of operations as a percentage of revenue for each of the periods presented: Year Ended January 31, 2025 2024 2023 (as a percentage of total revenue) Revenue 100% 100% 100% Cost of revenue 26 29 34 Gross profit 74 71 66 Operating expenses: Research and development 33 35 49 Sales and marketing 59 64 74 General and administrative 23 32 39 Restructuring — 1 — Total operating expenses 114 132 161 Loss from operations (40) (61) (95) Interest income 6 7 5 Interest expense — — — Other income (expense), net — — — Loss before income taxes (34) (54) (91) Provision for (benefit from) income taxes 1 1 (1) Net loss (35) % (55) % (90) % Note: Certain figures may not sum due to rounding.
ARR represents the annualized revenue run rate of our subscription and consumption and usage-based agreements 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 an operational metric and is not a non-GAAP metric.
ARR represents the annualized revenue run rate of our subscription, consumption, and usage-based agreements 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 an operational metric and is not a non-GAAP metric.
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. NRR measures the percentage change in our ARR derived from our customer base at a point in time.
Dollar-Based Net Retention Rate 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. NRR measures the percentage change in our ARR derived from our customer base at a point in time.
These amounts were partially offset by a $19.1 million increase in accrued payroll and benefits and a $108.2 million increase in deferred revenue resulting primarily from increased subscription contracts.
These amounts were partially offset by a $108.2 million increase in deferred revenue resulting primarily from increased subscription contracts and a $19.1 million increase in accrued payroll and benefits.
Financing Activities Cash provided by financing activities during fiscal 2024 was $47.5 million, consisting of $28.3 million of proceeds from the exercise of employee stock options and $19.1 million of proceeds from the issuance of common stock under our 2021 Employee Stock Purchase Plan.
Cash provided by financing activities during fiscal 2024 was $47.5 million, consisting of $28.3 million of proceeds from the exercise of employee stock options and $19.1 million of proceeds from the issuance of common stock under our 2021 Employee Stock Purchase Plan.
Operating Expenses Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses. Personnel-related expenses are the most significant component of operating expenses and consist of salaries, benefits, bonuses, stock-based compensation, and sales commissions. Operating expenses also include allocated facilities and IT overhead costs.
Operating Expenses Our operating expenses consist of research and development, sales and marketing, general and administrative and restructuring expenses. Personnel-related expenses are the most significant component of operating expenses and consist of salaries, benefits, bonuses, stock-based compensation, and sales commissions. Operating expenses also include allocated facilities and IT overhead costs.
Cost of revenue also consists of personnel-related costs associated with our customer support and services organization, including salaries, benefits, bonuses, and stock-based compensation, amortization of acquired intangible assets, amortization of capitalized internal-use software, software and subscription services used by our customer support and services team, inventory-related costs, and allocated overhead costs.
Cost of revenue also consists of personnel-related costs associated with our customer support and services organization, including salaries, benefits, bonuses, and stock-based compensation, amortization of acquired intangible assets, amortization of capitalized internal-use software, software and subscription services used by our customer support and services team, inventory-related costs, and allocated facilities and IT overhead costs.
In the long term beyond the next 12 months, our future capital requirements will depend on many factors, including global 80 Table of Contents macroeconomic conditions, our revenue growth rate, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support research and development efforts, the price at which we are able to purchase third-party cloud infrastructure, expenses associated with our international expansion, the introduction of platform enhancements, and the continuing market adoption of our platform.
In the long term beyond the next 12 months, our future capital requirements will depend on many factors, including macroeconomic conditions, our revenue growth rate, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support research and development efforts, the price at which we are able to purchase third-party cloud infrastructure, expenses associated with our international expansion, the introduction of platform enhancements, and the continuing market adoption of our platform.
If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, operating results, and financial condition. We hold our cash, cash equivalents, and investments with a diverse group of banking partners.
If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, operating results, and financial condition. 77 Table of Contents We hold our cash, cash equivalents, and investments with a diverse group of banking partners.
Premium support and maintenance and other Singularity Modules are distinct from subscriptions and are recognized ratably over the term as the performance obligations are satisfied. 74 Table of Contents We invoice our customers upfront upon signing for the entire term of the contract, periodically, or in arrears. Most of our subscription contracts have a term of one to three years.
Premium support and maintenance and other Singularity Modules are distinct from subscriptions and are recognized ratably over the term as the performance obligations are satisfied. We invoice our customers upfront upon signing for the entire term of the contract, periodically, or in arrears. Most of our subscription contracts have a term of one to three years.
As of January 31, 2024 and 2023, our principal source of liquidity was cash, cash equivalents, and investments of $1.1 billion and $1.2 billion, respectively. In the short term, we believe that our existing cash, cash equivalents, and investments will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months.
As of January 31, 2025 and 2024, our principal source of liquidity was cash, cash equivalents, and investments of $1.1 billion and $1.1 billion, respectively. In the short term, we believe that our existing cash, cash equivalents, and investments will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months.
Our go-to-market strategy is focused on acquiring new customers and driving expanded usage of our platform by existing customers. Our sales organization is comprised of our enterprise sales, inside sales and customer solutions engineering teams. It leverages our global network of independent software vendors (ISVs), alliance partners, and channel partners for prospect access.
Our go-to-market strategy is focused on acquiring new customers and driving expanded usage of our platform by existing customers. Our sales organization is comprised of our enterprise sales, inside sales and customer solutions engineering teams. It leverages our global network of ISVs, alliance partners, and channel partners for prospect access.
Depending upon the structure of a particular arrangement, we i) allocate the variable amount to each distinct service period within the series and recognize revenue as each distinct service period is performed (i.e. direct allocation), ii) estimate total variable consideration at contract inception (giving consideration to any constraints that may apply and updating the estimates as new information becomes available) and recognizes the total transaction price over the period to which it relates, or iii) apply the ‘right to invoice’ practical expedient and recognize revenue based on the amount invoiced to the customer during the period.
Depending upon the structure of a particular arrangement, we (i) allocate the variable amount to each distinct service period within the series and recognize revenue as each distinct service period is performed (i.e. direct allocation), (ii) estimate total variable consideration at contract inception (giving consideration to any constraints that may apply and updating the estimates as new information becomes available) and recognize the total transaction price over the period to which it relates, or (iii) apply the ‘‘right to invoice’’ practical expedient and recognize revenue based on the amount invoiced to the customer during the period.
General and Administrative General and administrative expenses consist primarily of salaries, benefits, bonuses, stock-based compensation, and other expenses for our executive, finance, legal, people team, and facilities organizations. General and 75 Table of Contents administrative expenses also include external legal, accounting, other consulting, and professional services fees, software and subscription services, and other corporate expenses.
General and Administrative General and administrative expenses consist primarily of salaries, benefits, bonuses, stock-based compensation, and other expenses for our executive, finance, legal, people team, and facilities organizations. General and administrative expenses also include external legal, accounting, other consulting, and professional services fees, software and subscription services, and other corporate expenses.
A larger portion of our business mix was driven by new customers in 2024, which will open doors for platform adoption over time. We see significant long-term expansion potential based on high customer retention rates, expanding product categories, and early-stage adoption from our installed base.
A larger portion of our business mix was driven by new customers in fiscal 2025, which we believe will open doors for platform adoption over time. We see significant long-term expansion potential based on high customer retention rates, expanding product categories, and early-stage adoption from our installed base.
The nature of our promise to the customer under the subscription is to provide protection for the duration of the contractual term and as such is considered as a series of distinct services. Our arrangements may include fixed consideration, variable consideration, or a combination of the two.
The nature of our promise to the customer under the subscription is to provide protection for the duration of the contractual term and as such is considered as a series of distinct services. Our 71 Table of Contents arrangements may include fixed consideration, variable consideration, or a combination of the two.
Critical Accounting Policies and Estimates Our consolidated financial statements are prepared in accordance with generally accepted accounting principles (GAAP) in the US. The preparation of consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures.
Critical Accounting Policies and Estimates Our consolidated financial statements are prepared in accordance with GAAP. The preparation of consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures.
However, any instability in the US or global banking system or relating to the federal budget may impact liquidity both in the short term and long term and may result in adverse impacts to our or our customers’ business, including in our customers’ ability to pay for our platform.
However, any instability in the U.S. or global banking system or relating to the federal budget may impact liquidity both in the short term and long term and may result in adverse impacts to our or our customers’ business, including in our customers’ ability to pay for our platform.
Worsening economic conditions, including inflation, interest rate volatility, slower growth, potential recession, fluctuations in foreign exchange rates, actual or perceived instability in the global banking industry, potential uncertainty with respect to the federal debt ceiling and budget and potential government shutdowns related thereto, and other changes in economic conditions, and the impact of natural or man-made global events, including wars and other regional geopolitical armed conflict, such as the conflicts in the Middle East, Ukraine and tensions between China and Taiwan, may result in decreased sales productivity and growth and adversely affect our results of operations and financial performance.
Worsening economic conditions, including inflation, interest rate volatility, slower growth, potential recession, changes in tariffs and trade restrictions, fluctuations in foreign exchange rates, actual or perceived instability in the global banking industry, potential uncertainty with respect to the federal debt ceiling and budget, and other changes in economic conditions, and the impact of natural or man-made global events, including wars and other regional geopolitical armed conflict, such as the conflicts in the Middle East and Ukraine, and tensions between China and Taiwan, may result in decreased sales productivity and growth and adversely affect our results of operations and financial performance.
Non-GAAP operating loss is calculated as GAAP operating loss adjusted to exclude amortization of acquired intangible assets, acquisition-related compensation, restructuring charges, stock-based compensation expense, and payroll tax related to stock-based compensation.
Non-GAAP operating loss is calculated as GAAP operating loss adjusted to exclude amortization of acquired intangible assets, acquisition-related compensation, stock-based compensation expense, payroll tax on employee stock transactions, and restructuring charges.
We determine we have a contract with a customer when the contract is approved, the payment terms for the services can be identified, each party’s rights regarding the services to be transferred can be identified, the contract has commercial substance, and we have determined that the customer has the ability and intent to pay.
We determine we have a contract with a customer when the contract is approved, the payment terms for the services can be identified, each party’s rights regarding the services to be transferred can be identified, 79 Table of Contents the contract has commercial substance, and we have determined that the customer has the ability and intent to pay.
We generally price our subscriptions and modules on a per agent basis, and each agent generally corresponds with an endpoint, server, virtual machine, or container. Our subscription contracts typically range from one to three years. We recognize subscription revenue ratably over the term of a contract.
We generate most of our revenue by selling subscriptions to our Singularity Platform. We generally price our subscriptions and modules on a per agent basis, and each agent generally corresponds with an endpoint, server, virtual machine, or container. Our subscription contracts typically range from one to three years. We recognize subscription revenue ratably over the term of a contract.
Revenue We discuss revenue below under “Components of Our Results of Operations.” Year Ended January 31, 2024 2023 2022 (in thousands) Revenue $ 621,154 $ 422,179 $ 204,799 Non-GAAP operating loss In addition to our results determined in accordance with GAAP, we use non-GAAP operating loss 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.
Revenue We discuss revenue below under “Components of Our Results of Operations.” Year Ended January 31, 2025 2024 2023 (in thousands) Revenue $ 821,461 $ 621,154 $ 422,179 69 Table of Contents Non-GAAP operating loss In addition to our results determined in accordance with GAAP, we use non-GAAP operating loss 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.
NRR represents the quotient obtained by dividing Net Retention ARR by Prior Period ARR. As of January 31, 2024 2023 2022 Dollar-based net retention rate 114 % 132 % 129 % Our NRR of 114% was driven by existing customers adoption of additional endpoint licenses and adjacent platform solutions.
NRR represents the quotient obtained by dividing Net Retention ARR by Prior Period ARR. As of January 31, 2025 2024 2023 (in thousands) Dollar-based net retention rate 110 % 114 % 132 % Our NRR of 110% was driven by existing customers adoption of additional endpoint licenses and adjacent platform solutions.
Sales and marketing expenses also include sales commissions paid to our sales force and referral fees paid to independent third parties that are incremental to obtain a subscription contract.
Sales and marketing expenses also include sales commissions paid to our sales force and referral fees paid to independent third 72 Table of Contents parties that are incremental to obtain a subscription contract.
Year Ended January 31, 2024 2023 2022 (in thousands) Non-GAAP operating loss $ (118,225) $ (208,861) $ (174,588) A reconciliation of non-GAAP operating loss to GAAP operating loss, the most directly comparable financial measure calculated and presented in accordance with U.S.
Year Ended January 31, 2025 2024 2023 (in thousands) Non-GAAP operating loss $ (25,421) $ (118,225) $ (208,861) A reconciliation of non-GAAP operating loss to GAAP operating loss, the most directly comparable financial measure calculated and presented in accordance with U.S.
We are unable to predict the full impact that macroeconomic or other geopolitical factors will have on our future results of operations, liquidity and financial condition due to numerous uncertainties, including the actions that may 71 Table of Contents be taken by government authorities across the US or other countries, changes in central bank policies and interest rates, rates of inflation, potential uncertainty with respect to the federal debt ceiling and budget and potential, government shutdowns related thereto, regional geopolitical conflicts, the impact to our customers, partners, and suppliers, and other factors described in the section titled “Risk Factors” in this Annual Report on Form 10-K.
We are unable to predict the full impact that macroeconomic or other geopolitical factors will have on our future results of operations, liquidity and financial condition due to numerous uncertainties, including the actions that may be taken by government authorities across the U.S. or other countries, changes in central bank policies and interest rates, rates of inflation, potential uncertainty with respect to the federal debt ceiling and budget, regional geopolitical conflicts, the impact to our customers, partners, and suppliers, and other factors described in the section titled “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K.
Components of Our Results of Operations Revenue We generate substantially all of our revenue from subscriptions to our Singularity Platform. Customers can extend the functionality of their subscription to our platform by subscribing to additional Singularity Modules. Subscriptions provide access to hosted software.
Components of Our Results of Operations Revenue We generate most of our revenue by selling subscriptions to our Singularity Platform. Customers can extend the functionality of their subscription to our platform by subscribing to additional Singularity Modules. Subscriptions provide access to hosted software.
Gross margin increased from 66% for fiscal 2023 to 71% for fiscal 2024, primarily due to revenue growth from existing and new customers outpacing growth in cost of revenue.
Gross margin increased from 71% for fiscal 2024 to 74% for fiscal 2025, primarily due to revenue growth from existing and new customers outpacing growth in cost of revenue.
Contractual Obligations and Commitments Our operating lease obligations as of January 31, 2024 were approximately $25.2 million, with $5.6 million expected to be paid within 12 months and the remainder thereafter. Our operating leases are related to leased office space with expirations through 2029.
Contractual Obligations and Commitments Our operating lease obligations as of January 31, 2025 were approximately $20.6 million, with $6.0 million expected to be paid within 12 months and the remainder thereafter. Our operating leases are related to leased office space with expirations through 2029.
GAAP, is provided below: 72 Table of Contents Year Ended January 31, 2024 2023 2022 (in thousands) GAAP operating loss $ (378,416) $ (402,576) $ (267,232) Stock-based compensation expense 216,870 164,466 87,889 Employer payroll tax on employee stock transactions 3,429 2,235 1,783 Amortization of acquired intangible assets 28,363 22,645 2,972 Acquisition-related compensation 3,043 4,369 — Inventory write-offs due to restructuring 720 — — Other restructuring charges 7,766 — — Non-GAAP operating loss $ (118,225) $ (208,861) $ (174,588) 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 consumption and usage-based customers and to maintain and expand our relationship with existing customers.
GAAP, is provided below: Year Ended January 31, 2025 2024 2023 (in thousands) GAAP operating loss $ (329,359) $ (378,416) $ (402,576) Stock-based compensation expense 267,531 216,870 164,466 Employer payroll tax on employee stock transactions 5,681 3,429 2,235 Amortization of acquired intangible assets 27,020 28,363 22,645 Acquisition-related compensation 3,706 3,043 4,369 Inventory write-offs due to restructuring — 720 — Other restructuring charges — 7,766 — Non-GAAP operating loss $ (25,421) $ (118,225) $ (208,861) 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 consumption and usage-based customers, and to maintain and expand our relationship with existing customers.
See Note 8, Leases , to the consolidated financial statements included in Part II, Item 8, Financial Statements and Supplementary Data. Our purchase obligations as of January 31, 2024 were approximately $808.1 million, with $109.1 million expected to be paid within 12 months and the remainder thereafter.
See Note 8, Leases, to the consolidated financial statements included in Part II, Item 8, Financial Statements and Supplementary Data. Our purchase obligations as of January 31, 2025 were approximately $718.4 million, with $139.3 million expected to be paid within 12 months and the remainder thereafter.
This included severance and employee benefit charges of $5.4 million and impairment charges related to excess facilities of $2.4 million, partially offset by stock-based compensation savings of $1.1 million due to decreased headcount.
The decrease included severance and employee benefit charges of $5.4 million and impairment charges related to excess facilities of $2.4 million incurred during fiscal 2024, partially offset by stock-based compensation savings of $1.1 million due to decreased headcount.
The following table shows a summary of our cash flows for the periods presented: Years Ended January 31, 2024 2023 2022 (in thousands) Net cash used in operating activities $ (68,374) $ (193,287) $ (95,588) Net cash provided by (used in) investing activities $ 140,590 $ (1,312,666) $ (19,743) Net cash provided by financing activities $ 47,464 $ 36,308 $ 1,387,124 Operating Activities Our largest source of operating cash is payments received from our customers.
The following table shows a summary of our cash flows for the periods presented: Years Ended January 31, 2025 2024 2023 (in thousands) Net cash provided by (used in) operating activities $ 33,728 $ (68,374) $ (193,287) Net cash provided by (used in) investing activities $ (218,397) $ 140,590 $ (1,312,666) Net cash provided by financing activities $ 55,885 $ 47,464 $ 36,308 Operating Activities Our largest source of operating cash is payments received from our customers.
For example, in June 2023, we announced a restructuring plan (the Plan) designed to improve operational efficiencies and operating costs and better align our workforce and operations with current business needs, priorities, and near-term growth expectations.
For example, in June 2023, we announced a restructuring plan (Plan) designed to improve operational efficiencies and operating costs and better align our workforce and operations with current business needs, priorities, and near-term growth expectations. The actions associated with the Plan were substantially completed as of the end of fiscal 2025.
We define ARR as the annualized revenue run rate of our subscription and consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. As of January 31, 2024 and 2023, no single end customer accounted for more than 3% of our ARR.
We define ARR as the annualized revenue run rate of our subscription and consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us.
Customers with ARR of $100,000 or more grew 30% year-over-year to 1,133 for fiscal 2024, primarily due to growth in the ARR of existing customers from additional purchases and to growth in the average size of purchases by new customers.
As of January 31, 2025 2024 2023 (in thousands) Customers with ARR of $100,000 or more 1,411 1,133 872 Customers with ARR of $100,000 or more grew 25% year-over-year to 1,411 for fiscal 2025, primarily due to the growth in the ARR of existing customers from additional purchases and the growth in the average size of purchases by new customers.
These amounts were partially offset by a $92.5 million increase in deferred revenue resulting primarily from increased subscription contracts. 81 Table of Contents Investing Activities Cash provided by investing activities during fiscal 2024 was $140.6 million, consisting of $639.2 million of investment sales and maturities, partially offset by $466.3 million of investment purchases, $14.0 million of capitalized internal-use software costs, $13.6 million of net cash paid for the KSG acquisition, $3.5 million for purchases of intangible assets, and $1.3 million of purchases of property and equipment to support additional office facilities.
Cash provided by investing activities during fiscal 2024 was $140.6 million, consisting of $639.2 million of investment sales and maturities, partially offset by $466.3 million of investment purchases, $14.0 million of capitalized internal-use software costs, $13.6 million of net cash paid for the KSG acquisition, $3.5 million for purchases of intangible assets, and $1.3 million of purchases of property and equipment to support additional office facilities.
Restructuring Year Ended January 31, Change 2024 2023 $ % (dollars in thousands) Restructuring $ 6,706 $ — $ 6,706 n/a 79 Table of Contents Restructuring charges increased by $6.7 million due to activities undertaken pursuant to the Plan.
Restructuring Year Ended January 31, Change 2025 2024 $ % (dollars in thousands) Restructuring $ — $ 6,706 $ (6,706) (100) % 76 Table of Contents Restructuring charges decreased by $6.7 million due to activities undertaken pursuant to the Plan announced in June 2023.
We count MSPs, MSSPs, MDRs, and OEMs, who may purchase our products on behalf of multiple companies, as a single customer.
We count MSPs, MSSPs, MDRs, and 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.
A discussion regarding our financial condition and results of operations for fiscal 2023 compared to fiscal 2022 can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Form 10-K for the fiscal year ended January 31, 2023 filed with the SEC on March 29, 2023.
A discussion regarding our financial condition and results of operations for fiscal 2024 compared to fiscal 2023 can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Form 10-K for the fiscal year ended January 31, 2024 filed with the SEC on March 27, 2024. 67 Table of Contents Overview We founded SentinelOne in 2013 with a dramatically new approach to cybersecurity.
We have financed operations primarily through proceeds received from sales of equity securities, payments received from our customers, and borrowings under a now-terminated loan and security agreement, and we have generated operating losses, as reflected in our accumulated deficit of $1.3 billion and $1.0 billion as of January 31, 2024 and 2023, respectively.
Liquidity and Capital Resources We have financed operations primarily through proceeds received from sales of equity securities and payments received from our customers, and we have generated operating losses, as reflected in our accumulated deficit of $1.6 billion and $1.3 billion as of January 31, 2025 and 2024, respectively.
Once customers experience the benefits of our platform, they often upgrade their subscriptions to benefit from the full range of our extended detection and response (XDR), IT, and security operations capabilities. Additionally, many of our customers adopt Singularity Modules over time to extend the functionality of our platform and increase their coverage footprint.
Once customers experience the benefits of our platform, they often expand their subscriptions to benefit from the full range of our platform solutions. Additionally, many of our customers adopt Singularity Modules over time to extend the functionality of our platform and increase their coverage footprint. The combination of platform upgrades and extended modules drives our powerful land-and-expand motion.
Cash used in operating activities primarily consists of our net loss adjusted for certain non-cash items, including stock-based compensation expense, depreciation and amortization, amortization of deferred contract acquisition costs, and changes in operating assets and liabilities during each period.
Acquisitions can also impact cash flow due to transaction costs, financing expenses, and lower initial contributions from acquired entities. Cash provided by (used in) operating activities primarily consists of our net loss adjusted for certain non-cash items, including stock-based compensation expense, depreciation and amortization, amortization of deferred contract acquisition costs, and changes in operating assets and liabilities during each period.
Sales and Marketing Year Ended January 31, Change 2024 2023 $ % (dollars in thousands) Sales and marketing expenses $ 397,160 $ 310,848 $ 86,312 28 % Sales and marketing expenses increased from $310.8 million in fiscal 2023 to $397.2 million in fiscal 2024, primarily due to an increase in personnel-related expenses of $56.9 million, including an increase of $15.7 million in stock-based compensation expense as a result of increased headcount and increase of $7.0 million in commission expense.
Sales and Marketing Year Ended January 31, Change 2025 2024 $ % (dollars in thousands) Sales and marketing expenses $ 487,225 $ 397,160 $ 90,065 23 % Sales and marketing expenses increased from $397.2 million in fiscal 2024 to $487.2 million in fiscal 2025, primarily due to an increase in personnel-related expenses of $62.6 million, including an increase of $24.7 million in stock-based compensation expense as a result of increased headcount and accelerated stock-based compensation expenses.
Cash used in operating activities during fiscal 2023 was $193.3 million, primarily consisting of our net loss of $378.7 million, and $35.4 million used in net changes to our operating assets and liabilities, partially offset by non-cash items of $220.8 million.
Cash provided by operating activities during fiscal 2025 was $33.7 million, primarily consisting of our net loss of $288.4 million, and $46.6 million used in net changes to our operating assets and liabilities, offset by adjustments for non-cash items of $368.8 million.
Comparison of the Years Ended January 31, 2024 and 2023 Revenue Year Ended January 31, Change 2024 2023 $ % (dollars in thousands) Revenue $ 621,154 $ 422,179 $ 198,975 47 % Revenue increased by $199.0 million, or 47%, from $422.2 million for fiscal 2023 to $621.2 million for fiscal 2024, primarily due to a combination of sales to new customers and sales of additional endpoints and modules to existing customers.
Comparison of the Years Ended January 31, 2025 and 2024 Revenue Year Ended January 31, Change 2025 2024 $ % (dollars in thousands) Revenue $ 821,461 $ 621,154 $ 200,307 32 % Revenue increased by $200.3 million, or 32%, from $621.2 million for fiscal 2024 to $821.5 million for fiscal 2025, primarily due to a combination of sales to new customers and sales of additional licenses and platform solutions to existing customers.
Cost of Revenue, Gross Profit, and Gross Margin Year Ended January 31, Change 2024 2023 $ % (dollars in thousands) Cost of revenue $ 179,281 $ 144,177 $ 35,104 24 % Gross profit $ 441,873 $ 278,002 $ 163,871 59 % Gross margin 71 % 66 % 78 Table of Contents Cost of revenue increased by $35.1 million from $144.2 million for fiscal 2023 to $179.3 million for fiscal 2024, primarily due to a $23.9 million increase in allocated customer support costs which were mostly personnel-related expenses, a $4.4 million increase in amortization of acquired intangible assets in connection with the Attivo acquisition, $3.0 million increase in amortization of capitalized internal use-software due to the continued investment in our platform, and $2.2 million increase in cloud hosting usage charges to support our expanding business.
Cost of Revenue, Gross Profit, and Gross Margin Year Ended January 31, Change 2025 2024 $ % (dollars in thousands) Cost of revenue $ 211,106 $ 179,281 $ 31,825 18 % Gross profit $ 610,355 $ 441,873 $ 168,482 38 % Gross margin 74 % 71 % 75 Table of Contents Cost of revenue increased by $31.8 million from $179.3 million for fiscal 2024 to $211.1 million for fiscal 2025, primarily due to an increase of $17.3 million in customer support costs which were primarily personnel-related expenses, a $9.6 million increase in cloud hosting usage charges to support our expanding business, and a $5.2 million increase in amortization of capitalized internal-use software due to the continued investment in our platform.
We consider the terms and conditions of contracts with customers and our customary business practices in identifying contracts.
Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers . We consider the terms and conditions of contracts with customers and our customary business practices in identifying contracts.
Our Static and vector-agnostic Behavioral AI models, which run on the endpoints themselves, provide our customers with protection even when their devices are not connected to the cloud. In the cloud, our Streaming AI detects anomalies that surface when multiple data feeds are correlated.
Our distributed AI models run both locally on every endpoint and every cloud workload, as well as on our cloud platform. Our Static and vector-agnostic Behavioral AI models, which run on the endpoints themselves, provide our customers with protection even when their devices are not connected to the cloud.
Our Singularity Platform can be flexibly deployed on the environments that our customers choose, including public, private, or hybrid clouds. Our feature parity across Windows, macOS, Linux, and Kubernetes offers best-of-breed protection, visibility, and control across today’s heterogeneous IT environments. Together, these capabilities make our platform the logical choice for organizations of all sizes, industry verticals, and compliance requirements.
We have extended our control and visibility planes beyond the traditional endpoint to unmanaged IoT devices. Singularity can be flexibly deployed on the environments that our customers choose, including public, private, or hybrid clouds. Our feature parity across Windows, macOS, Linux, and Kubernetes offers best-of-breed protection, visibility, and control across today’s heterogeneous IT environments.
Additionally, our sales teams work closely with our customers, channel partners, and alliance partners to drive adoption of our platform, and our software solutions are fulfilled 70 Table of Contents through our channel partners.
Additionally, our sales teams work closely with our customers, channel partners, and alliance partners to drive adoption of our platform, and our software solutions are fulfilled through our channel partners. Our channel partners include some of the world’s largest resellers and distributors, MSPs, MSSPs, MDRs, OEMs, and IR firms.
The main drivers of the changes in operating assets and liabilities were a $61.3 million increase in deferred contract acquisition costs, a $44.4 million increase in accounts receivable due to timing of cash received from customers, a $14.5 million increase in prepaid expenses and other assets primarily due to annual insurance renewal and prepaid sponsorship costs, and a $7.2 million decrease in accrued payroll and benefits.
The main drivers of the changes in operating assets and liabilities were a $90.9 million increase in deferred contract acquisition costs, a $21.2 million increase in accounts receivable due to timing of cash received from customers, and a $5.0 million decrease in operating lease liabilities.
Our fiscal year ends on January 31, and our fiscal quarters end on April 30, July 31, October 31, and January 31.
Our fiscal year ends on January 31, and our fiscal quarters end on April 30, July 31, October 31, and January 31. Our fiscal years ended January 31, 2025, 2024, and 2023 are referred to herein as fiscal 2025, fiscal 2024, and fiscal 2023, respectively.
By providing full visibility into the Storyline of every secured device across the organization through one console, our platform makes it very fast for analysts to easily search through petabytes of data to investigate incidents and proactively hunt threats. We have extended our control and visibility planes beyond the traditional endpoint to unmanaged IoT devices.
In the cloud, our Streaming AI can detect anomalies that surface when multiple data feeds are correlated. By providing full visibility into the Storyline of every secured device across the organization through one console, our platform can make it very fast for analysts to easily search through petabytes of data to investigate incidents and proactively hunt threats.
To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, operating results, and cash flows will be affected.
To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, operating results, and cash flows could be affected. The critical accounting policies requiring estimates, assumptions, and judgments that we believe have the most significant impact on our consolidated financial statements are described below.
Cash provided by financing activities during fiscal 2023 was $36.3 million, consisting of $19.2 million of proceeds from the issuance of common stock under our 2021 Employee Stock Purchase Plan, $17.3 million of proceeds from the exercise of stock options, partially offset by $0.2 million of payments of deferred offering costs.
Financing Activities Cash provided by financing activities during fiscal 2025 was $55.9 million, consisting of $33.4 million of proceeds from the exercise of employee stock options and $22.5 million of proceeds from the issuance of common stock under our 2021 Employee Stock Purchase Plan.
The actions associated with the Plan are expected to be fully complete by the end of fiscal 2025, subject to finalizing the disposition of certain office space. Interest Income, Interest Expense, and Other Income (Expense), Net Interest income consists primarily of interest earned on our cash equivalents and investments.
The actions associated with the Plan were substantially completed as of the end of fiscal 2025. Interest Income, Interest Expense, and Other Income (Expense), Net Interest income consists primarily of interest earned on our cash equivalents and investments. Interest expense consists primarily of the amortization of the discount related to the acquisition-related liabilities.
In addition, there were increases in marketing expenses of $14.5 million due to overall business growth and further investment in marketing activities, and increases in allocated overhead costs of $5.4 million.
In addition, there was an increase in marketing-related expenses of $17.9 million, and a $5.9 million increase in sales-related expenses due to overall business growth and further investment in marketing activities.
Our fiscal years ended January 31, 2024, 2023, and 2022 are referred to herein as fiscal 2024, fiscal 2023, and fiscal 2022, respectively. 69 Table of Contents Unless the context otherwise requires, all references in this report to “SentinelOne,” the “Company,” “we” “our” “us,” or similar terms refer to SentinelOne, Inc. and its subsidiaries.
Unless the context otherwise requires, all references in this report to “SentinelOne,” the “Company,” “we” “our” “us,” or similar terms refer to SentinelOne, Inc. and its subsidiaries. A discussion regarding our financial condition and results of operations for fiscal 2025 compared to fiscal 2024 is presented below.
Research and Development Year Ended January 31, Change 2024 2023 $ % (dollars in thousands) Research and development expenses $ 218,176 $ 207,008 $ 11,168 5 % Research and development expenses increased from $207.0 million in fiscal 2023 to $218.2 million in fiscal 2024, primarily due to an increase in personnel-related expenses of $29.1 million, including an increase of $9.3 million related to stock-based compensation expense as a result of increased headcount, partially offset by a decrease of $14.2 million incurred in the prior year as a result of the migration of Scalyr into our platform.
Research and Development Year Ended January 31, Change 2025 2024 $ % (dollars in thousands) Research and development expenses $ 267,002 $ 218,176 $ 48,826 22 % Research and development expenses increased from $218.2 million in fiscal 2024 to $267.0 million in fiscal 2025, primarily due to an increase in personnel-related expenses of $36.7 million, including an increase of $22.9 million related to stock-based compensation expense as a result of increased headcount, a $9.2 million increase in allocated overhead costs, and an increase of $3.6 million in cloud hosting expenses driven by expanded research and development activities.
Impact of Global Macroeconomic and Geopolitical Conditions Our overall performance depends in part on worldwide economic and geopolitical conditions and their impact on customer behavior.
As a result, our net loss for fiscal 2025, 2024, and 2023 was $288.4 million, $338.7 million, and $378.7 million, respectively. Impact of Global Macroeconomic and Geopolitical Conditions Our overall performance depends in part on worldwide economic and geopolitical conditions and their impact on customer behavior.
Provision for (Benefit from) Income Taxes Year Ended January 31, Change 2024 2023 $ % (dollars in thousands) Provision for (benefit from) income taxes $ 5,859 $ (5,613) $ 11,472 (204) % The provision for income taxes increased in fiscal 2024, compared to fiscal 2023, primarily as a result of the increase in foreign taxes related to operations in international subsidiaries and a one-time tax benefit from the application of our deferred assets with a full valuation allowance to net deferred tax liability of Attivo acquired intangibles recorded in fiscal 2023.
Provision for Income Taxes Year Ended January 31, Change 2025 2024 $ % (dollars in thousands) Provision for income taxes $ 6,834 $ 5,859 $ 975 17 % The provision for income taxes increased in fiscal 2025, compared to fiscal 2024, primarily as a result of the increase in foreign taxes related to operations in international subsidiaries.
Interest expense decreased due to the amortization of the discount related to Attivo indemnity escrow liability through July 2023. The change in other income (expense), net is primarily due to gains and losses on strategic investments, partially offset by net foreign currency exchange fluctuations.
Interest expense decreased primarily due to a reduction in the amortization of the discount related to acquisition-related liabilities. The change in other income (expense), net is primarily due to a decrease in net gains on strategic investments.
Our platform offers true multi-tenancy, which enables some of the world’s largest organizations and our managed security providers and incident response partners with an excellent management experience. Our customers realize improved cybersecurity outcomes with fewer people. We generate substantially all of our revenue by selling subscriptions to our Singularity Platform.
Together, these capabilities make our platform the logical choice for organizations of all sizes, industry verticals, and compliance requirements. Our platform offers true multi-tenancy, which allows us to serve the world’s largest organizations, managed security providers and incident response partners. Our customers are able to realize improved cybersecurity outcomes with fewer people.
During this period, we continued to invest in growing our business to capitalize on our market opportunity. As a result, our net loss for fiscal 2024, 2023, and 2022 was $338.7 million, $378.7 million, and $271.1 million, respectively.
Our revenue was $821.5 million, $621.2 million, and $422.2 million for fiscal 2025, 2024, and 2023, respectively, representing year-over-year growth of 32% and 47%, respectively. During this period, we continued to invest in growing our business to capitalize on our market opportunity.
We build rich context and deliver greater visibility by constructing a dynamic representation of data across an organization. As a result, our AI models are highly accurate, actionable, and autonomous. Our distributed AI models run both locally on every endpoint and every cloud workload, as well as on our cloud platform.
Our Singularity Platform ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of ever-expanding disparate external and internal sources in real-time. We aim to build rich context and deliver greater visibility by constructing a dynamic representation of data across an organization. As a result, our AI models are able to be highly accurate, actionable, and autonomous.
We had 1,133 customers with annualized recurring revenue (ARR) of $100,000 or more as of January 31, 2024, up from 872 customers with ARR of $100,000 or more as of January 31, 2023.
Our Singularity Platform is used globally by organizations of all sizes across a broad range of industries. We had 1,411 customers with ARR of $100,000 or more as of January 31, 2025, up from 1,133 customers with ARR of $100,000 or more as of January 31, 2024.
Interest Income, Interest Expense, and Other Income (Expense), Net Year Ended January 31, Change 2024 2023 $ % (dollars in thousands) Interest income $ 45,880 $ 21,408 $ 24,472 114 % Interest expense $ (1,216) $ (1,830) $ 614 (34) % Other income (expense), net $ 918 $ (1,293) $ 2,211 (171) % Interest income increased $24.5 million as a result of higher interest rates on investments.
Interest Income, Interest Expense, and Other Income (Expense), Net Year Ended January 31, Change 2025 2024 $ % (dollars in thousands) Interest income $ 50,100 $ 45,880 $ 4,220 9 % Interest expense $ (171) $ (1,216) $ 1,045 (86) % Other income (expense), net $ (2,177) $ 918 $ (3,095) (337) % Interest income increased $4.2 million as a result of higher income earned from investments in marketable securities in fiscal 2025 primarily due to a higher investment balance and increased yield.
Provision for (Benefit From) Income Taxes Provision for (benefit from) income taxes consists primarily of income taxes in certain foreign and state jurisdictions in which we conduct business, and a one-time benefit from the release of valuation allowance as a result of the Attivo acquisition during fiscal 2023.
Other income (expense), net consists primarily of foreign currency transaction gains and losses, and gains and losses on strategic investments. Provision for (Benefit From) Income Taxes Provision for (benefit from) income taxes consists primarily of income taxes in certain foreign and state jurisdictions in which we conduct business.
Our primary uses of cash from operating activities are for personnel-related expenses, sales and marketing expenses, third-party cloud infrastructure expenses, and overhead expenses. We have generated negative cash flows from operating activities and have supplemented working capital through net proceeds from the sale of equity securities.
Our primary uses of cash from operating activities are for personnel-related expenses, sales and marketing expenses, third-party cloud infrastructure expenses, and overhead expenses. Historically, we have generated negative operating cash flow, but in fiscal 2025, we achieved positive operating cash flow, primarily due to higher customer collections, partially offset by increased cash payments for cost of revenue and operating expenses.
Cash used in investing activities during fiscal 2023 was $1.3 billion, consisting of $1.9 billion of investment purchases, $281.0 million of net cash paid for the Attivo acquisition, $13.5 million of capitalized internal-use software costs, and $5.0 million of purchases of property and equipment to support additional office facilities, partially offset by $925.2 million of investment maturities.
Investing Activities Cash used in investing activities during fiscal 2025 was $218.4 million, consisting of $804.5 million of investment purchases, $123.8 million of net cash paid for the acquisitions of PingSafe, Stride, as well as payments 78 Table of Contents related to the release of escrow liabilities from the Attivo acquisition, and $25.1 million of capitalized internal-use software costs.
Our Singularity Platform instantly defends against cyberattacks — performing at a faster speed, greater scale, and higher accuracy than otherwise possible from a human-powered approach. Our Singularity Platform ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of ever-expanding disparate external and internal sources in real-time.
We pioneered the world’s first purpose-built AI-powered security platform to make cyber defense truly autonomous, from the endpoint and beyond. Our Singularity Platform instantly defends against cyberattacks — performing at a faster speed, greater scale, and higher accuracy than otherwise possible from a human-powered approach.
Our revenue outside of the US represented 36% and 35% for fiscal 2024 and 2023, respectively, illustrating the global nature of our solutions. We have grown rapidly since our inception. Our revenue was $621.2 million, $422.2 million, and $204.8 million for fiscal 2024, 2023, and 2022, respectively, representing year-over-year growth of 47% and 106%, respectively.
As of January 31, 2025 and 2024, no single end 68 Table of Contents customer accounted for more than 3% of our ARR. Our revenue outside of the U.S. represented 37% and 36% for fiscal 2025 and 2024, respectively, illustrating the global nature of our solutions. We have grown rapidly since our inception.
ARR is not a forecast of future revenue, which can be impacted by contract start and end dates, usage, renewal rates, and other contractual terms.
ARR is not a forecast of future revenue, which can be impacted by contract start and end dates, usage, renewal rates, and other contractual terms. 70 Table of Contents As of January 31, 2025 2024 2023 (in thousands) Annualized recurring revenue $ 920,056 $ 724,404 $ 521,652 ARR grew 27% year-over-year to $920.1 million for fiscal 2025, primarily driven by a combination of new customer additions and adoption of adjacent platform solutions by existing customers.
General and Administrative Year Ended January 31, Change 2024 2023 $ % (dollars in thousands) General and administrative expenses $ 198,247 $ 162,722 $ 35,525 22 % General and administrative expenses increased from $162.7 million in fiscal 2023 to $198.2 million in fiscal 2024, primarily due to an increase in personnel-related expenses of $33.5 million, including an increase of $21.4 million in stock-based compensation expense as a result of increased headcount, and $9.7 million increase in litigation expenses due to settlements made during the period, partially offset by a $4.8 million decrease in office related expenditures.
General and Administrative Year Ended January 31, Change 2025 2024 $ % (dollars in thousands) General and administrative expenses $ 185,487 $ 198,247 $ (12,760) (6) % General and administrative expenses decreased from $198.2 million in fiscal 2024 to $185.5 million in fiscal 2025, primarily due to a $6.4 million decrease in overhead expenses due to higher overhead cost being allocated out, a decrease of $4.2 million in legal expenses and a decrease in $2.7 million in litigation expenses due to lower legal consulting fees and lower settlement charges during fiscal 2025.
Removed
A discussion regarding our financial condition and results of operations for fiscal 2024 compared to fiscal 2023 is presented below.
Added
In connection with our global consolidated losses, we maintain a full valuation allowance against our U.S. and Israel deferred tax assets because we have concluded that it is more likely than not that the deferred tax assets will not be realized.
Removed
Overview We founded SentinelOne in 2013 with a dramatically new approach to cybersecurity. We pioneered the world’s first purpose-built AI-powered extended detection and response (XDR) platform to make cybersecurity defense truly autonomous, from the endpoint and beyond.
Added
We expect our provision for income taxes to increase in fiscal year 2026 and beyond based upon increased foreign earnings and federal minimum taxes.

… 26 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+0 added−1 removed2 unchanged
Biggest changeOperating expenses within the U.S. are primarily denominated in U.S. dollars, while operating expenses incurred outside the U.S. are primarily denominated in each country’s respective local currency. Our operating results and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates.
Biggest changeForeign Currency Exchange Risk To date, primarily all of our sales contracts have been denominated in U.S. dollars, therefore our revenue is not subject to foreign currency risk. Operating expenses within the U.S. are primarily denominated in U.S. dollars, while operating expenses incurred outside the U.S. are primarily denominated in each country’s respective local currency.
Our market risk exposure is primarily the result of fluctuations in interest rates and foreign currency exchange rates. Interest Rate Risk As of January 31, 2024, we had $1.1 billion of cash, cash equivalents, and investments, which consist of money market funds, certificates of deposit, commercial paper, corporate notes and bonds and US government securities.
Our market risk exposure is primarily the result of fluctuations in interest rates and foreign currency exchange rates. Interest Rate Risk As of January 31, 2025, we had $1.1 billion of cash, cash equivalents, and investments, which consist of money market funds, U.S. treasury securities, commercial paper, corporate notes and bonds and U.S. agency securities.
We also had $65.4 million of restricted cash as of January 31, 2024 primarily due to Attivo indemnity escrow liability, and to a lesser extent, outstanding letters of credit established in connection with lease agreements for our facilities. Our cash, cash equivalents, and investments are held for working capital purposes.
We also had $6.7 million of restricted cash as of January 31, 2025 primarily due to acquisition-related liabilities and outstanding letters of credit established in connection with lease agreements for our facilities. Our cash, cash equivalents, and investments are held for working capital purposes. We do not enter into investments for trading or speculative purposes.
Foreign currency transaction gains and losses are recorded in other income (expense), net in the consolidated statements of operations.
Our operating results and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates. Foreign currency transaction gains and losses are recorded in other income (expense), net in the consolidated statements of operations.
A hypothetical 10% adverse change in the US dollar against other currencies would have resulted in an increase in operating loss of approximately $7.4 million and $9.7 million for fiscal 2024 and 2023, respectively. The hypothetical impact in fiscal 2022 would not have been material. 84 Table of Contents
A hypothetical 10% adverse change in the U.S. 80 Table of Contents dollar against other currencies would have resulted in an increase in operating loss of approximately $23.9 million for fiscal 2025. 81 Table of Contents
The effect of a hypothetical 100 basis point change in interest rates would result in a $4.9 million change in the fair market value of our investment portfolio as of January 31, 2024. 83 Table of Contents Foreign Currency Exchange Risk To date, primarily all of our sales contracts have been denominated in U.S. dollars, therefore our revenue is not subject to foreign currency risk.
The effect of a hypothetical 100 basis point change in interest rates would result in a $8.1 million change in the fair market value of our investment portfolio as of January 31, 2025.
Removed
We do not enter into investments for trading or speculative purposes.

Other S 10-K year-over-year comparisons