Transcript
A (0:00)
Foreign.
B (0:06)
Who needs profits? You're listening to Motley Fool Money.
B (0:20)
Welcome fools. I'm your host Tim Byers and with me are two of my teammates, Rick Benares, whom I have served with on Rule breakers for over 20 years now, and longtime full Sami Deo, who's with me allocating capital in the Supernova Odyssey portfolio. And that's been fun and frantic. Hopefully you're both fully caffeinated because we got some spicy earnings to get to today. We're going to be Talking about fiscal Q3 2026 earnings from Sentinel 1 ticker S& from Snowflake Ticker Snow and predicting which of these two will reach Gap profitability first and ideally when. So we're going to make some reckless predictions here and we want your reckless predictions too. Leave them in the comments below. We're also going to provide a critics choice view of the Netflix Warner Brothers discovery deal, which got a little bit spicier this morning as we are recording this. But let's start with earnings. So Rick Sanmeet, I'm going to give you some quick overviews on the Sentinel 1 earnings. There was some good stuff here. There was some strong growth. Annual recurring revenue up 23% year over year to 1.05 billion. This is a company, remember, that competes directly with CrowdStrike. It is CrowdStrike's most direct competitor. They make Endpoint security so mean, meaning your device, your iPhones, your computers, they protect those things and they do it with some AI here. Non GAAP operating margins were decent 7%. It was a 1200 basis point improvement. The non GAAP net income margin was 10%. So that was up 1000 basis points. So some good stuff here. Revenue up 23% to $258.9 million. And emerging products, mostly AI products, now account for 50% of quarterly bookings. But the gap losses are big sand meat Gap operating margin for the quarter was negative 28% and the GAAP net loss margin was negative 23%. So give me your take here. How do you look at this quarter And Sentinel One overall sounds like a.
A (2:36)
Very strong quarter in terms of their current revenue growth and their business fundamentals, cyber security. There's a few major players that I think, you know, are really ramping up and, and it's a very important industry that's very much needed and I don't think it's going to ever be a winner takes all kind of area. So, so.
A (2:58)
Would like to would like to see. I I can't anticipate them.
A (3:04)
Generating profits soon because it's just an area where they, they have to invest in their business and, and continue to grow, continuing to scale, continue to provide value to their customers. So.
