Q4 2022 SentinelOne Inc Earnings Call
And our full fiscal year 2023.
In connection with our recently announced definitive agreement to acquire a Tivo management will provide additional information as to the benefits.
Since the acquisition. However, we will not back to the planned acquisition into our fiscal 'twenty three guidance at this time, we caution you that such statements reflect our best judgment based on factors currently known to me.
Please refer to the documents we file from time to time with the SEC in particular, our S. One our quarterly.
We report on Form 10-Q , and our annual report on Form 10-K that we file these documents contain and identify important.
To differ materially from those contained.
Forward looking statements made during this call.
Replay or reviewed after today the information.
And current or accurate information, except as required by law, we assume no obligation to update these forward looking statements publicly or to update the reasons.
Anticipated in the forward looking statements.
Well in the future during this call unless otherwise stated we will discuss non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of GAAP and non-GAAP results is provided in today's press release and in our shareholder letter. These non-GAAP measures are not intended to be a substitute for our GAAP.
Results the financial outlook that we provided today exclude stock based compensation expense employer payroll tax on employee stock transactions and amortization expense of acquired intangible assets, which cannot be determined.
At this time and are therefore, not reconciled in today's press release and with that let me turn the call over to Tomer Winegarden CEO of central one.
Good afternoon, everyone.
123% year over year.
The fourth quarter, making the fourth.
Yes.
In today's digital World.
For infrastructure in every geography.
The demand environment remains incredibly strong.
We also have our cutting edge autonomous.
The <unk> platform.
Full partners supported go to market strategy.
We built in AI, driven security platform that spans endpoint cloud Iot data.
You did entity I'm thrilled.
People networks.
At Premier and highly differentiated solution that will enable us to provide cyber security and one of the most critical and dynamic parts of enterprise security today, the identity parameter would upheavals user centric identity.
And more comprehensive zero Trust III.
Some work.
I also encourage everyone to read our shareholder letter.
Which provides a lot more detail.
Okay.
Let's take a look back at our fiscal 'twenty two it was a groundbreaking gear for syndrome. One we started the year as a private company delivered a triple digit revenue and arrow.
Our growth rate through all four quarters and ended the year is one of the fastest growing technology.
LNG companies in public markets with outstanding growth in air are rapidly approaching $300 million.
Such as a leader in the <unk>.
'twenty, one Gartner magic quadrant for endpoint protection highest scores and Gartner critical capability. These use cases and being deal.
Only vendor, 100% visibility and know MS detection in the latest Mitre revaluation and the <unk>. We were named the best fit for companies that one customer's ability and to grow into xdr, our fourth quarter and fiscal 'twenty two results demonstrate the relentless execution.
<unk> of our teams and focus on innovation, we're protecting more enterprises to date than ever before it's faster speed greater scale higher accuracy and with more automation automation has never been more critical to tackle the complexity of todays threats I'd like to dig deeper into three key points about our performance.
Our success with large enterprises underscores the scalability of our platform. We added a record number of 100000, plus <unk> views and a record number of million dollar plus <unk> customers, including our largest ever net new customer contract one of the most influential and leading global Internet companies, Nick will discuss this in more.
Detailed later on.
<unk>.
We paired our phenomenal growth with significant progress towards our long term profitability targets I am pleased to share that we ended the fourth quarter with double digit year over year improvement in both our gross and operating margins. Our gross margins expanded 12 percentage points year over year operating margin improved 38%. This.
Progress, we fix our growing scale and increasing efficiency.
Looking at the full year.
I'm proud of central one being named to compete.
Everybody in this company culture list and receiving the <unk> 2021 .
The significant market opportunity.
We remain committed to invest.
Investing in the growth of our business and just like we did last year, we intend to balance this growth.
Both with further margin improvement in fiscal 'twenty three.
Finally, our business is performing extremely well with broad based strength across new customer and existing we significantly expanded our platform offerings. Our endpoint solution remains the primary driver of our business, which is.
I mean complemented by emerging growth vectors, including cloud Iot and data we're still in the early innings of a large and expanding total market driven by the proliferation of hybrid work environment.
Digital transformation and an evolving threat landscape. It is clear that we achieved a lot as a company in the past year, but we must remain vigilant as ever around the threat landscape the persistence and sophistication of new attacks continues we enter 2021 on the heels of <unk>.
Birth and exited the year battling look for GE and most recently the potential for cyber warfare has significantly increased in light of the Russia, Ukraine conflict. This is further escalated the threat environment.
Our vision is to be a force for good and we're committed to doing our part to help affected people and businesses in Ukraine and around the world to state cyber secure.
We've established a Ukrainian crisis resource center and begin offering free access to singularity xdr for cyber threat protection in Ukraine.
We ran similar programs to help others in the wake of centers that we are committed to defending against cyber warfare.
Sharing and collaboration are essential to our collective mission against cyber attacks are teams at Central labs are leading the way by uncovering some of the most sophisticated attacks across the world our global footprint puts us in a unique position to not only protect our customer base in real time, but also produce novel research to educate and arm the cyber security community.
<unk>.
<unk> able to leverage the power of our partner ecosystem to stay on the frontline with leading Internet insurance providers like mending KPMG call RFP and many others.
As an example, we recently named and published research on Hermetic Weicker related to the escalating cyber attacks surrounding the Russia, Ukraine conflict. This was a real time discovery when the evil, Russia is grounded vision.
It helped bring awareness to cyber attacks accompanying modern warfare. Our publication was followed by an alert notice from cyber security and infrastructure agency, highlighting the significance and relevance of Central Labs research.
We look at the evolution of cyber security technologies for a moment, it's cleared at legacy represents the past Edr, President and xdr in the future.
While the majority of enterprises still utilize legacy IV solutions, we have undoubtedly enter the <unk> era.
Ed Center, one we established the foundations of xdr by pioneering the world's first purpose built AI powered autonomous cyber security platform.
<unk> brings the critical capabilities customers need from a comprehensive cyber security platform speed scale and automation.
Enterprises are increasingly selecting <unk> broadened our platform capabilities by introducing several mission critical and highly differentiated innovations I will briefly highlight a few of these.
First we enhanced our network visibility and control capabilities and Grainger accrual Grainger helps enterprises eliminate one of the most commonly exploited threat vectors unpredicted enrolled assets. It reduces the attack surface by offering device mapping and management capabilities.
We introduced storyline acted response, our engine for automated threat hunting detection and response.
Next we developed the most critical castration and powerful endpoint management tools for both IR partners and enterprises.
Finally, we launched singularity mobile a new AI powered mobile security solutions for iOS, Android and Chrome OS devices.
Building upon the acquisition of scalar we launched data set in February of this year the revolutionary live enterprise data platform for data queries analytics insights and data retention.
<unk> expands our capabilities beyond cyber security use cases, it's a cloud native flexible enterprise data platform builds for pickup at scale not only dataset at the back end for our singularity Xdr platform. The technology is already being used by hundreds of enterprises analyzing trillions of real time events.
Tumors like door Dash co part.
Tom Tom and many others are selecting dataset to unlock the power of their own data with speed scalability and technology driven cost advantages. Our platform approach is resonating and is contributing meaningfully to our financial performance endpoint continues to fuel the company's growth at the same time, we're seeing outstanding traction with <unk>.
<unk> platform technologies and capabilities over one third of our fourth quarter new business.
This was driven by our singularity modules and dataset up from about 20% a year ago.
All of our capabilities, our cloud workload protection and data retention modules have been the most outstanding each delivering year over year ACB growth of over 10 X.
Let me spend a second on cloud security. This is one of the fastest growing markets in security today, and we're already doing extremely well on this front demand for our cloud workload protection solution has been broad based both within our installed base as well as with new customers cloud security represents a sizable opportunity presenting one.
One for years to come.
And to date, we are further expanding our addressable market and extending our xdr platform capabilities with our planned strategic acquisition of the Tivo networks, we're adding another growth vector to our platform identity now joins endpoint cloud Iot and data.
I couldnt be more excited to introduce everyone to upheaval.
<unk> aligns with your M&A strategy, we previously outlined.
First it expands our addressable market into a $4 billion in growing identity, Pam and within that Tivo is capturing share growing <unk> north of 50%.
Second user centric identity protection is a highly complementary and value add for our xdr platform and customers and opened a new customer and cross sell opportunities.
Finally, it has a compelling financial profile and strong cultural fit additive to our hyper growth and accretive to gross margins.
Identity is a critical component of the enterprise perimeter in zero Trust framework.
<unk> market, leading identity offerings help organizations keep password safe admin privileges restricted and user identity intact.
Depot network is the right technology and the team to advance our portfolio and is a natural extension of our singularity HDR platform and go to market strategy misused credentials are now one of the top techniques used in breaches.
Tiger can compromise the endpoint they will often look toward the next layer of the vulnerability of users credential.
If successful attackers getting pulled back doors excellently data and changed security policies.
As part of <unk>, one will have human identity level too.
Steve will have a clear product market fit with an established customer and revenue base, it's differentiated and battle tested solution is already trusted by over 300 customers from Fortune 500 enterprises to government entities.
<unk> is not just any identity company with technology, we strongly believe that it's the best and most comprehensive identity security platform in the market today, Let me briefly introduce you to the three parts of the Tivo platform.
First identity protection is an agent based solution that secures credentials and detect malicious identity behaviors. It delivers real time protection against credential theft privilege escalation lateral movement and more.
Second is identity infrastructure assessment identity based on ability scanning and management for enterprise infrastructure.
Tivo scanner provide instant visibility both active directory meets configurations suspicious pathway changes and unauthorized access this complements our Ranger network asset visibility and control capabilities and now holds in a user centric identity view.
Third identity par deception of Tivo interception solution make attackers reveal themselves their methods and targets through misdirection. This sums up to a multi layered approach and a broad set of capabilities to fend off not just detect.
Identity based attacks, a tivo will put us front and center in the identity security market as Dave will discuss later financially even in the early stages of a joint go to market. This acquisition will add to our hyper growth trajectory.
I'd like to share a few closing thoughts there has never been a greater enterprise need for a modern cyber security platform, which means a tremendous business opportunity for center was world class Autonomous protection.
We are still in the early innings of our innovation and growth.
Our outstanding fourth quarter, and fiscal 2000, <unk> financial performance speak for itself Triple digit revenue and <unk> growth paired with double digit non-GAAP margin expansion. We're perfectly positioned for continued success and expansion of our business even in times of global uncertainty our growth journey continues and I want to thank all customers send.
Panels and partners for making all of this possible with that I will turn the call over to Nick Warner Our Chief operating officer.
Thank you Thomas and welcome everyone at flywheel of sales marketing channel and technology partners.
Large enterprises are selecting sentinel won than ever before because of our industry, leading efficacy automation ease of use.
And differentiated xdr capabilities.
Also excited to welcome via Tivo team listening to customers. Following many of the largest internet and cyber security over the past few years.
Identity is a critical vector and delivering the most complete xdr platform not only is it a natural fit within our platform. It will complement our network of strategic service providers extremely well in Q4, we reported impressive.
Growth of a 123% reaching $292 million. This growth was driven by a healthy mix of new customer additions renewals and upsells.
Our momentum with large enterprises was particularly strong this quarter, we added a record number of customers with <unk> over $100000 and a record number of million dollar plus customers. All of this is extraordinary and reflects the success of our sales and marketing organizations.
Let me share more on this our customers with <unk> over.
Over $100000 grew 137% year over year to 520.
And let me give you. An example in Q4, we closed the largest new customer deal in our history with one of the most influential and leading global Internet companies.
This win came after an intensive evaluation process, including other Nextgen security providers.
I'd like to highlight one additional wind, which is emblematic of what we're seeing in the market.
Like most fortune 500 companies. This enterprise was using multiple operating systems.
They lacked true security parity across all surfaces daily.
Daily existing Nextgen Edr vendor failed to quickly deploy and less critical backend Linux attack surfaces unprotected.
<unk> terminated their existing three year subscription mid flight and turned to Sentinel won.
Thank you Larry Xdr deploy instantly across the whole enterprise, which was expedited by our patented Ranger discovery and audit deploy capabilities.
Summer has become a fantastic partner and is benefiting from our true cross platform feature parity and automation.
We also closed new deals with many other large enterprises across verticals from technology to global consumer brands to financial services companies.
Number one is winning more market share in every major geography, replacing incumbent vendors of all types and winning against the competition.
In total at the end of fiscal 'twenty, two we secured over 6700 customers comprising both large enterprise and medium size businesses, that's total growth of more than 70%.
For almost 3000 more customers compared to last year.
Total addressable market is large and expanding a majority of the market still utilizes legacy anti virus solutions.
The competitive environment has not changed.
Maintained incredibly strong win rates in all competitive situations against both legacy and next Gen vendors, what's more exciting is that the opportunity per customer is much larger today than it was for legacy providers in the past.
This is because of the breadth of our platform covering endpoints and surfaces of all types cloud workloads, kubernetes mobile devices, and Iot devices and soon identity.
Once again achieved strong retention and expansion within our customer base, our net retention rate of 129% remains extremely healthy and well above our footprint expansion cross sell of adjacent modules and upsell from platform tiers, we continue to prioritize new customer growth while at the same time, we are seeing.
Massive success in customers consuming more and more of the same.
<unk> platform.
Modules and dataset now represent over a third of our new business and once again. This is broad based and includes everything from cloud and Ranger to manage capabilities and dataset.
Our cloud workload protection and data modules are delivering the highest growth. They each grew over 10 X year over year, reflecting demand for our best in class runtime protection for cloud workloads and unparalleled data retention offerings.
I also want to call out our newest endpoint management module remote script orchestration RSO has achieved the fastest ramp of any new module and central <unk> history. Our incident response partners love the ability to remotely manage fleets of endpoints at machine speed and critical breach response moments.
Next I'd like to talk more about our channel partners. Our partner ecosystem continues to magnify our market presence significantly extending our reach and efficiency.
Our strategic technology and services partners have grown to over 20% of our business. This includes msft's MTR and IR firms. These partnerships are accretive to our overall growth rate with significant business expansion opportunities yet to be unlocked.
Let me double click on the success of our IR partnerships over the past year, we focused on partnering with many of the largest and most sophisticated IR providers in the world.
In the fourth quarter maintenance selected Sentinel won as a global go to market partner, we are becoming the partner of choice for leading IR providers, including KPMG.
<unk> <unk> and many others.
Our strategy brings the best of both worlds to our joint customers Top incident response consultants leveraging the best in class Xdr platform.
I can't stress enough that we don't compete with our partners. We work with over 100 of the world's leading IR firms, enabling us to address a majority of the IR market worldwide. These.
These partnerships create hundreds of high value and fast moving opportunities every quarter.
This is significantly more coverage than any single vendor could hope to gain on its own.
We're also very excited about our growing partnerships with MSP.
They continue to expand our coverage across large enterprises and mid market customers.
Leading MSP are choosing Sentinel won because of our technology leadership ease of management and multi tenancy capabilities.
Today, we are partnering with top tier msp's, including enable connectwise packs, a AT&T and hundreds of others many of which exclusively work with Sentinel won these relationships have helped us achieve significant scale and exposure complementing our enterprise sales success.
Looking at just a few of our top MSP partners like enable impacts state they represent millions of endpoints now secured by sentiment one we're extremely.
Really confident about the market opportunity, we can jointly address with our NSP partners as more organizations seek managed solutions.
Finally, I'd like to share how we are helping enterprises adopt a zero trust security model by partnering with leading vendors are two way technology integrations with Zee scalar mine cash service now and many others demonstrate top tier vendors working together as part of the singularity ecosystem.
This year has been incredible for Sentinel, one filled with innovation and growth and.
And we begin the new fiscal year announcing our plan to add identity to our platform, which further expands <unk> capabilities and offers exciting business opportunities I am proud to work with our global team of relentless Sentinels everyday I am excited about our future. We will continue to deliver on our vision by focusing on execution.
And listening to our customers. Thank.
Thank you again for joining us and let me turn it over to Dave Bernhardt, our CFO .
Nick Tomer. Thank you and let me also thank everyone for joining us today I will discuss our quarterly financial highlights and provide additional context around our guidance for Q1 and full fiscal year 2023.
Also touch on the financial highlights for Tivo and the full year implications.
Afterwards, we will open the call to your questions. We delivered another strong quarter of revenue and <unk> growth, both well into the triple digits, we achieved year over year revenue growth of 120%, reaching 66 million and a growth of 123% exceeding $292 million.
We added net new IRR of $56 million in the quarter, a new record for the company.
Healthy mix of new customer additions existing customer renewals and magnified.
Magnified by the strong underlying season.
Now any of our fourth quarter, our business expanded nicely across all geographies revenue from international markets.
And then 31% of revenue.
Our non-GAAP gross margin in Q.
Double digit increase of 12% Europe .
Every year, we're seeing the benefits from our increasing economies of scale in that business.
And this expansion, including strong module attach platform that cell and data processing efficiencies.
This was partially offset by the temporary costs, we discussed last quarter associated with the migration of existing customers to our data set backend.
We've made excellent progress on this front all of our new customers are already using the data set back and plus we've already migrated many of our largest existing customers. These customers are enjoying up to 10 X performance improvements we remain on track for our migration plan and these temporary duplicative costs should be behind us after the first half of this year.
When I put it altogether and I look at the Q4 gross margin of 66% and a significant improvement compared to last year, I see increasing evidence of scale and efficiencies of our business.
Looking at the rest of our P&L, our non-GAAP operating margin was negative 66% compared to negative 104% a year ago, a huge improvement of 38 percentage points.
And we achieved these impressive results while investing for growth throughout the year, including the IPO, new product launches and doubling of our workforce. This progress towards our long term financial target demonstrates the potential for leverage throughout our business model.
We're investing in our business, which is the right strategy given the huge market opportunity and strong demand for our leading platform.
Moving to our guidance for Q1 and the full fiscal year 2003 in Q1, we expect revenue of $74 million to $75 million, reflecting annual growth of 99% at the midpoint for the full year, we expect revenue of 366% to $370 million, reflecting annual growth of 80% at the midpoint while.
While we don't specifically guide for <unk> I do want to remind you that we are a subscription business, our <unk> and revenue growth track very closely our revenue guidance for Q1 implies that we should be at or better than typical Q1, net new IRR seasonality, which has been down between 25% to 35% sequentially in the past two years.
We believe the structural tailwind digital transformation hybrid work environments, and an evolving threat landscape will continue to drive customer adoption of our real time AI powered security platform.
Threat landscape is more complex and elevated than ever before and our product innovation brand recognition and scale and go to market and position us well to capture the favorable opportunities.
For Q1, we expect non-GAAP gross margin to be between <unk>, 63% to 64% and full year non-GAAP gross margin to be between 65% to 67%.
Our Q1 guidance implies over 10 percentage points year over year gross margin expansion at the midpoint.
We expect to continue benefiting from increasing scale and better data processing efficiencies. Our guidance also reflects the migration of our remaining existing customers to dataset, which once again, we expect will conclude in the first half of the year. As a reminder, these costs are temporary based on our full year guidance, we see the opportunity to achieve high.
60% gross margins by year end.
Finally for non-GAAP operating margin, we expect negative <unk>, 84% to 86% in Q1 and negative 55% to 60% for the full year. Both of these represent meaningful year over year improvement at the midpoint. We expect Q1 operating margin to improve over 40 percentage points and full year operating margin to improve over 25 percentage points, we see.
Tremendous opportunity for growth and the investments, we're making today will put us in a position to succeed for the long term and for joining us as we make progress towards profitability in our long term target EBIT margin of 20% plus.
Four I close let me share the key financial points related to a chemo. This should help you as you think through modeling the business for the future. We're acquiring a tivo for $617 million in a combination of cash and stock plus additional retention, we expect the deal to close in our fiscal second quarter subject to customary closing conditions, including regulatory approval I wanted.
Be clear <unk> is not currently factored into our fiscal 'twenty three guidance at this time, we expect to incorporate their financials into our outlook. After the deal closes on our next earnings call Akimbo is an excellent business that can become even stronger as part of our singularity platform. They concluded their quarter ended December 'twenty, one with over 300 customers in <unk> of approximately 30.
Growing north of 50%.
For calendar year 'twenty two the current forecast for the business is to deliver revenue of approximately $40 million for the full year and from a margin standpoint of Tivo is accretive to our organic gross margins, but remember as we expect this to close during our second fiscal quarter, we would incorporate only a portion of that.
<unk> and Sentinel won are highly complementary solutions that will open up new customer and cross sell opportunities further addressing the needs of larger enterprises.
I want to join Tomer, Nick and all of Sentinel won and welcoming via Tivo team. In summary, Q4 was another excellent quarter with strong execution companywide and we're expecting that momentum to continue into the next fiscal year. Thank you all for attending our earnings call. We can now take questions. Operator can you. Please open up the line. Thank you.
Certainly I think I'd like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you would like to turn that question. Please press star followed by Q again to ask a question press Star one.
Ask that participants limit themselves to one question in today's session.
A reminder, if you are using a speakerphone. Please remember to pick up your handset before asking your question positive briefly our questions are about just saying okay.
My first question is from the line of Blayne FX with Goldman Sachs. Please proceed.
Good afternoon, and thank you for taking my question and congrats on a solid quarter really nice set of results.
So if im keeping up the one question I guess I'll keep it to.
Rather upfront, obviously I guess, David if you could help us understand I know, you're not giving explicit guidance around operating margin impact of the Cabo.
It's nice to be accretive to gross margins, but how should we think about how you anticipate the impact that's going to have on your model. Both this year and next year as maybe it gets a little bit scale on top of your platform.
Sure. So obviously, we have stated that it is accretive to our gross margin from an operating margin standpoint.
This current year, while we take into account our expected integration costs. The margin profile will be very similar to ours. If you take out those costs on a go forward basis will be accretive to ours on an operating margin basis.
And we will have that guidance, obviously, when we specifically guide next quarter.
Got it is there a way to think about the overall accretion any overlap on your platform and how that may be.
Accelerated.
As you kind of integrate it with your platform.
On a combined basis, we've got plenty of opportunities to scale, both operationally and with our products. So that as we as we have this on the go to market it.
It really doesn't change our long term margin targets right now.
But what we will have better guidance as we complete.
Complete the transaction.
Okay understood. Thank you.
Thank you Mr Asics.
The next question is from the line of Gray Powell with <unk>. Please proceed.
Okay, great. Thanks.
Yes, I know.
Probably a little bit early but what kind of up sell our U.
<unk> identity security to be relative to your typical customers core Edr Bell.
Good.
I think what we're going to see is broad based demand, especially across our enterprise customers and as you folks know enterprise business is our largest part of our revenue contribution. In addition, it's growing even faster than our overall growth rates. So the demand is going to be high and it's only going to get higher.
One one more thing to add to that we've been partnering would upheaval.
More than a year now so.
So we kind of see already the demand that's being generated.
Pleasingly the companies so that just gives us a lot of confidence in our ability to go ahead and really make it an incredibly successful module for us I think the one last thing I would mention as well is we've seen an incredible level of interest from our incident response partnerships and I think we're going to experience a ton of demand coming out of.
That motion as well.
Got it that's really helpful. And then just one quick follow up if I look at your sales and marketing efficiency improved every quarter. This year, what's driving that and how should we think about the potential for additional gains.
In fiscal 'twenty three.
Well I think first and foremost it's getting the right operational pieces in place over the last several quarters, which we worked really hard on in terms of Onboarding training enabled.
But that also extends out to our partner ecosystem as well because a new sales rep is going to be a lot more productive when they are dropped in a region that has mature better and up to speed partnerships in place and Thats. The state of the Union today with our go to market.
Okay. Thank you very much.
Thank you Mr power.
The next question is from the line of Patrick Colville with Deutsche Bank You May proceed.
Okay. Thank you so much for taking my question.
Echo the congrats with others from closing a great year.
Just on paper I mean, I have met with the company quite a few times and brand messaging to meet with muscle around deception, and couponing pulse and flags and kind of that domain, where you've been kind of a message to us today is much more about identity. So at this time I understand has.
The business shifted.
Recently to kind of more focus more on the.
The.
Is that how you kind of pivot the business.
<unk> kind of that aspect.
Whether I guess deception.
It's going to be part of the kind of go forward with.
Sure.
Yes, yes, it's a good question and the business definitely shifted significantly in the past few quarters, they expanded what theyre doing and they really leverage your expertise in understanding active directory structure, which is really good.
The volt for identity to boost complete new offerings, which are now if you look at the revenue mix are the fastest growing and are definitely showing.
Traction that they have as a company.
Kind of a three fold.
Our portfolio today between what we define as kind of legacy disruption, which is still very much needed in today's world, especially as we focus on preventing lateral movement that is not always machine driven but more user driven but then on top of that the ability to.
These risks within active directory, and you'll just sort of a go forward basis, but also on a look back basis, allowing us to eliminate configuration mismatches more any type of vulnerability you already have preexisting in your environment that becomes a big deal for customers out there today with the sheer complexity of managing identities.
Kind of on Prem situations, but then the entire identity protection layer credential protection. All of these are new modules that they've built over the last few quarters showing meaningful traction for the company. So to US. It's just a great multi layered approach to three addresses in the most comprehensive way today.
Everything in and around identity, and we feel is just a great way for our customers to reduce risk once again in the most profound way that you can when youre looking at the user perspective, including the insider threat, which is to US a median overlooked part of what's happening today with the enterprise landscape.
That remains a big pain point for enterprises today.
Great. That's very helpful. Thank you so much.
Okay.
Thank you Mr. Caldwell.
The next question is from the line of Scott back to.
<unk> with Citi You May proceed.
Hey, Good afternoon, guys. This is mark on for <unk>. Thanks for taking my question, maybe just a quick one on the tivo as well.
On the I guess like asset going forward or should we expect I guess.
Yes.
Kind of approach here.
Yes.
What youre seeing in our business. There is also a complete shift to really platform selling so when you look at our cloud portion its a complete separate module or module package.
The entity will be the same it's basically an identity suite of capabilities that will be sold.
Total of the platform. So not included in any bone in your bundle.
I mean, that's the way that we today see success with our existing modules like <unk>. So as an example, it's a complete endpoint management suite.
Cloud suite and our identity suite.
To us I mean, it's just.
So it's a great way to.
To really expand what we do but at the same time make sure that we're not just continuing and selling just one core endpoint 40 to just $114 Tam between every sale we expect.
Great. Thank you very much.
Thank you.
The next question is from the line of Keith.
With Barclays You May proceed.
Okay, Great Hey, guys. Thanks for taking my question here.
Tomer, maybe maybe for you just just maybe maybe zeroing in on the on the core end point part of the business.
Can you just talk a little bit about how the base look at.
At the end of the year just around across different singularity bundles.
Core control and complete and maybe talk to US how you think about that mix sort of going forward.
Does that makes sense.
Yes, yes, absolutely and I think.
Kind of a quick follow up to what I. Just said, we we've really shifted in the past couple of quarters to more of kind of an overarching platform selling approach, which really means.
We're really focused on just selling complete right now is kind of the one and only package you can buy it at the enterprise level and then on top of that the expansion modules that we've built to date both towards surfaces Vega retention, obviously identity and user perspective, so to us complete really becomes kind of.
The base of what we so to get to the enterprise market.
I think it accounts for about 75% of our enterprise sales today. The vast majority of what we don't where we don't sell complete is really through the MSP channel in other parts of the market that might not need to fully fledged functionality that comes with our complete package, but definitely going forward the focus here.
B cell and complete the base package for our platform.
<unk> got the expansion module the extensive suite that again today spans cloud Iot data and with the Tivo identities and.
And I think all of that.
And when we're selling into the enterprise they are buying more products more modules.
Got it very helpful. Thanks.
Okay.
Thank you Mr <unk>.
The next question is from the line of General Walsh with JMP Securities. Please proceed.
Great. Thanks team for taking my question, maybe best for Dave I was wondering if you could speak a little bit to net customer adds on a quarter over quarter basis. It looks like from what I'm seeing around five to 700 700 kind of being that kind of more recent record of a net net add within any given quarter is that kind of how you.
We expect it to kind of go in this throughout this year and into next or do you have kind of plans from either kind of how you are.
Okay go to market teams are getting segmented et cetera, and maybe boost that number up considerably and Nicky just provide some color on that that'd be great.
Well Youre right Q4 was a record quarter and it wasn't just a record quarter for a number of customers added a record quarter for <unk>.
For our per customer it was a record quarter for customers over 100000 in <unk>. It was a record quarter for customers over $1 million in IRR and lastly, it was also a record quarter for our module contribution. So we are seeing absolute positive momentum in the business and we expect that to continue.
Great. Thanks, a lot.
Thank you Mr. Ross.
The next question is from the line of Hamzah Ottawa with Morgan Stanley You May proceed.
Hey, guys. Good afternoon, and thank you for taking my question.
I had a question on dataset for Tomer.
Neck Tomo, if you could just talk a little bit about.
Uh huh.
How the pipeline is trending for that data set.
The launch I mean, it just generated a lot of customer interest.
But at the same time I think what's important to understand that when you were talking about the data set brand, we're really more addressing the newest security use cases, where where you find these sim replacement opportunities to us. This is going to come on the back of a singularity xdr dataset backbone technology behind the scenes for single.
<unk>, but a way to address security use cases.
With singularity witnessed singularity brand with a central one brand.
And with Xdr, so head to head. Some replacements. These are ones that we're addressing with our <unk> platform. When you talk about global platforms search.
These real time event data monitoring that's what we do with dataset and that's where we're seeing a ton of traction right now so to US dataset is really focused on addressing all use cases evolving beyond security and we're leaving December replacement.
Our xdr approach, which we truly believe that the next incarnation of the Sim, it's a much more of an active solution.
Aggregate security event, we're going to be opening up in opening up ingestion at scale from every product that you have in your enterprise ecosystem and into Europe platform. So xdr is the answer for Sam.