Good afternoon, and thank you for attending todays SentinelOne Q2 Fiscal Year ‘24 Earnings Conference Call. My name is Cole, and I will be your moderator for today's call. [Operator Instructions] I would now like to turn the conference over to your host, Doug Clark. Please go ahead.

Good afternoon, everyone, and welcome to SentinelOne's earnings call for the second quarter and fiscal year '24 ended July 31. With us today are Tomer Weingarten, CEO; and Dave Bernhardt, CFO. Our press release and the shareholder letter were issued earlier today and are posted on our Investor Relations section of our website. This call is being broadcast live via webcast, and an audio replay will be made available on our website after the call concludes. Before we begin, I would like to remind you that during today's call, we will be making forward-looking statements about future events and financial performance, including our guidance for the third fiscal quarter and full fiscal year ‘24 as well as long-term financial targets. We caution you that such statements reflect our best judgment based on the factors currently known to us and that our actual events or results could differ materially. Please refer to the documents we file from time-to-time with the SEC, in particular, our annual report on Form 10-K and our quarterly reports on Form 10-Q. These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking statements. Any forward-looking statements made during this call are being made as of today. If this call is replayed or reviewed after today the information presented during the call may not contain 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 actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. During this call, we will discuss non-GAAP financial measures, unless otherwise stated. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the 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 GAAP results. Our financial outlook excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets and acquisition-related compensation costs, 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 Weingarten, CEO of SentinelOne.

Good afternoon, everyone, and thank you for joining our fiscal second quarter earnings call. We reported strong second quarter results and exceeded our expectations on all key metrics, including ARR, revenue, gross margin and operating margin. We're also raising our outlook for revenue and margins for the fiscal year '24. I'm proud of the resilience, dedication and execution of our teams. Our performance also reflects the progress we are making towards enhancing business processes, operations and cost discipline. We pioneered the world's first purpose-built AI-powered cybersecurity platform to deliver autonomous defense for the enterprise. We introduced the industry to the first-ever autonomous AI agent with a fully integrated data and security platform and self-healing capabilities. We've established a noble and transformative approach to cybersecurity, a unified data and security platform across attack vectors. Once again, we're leading the industry by incorporating generative AI into cybersecurity through purple AI supercharging security operations. Superior technology is the foundation of how we help our partners and our customers build more resilient enterprises with streamlined operations, less product complexity, best-in-class security and a leading return on investment. Our competitive success is a direct result of our innovation and technology leadership. We're in the early innings of taking market share and mind share of a massive $100 billion addressable market right for disruption. As always, please read our shareholder letter published on the Investor Relations website, which provides more detail. Let's review the details of our second quarter performance, which exceeded our top and bottom line expectations. Our ARR grew by 47% year-over-year to $612 million, reflecting net new ARR of $49 million in the quarter. Our gross margin reached a new record of 77%. Since our IPO just two years ago, we've expanded our gross margin by more than 20 percentage points. We're now…

Thank you, Tomer. Today, I'll discuss our quarterly financials and provide additional context about our guidance for Q3 and fiscal year '24. As a reminder, all comparisons are year-over-year and all margins discussed are non-GAAP, unless otherwise noted. Our second quarter results exceeded our expectations across the board. We delivered high top line growth and substantial margin expansion. Revenue grew 46% in the second quarter, and our ARR grew 47% to $612 million. We added net new ARR of $49 million in the quarter, achieving strong sequential growth of 17%. Our growth was also balanced across geographies with higher growth in Europe and Asia. Revenue from international markets grew 57%, representing 36% of revenue. We continue to achieve a healthy mix of new customers and existing customer expansion. In addition, our momentum with large enterprises, SMBs and MSSP partners remain strong, which continues to fuel a solid base of long-term growth. As a result, our ARR per customer increased both sequentially and year-over-year, reflecting strong momentum with large enterprises and broader platform adoption. We're taking market share from incumbent and next-gen vendors and our second quarter performance signifies our competitive strength in enterprise demand for best-in-class cybersecurity. Before turning to our costs and margins, I'd like to provide an update related to the ARR adjustment we announced in Q1. After conducting a comprehensive review, we implemented robust controls, improved processes and enhanced our ARR reporting structure. In addition, we partnered with a big four accounting firm to objectively validate our processes and controls. Our systems are fully remediated and we're glad this issue is behind us. Looking beyond the top line growth. Our gross margin reached a new record of 77% in Q2, reflecting a year-over-year increase of 5 percentage points. Just two years after setting our long-term gross margin…

We will now begin the Q&A session. [Operator Instructions] Our first question is from Ray McDonough with Guggenheim Securities. Your line is now open.

Great, thanks for taking the question. Tomer, congratulations on a good quarter here and what seems to be an improvement. But I think the question on a lot of investors' minds here is the reports that SentinelOne is seeking or at least evaluating strategic alternatives. Can you comment on that process? And then separately, can you comment on the partnership or the termination of the partnership with Wiz. When that was first announced, I think there was some excitement, not only from investors, but also from your field partners and the channel. So just curious how you're thinking about those two things and how you're thinking about your own road map in cloud security now that you've terminated that partnership. A - Tomer Weingarten We don't comment on rumors or speculation, but let me be clear. I mean our focus is on building an independent company for the long-term. we're delivering substantial growth and margin improvement. And most importantly, we have the best technology and a clear strategic road map to disrupt a $100 billion market with the potential to multiply our current market share in the coming years. I think also our teams are executing well. Competitive positioning remains incredibly strong. We delivered excellent results. All in all, I think you're just seeing us being laser-focused on delivering the best innovation we can, the best protection we can for our customers, maximizing our business potential. We believe we can do that the best as possible as a public independent transparent company. And I think that is as clear as I can be. On the Wiz thing, if you kind of bundle it on the acquisition rumors and all that stuff, I mean, again, I'm not going to comment on that, but it's all pure speculation on their part and…

Our next question is from Rob Owens with Piper Sandler. Your line is now open.

Great, thanks for taking my question. I want to drill down a little bit into retention rates. And I know there was commentary in the shareholder letter, excuse me, around the Attivo legacy products. So if you could just kind of clarify what exactly those are? And do we still expect the 120 level to be a floor as we move forward? Or could you see additional pressure? Thanks.

Yes. I think what you're seeing with the net retention rate is something that's industry-wide. I don't think it's unique to us. I think we do -- we do see our own, call it, natural retention rates still being incredibly high, even in light of macro factors of generally closing customers to be much more prudent about their spend and their timing also of expansion. Attivo legacy product, as you can imagine, with any acquisition, there's some degree of customer churn and that happens typically for the kind of older product lines, Identity security, obviously, is the shining spot. I mean we continuously grow that. It's a big contributor to all revenue outside of endpoint. But things like deception, which is very, very interesting industry-specific. I think that sometimes we don't put all the focus on. We continue to support the specific customers that use these legacy products, but we're much more focused on identity security, active directory assessment, all these more forward-looking products that came with that acquisition and obviously are today integrated into our platform.

Our next question is from Brian Essex with JPMorgan. Your line is now open.

Hi, great. Thank you. Good afternoon and thank you for taking the question and congrats on a much better results this quarter. Tomer, I was wondering if you could talk about a little bit -- digging a little bit more on the competitive environment. I think you previously talked about or at least have commented on win rates relative to both Microsoft and CrowdStrike. Any changes in the competitive environment? And then kind of adjacent to that question, how do you think about growth of sales and marketing expense as you have this kind of tremendous market opportunity ahead of you and you're obviously balancing investment in sales and marketing, market penetration, but also you're delivering some pretty impressive margin expansion in the process. Those two segments would be really helpful to better understand.

Our competitive position, I think, is improving. I mean we're seeing now meaningful differentiation on the technology front. Everybody likes to make all sorts of statements about how unified your platform is or isn't. We're the only platform out there that actually delivers on that promise. I think that to us, that becomes more and more meaningful as customers are looking to gain enterprise-wide visibility and they want to do it. They want to do it with 1 console. They want to do it with one language. They want to do it with one interface. That is not what our competitors are selling into the market. I think if you want to talk about competitors, let's also talk about the blatant misrepresentations they had on their earnings call made so clearly. I think it's unbelievable that you see them calling out or implying that, you know we are a coin for a company when it's plain to see that we're the broadest platform out there. When they call themselves a unified platform, but actually have two distinctively different platforms, two consoles, two languages, two product lines, that's an overt missed representation and that confuses customers, I think it's just shocking to see that. When they say that the only generative AI company to demo generative AI at conference shows, that's also a blatant lie. I mean, obviously, we've been the first to demo that. There are other vendors that have demoed that. Everybody is giving live demos. We actually gave hands-on live demos. So if we talk about the competition, I think it's important to separate fact from all these rumors and speculations and misrepresentations and our competitive positioning, our technology is true. I think that's what customers are getting into their hands, that the reason we win, that's the reason that we continue to grow market share.

Got it. Very helpful. Thank you.

Our next question is from Alex Henderson with Needham. Your line is now open.

Great, thank you so much. Nice rebound in the quarter. Clearly, if you listen, and I'm sure you did, to the CrowdStrike presentation. They delineated the scale and some of the growth rates around some of their products. And I was hoping maybe you could take a page out of their book and give us some of the -- some granularity around some of these key products that you call out, whether it be the cloud product, Vigilance, Ranger, pick your category? Thanks.

I think at our scale, I mean, we're not at a point that we're ready to disclose that. I think we're giving you good indications as to what part of our portfolio is going. We're giving you an indication that more than 30% of our revenue contribution is coming from outside of endpoint. We're giving an indication we gave last quarter that cloud is growing incredibly fast, triple-digit year-over-year represents well over 20% of quarterly ACVs on average, if you kind of look at the rearview mirror in the last 12 months. So all in all, I think that can give you some sense. I also think that for us, data analytics and security data lake, the Singularity data lake, these capabilities are just coming online. And they're coming online pretty fast. So hopefully, as we gain a little bit more scale, I think we'll be able to disclose much more on how we look at our business. But right now, obviously, we're just focused on growing as fast as we can between these core TAMs that we identified are strategic to our growth.

Our next question is from Andrew Nowinski with Wells Fargo. Your line is now open.

Great. Thank you and congrats on the nice quarter, nice rebound. So I wanted to ask about net new ARR, maybe particularly the guidance for Q3. I understand the year-over-year decline in Q2, given the tough comp you had from last year. But if you think about all the positive trends you guys described here today, why wouldn't you expect maybe more growth out of net new ARR in Q3 given that the macro really hasn't changed. It hasn't gotten worse or better, I guess what I mean.

Sure. We just exceeded our Q2 net new ARR expectation by double digits. We raised our Q3 net new ARR outlook, and we raised the full ARR growth to the high 30s. So I think the way to think about it is we're just being thoughtful about macro stabilization, which is still evolving. And I think we just believe that being prudent is the right approach in our view.

Our next question is from Gabriela Borges with Goldman Sachs. Your line is now open.

Good afternoon. Thank you. Tomer, I wanted to ask a question on some of the feedback you're getting from customers that are trying the new Purple product. What are the one or two asks that are coming out of those trials in terms of the next one or two features that customers want in the product? And how are you thinking about the pricing model over the medium term? Thank you.

Yes. The first question is always what's the pricing. I think that's consistently what we're getting from them. And we're starting to share and I you know, most actually would say we're testing pricing with these customers. So I don't have kind of a flushed out pricing model to give you just yet. But it's definitely something that we're kind of processing right now. I think in terms of their request, and that is key is that we continue and push purple to be an overarching enterprise-wide algorithm versus being focused just on endpoint data or just on cloud data and that once again comes back to the level of differentiation that you see with our platform today. When you think about some of these AI capabilities, when you think about the scale you can achieve with AI, you obviously want to start stitching together all these disparate products, all these siloed ecosystem vendors into one cohesive fabric that can also allow you to, in some cases, consolidate the waste of these products. But in some other cases, these products are still going to be there, but you want to make sure that something more intelligent is driving them and that you can orchestrate action. So people want us to do it on an enterprise scale, people want us to do it in a highly autonomous manner and in a highly actionable manner. They don't want more suggestions. They don't want more chatbots, they want predictive algorithms that can allow them in real time to react to what they're seeing enterprise-wide. And I think that's exactly how we're developing purple. That's exactly the first iteration of this product. And all in all, it looks just very promising.

Our next question is from Shaul Eyal with TD Cowen. Your line is now open.

Thank you. Good afternoon, guys. Good to see the bounce back. Dave, a question for you. Can you discuss gross margins the improvement actually vis-a-vis what do you see in terms of ASP pressures?

Yes. Obviously, there's not ASP pressures or we wouldn't be setting record gross margins. So I guess I'll start with that. We had record gross margin this quarter of 77%. I think that's a benefit of our increasing scale, the data processing efficiencies and the module cross-sell, which we also expect will continue over time. So I think we're proud of the gain we've had in gross margin and just don't seem to be seeing the ASP issues that other competitors may be seeing.

Our next question is from Patrick Colville with Scotiabank. Your line is now open.

Alright. Thank you so much for taking my question. So I mean this quarter, the operating margin improvement was really impressive. In my model. So you beat this quarter, you listed fiscal '20 margin by 2 points, but that means in my model, if I'm counting it correctly, but my actual 4Q number comes down to operating margin. So like why would that be? It's probably one question. And then how should we think about your kind of like long-term guidance for fiscal and your goal to reach operating margin profitability next year?

So we raised our full-year EBIT margin, like you said, by 2 points at the midpoint. It's the better end of our annual guidance. Now we've focused on that instead of 25% to 29% loss, we're focused on the 25%. We believe that's meaningful. We're on track for 25 points or about 25 points of operating margin improvement this year. I think one of the things we're seeing coming off a strong Q2 is also should we be investing into some things where we're seeing benefits. So our second-half is expecting some of that. We're able to do all of that and improve the guidance for the year to the better end of anything we were expecting for the year at the start. So we're proud of this guidance. We're always going to balance our investments in growth with our commitment to achieving profitability. And our goal remains unchanged for next year, but we'll be guiding that in the future.

Our next question is from Adam Tindle with Raymond James. Your line is now open.

Okay, thanks. Hope to get a two-parter in, Dave. First, a clarification. On NRR with the Attivo piece, is there any way that you could potentially help us quantify so that we could strip that piece out. I'm just curious what the underlying trends would have looked like for the health of the business ex that? And then Tomer, as a follow-up, I know we kind of touched on the Wiz subject. But curious, cloud security is obviously one of your fastest-growing areas, it sounds like you're still committed to that partnership. But honestly, why. That piece of the business is growing so rapidly. You've got a broad platform. Where do they fit in? What do you -- honestly, what do you need them for. Thanks.

I'll start. Our NRR on an organic basis would have been 120%. So it's still at the expectations that we've set forth in prior earnings calls. So the 5% decrement was purely Attivo. I'll let Tomer answer the other question.

Yes. One way I thought -- I kind of said it, it's really what the customer wants. And obviously, they got a nice set of customers kind of in the Fortune 100. We want to make sure that we support them. Some of them are our customers, too. We want to make sure we deliver the best experience. So when a customer wants to use Wiz by all means, and we will be there to support it. When a customer wants something more realistic, obviously, we will serve our own. I think there's also a big difference between what they can serve, which is highly limited to public cloud, where if you look at our platform and our workload protection, we cater to folks from on-prem environments and server and workload environments that might be on-premise all the way to private cloud and then to public cloud. So it's also a slightly different use case. But I think what you can kind of gather about SentinelOne is that we're very partner-friendly, no matter who the partner is. We are guided by what customers want to do and we will always stand by that, and we will always support customers. So in that, we -- Wiz is another great partner of ours from many other partners that we have. So there's no reason for us not to partner with them.

Our next question is from Joshua Tilton with Wolfe Research. Your line is now open.

Hi, this is Patrick on for Josh. So you mentioned last quarter after the adjustments to ARR that the revenue to ARR correlation should be tighter moving forward. But if you look at that historical delta, it actually ticked up a bit here in 2Q from 1Q and is a little closer to what we saw last year. So curious, did you see some shrink to come back in that consumption part of the business? And then has anything changed from last quarter with how you factor that consumption part into the guidance? Thanks.

I'd say we're still very closely aligned. I think revenue increase year-over-year was 47%, and the ARR was 46%. And I'd say that's pretty close. So we expect that to continue to be aligned for the rest of the year.

I guess, I meant.

Our next question is from Saket Kalia with Barclays. Your line is now open.

Okay, great. Hey guys thanks for having me on the call. Tomer, I kind of have a two-part question for you, if I may. The first one is on the competitive environment. I know we talked about the other endpoint player out there. But I want to ask specifically on Microsoft. One of the things that came out on another conference call was maybe you're starting to see customers question the real price, the real underlying price of Microsoft Defender, do you agree with that? Are you hearing that from customers? That's the first part. The second part of the question is more of an industry question on CNAP. There are endpoint players that have CNAP, there are firewall players that have CNAP and then there are individual vendors that have CNAP. What are you hearing from customers on their preference to buy from one category versus another. Is there a natural, I don't know, tendency to buy from an endpoint or for a firewall vendor? Or is that still something that's being determined?

So on Microsoft, we definitely see more customers starting to understand that the lack of price transparency is causing them to actually overpay for what they would actually get from another vendor at a lower price point. I mean if you bundle together the workload pricing, the login pricing, the service pricing, all of that together comes up to a pretty hefty price tag if you're going with Microsoft. And I think we can all agree not to best-of-breed security. So we're definitely seeing more of that. I think there is a slight dynamic change there. I wouldn't call any of that right now, transformative or pieces changing, I think, it's just starting to trickle. I think if you couple that with the fact that not only Microsoft is not the cheapest solution, Microsoft also doesn't really care as much about customers just under sheer scale, right? I mean we're talking about a complete different level of support if you're going with a stand-alone cybersecurity provider like our -- like us and some of our peers, I think you're just getting a completely different level of service, and that is something that is also starting to resonate with customers out there. And lastly, I think it's just the complexity. Microsoft has a lot of different ingredients in what they call security. It's not one platform. It's a bundle of solutions, and I think that also matters significantly. If we want to touch on CNAP, I think your observation is 100% correct. And I think that a lot of folks gravitated towards the stand-alone CNAP vendors on the back of just great UI. I think there's no deep IP in CNAP, inventory, attack graph visualization, like all these things, that's not AI. That's not deep IP. And I think that's where…

Our next question is from Trevor Walsh with JMP Securities. Your line is now open.

Great, thanks for taking my question. Tomer, on the subject of the Ranger insights that you announced earlier in the month, can you just walk us through maybe what the kind of, I guess, 1.0 or first type of -- how that opportunity looks initially vis-a-vis kind of other players in that vulnerability management space and then kind of where you're looking to maybe go with that product and kind of what the opportunity looks like kind of in six, 12 months? Thanks.

Yes. I mean great traction already. I think it's something that we kind of vetted and built with customers, and it's focused on identifying vulnerabilities, prioritizing vulnerabilities and allowing you to gain full context on vulnerabilities together with endpoint data in one same place. And given that most vulnerabilities actually lie on endpoints and servers, it really is a very, very natural place for it to live together. And now we're working on adding more and more remediation capabilities that can inform you, once you get informed on a vulnerability, you can automatically remediate it. So I think for a lot of these vendors right now in that space using all kinds of scanning tools and you need to deploy another agent. And sometimes you need an incumbent vendor that adds just another overhead on the machine with us. I mean, if you're an existing customer, you're just getting it. It's already there. And I think the most important part of it is that it's also done in a complete continuous manner. So this is not a onetime skin type of a thing. It's a continuous profile of your environment. And we can highlight all these vulnerabilities the moment that they pop up, and we can offer up remediation the moment that something pops up. So to me, it's a very natural expansion. It's a great little TAM that we can now also serve between $5 billion to $7 billion. And it's just, again, something that we believe will streamline operations significantly for a lot of customers out there. The one last thing I want to say about this is that it's also highly strategic for our MSSP segment, the MSSP partners are always looking for ways to, you know, get to better hygiene to patch customer machines and by allowing them to the same remote management platform that they're using today our SentinelOne Singularity platform to now also cover vulnerabilities, we're lying for extreme cost efficiency for them and obviously an avenue for expansion. So strategic on both fronts, and we're very, very proud of launching vulnerability management into our endpoint management suite.

Our next question is from Jonathan Ho with William Blair. Your line is now open.

Hi, good afternoon. Just wanted to understand a little bit better. If you could give us some more detail around the significant improvement around your sales execution and performance. I guess my question is what's made the most difference? And where are we in terms of those improvements? Is there sort of further opportunities ahead as well? Thank you.

We're always working to improve. To us, this never ends. I think just better scrutiny, better training, better enablement, better pipeline sourcing, better interaction with our channel, all of that, I think, funnel to just better execution, some technical elements like contract execution, all of that has been streamlined, better systems in place. I mean we've done a lot in the course of 90-days to elevate our performance and still a lot remains to be done. I think we're only going to get better from here. The important part is that we got a great seller DNA in our sales force. We have worked to diversify our sales force. We're now selling into four different distinct TAMs. We wanted sellers with cloud DNA. We wanted sellers with data DNA. We're now building those disciplines, and that obviously allows us to treat all these adjacent growth opportunities in such a tailored manner and that creates, I think, just better execution, better win rates, better conversion rates on our pipeline. So all in all, again, continued work, but I think we're doing all the right things.

Our next question is from Mike Walkley with Canaccord Genuity. Your line is now open.

Hey, guys. Good afternoon. It's Daniel on for Mike. Thanks for taking my question. So you called out another standout quarter with your MSSP partners. Just wanted to see if you could provide some color on sort of what's resonating in this part of your business, especially as it pertains to some of your newer emerging modules you guys highlighted.

Absolutely. I think, first and foremost, it's still the core elements of our overall platform. The ability to manage multiple, sometimes thousands of customers in one single click console is still a very unique capability in this space. So as our MSSP partners, kind of, look to grow, look to add more customers, they can do it with ease, they can do it with confidence. And obviously, they're well trained on our platform to-date. So the elements of automation and manageability are first and foremost, I think why we have that strong footprint in the MSSP realm. The other elements of what we do, like MDR, which they're adopting now and reselling to their customer base, is also a nice expansion opportunity for us, where a lot of our MSSP partners want even more tailored security for their customers and they're leveraging our own MDR services as a resell to their partner base. Cloud security is coming online for some of these partners, again, covering server environments. We've actually tapped through a lot of server environments and they tap those so far with endpoint licenses. We're now converting those into server licenses. If you kind of think about the Ranger and Ranger Insights module, they've already been onboarded on Ranger, which allows them for asset discovery. We're seeing traction with that. Ranger insight will catapult that even further. Again, vulnerability management is a very natural expansion to what they do. So all in all, with the MSSP environment, I would say the opportunity is twofold. It's the modules. There's no question that we're still underpenetrated. But at the same time, we're also underpenetrated on licenses, seat counts and a number of end points. A lot of our MSSP partners still have a huge potential in their estate, and we're working with them every day to expand our footprint and to make sure that they are as competitive as they can be.

Our last question is from Eric Heath with KeyBanc. Your line is now open.

Great, thanks for taking the question and squeezing me in. I did enjoy seeing the purple AI demo RSA back in April, it was impressive. So I wanted to ask you what your thoughts are on timing for that to become available? And then coming back to the CNAP question. Just Curious if there's any change in the way you're thinking about either adding or not adding CSPM or application security capabilities to that platform?

Yes. We're not sharing right now the exact launch date. It will be next year. We're definitely dating this with customers. So stay tuned. We will share more as time progresses. But on the CNAP stuff, we haven't really changed the way we think about it. We always wanted to have and always we're always working on broad-based CNAP capabilities that include CSPM as well. And that hasn't changed. I think the only thing that changed is that we're actually a bit more advanced in our road map than we initially expected, and that's a good sign. Once again, we launched data security, which is another part of that CNAP spectrum. And it's a very unique capability. It's an AI-driven approach to detect threats on storage like S3 and even on-prem storage like NetApp. There's nobody else in the market doing that. So all in all, I mean, we're always focusing first on the more differentiated parts of the platform versus going to the commodity. But at some point, I think we'll have the full spectrum of capabilities. And right now, again, given our traction, we're not in a rush to do any of that. It's not like there's any mandatory requirement to have all of these components baked in together as evidenced by our success in the market.

We are out of time, and I will now pass the call back to the management team for any closing remarks.

Thank you, everybody. I appreciate your time today, and I want to again congratulate all Sentinels for their performance this quarter.

That concludes today's conference call. Thank you for your participation. You may now disconnect your lines.