![]() ![]() First, industry benchmarks indicate that SentinelOne is among the top of its field. ![]() This is where I think SentinelOne stands out amongst its peers. The key to doing well and expanding market penetration in its existing endpoint security market is to have strong technology that brings material differences to customers. Market opportunity in 2025 (Gartner) Strong technology key to future share gains As can be seen below, according to SentinelOne's guidance, we could see its total market opportunity increase significantly by 2025. ![]() XDR, as well as cloud security and internet of things are areas that can significantly increase the platform scope in the future, in my view. As a result, I think what this expansion in total addressable market mean for SentinelOne is that we could see future upsell opportunities for the company as it expands to complementary and synergistic business segments. Other than the existing opportunities in endpoint security, there is an additional, broader total addressable market of $44 billion by 2025, if SentinelOne expands into tangent business segments like security analytics, observability, IT operations and security operations. As can be seen below, legacy players have seen market share decline from 31% in 2017 to 23% in 2020 as newer players with innovative technology like CrowdStrike ( CRWD) and SentinelOne gains market share.įalling market share of legacy players ( UBS) The company currently has a rather small penetration rate of just about 1% today and I think that we could see share gains to about 3% to even 5% market share in the next 3 years to come. The crucial point is that there is a sizable legacy vendor presence that SentinelOne can disrupt and penetrate, in my view. Its current endpoint security market, which comprises of both endpoint protection platform and endpoint detection and response, currently has a total addressable market of $11 billion. ![]() I think that the opportunity set looks rather interesting for SentinelOne. Expansion in market opportunities brings huge addressable market by 2025 The company continues to add to its opportunity set and expand beyond endpoint security into other related segments like cloud workload protection, Extended Detection & Response ("XDR"), amongst others. It aims to automate the security process of protecting, detecting and responding by leveraging on its distributed artificial intelligence model. Having been founded in 2013, SentinelOne is in the business of providing its customers cybersecurity solutions and its platform is mainly focused on endpoint security. Furthermore, I think that SentinelOne's technology is top tier in the endpoint security space and this will drive further share gains, in my view, as it provides a strong value proposition to its customers as the most technologically advanced and innovative company in the endpoint security space. The company has great prospects as it looks set to increase its market opportunity as it can expand into tangent market opportunities, while also increasing penetration in its endpoint security market in the near-term as it continues to gain market share from the incumbents. SentinelOne ( NYSE: S) is a good candidate for someone looking to invest in a high growth company that is in an industry with strong secular tailwinds like the cybersecurity industry. Greenbutterfly/iStock via Getty Images Investment thesis ![]()
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