Profitability Predictions and Paramount Punches Back

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 8 December 2025

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

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Summary

We review the results from SentinelOne (S) and Snowflake (SNOW) and predict which stock is more likely to record profits first. We also take a critics-eye view of the Netflix-Warner Bros. deal amid Paramount’s hostile counter offer. Rick Munarriz, Sanmeet Deo, and Tim Beyers: - Review last week’s results from SentinelOne and Snowflake. - Predict which of the two will reach GAAP profitability first. - Give a critics choice take on the Netflix-Warner Bros deal, including some thoughts on Paramount’s just-launched hostile takeover. Companies discussed: S, SNOW, NFLX, WBD, PSKY Host: Tim Beyers Guests: Rick Munarriz, Sanmeet Deo Producer: Anand Chokkavelu Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Profits? Who needs profits? You're listening to Motley Fool Money.
0:24.7	Welcome, Fools. I'm your host, Tim Byers, and with me are two of my teammates, Rick Gunaras, whom I've served with on Rule Breakers for over 20 years now. And long-time full San Mateo,
0:30.3	who's with me allocating capital in the Supernova Odyssey portfolio. And that's been fun and
0:36.0	frantic. Hopefully you're both fully caffeinated
0:39.5	because we got some spicy earnings to get to. Today, we're going to be talking about fiscal
0:45.1	Q-3, 26 earnings from Sentinel 1, ticker S, and from Snowflake, ticker S-N-O-W, and predicting which of these two will reach gap profitability first and ideally when.
1:02.1	So we're going to make some reckless predictions here, and we want your reckless predictions to leave them in the comments below.
1:08.4	We're also going to provide a Critics' Choice view of the Netflix
1:11.0	Warner Brothers Discovery Deal, which got a little bit spicier this morning as we are recording
1:17.3	this. But let's start with earnings. So Rick, Sandmeet, I'm going to give you some quick
1:23.5	overviews on the Sentinel One earnings. There was some good stuff here. There was some
1:29.3	strong growth, annual recurring revenue, up 23% year over year to 1.05 billion. This is a company
1:36.8	remember that competes directly with CrowdStrike. It is CrowdStrike's most direct competitor.
1:42.2	They make endpoint security, so meaning your device, your iPhones,
1:46.9	your computers, they protect those things. And they do it with some AI here. Non-gap operating margins
1:53.5	were decent, 7%. It was a 1,200 basis point improvement. The non-gap net income margin was 10%. So that was up a thousand basis points.
2:05.6	So some good stuff here. Revenue up 23% to $258.9 million. And emerging products, mostly AI products,
2:14.8	now account for 50% of quarterly bookings. But the gap losses are big,
2:20.1	SanMeet. Gap operating margin for the quarter was negative 28%. And the gap net loss margin was
2:26.7	negative 23%. So give me your take here. How do you look at this quarter and Sentinel 1 overall?
2:35.5	Sounds like a very strong quarter in terms of, you know, their current revenue growth and their business fundamentals.
2:41.8	You know, cybersecurity, you know, there's a few major players that I think, you know, are really ramping up.
	...

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