Netskope reported Q1 net new ARR of $34 million, down from $39 million a year ago, with net retention at 113% and an AI product win rate above 80%. Revenue of $201.6 million topped forecasts despite a $116.5 million GAAP loss as full-year revenue guidance rose to $879–883 million.
Net new ARR totaled $34 million for the quarter, down from $39 million in Q1 last year, marking the lowest ARR addition in nearly two years. Net retention stood at 113%, while gross retention reached its highest level, signaling resilience in existing customer spend.
The newly launched AI security modules achieved over an 80% win rate in proof-of-concept trials and fueled unprecedented pipeline growth. Products are priced per transaction, and the unified platform model has driven strong cross-sell momentum among existing clients.
Revenue came in at $201.6 million, topping internal and street projections, though the company recorded a GAAP loss of $116.5 million (29 cents per share) and an adjusted loss of 6 cents per share. Increased sales and marketing spend weighed on near-term profitability.
Management raised full-year revenue guidance to a range of $879–883 million and forecasts net new ARR acceleration in the second half as new AI products and additional sales reps ramp. The company expects improved sales efficiency and sustained demand in the AI security market.
