CrowdStrike (CRWD) 1 Sep 212022 Q2 Earnings call transcript

Thank you for standing by and welcome to the CrowdStrike Holdings Second Quarter Fiscal Year 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like turn the conference to your host, Ms. of President Vice Riley, Investor Relations. Maria ahead. go Please

Burt participation Good on me Chief Officer CrowdStrike; your Officer. Kurtz, afternoon thank you Executive and of Co-Founder and today. and Chief the and Financial With President for Podbere, call George are

statements would started, performance that statements plans, call to note not objectives, our including future represent historical and for within Securities the quarter year only fiscal call. facts, growth the of are Before forward-looking made as this meaning third I that Private the this expected during the our Litigation we outlook like XXXX. XXXX get regarding and of conference These our are of Act Reform certain of forward-looking including date statements outlook those

the from Factors factors that to or and we we any information, other SEC. these results and make and the in statements company's any could the reports is reasonable, are statements forward-looking a affect result forward-looking update because information in the of subject are make We whether the or could with the as SEC undertake on company's events otherwise. alter expressly financial uncertainties. including filings Risk Further time, results based future and materially section do believe annual on expectations actual that are new we titled not to disclaim While current and to included statements, differ we obligation time our quarterly file risks with

available ir.crowdstrike.com now Relations our be our the Investor or will call X-K today. showing and revenue, why schedule GAAP to I use will non-GAAP. of with be With Additionally, which reconciliation found all we filed is turn non-GAAP measures results begin. call this measures release to website may press SEC financial the A unless on financial over George our currently that, versus otherwise stated, discussed in Form on excluding on non-GAAP discussion a at

us in ARR ARR joining the multiple outstanding net all billion. ending rapid and and saw growth new in We Thank business, quarter, with quarter. you, revenue you today. to subscription $XXX.X generated second an the We grew ARR exceed of added new net XX% $X.XX Maria in million for thank areas strength delivered record and

performance Our market groundswell as spans of their to strong us was across mid-market driven continued customers which demand record. turning for the the and security of saw by trusted strong large CrowdStrike customers. We SMB enterprise, platform

a are improve in value space; sophistication. the organic CrowdStrike new add net posture a security CrowdStrike chose this excited security and also CrowdStrike any growth to provider United surface each is vulnerabilities nonprofit We operating fierce global of Our CrowdStrike customers breach or learned open standard Falcon that market sizes consumer we The in to new lessons to quarter. from of household novice and feeding as in our both than and our and emphasize leave for e-criminals bringing more ground and is organization, to Customers the Proofpoint, partner, of rich a finance a included standardized customer enterprise in for our all sophisticated involves success their alike. the why expanding overly and as that gold reflected directory, total, than viewed Falcon security. XX,XXX. environment our threat basis regardless customer CrowdStrike of brand to active designed with to platform human new used accelerated a relying X,XXX just it's which In share the attack partner, an on The widely Security fleet. which in gaining security on which as attack malware systems, Workday, net count segments deepen these malware resources legacy on along rate The relationship in holistic in multi-OS XX of inherent security is prevention, the Cloud the their our of rather if across employ uses, of partner. regardless has States; companies provider; remains a as now strategy cloud insurance also complexity the a prevention applications cloud and to name care the size technology next-gen. provide security pioneer one highlight and and quarter need with breach largest recent health organizations pleased and attacks who companies I'm Fortune leading in

just Threat up relies Graph, weaknesses Attackers was focused the our they not and common: a when To where a CrowdStrike behind malware ended win was endpoint in focused As rise recent hit legacy objectives from and of unfortunately in of abusing This and is and further was are to of had to the half performance hundreds the turned Fortune using the their identity today's indexed millions by Notably their to They said effective breach malware-based. comprehensive a on customer not without it and company mission, we that more ransomware Microsoft's heard both encrypted vulnerabilities are thus the Meanwhile, versus leader to point, why environments that to I system products antivirus with adversaries the that continue using adversaries base have before, failed they than then increasingly nearly that more ground making had by not laterally, I'd share an in difficult built moving proliferation experienced XXX next-gen when and security my a which you of attempting With This frustrated, and to the dollars. of become Falcon to prevention. dollars. accomplish promote security. systemic has exploiting low-bandwidth According were customer process demonstrate they get evaluate weeks to firewall have data on difficult up of breach legacy company them a two company process, challenges prevent be are for primary costing ever like business blindly solution products and to of victims causing to estimated malware. unnecessarily on a and that recent detections because platform be further malware-focused deployment and tables to tens this analyzed architecture prevention people, millions of from competitors a impact to to breaches. disruption as long data, a backup stop on trusted technology this things on breaches critical. it alternatives strategy financial has particularly CrowdStrike. malware. stops every in began fall in and the is turned the solution

and IT their their bringing by incident First, team in Complete across to followed remediate Falcon and deploying by response environment. our stabilize operations

TCO, platform Our machine the position AI, companies stopping agent, with posture scalable market to trust CrowdStrike's algorithms over sophisticated scale six adversaries learning reuse and modules Falcon an be is Threat and database approach collect today's cases our is from to and unlike with building threat and trusted intelligence modules mitigate increased metrics economies that defends insights. platform, we lightweight to today AI-powered to quarter. worldwide. the of success security and lowers Graph speed breaches growth in against Falcon's to analytics live from unmatched our customers have and or extensible per simplicity. other cornerstone other Falcon it intelligent from AI a advanced many increase day quarter attacks to epicenter continued second which address Falcon of uniquely restoring only sources Graph and threats market prevent, the of our This provides the not a delivering use combines to detect, quarter. CrowdStrike's and with trillion Falcon Threat telemetry of partner and the exploits. more Subscription to Falcon processes and security more long-term. five benefit respectively, volumes XX%, most a have times of Falcon predict leadership adopted effective. massively Using the platform the The or any and module leadership ingest our strategy foundational choice on millions growing over after platform once reflected scale. as believe an data is endpoints XDR massive The also to unprecedented capabilities multiple to customers of it empowers or purpose-built four crowdsourcing and data business XX% the XX%, advantage believe at continuously durable solution platform one that events in to of enables We which agents, and approximately more zero-day modules, adoption the we security in

organization care was data they high care initially and security attacks Humio a solution industries, new malicious of value was their This needed across transform in cost visibility with implementation current hospitality Humio's Falcon Complete, organization CrowdStrike interest This health despite platform, less and thought quickly bolster in would also ingestion to in services. Humio to is solution and sector. to only everything As add SIEM a in critical, customers necessity. we log customer staff, Zero posture. could be very a care, gain Falcon the to and we ability time they the and purchasing given it's risk for can scoring for highly-effective realized Take, QX, burden their in as time real secured security from real wake ability cyber-activity by investment. stand-alone health against which but of posture, to In the is more log deemed identity example, limited the Whereas CrowdStrike growing maintenance a and and than targeting Customer and speed the monitoring, including get security their Trust query SIEM their technology, Humio, a have repeated rise their round-the-clock of a health innovate implement management the even product. midsized answers on derive who, the security peers. they amazed looking financial deals multiple budget

exceptional great Humio we already The capabilities threat seven-figure in are is and is area. will highlight capabilities growing XDR Additionally, see at several more the land our growth leading encouraged modules by pipeline. gaining the landscape with into has in already we We that our of Humio are customers a track opportunities showcasing QX this start look now as forward with October. of market-leading to intensified. in Falcon I a our cloud and to on off traction integration of XDR

of team number environment Complete, systems the to combines responders threat the in malware Complete technology that response superior threat than breaches subscription. we have strain that our quarters, Falcon hunters that our customer and leverage around detection the a in has organizations and to turnkey gap exacerbated has unfulfilled three and significant legitimate and to double The legitimate prudentials. seen prevention cyber-jobs translates Falcon Cloud, a industry. Falcon indicate skills million Falcon field. which the all clock, is is First at This in gold Recent of of are advantages economics reports or security stopping standard the of software heightened which abuse has professionals put over far the X.Xx the the base recent a exploit managed Complete current more configurations cyber-resources year-over-year. platform sizes. working services, the grown of in increase In beyond our extend currently approximately and Security or with deliver on scale significant

detection Complete week, and managed leader Falcon last was a in named just U.S. MarketScape IDC response services. Additionally, for

Complete Falcon Falcon remote, module next Demonstrating Falcon's a data exposure. adversaries. and to it's capabilities for prevention management a and vulnerability response. becoming network was The artificial threat-hunting learning is which real-time the detection automated for of Real-time warranty, power Within the necessity intelligence report, strength to vulnerability strong Spotlight endpoint. highlight and remediation assessment to without the performance breadth like the fully would machine or of provide on of vulnerability such recent prioritize for cloud and our network impacting remediation, capabilities leverages recognized AI predict the and platform to the that zero-day Security breach increase I Falcon vulnerability. and in this the power intelligence visibility continued into amount intelligence Microsoft exploited this provide and AI leveraged the we of ecosystem in exploits by proactive available Cloud security data with vulnerabilities and massive allowed real-time the in newly functionality the their of Microsoft in targeting us discovered of core as our posture, vulnerability Using model given effect, be customers to is would PrintNightmare

PrintNightmare and enables the and stop reuse platform Our an many. data that management differentiates date of architecture to real-time breaches us excellent and process, ability in strategic deploying more new ability Spotlight's to year-over-year provide CrowdStrike trials Falcon of cloud-native without drive our driver Cloud the also with scanning the customers CrowdStrike visibility our real to provide XXX% attributable no-touch become through module vulnerability Security into illustration significantly of number a to of in ability Spotlight success our or exposure time than it's leverage collect a adoption. CrowdStrike Spotlight store. We to once has in to was fundamental directly is significant with agents believe to the growing sales Spotlight generated QX.

architecture. a chain that is the Trust. this have critical It impact remember analytics movement. Next, as endpoint, actors are component. reminder the ransomware combines zero-trust a Customers a to and Trust identity lateral and breaches X,XXX and will reported and identity-based Zero to The a threat only which and to has outbreaks market I supply laterally the on environments. and to solution workload is have Shoring over leverage visibility briefly serves today companies breach Kaseya threat that compromised increasingly to identity impacted a Trust move secure to important of discuss their stopping from most combat to importance single behavioral a Zero targeted recent is CrowdStrike up also breach of movement. the environments lateral Zero breach, attacks turning that vector solution far-reaching within prevent

endpoint targeting a more cloud the not Moving on of an organizations to are between and distinction waking that much to cloud; adversaries versus data environment. do up a fact draw more

an member innovator that how one protect organizations with when win are cloud trying cloud-native cloud the clouds, platform security it. Cloud platform AI turning customer their As to to Forbes company business leverage of largest use can of organizations was competitor's issues CrowdStrike a M&A. and cutting-edge enterprise of share built with like I'd security that a experiencing their instead and security of stability a operator to the achieve clashing recent demonstrates XXX the empowers to offering was that best-in-class model cloud in estates. to A Falcon and you scaling through

to was on could actionable in it critical of cloud and partner their instead slowing company a intelligence, a speed their friction they and their down. customer reduce deliver the match As mission that scale felt own security them

single customer with found This business. power, more I the perfect AWS the ECX importance share their new ability customer to a and infrastructure, two single Workload Fargate to scale cloud Falcon to provides this cloud wins fully selected Falcon's of glass manage CrowdStrike immense With a solution Falcon platform offerings CrowdStrike building and across you. these the Complete Cloud endpoints the managed Falcon of team. requirements cloud and innovator purchased and for in mind, their a it's pane workloads. This integrated cloud provide value both their summarize breadth fully Horizon with traditional partner customer through customers, making with with Protection and and fully value To trust in with will

visibility back EDR module, their environment. to with as Falcon that media on using spiraled was that and quickly which take a They and automates as control with services analysis company The who Falcon called cause quickly well provider was attack a root new for the the accelerates both Forensics a and locate incident severe large legacy leveraged CrowdStrike's hit of ransomware their data help our across them collection first is business.

Spotlight, and secure Falcon workstations, Falcon identity to posture well Recon, Cloud layer and and Following Trust their to including CrowdStrike manage Workload fully their adopted into their Complete, was Falcon IT as Protection and X this as provide and remediation security customer cloud Zero proactively visibility of assets breach, this new XX vulnerabilities. eager workloads Falcon Discover, modules, transform

in is I one Next the the of United customer earlier largest win spoke organizations nonprofit with about care States. health the

and to it's felt their is identified incidents security false as use the customer given scale, tech. company performance at focus, eliminated this been The their multiple ease This from Falcon's initially positive and have vendors. vulnerable could vendor, stay bake-off nonprofit, of competitive given too and at was today's it to promised. speed Cylance, they to The as realized rate, included low over but Ultimately, at because was to this not not similar partner, away all matters lacked security next-gen others. legacy the the customer required of were ahead endpoint them, overly the protection. of partner Given quickly refresh the chose protect really the low-cost Without product they efficacy actors. stood trust legacy and that threat a strategy remediated service out budget expense prominently looking manageability next-gen CISO was approach or CrowdStrike they prevention-focused trusted breach customer existing move a

was just a XXX,XXX Additionally, again once nearly key our a differentiator deployment deployed weeks. as was frictionless Falcon in across endpoints few

we partners; our naturally direct believe the our them our as the Partners of ecosystem community. helps company new partner-first rapid growing we helps bring a of as in gravitate customers and partner leadership reflection leaders partner vendor are to is discussed Moving likewise, a prominence propel expansion market and have before, it within choice customer to position.

with all and among Our our which levels, leadership the is including growing highest position all driving presence contributing partners strong sizes to of CIOs. is engagement Boards

endpoint protection and and MDR America. joint thousands with defense proven trusted and platform now Falcon Telefonica our of For next-gen our key world-class continues ecosystem nearly offering, partner-sourced ending Coupling year-over-year. the Tech their teamed to bring to power services. Investing hundreds Europe the of of Telefonica's we our customers first In July, half CrowdStrike with next XXXX, a of Falcon to be fiscal priority. customers the South ARR and across in partner doubled up North have

help them in services. in for strategic platform spans couldn't as Falcon with to alliance more and thrilled response not we vision CRM our CrowdStrike business Through able a I comprehensive Verizon. this be team workload to detection portfolio and with and execute vendor the do managed manage scale. see security And opportunities be We breaches are collaboration, will ability reduce to joint and leadership Verizon's new are I position Business capabilities. our and be provide detection another and market Verizon up excited confident summary, response their In or that the stop also endpoint part at of growth. with to to cyber-risk. platform CrowdStrike announce prevention, through protection positioned customers to will

CrowdStriker as leadership platform strong customers of and financial in CrowdStrike's industry. to over for dedication every as do our I'd protecting best security Burt detail. Our will all that that, a to day the results to to innovation, testament record more us out the turn security transforming in they and business. day trusted I a performance the make value and thank delivering like to stands the to call to With and financial in discuss

George Thank you, good everyone. afternoon, and

As numbers delivered are We a quick reminder, non-GAAP. remarks revenue unless mentioned again otherwise once exceptional today during except noted, results. all my

to high very operating free continued we at unit cash economics, and quarter, capital to second maintain In efficient, and scale, addition in very strong the growth strong drive remain generating flow. leverage

the customer year-over-year ended level industry's to excess new we future once quarter business a at which foundation a $X.XX with expansion as at believe XX% resulting new enterprises customers second growth perform large we very Rule XX a million. small Rule in We we and the Demand benchmark, of again Rapid Additionally, as across we the exceed as achieving once existing the all-time in was quarter of market multiple indicates XX. $XXX.X well drove strength of well In acquisition the areas again a the ARR pipeline which leadership in the for of record continue our to to of quarter, well-balanced, expand growth. broad-based from delivered strong high in growth strong SaaS fueled in again high by businesses. within in net ARR once quarter, substantial an business billion. came

retention net dollar-based our once benchmark. Our was above again rate

and reach XX% to $XXX.X of $XX.X million. new XX% grew consecutive revenue of last the fourth QX year last million. total reach over year QX P&L; growth. to Subscription Moving the to Professional $XXX.X year-over-year million, quarter was revenue revenue a grew representing over setting XX% record services for

XX% was the X% In Revenue and approximately continued terms as approximately the U.S. XX% revenue XX% revenue. Pacific of in Europe, from our contributed growth QX, other derived geographic and second Approximately and markets. well see strong XX% in was Middle markets. to from East of growth we international as quarter Asia markets, performance of in U.S. from Africa

up year. quarter basis than last of from gross points Second XXX more XX%, non-GAAP was margin QX

subscription than gross more was and margin non-GAAP year. XX basis of Our from QX up XX% points last

be gross pleased with to performance. margin continue subscription our strong We

quarter-to-quarter, more second or were While million range within to last subscription of our operating of to margin year fiscal gross remain XX% target march in it $XXX.X we fluctuate expect Total quarter as year we XXXX. model to XX% we XX% $XXX.X non-GAAP the XX% of revenue. versus expect expenses increased solidly to revenue or or million

the quarter, including we unit intensely continued remains our focus economics, which during including over the as maintain and the is we believe investing priority making planned, will in why the on our lead new technologies, in today Scaling security we business geographies programs. international sustained partner of trusted our investments We a Magic As efficiently growth are to and investments business position increasing marketing aggressively top total our choice. Number. long-term

help all more a customers the go-to-market can executing seize we their strong Number In see so of is security to fronts QX, Our with even market engine we Magic in restore the posture. X.X. on in demand trust we ended

sizes. of hand also more opportunity market is what continued efficiency of increase all planning. are go-to-market and we rapidly support capture should order in to frictionless to of exactly economics to which designed speaks that engine we we onboard indicates the Our which our It investments specifically customers at sales and the motion exceptional unit even

net XX%. more year Second basis. over share quarter percentage CrowdStrike million income attributable or QX diluted per income in non-GAAP $XX.X a than of QX exceed $X.XX X operating Non-GAAP operating on improved was and was to last to million points margin $XX.X

flow to average We non-GAAP diluted approximately to on Our weighted a calculate XXX $X.XX balance and shares. basis the cash a with was to totaled increased second attributable shares strong in flow $XX.X second XX% the common second quarter sheet. Cash used EPS Cash ended revenue. the was million cash billion. quarter of the equivalents CrowdStrike quarter brings million and million a of was This revenue cash our XX% from first or year. of for $XXX.X operations free flow and percent to as half free

guidance; our the remain optimistic offerings, record our to and we Moving about the growth. demand for trends pipeline secular fueling our powerful

growth the performance well momentum guidance for Given business the and are year third our the second as quarter, of drivers raising fiscal exceptional our our quarter as into XXXX. we

ending specifically move not climb While quarters. ARR, seasonality to in net relative given new expect from QX into our at recent we less net be higher do QX, years in much prior pronounced new we to a ARR scale we guide as to or steady

new year net our last ARR QX $X.X included million ARR. acquired that Additionally, net in approximately recall please in of new

of 'XX, in year-over-year growth we of growth. quarter the of third of subscription million $XXX.X the $XXX being XX% a XX%, to reflecting be million, the expect dominant to rate to driver For revenue FY range with total revenue

the to to to to from million net of We million operations CrowdStrike attributable to of be expect in be $XX.X million. in $XX.X non-GAAP $XX.X and $XX.X range the income non-GAAP million range income

count on XXX range the non-GAAP basis. shares utilizing $X.XX $X.XX, We average be of income diluted a diluted share weighted million to a attributable expect to to net of share in per CrowdStrike

growth to fiscal to fiscal $XXX.X and expected year. prior to million be the operations range full XXXX, year to from of $X,XXX.X XX% a Non-GAAP currently million. the total For between we expect rate reflecting revenue $XXX.X $X,XXX.X the income million, is million over be of in XX%

your fiscal now basis, XXXX expect $XXX.X to million million a share be the between expect $X.XX. to net shares of income income range non-GAAP on $X.XX in net I will and to $XXX.X weighted questions. non-GAAP per attributable CrowdStrike we average be George million. to attributable Utilizing take to diluted CrowdStrike We XXX and

Our Kalia Instructions] Capital. question Saket from first [Operator Barclays comes of

Your is line open.

if thanks I out guys, my here. seeing about question big Hey for a maybe you're taking and there. deals you George, wondering talk you; for for environment bit little could the what was

see think Does how prepared think sort your fierce all I commitments bigger curious you're we that CrowdStrike [Technical manifest I'm seeing environment, that called with make remarks. you the in sense? Difficulty]. of itself threat in it I

Sure, from sure. Good you. to hear

and as saying, deals, these translate? big this how look we with, like one topic, We've the you of kind business I prepared in indicated particular, seen that you attacks lot done. that talked worse. When does it's at When in we're impacted the talking to modules and about environment, and about no has customers. to get the at big remarks, the longer want we resiliency. threat And committees landed agents continues some spent Humio." again, and deals, as value real the what It's We a of it So this consolidating ransomware a months platform. lot case your It's Board on. time lands on ransomware. big in had. And of and in of XX two look have other and removing company, hundreds a the impacting I was carry And amounts computer reimage of on to tell driving business technologies you, and encrypt all customers can millions I so audit "We massive from big costing in more of week I've last dollars. all particularly on commitments than a of seems media briefings done and want ever It you

And the to continue these the big get big there. enterprises, So in we quarter be continue deals, big lands I to stronger think the and areas. every stronger

George. Thanks, helpful. very it, Got

Thank you.

Sterling JPMorgan. of Auty comes question next from Our

Your open. line is

Yes, guys. thanks. Hi,

get Wondering market? kind still seeing. the market of one as of just I question segments So since share? win you're to what's market number on different you the if with you comment kind could I what SentinelOne went in especially down public, rates, think go what's is, look happening competitive And

we've you net have Sure. the Good we on results spend one-fourth lot a and We've There's of ARR win but have across I time Obviously, board. and but to mid- actually lot new of legacy is the noise the our board. SMB we think a And we increase put the our hear from total a at seen of and across rates ARR. business to of the very robust in up in look you, board, next-gen. that strong probably XX% Sterling. seen the an enterprise numbers

So have manageability, ability so about not important on a this, are on rollout it's smallest so of SMB our we detecting Customers lot things malware. And the to far. to but we've think I they're only for that's think market. what get when our out large are scale, just choice. that customers not And and all breach enterprises platform, seen focused to big these ability prevention, there; value our to immediate also a really

Makes sense. Thank you.

you. Thank

comes Thill next Our from Jefferies. of Brent question

Your line open. is

Hey via Is is from next the is on question. come just to still the this can any Really Maybe international there Brent. Humio it Joe in or going opportunity? be XX guys, there helpful. for XDR over or months, Any color you rank drivers? appreciate you your fruit is endpoint out core [ph] if growth the look there low-hanging would

innings. across still it's board. the think early the I in We're

cloud, amazing drivers are some Zero have and you identity When of look that. a that still over a we that. that at like opportunity. folks us. competitors you When look at look module on you I lots like that have, That's Humio, XXX,XXX, we've have year, lot really mean, the customers at that we XX,XXX-and-change only there. growth done it's at look for XDR things identity, on from analyst. of from you look work only the customers number our MarketScape If of versus a legacy then the of a think out you folks perspective, We little the Preempt. And did We're analysis will, the if that Trust came you undersized it. endpoint we're from at when Last things have

that. we've to successful amazing module traction So Horizon abused being look attacks, has them that's the And when cloud And you at identity seen identity-based. are an you a done and been of that lot the which Falcon amazing job our with us. in extremely for and switch

this the broad-based has opportunity, begets modules, We us the of pockets standard really reputation become gold the served go-to that the geographies. have all all there's company think momentum. and And across with momentum well. across I space So brand in

Thank you.

you. Thank

comes Owens question Our of next Rob Sandler. Piper from

Your line is open.

get there is you Great on able drivers; go follow-up terms the of more the XDR to and the my you're still into clients taking growth in the back George, be of you opportunity to they're I question. Thanks. environments? seeing whether deploying installed of this guess double-click this customers you and how terms or dollars? is, they point, breach for the thank starting reactionary those for the spear security of the strategic are given are Or could tip spirit to in at question the base?

Yes.

been really doing threat advanced How eliminate cost a what more And we detection. do with and XDR, a that what We've time. consolidate? we becoming do long other How for have do it's are become we you're like about the as think we focus that's now strategic for on. platform other they companies combining think that how And I record people's and lot we of data well. complexity we them? When have? in they of many

as is, of great log So any management log still Humio But a all that that to fantastic. have the But that's and is the everything in real integration product it our allows you there'll amazing we be obviously, time question time. that with in answer an more That's right? product platform. And growth driver.

we're two to wait two excited think everything are innings. the of can't if them, early of over QX, see couple products, seven-figure next the kind how as technology and about that unfolds mentioned, you there between we land I'm So of a I in quarters. really just the so I different I in and will have

Thank you.

from Our of Matt next comes question Hedberg RBC Markets. Capital

open. line Your is

in of kind Great. launched Thanks positioned maybe overall the Falcon of you Complete a public lot George, remind uniquely to for questions taking and share you U.S. guys. quarter. are sector noticed to you how Can GovCloud exposure guys for know, your take vertical? this I my us fed you

agencies. kind focus current being state, think And Obviously, happening think we moves and a of we and that for the Sure. about the classified approve when local is government what's technology of big big solving Well, made civilian federal higher other waiting for you some is really to those seen processed if in areas. in uniquely we success in all our suited Washington, on in We're that. fed And for some And allows the just certification. We've will. problems us we're that lump environment us. altogether. ILX are into the areas,

government strides move local the and we've fast. them local of mean that some are well. a So so doesn't got states across made really time takes lot great amazing effort board, government. But I as of segment there a many and state that in that is we've customers, and and

think those early at look the totality, still innings. we as we're in there well done So it's in and we tremendously we've

Thank you.

of Tal Our Bank America. next of comes from question Liani

Your open. is line

Hi things on the about And difference ask with the questions want a in of that relation about importance great X. I second, When guys, come to to price that's market. up. And we distributors, are I of point quarter. on specific two have selling congrats between the discuss you you automation two and SentinelOne. the there

I as far me compete and they a the significant a you wrong, price if sales with in lower-price factor with As Is correct please understand solution. process? I'm

Sure.

didn't far That's product you you the the why think But That's just from at one why totality thing. competitor, tried pieces, into we this come that if does the up. of under other can all customer the breaches, to of product we ground automation I again, I we get we hype, When including you that's look automatically. the deployed. -- marketing it mean we the buy easily cost by because focused it is any we covers, out from a that's have malware more bolt base built than the SentinelOne. on services, stopping the not drive other scale. if on look we're how

how And focused we that doesn't machines, are malware. So on people on with routinely a pricing win scalable. price And works. on we saying, you And using? are breaches, us point what I serves product stopping value with talking because other well. customers just and blow up not to it's sell think is higher It we're the it the working? dealing And standpoint, again,

between I what a and low-cost There's for. the Ferrari. difference be get lot a a model think want. that's customers Fiero to pay And we you what So options, and of happen you Ferrari

not any Do pressure market you this we're feel the at yet pricing in or stage?

going the next-gen I at end But whether of I mean vulnerability we legacy enough with there's we in have. always compete of going a out lot forensic one will. differentiated to predictive to each be and only you it's the competitive identity the deals by only are platform. a deals day, which value ear, at competitors the amazing we're product higher where on competitors. have players if I the you an think win or true you tell deal play you to look we're growth can is And the there, our that priced module. modules, one with When than vulnerability And management. technology, Spotlight, -- We've in got there's

are out works look you big when strip and all the on really PowerPoint customers out what what CrowdStrike. to So noise, and got focused at rolling you it's and

Got it. you. Thank

you. Thank

Essex comes question from with Goldman next Our Sachs. Brian

line open. Your is

comfort you do how from think that the you Maybe much. know, you're of can if the do inching -- Yes, see the you a And I you difference what giving quantify dynamics? a market, kind seeing mix retention the and like you through as good margins? have questions. of perspective in taking for model? you module maintain Thank Burt, investors the down of model you adoption, you rates, we don't very afternoon. can about What know sense Thank are

is thing When from market. the you a look is new and right? to -- acceleration you logos, think So got down logos first saw new in that I coming the at we lot of

come the value in SMB be what taken folks to folks directly they terms getting down Falcon allow see our that And for in in is as if you Complete the market. see -- friction when we of in they're skills smooth, out you onboarding they tremendous offering which And remediate space, can we the We've in a able the that system to gap of see market so efficient. quickly. certainly, really be from well. then And to down amount them, monitor value choose filling

that talks seeing market. so the with we're to And rates that to respect retention down

optimistic about we that done share overall in win very our well So down our really unfair We've segment. and in continue to market. opportunities

Super helpful. Thank Okay. you.

Sure.

Needham. Our of next question comes from Alex Henderson

open. Your line is

such metrics? strength Has And all little you recent quarter? that attacks the in enterprise your are words, pipeline average end, hoping deal did most of at an was could In close bit across can those it I the the about thanks. -- I as lower and the with to uptick and mid-market bit the time to other sizes we've attack across to Thanks. in pipeline? mid-market about you key three seeing, a strata. caused talk end been lower to pipeline? similarly, Great, the overall enterprise, little the talk And look a in of if your increasing deal size these the other happen metrics rate

Thanks, Alex.

half. remarks, So the first, into record let in the second heading seen me comment I prepared we've that, the again, in momentum as business said

So segments. we're across in board the all And that. about the accumulation excited an that's

what can into us, different those of more is specifics we tell way modules you with landing each we're For to segments. don't the give up all the we enterprise. SMB in out that But

can had You George's that refer comments modules. that XX to about one deal

point want buy more a so and opposed going we're that's more the talks to up. And the as that rates and of also that that you rates, fact to the more customers It quarter of and keep I we modules. testament seeing talk in to at about look as the a And solutions. to that's strength platform Every our think -- that, platform. they more adoption adoption of evidenced

virtually fourth modules the the be as soon, And to on as no six, same of five, be going seven the five, module rate. data giving adoption out terms four, we're but because going to six third longer is in

of we're see flighted tick continuing Alex. is to to adoption to So folks platform up to buy the across continue them; we're and seeing, board which the seeing all momentum rates trying because what we're integrated that's trying and so for -- customers those

time to deals? of the length close close; Any time to comment on

Yes. that But case. number about we've where those. come don't talked to deals And I'll the That's by large weekend. seeing still we're that the customers more But see over comment we some closed frequently generally a that. logos. had in we've of obviously just obviously talk we about every past us, not of enterprise

closing are some seven-figure deal rapidly, really, And of customers. type even really

you. thank Great,

Sure.

Thank you.

Ittai Our Kidron of comes from next question Oppenheimer.

Your line is open.

growing you basis priorities slowly Thanks. order that than Hey George, only U.S.? still perhaps of the maybe to different there revenue, international unlock And your is a in is a really why great about but quarter. talk guys, is internationally? you there. your opportunity with the growing in approach on it the XX% year-over-year it bad being business Not could need progress, go-to-market international XX%

Yes.

growth, U.S. look So at been. when international how the look we strong has think you've I got at to

mature a So when And U.S. in for key you your continue partner at think the fire We're sure. on out it's look always -- there, piece. that's to internationally, been that's capacity growth, network you and your just U.S. I the more build

partners. mature more have We

that. focus we So to continue on

key the Burt, I you know, some other any if on I to comments think And don't players areas we've there. continue in piece. focus that win, geographies. had that international have really are out on the key we some great big

Yes.

areas. mean that this of international I those the fact back goes one looking to continue to invest markets we're So to and aggressively is

and number the in had really that you But a great, we've And to XX,XXX. think comparing still in over U.S. the proud strong. over I XXX,XXX opportunity it customers. -- players legacy really it's that customers compare have, of share. in have already high-grade some is we drop you're logos to early take have as still we're of ocean that U.S., It's a of mentioned, that. where the we to when more When out problem innings the got a it there super have George we're

to So we after there go be opportunity that we're aggressively going to it. think about internationally and out

Thanks. luck. Good good. Very

Thank you.

from of comes Powell question Gray next BTIG. Our

Your line is open.

strong Thanks All on for right, great. and the the question taking congratulations results.

this I been security. know yes, to the have Microsoft obviously, headlines not customers some the comments excited great against Microsoft. and earlier gain had prepared remarks particularly seemed pretty So in incremental the about year, you you all in potential year on this

you could think seeing So yes, that how opportunity how are play it out you just be? big and do

Sure.

take seriously competitors. competitor market. do big you all Microsoft, a as for we obviously, it's And So to a which have

eggs fully coming been CrowdStrike there in systems uncomfortable in integrated, more and around the when customers more again, of a of at monoculture. looking for a has they're one salesforce are operating Audit multiple covering with their think And stopping talk risk Committee becoming putting to I on and focusing security, basket. lot customers breaches. that again And are

So, the end it deployment I best been able And and We opportunity think the of for of ease technology, we've at ease of think work. our customers. use, to there. just the And of themselves we day, results platform, speak But the again, to and that best what wins. do. have customers, going have some get a I the big great Microsoft's highlighted with Microsoft, they're want

helpful. you. really That's it. Got Thank

you. Thank

next comes Our Gregg question from of Mizuho. Moskowitz

Your line open. is

and past we're had the on quarters. similarly, up been for Okay, I really months, Falcon Complete a I thank X.Xx follow-up organizations. spiking few which demand in over the good including quarter. think customer And solution you taking base hearing a question larger among mentioned has recent the has very you that for

that you going for governments? in with talk adoption expectations so both And and mind, Complete large of can enterprises forward about across your

Sure, great it's a question.

that maybe to we're one -- of mid-market largest And smallest reality we would when it or it it's way know, sort person security had the half. selling to You the enterprises. built be is up originally the we built none that or SMBs the all thought Complete, for customer

at quickly and of them is because -- When the Falcon good Complete that, how economics is you at you able automation this we we've threats provide is them. can for, to they're again, what quickly built our in really looking automation. very customers breaches, customers identify back so any in to for The operate with again, other look second have. and to none that very we of drive which our automation customer the the them When service. largest we enterprise for a of being outside are One stopping a high-touch cost look very remediate engagement out getting

that more us. differentiates coined level MDR this think were when that even engagement market, is little term. was something than sort about of of you a MDR And doing it's this before bit a So we truly even but

of a that our lot So in we pales comparison experience competitors. to here have

Thank Terrific. you.

Thank you.

question of Mike comes Genuity. Walkley next Canaccord Our from

Your line is open.

strong I percent net on is a chooses Great, as versus thanks. Congratulations average the a the on number metrics? improving by roughly new year deals today customer the multiyear shown wondering And you share how RPO also, modules ago. of if the was customers. of could new

Good Mike. Thanks, question.

don't modules that's we out X, gets. increasing numbers, give many are, and XX% do been customer which with how So of And the give out X-plus modules X we specific the What in each quarter-over-quarter. and XX%. percentage XX%, respectively, customers

to terms easier platform choice so the our are give continue of you George makes to talked of to to many just we about, ability seamless the the and you to out them. talks the And And and what customers to day, combine focused platform. times it end sell the that the to on testament they just to have to to available continuing build when And customers more at it for we're easy the And more in has hey, adopt. at end for of of day, this those thing things, deploy manage. going and make

adoption; and our And scale never eye for of our all off to And focused to the ability our core And the that's part easy our ability back that. making customer. of DNA we're it very in take back the comes that going and drive about and comments it to so, customer part area. we'll earlier to

eye Just never that Unit take matters. economics right? to similar going our that we're efficiency, off

know of logos we've be able continue more as go area we're to got do opportunity us after more this we However, journey. go able invest share after more market that in our that going new in and to we to to and be front to

Great. Thank you.

Thank you.

[ph] of Securities. comes question Our JMP from next Erik

is line Your open.

can your you thanks quantify since or try Yes, revenue what the terms I That's was Store. context give certainly. us wondering, think and capabilities then and partners I technology for question with of with RapidX CrowdStrike a to And of I couple Humio highlighted. a curious pick on IPO, that opportunity was congrats taking also, my Siemplify they and quarter. about the a bit where about is? you some been and good in adding little up RapidX? where partners were with the Can Spotlight you Siemplify organic talk

Sure.

well They strategy store of data So it's, think, we with less want been Threat Graph partner don't have more the part and and customers perspective, from there. And again, and it's customers. I the know estate what They by with performance that agent, their They received works. a it store single call very agent, want love I real integration. trust is it's would a single beachfront they agents.

how other if So the almost architecture leverage you is partners. do whole will, idea, we for again, agent-as-a-service, that

based it's on customer that integration, of being that demand. So with really our things agents, that many out that there. for done partners interact the of And And includes data able to nature. we've are

don't technology the have into that We They want lot integrate they again, of they're that using. that's some a So are other we When to network the do capabilities, remember, Spotlight VM of it's about fall agent-based mentioned we technology scanning names area. replacing and think And piece. and the out. you we think most be push-button team. And PrintNightmare likely that's AI, this that a is the we looking instantly results are them. IT they vulnerability can highlighted want And are which bit we we vulnerabilities to give actually with commoditized. what what really for, exploited prioritize Microsoft ops which customers using now had, the helps

areas. talked star impressed again, prospect or us. been haven't those There has with capabilities Humio is, extremely customer tremendous there. a been for I a got been we've a capabilities shining in the hasn't So to And that just

as be customers And a is leveraging year the part integrations driver can and of revenue us; our out sure think for now store. the innings So that there be big we'll it's but for are happy. of very I the in strategic make right and still early we're that --

Thank you.

Thank you.

Bank. Deutsche Colville question next from Our Patrick of comes

open. line Your is

guess Thank question. you question my is I about taking my AV. for

get in helpful. we late the that customers, on are lot we things incoming still we're the thought-through how mid-XXXX? Or innings the a displacement potential based that of AV the kind that that of that you of of on I to is a innings? process? there think kind you're lot kind is Would Thank conversations and customers early are go of that in be say we in with having of would kind of you. and One

our or younger the think a I a comparison or if innings. still still in it's, that Sure. company impressive the all McAfee a count at to in you Trend, customer pales Symantec Again, customers but we're look versus for again, they early have.

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much. so Thanks

And Thank call I'd George closing part conference turn Kurtz like formal of back this for does you. the conclude the to over remarks. the to call.

you Be and of upcoming today. you. appreciate to our and a you your I forward look time Thank Great. investor seeing interest to for at certainly safe want events. have We your day. thank all virtually great

does Ladies and a all conclude gentlemen, and you have Thank you. conference. today's Thank this great participating day.

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