CrowdStrike (CRWD) 2 Dec 212022 Q3 Earnings call transcript

Thank you for standing by, and welcome to the CrowdStrike Holdings, Inc. Q3 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. to conference like Ms. your now would turn to the host, I Riley, Relations. Investor President Maria of Vice Please go ahead.

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

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

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

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

today's start I points. three all call and key for thank will you, joining you Maria, by Thank us. summarizing

First, strong acceleration federal headlined third an businesses large by ARR new government. growth, across we U.S. execution market, within small outstanding from an delivered the expansion to quarter the and in net enterprises

Second, Trust, protection cloud in And and inflection and with security our Zero third, an favorable and are new pricing growing demand Humio identity the to modules. for remains we seeing CrowdStrike. environment competitive products

our We our offerings continue as legacy to expand and over Complete. next-gen scalability, differentiated of because and vendors Falcon efficacy lead such

let's to million ending discuss new subscription quarter expectations milestone. in serve Now robust XX,XXX surpass results in for which We XX% was third We X,XXX added $XXX more net subscription ahead net customers net our over gained new quarter. consecutive We delivered ARR $X.X topics with our second growing the new billion the and the accelerating ARR, proudly customers. and growth get a and into detail. ARR of

accelerating In we business we areas a net of bottom cash large growth, watermark quarter, free broad-based multiple addition new third mid-market ARR $XXX and flow enterprises. reaching of and delivered new SMB In the to record million. in among and the line strength saw results high

our of adoption in our products, platform with with a market identity customers CrowdStrike turning our management the product including XX of and customer trusted strong newer their core to cloud initiatives, continued record leadership modules. reflect log of continued growing success quarter this and results our growing outstanding groundswell Our with as protection,

wins local record and institutions, a We also with sector, states governments the federal gained significant quarter momentum including and government. the U.S. educational in public and delivered

and order as White Cybersecurity Security they a for the the several executive federal this operationalize culmination on additional House represents and by win win multiple is to highlighted of years massive secure CISA, to federal and certifications. government nation's the U.S. believe large performance the of within significant portion work We opportunities hard with business create workloads win Agency, new sector course unlock dedication strategy will and the Infrastructure endpoints over government. significant the front this public improve Our cyber our a and of This agencies on resiliency. our

new please CrowdStrike to my blog. additional For the post information, visit

competitive Moving to environment. the

believe continued lead to use scalability, continue we We a commitment have more of be our customers. not with competitor grow. opportunity, by no could and technology ease which performance, significant our matching to I excited has to

increased with number win a both of quarter, and rates This the saw vendors and record legacy enterprise and customers. large wins SMB, board, our against we mid-market across next-gen

displacement clear, We wins with also over and removing of a public SentinelOne. define it an a a as incumbent's and displacements product landed we be record recently replacing vendor, To number next-gen Falcon.

example a nonprofit the U.S. one and the based chosen features vendor that never which recent were recently next-gen public had systems Let me the initially price of delivered. hospital largest share on with in promised

subsidiaries. and and Just organization a into to from contract fail drove prohibited within That deal friction the false purchased CrowdStrike, product major multiple efficacy ARR with on gaining scale, issues, to without the organization positive. performance in months realized vendor, realized improvement, properly a XX% dollar its few turned critical multimillion processes their their is they modules up increase the alone servers intrusive multiyear when immediate significant other greater this to performance functioning and cause and

business. forward have Qualtrics trusted as moved security that security to be We along Customer solution their without partner. to end-user scaled them of included provider critical experience. of are fortifying workloads capable adopt order the quarter continuing Therefore, DNA. endpoint off for in leader trust easily cloud look a entire with parts their endpoints Another to deployed sacrificing marquee traditional in Qualtrics' to relationship and security and Qualtrics Falcon can best-of-breed key a our management. and win single next-gen focus with this of their was fast-growing it Qualtrics, experience estate

the ransomware in and recognized to we And This Pure competitors the to a attack platforms. also analysts massive response well. a product week, and its leading Customer two to our We renowned the their XXXX are a and scale. best three third-party our Humio services industry turned that index October rating With observability. Complete. was modern among Humio vendors, and XXXX Enterprise in IDC structured when that appeal on Associates, while CrowdStrike, check Marketscape IDC Voice named CFO continue at the legacy in which unmatched for realize every which EMA management the Symantec team of malware. a was hit ingest eclipse month, Microsoft real as to row. a most disrupted Labs granted their without detection accomplish CrowdStrike's customers assessment. at standardized CrowdStrike Last incident recognized year top by again to using health in unstructured leader Falcon that on to leading recognized to approach boxes adversary-focused to was log just Insights business. counts, combination Management this to endpoint research Gartner example worldwide adversaries stopping agencies, of attempts new the see once breach. success winning platform competitors increasingly attempting reality, Cyber remediate our ability breaches, larger needed testing They care CrowdStrike award endpoint for and extend response office, paper the their Take for technology, it second protection came and with system as when enterprise they data its and of to continue vendor second including in using and SE leadership, objectives for for and Microsoft time the CrowdStrike and earned highest our security endpoint and was organization

analyzed Threat gen. trend were Hunting a is or our Threat the shift CrowdStrike in cited recent to data landscape in than provision it's relying increasing a is report, XXXX generational companies rather holistic malware-based. regardless we not overly breach if customer This Zero This malware to strategy by indexed As Falcon. of technologies, prevention driving based on XX% Trust adversary why including detections need legacy on employ next Graph,

We this continued play seeing in adoption increase. to which are out metrics have our modular trend

flywheel modules five or to subscription four have module and increasing more trusted platform after with position XX% our quarter. third number customers also our more rates with more the motion modules six customer effect in Our respectively, average the demonstrate in XX%, drive XX%, believe rates retention modules or adoption and modules, the the record that per quarter. of of growing increasing quarter our of reflect modules high and We platform as of adopted high or adoption rates

in Our the and after field. platform over results results quarter Falcon into alike, quarter have proven that differentiation the transformational dominance continues technology strong delivering vendors next-gen built its legacy

enabling is continuous and well public continues guided the with provides and decision-making cloud security. XX% over On the selling enabling across and machine to in customers endpoint approach server the faster. Horizon, front, users to scan servers detection agentless, now has With Horizon protect than control cloud detection remediation attack of threat innovate API-driven footprint across Falcon accounts, and cloud. growth Falcon we and and our the indicator to we are all plane as for Horizon Falcon overall into cloud DevOps CrowdStrike services grow our teams as configurations faster cloud of redefined improve cloud workloads learning environments. and to the multiple even estate.

Falcon extended three largest quarter, now the to the supporting Cloud During clouds. Horizon Google support we environments

attacks. ransomware also work complex with to features threats AWS We from growing further deepened that protect from with services increasingly AWS with hand-in-hand partnership cyber our new customers and

the to Moving front. partner

grow and businesses large in and deepen leadership revenue our As their MSSPs market partnerships with name system with VARs our building integrators, for streams Falcon. increases, the brand alike,

our MSSP more was quarter-over-quarter breakout The a third quarter quarter XX% our than with business digits ecosystem growing and year-over-year. triple MSSP for

joining and relationship modern including by attacks. our expanded sector their to cyber against institutions small also which with We protect enterprises businesses, Work program, designed Google organizations, Safer public is

when other redefining we credentials field into endpoint winning by in for source greatest protection advantage risk usher EDR focusing stop industry deep increasing deal we any of are as enterprise stolen. the our visibility, the friction. today, pioneered identity industry modules competitor and security lateral the we and forward new a major and once in when This Trust the leading ransomware Just the are movement to on again, Zero the of customers prevent and is and with size. era Unlike ability give spread the the market to deals a launched

believe public included the Zero And enforces quarter one layer. in Preempt. manufacturer. our of Pacific we plan the brittle, marks protection this a our alone, products DLP we CrowdStrike false positives region; to like the of to The market require IDC intervention. XXX data human protection largest acquisition DLP year technologies the layer the at reliance anniversary prone of at and by a and third Fortune identity in take be recent new Legacy one-year XXXX. insurers aging, Trust multiple to Asia technology layer. SecureCircle, quarter Trust Based approximately already Insurance, in quarter data harnessing $X device on on to Zero we estimates, airlines; the major from of the level acquisition related generated and enforcing AIA for point and a calendar natively billion one are high By

put risk changing the customers without Our technology innovative visibility Zero fine and approach grain as the hands way users even and as combine CrowdStrike threats, after detect data monitoring to to gain layer. to respond more into will we with customers will identity or SecureCircle's continuous power they protection manifest a Trust device, data control Moreover, well of whether as modules, back work.

from to been User in will customers has is to products just and like have acquisition protection agent. time the the future. the in customers the year of stay While Falcon's gold we lightweight newest and Falcon innovations market to platform at to standard already to machine the data. CrowdStrike At response platform, to Conference, some data continued delivered It we legacy our identity of protection to thought through commitment an with integrate it adversaries year's DLP and the from Falcon only ahead single likes CrowdStrike. into of showcased innovation Symantec their a received connect and module this that the replace today leadership, providing would take unparalleled tremendous our closed

Falcon we and industry-leading capabilities event. acquired the endpoint and Our the response from leverages XDR Humio entire the detection new Falcon automated across CrowdStrike's headlined deliver real-time and extends technology stack. XDR module security detection to response

Zoom is which Google Alliance, with XDR our by invite and among XDR leaders others. to industry here Proofpoint Okta, as Mimecast, We and Zscaler, discussions Accenture, Investor ServiceNow, our AWS Falcon including you learn Crowd is with customer accessible the and partners, our launched partnership more other on Relations new about also capabilities into well our groundbreaking website. a Cloud, Briefing, which our as We and tuning Investor

see we increasing record to Turning in was quarter, expectations. momentum QX the exceeded space a management has Humio. that and log our

customer call, wins cloud-based a quarter a a team on e-mail food with the XXX services addition a DevOps and cloud-based in last leading included new leader we of land in and brand, our a platform security In mentioned third CrowdStrike company, financial seven-figure Fortune company to management the Mimecast, the European partner. e-commerce and technology Humio

speed, reached registration Humio that offers of to and best-in-class seeing log ingestion retention In XXX% customer storage also XX uptake seven-day weeks goal. per announced our which Community have we data gives strong are management unmatched launch, won't already We platform ability. access management six Edition, performance Community free. see our in recently six-month users else. our log anywhere streaming customers Humio's for since gigabytes they less Edition of with Humio is than unprecedented day for

avenue experience generation strong power of We a expect to the be lead Humio. for customers this as program

would States to Chief with And sales. which Jim Jim total for sales the years. to has and past five are Officer, over he CrowdStrike closing, largest team, for to United our accounts contributor revenue, for be region of that Before Americas our announce an for and done responsible our Seidel job I XX% promoting outstanding has eight Sales revenue. will like we global been years, leading he

global During Field my can Mike the And time his past to quarter. advisory the results more spend published has exceeded Global to of his the has Americas until expectations we served of child, you see a his after an Head Jim's significantly from Mike while third arrival family. and Sales Jim an the revenue quarter months, for delivered to from Carpenter four And acting leave Operations. exceptional Jim on today, form, and basis. as is on as quarter with was Company departure true to welcome transitioning tenure, grown role

I of very enough. quarter service grateful growth. execution you you by to partnership, ARR years and an outstanding be closing, all a board delivered contributions new wish We In can Mike third accelerated world-class a and can't net to been sales great We Mike, are the and has for across organization. his characterized building it best. the phenomenal thank we that

the a favorable future. very environment see to continue We into competitive today and

We continue expand leadership once innovate our to rapidly again as redefine we and security.

growth. could forward, more not I Looking future for be excited our about opportunities

also quarter reach endpoint that long management core significantly start, a our not log expands over across notable and is We financial product see protection. financial the of largest world's more discuss have unifies legacy cloud next-gen vendors. SaaS fourth already I With best a in opportunity Burt will great the the in And platform and off that, to to includes identity to one it security, built the runway displacing institutions. only call We point turn detail. with our the results a beyond market, but a ahead in land

everyone. afternoon, good and George, you, Thank

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

at maintain with economics, flow. high ARR leverage to and operating very accelerated net growth free strong and to generate unit growth, cash we addition new continue strong In drive scale

billion, us expanded apart business to the and we was rapidly We as across a also of difficult the the Rule the believe flow achieving customers Demand a business as-reported speaks we scale In and in excess culture and exceed in XX% we and large XX% of execution organic of Rule new we believe basis from an in new new ARR at within existing multiple at date, a $X.X growth Rule an both foundation leadership as strong our well delivered as basis. which to XX We the SaaS milestone. which differentiated and to segment, we quarter small on $X.XX a basis to platform, quarter standout from future on industry's a a our all-time the indicates well business, level and our new and XX% fueled market areas believe growth. high ability continued when enterprise in a ARR on customer year-over-year XX for billion first across for XX quarter, of strength our an perform acquisition by calculated contribution acceleration organic efficiently differentiation. with with a well net deal. high grew Net to in ARR new enterprises replicate. expansion leverage on We as believe highly market It a to mission-driven balanced broad-based one our ARR to all a pricing ended distinct large growth and in reported the from customer our ARR. from continued the others leadership set new of to basis, this amount of continued deals million, million-dollar any to net again cash pipeline businesses. sizes once of was the reach $XXX.X attributable in with our free no outstanding deal strongest record outsized deals. of expanding the derived over fueled our scale and We product reflects benchmark, Rapid quarter are

George large of federal As we in mentioned, top with the the will signed U.S. which one a make customers. government quarter, our deal CISA

it win this quarters. notable new steadily net their schedules, ARR contribution ARR and was multiple fold into each deployment the in given the not covers we to with own QX, over agencies, will However, coming see

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

ARR. remained and churn basis retention with on Our prior percent gross contraction dollar and consistently a and of high decreased rate both quarters,

revenue services the Moving of a reach of to for record million. over million. reach year new year grew Professional setting QX over the $XXX.X last Subscription XX% was approximately third the year-over-year other grew last to $XX.X U.S.; mix and revenue million, Pacific The Middle Europe, XX% P&L. geographic growth. Total markets. X% QX of East Africa; $XXX.X XX% revenue from XX% of XX% revenue Asia and consisted quarter from consecutive from the from representing quarter fifth region; approximately XX% to and

gross non-GAAP was margin XX%, quarter Third last QX year. consistent of with

gross subscription was and margin non-GAAP in of with QX year. Our XX% last line

continue invest be gross continue our for pleased performance we strong to with demand. We as subscription to margin growing

are As planned, last $XXX.X in revenue $XXX.X driving marketing expenses we approximately were million investments Total term in and capture growth and to aggressively globally. security investments pole or more We programs to our opportunity trusted today long operating a expand profit. maintain sustained the non-GAAP as choice. ramp while revenue. to XX% new continued of during over investments the investing technologies, operating of making including believe ended market will quarter, geographies QX, number of hand the business XX% partner the with quarter we lead international magic or the in year at continue we X.X as position increased third of million our versus increasing the we of In and

go-to-market our unit to exceptional continued rapidly our ability support of the Our all sizes. of customers economics and to engine speaks onboard efficiency and

We magic continues also that indicate the more given even increase believe massive X.X investments that market a we to number opportunity. should of

non-GAAP margin diluted QX operating XX%. net $XX.X record $XX.X grew improved income five Non-GAAP CrowdStrike $X.XX a million to last was million, reach and basis. Third year over XXX% share quarter year-over-year of in or exceed to income a operating percentage per on QX to attributable points

shares. totaled XX% ended common Cash cash $X.XX used in non-GAAP new balance to $XXX.X increased of was shares quarter approximately Cash operations a third approximately sheet. of weighted revenue. free flow to with diluted Our million, third the million on and the and a grew from $XXX.X to quarter basis EPS record cash and calculate was We or flow million a third billion. attributable to average XXX quarter CrowdStrike strong equivalents

notes. like Before to move we I'd guidance, a modeling few cover to

in to our as net we guide performance to climb outstanding move or given First, at less ending new to in and from ARR, specifically we QX, year. while not years throughout we ARR net recent QX new quarters expect do fiscal this much be a pronounced relative to seasonality higher continue prior scale into steady

$X our contribution of acquisition acquired be net the on includes new in closed the recent to currently ARR from quarter. the million impact guidance SecureCircle We SecureCircle, fourth of expect Monday. Our than less which

$XX acquisition the flow free expenses reflected impact which in cash operating results. will IP the million be Additionally, to related transfer fourth and tax Humio will the quarter,

funded Lastly, of the we cash. cash cash $XX million be net approximately cash in The SecureCircle, acquisition acquired, reflected our of payment, with will QX balance.

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

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

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

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

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

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

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

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

is line Your open.

environment pricing make little potentially Does strategies. with start lower like of you to you, I'll here feel sense? this an having and impact sort was a wondering maybe knock are competitors first. whether speak out to just you Burt, I if that could price bit Yes. the with

of customers. think quite bring the remained quarters. But selling to We it it's been the pricing platform talk about our we differentiation good consistent a discounting question. It's some for the value with has and for time. some to way I in time, value And and regards highlights same prior quite

off and that So us it's to matters. our cost us take vendors, ownership. allows really total allowing And of customers on lower and customers offer center other that to

terms the turn to I'll to talk that. platform, bit little of George In about a over it

a it fatigue big what in and Agent consolidation, and we're with vendors. As aspect issue actually the a obviously, agent that and platform out part transcript said, being didn't work. there months a next-gen to of it the is I And Burt a that's seen that's a was there. works. big of because doing later that's you've platform was able us large of vendor back nonprofit other key works, and went hospital it. that big is part we think have broad two a differentiated that deploying price consolidate the And And on that's with

have way also obviously, look delivering, you than customers. obviously, when we're focused things like You at we're that's what drive when Falcon we doing, the right at what we're differentiated at the of look things value the are for win look continue breadth company we're more truly and to for and Complete. just endpoint you us how and identity, These an like and services. value our at And look good on pricing to

broadly, could wondering within the makes for I but whole? the and deeper you. George, a on the dig how sense. that just more government was has maybe feel just a level much you opportunity like of federal That lot contract. follow-up bit into CrowdStrike if you on maybe one talk a just CISA little Congrats

in whole certainly out breaches. it powered, of was Sure. of we to again, what at an think platform, protect to very the the Well, focused a signature not we of we're and Again, our goal you whole the that's stop have vendors, it the win. AI do approach is data CrowdStrike. to a government. technologies, government of When protect the a vendors don't win We're what is came U.S. offering And given Falcon I our really element we is really of key that next-gen a the tailor-made proud intelligence. at truly the directives have, differentiated government. have the proud certainly doing. help look aspect day, to part using next-gen that And as in that Most broad U.S. what we're end the and adversary

about this for believe protect win. as world. win, So opportunity more as but we're well got U.S. excited the We can and many Obviously, government us. governments is the there's expansion big it we've around this a capabilities

you. Thank

question Our Sterling JPMorgan. comes from of next Auty

Your line is open.

Just from And how to us sense you workloads? a percentage like from what one net really cloud protecting give question that you my the side. it quarter of that Can year the ARR ago? of in new added came a compare what does looked maybe

is so we amount Sterling, we and continuing we us so when we the protect what we that growing, -- are about of available Protection, think about it's cloud. that servers do is our opportunities start. to our the in I'll the you Cloud now, tell in Workload can now, that right the of talk Right what cloud. that growth XX% it's to grow, we've in fact are seen

other has going. couple on you indication of that's So we're George comments of that. just an where giving a Maybe

calls. Yes. up about we've is prior talked XX% as And in the

Cloud pieces think to two environments, cloud and when it, So both. we visibility that cetera. and about really security across protection or has Workload One containers, runtime we Protection is protection, is et have virtual workload

Management, Security APIs if drive that into innovation an the of Posture will, continue agentless second ties through, cloud Falcon is one a Horizon, provider. technology to many you as Cloud really we The and that's which

which visibility other a lot cloud lot a competitors, all API quickly. including combines is And It providers. the -- cover value out a it the we because of with an perspective we from drives lot again, that companies with have very now So runtime there. three of offering the private are a differentiated protection from unique

I drive being up sell lot feel really that And space. it, the a to without space skills in and we think speed of about we've really into sell get we honed our So friction. into people good continue to and and to DevOps able value

next Alexander Our comes Instructions] from Henderson, [Operator question Needham.

Your open. line is

SIEM get seems markets, those of platform. that seen guys and to of make a have little the many that turned as other XDR really they endpoint wanted taking plugged it allows the extent end the lot people me been bit But I platform companies you a as company, by results a are Spectacular in clearer niches a the, you're that to have that of It that front again. that, pigeonholed term themselves concept a redefined to to end you have as XDR and XDR. say, be been not And around into extend companies platform. in then but needed an the to historically markets product platform. realizing separate does on

can about is whether spreading that breadth through there the So of and that whether and of line? or that's out talk and of little customers your of the issue they to understand product you see confusion a your importance any the flood bit the expense that platform

It's looking a modules. the as thanks, platform really just Well, the We've sales that's company, endpoint company, mean are proven as at Alex. it. I simple missing we before, of us they're picture. an I Security I XX company, as said great that I folks And think pigeonholed big could if force a question. as endpoint are say

homework, rates. there. when you will can see see and attach they customers to they You we're And to look if talk their do and how talk value, folks and really the they consolidating at the customers,

data market, Graph best in much XDR, list. as of we that the Threat down is from others by validated the which who Threat about Humio right? EDR have a And cloud-delivered think endpoint technology of with have and mean, I the security with that and start EDR by and IDC, our massive when And pioneered ours. you acquired we to extension we some and is It's Gartner So combining company XDR, the pretty moat the been Graph. with the

I observability a think as we're well to the narrative, drive Humio in of threat outcomes stand-alone narrative. independent the that's declaration attack right, detection a as unique as management the able platform. be of And to threat position additional log

as an on acronym, trying glom if really innovation are point, not your this So vendor XDR area. just work. lot to to kind in we're driving it's to of SIEM going of And you now a a to

world. with CrowdStrike. in EDR have in my You that's to the opinion, And the start best

Thank you.

of next from is Our Thiel question Brent Jeffries.

line open. Your is

the really on that XXX points You I question. Joe just guidance should contraction I travel an And then, we annual maybe through that forward on XQ. going just Burt, for can and takes you acquisition-related Is of of think leverage about Brent. have walk investment? in the basis? think puts implied appreciate how margin?

Yes.

let total. start first, in margin operating So with me

were So to in attributable, this garner that obviously, XX%. really we side. came over that unit lot we where certainly And the economics of sales on we're is quarter, the to able proud of a

margin. pick So whether operating we you pick that's margin magic that at about you remarks, have level. lot a things. XX think starting driving talked few Rule a the of number think I in When or that opportunity is that of about One the prepared the future, we about gross we

the that that do I and we opportunities, to margin think time, -- key looking in grow we investing model. ago, But not rest think P&L, to I of strong that our we're that. And continue is to the go as as strategy. that, an I have the you gross investing think range and we to we're to our leverage continue to And I that raised and not expansion long-term down innovation capabilities same R&D, do then and away scale, in long think we opportunity in invest to the aggressively. of I core are. in going move who then We're opportunities we at from want for to

and that talked be about to So I that we able us. see going continue invest to eye I that after ahead of exactly opportunity what to go think to that in massive on our we're keep

think it. we about how that's So

you. Thank

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

Your open. is line

data integrity security George, are looks a an CISO to monitoring, of FileVantage like sort addition file sort in just was fabric talk about you post-COVID for such it of customers platform. it like great of important sort why what world? launched, is but I a Can know new saying? of sort the of that this piece

this the and implement system Yes. getting requirement. them costly the of technology. technologies to it's that and and When industry, down. have services and FIM, and and you consolidating it and our excited good simple weigh to things about we're financial Thanks, compliance like think who complex Matt. PCI It's files controls about And in a changed When around change what think are of goes again, agents about rid question, strategy other and you you that. pure understand

we've a the there, well So We've it that's extremely various box a because company received a regulatory is do put the just been of about able lot standards enhanced exist. some it's any frameworks been to that out into check current a and literally for it for that module. time. long given And features,

you. Thank

comes Our next from of question UBS. Boyd Roger

Your is open. line

how mentioned in federal collaborative programs CISA And you but little that was? the role here, JCDC. really, gets if on threat -- talk competitive this, government it the the the especially an incident you helping about follow-up A intelligence, like that played more role contract. selection process more a the through response achieve Can

as Anything Yes. competitive, federal in the you government know. is

by partnership it that's certainly we and the choice government believe and with that been something technology choice Just a and I've needs. believe proven technology that's in it's saying do great that time design, them, -- and a long the a way for to great

other space intelligence, we're not partnership endpoint early about the you think an excited unique threat having maybe as the And they're And intelligence as again, here. robust about one anymore. that very when group, there's company security capability a has in So ours.

that again, that to of not the And combine our government. but the again, understand all value, is the an a you to the identify great adversary-focused these and other with attacks. is breaches. across We perspective, We AI our into and technologies. And only differentiated is customers, drives that We important program I managed very government, stopping for have some So sort it approach what we taking from going how a for of right? outcome it understand services really services, of my be differentiator U.S. adversary doing. then to think

Thank you.

Goldman Essex comes from Brian Sachs. question of next Our

is line Your open.

could a I just a if Was guess, the were higher. a larger of George, looks little nice you a breadth cost in could I bit sale what strength better bit? of Maybe that like behind drove customer if looks understand better, have and drivers like little Maybe adds Was from the it ARR. little of the into us it it upmarket help quarter. logo you bit added average pipeline? the increase the kind It logos unpack the a bit, the us ARR new landed new in

that I'll Brian, Burt. take it's one.

with problem. first, no Yes, the pleased we're So really

the about logos, that new pleased us. I think, performance net were acceleration ARR show Over again, the logo We second high the was deal X,XXX really logos. time new new that's in we net also, excited with are the It's hit net quarter. a very adds the to we on able that fact watermark, in for the big

terms I we had that If kind mid-market exceptional MSSP. In of in across well the of to particular, in I performance enterprise think anything and highlight strength they as some saw where we came board. on, in was as the the

we that board. quarter. or the that that able had talks talked the that, the strength to remarks the were in quarter. to no or And that's deals this $X no of platform oversized the to you you the And on that we the this outside the about million all and increase to again, outside so remember, the put success contributed able fact I broad-based had we the prepared of -- on performance that along some with And deals, were when see put together,

Thank you.

Owens next of Rob Our from question Piper Sandler. comes

open. is line Your

Justin is Roach Rob. on for This

follow Just do the from and in opportunity? this this like Have network endpoint security the the guys number of your seen any largely cloud wanted up CSPM still and given the view players greenfield area, a you increase out coming you solutions Or around in to guys competitive as pressures CWP. both it side?

opportunity. it's think a it's because protection, the all early-stage We in players we're out and which actually cycle, Obviously, position lot that for are is this is a the important. a so early of a there, you the opportunity largely don't but companies massive I in greenfield out run great think there. of have time lot life the have a players

APIs, we connecting, right? of together, of tying tie two those You talked servers for our -- basically from that although It attack just agentless indicator a in because customers. important we we've getting information have some way about wins. the these ported technology really number is A that wins do And just to cloud them think, about I that of it Burt together. involve have. across lot isn't differentiated big of technology,

but even pipeline. them CSPM deployed. in management, things be that we CICD we together are vulnerability the can can Protection Workload it We tying inserted have works images, technology. for desktops, and So against look being Yes, like from can with that Cloud we prevent in vulnerabilities

creating are technology So elements a adopted these all that's DevOps. key of widely by

you. Thank

Jonathan Ruykhaver Baird. Our next question comes from of

is line Your open.

strong on that Congrats execution.

case. a as see you and near You've to XDR comments, overall more just and wondered around bit to it could in on use term additive if contributing log use this what Graph the touched talked Threat push Humio about the you see benefits platform how longer your George, ingestion little talk of term? but And that just the and case you into and data a you the observability obviously, broader management the relates nature to

security. past but wins outside had environment, is you Humio, if it some out all security use the Well, really telemetry, telemetry observability Certainly, to Humio make this it about quarter big information the think case, platform. even technologies various a and a there, have telemetry is all at like we've with scale. gathering, a of all have you today's sense to platform And they're

So, since the Company. it's us acquiring for been opportunity an amazing

switch before, particularly and open customers opportunity driver opportunity of that to right Humio. with shining I for and said massive as with got out revenue I a underappreciated a think business people there, a us a as we're lot future. into dissatisfaction in are like of vendors, And wanting working as a a really how that, I to is see lot now. We've the star, we technology what current huge

including Falcon you that management that, XDR? say log that Is on observability When case? is and more use the

the starts about give Well, attack endpoint. some Falcon log threat question. that can you XDR Humio, going detection think visibility beyond When into a scenario an you everything. you good a it's a outcome essentially is and to

You much forever. can store it pretty

to it XDR. use connect it core to your You from to information security, observability case can you use drive the can whatever of That's outside connecting to, your just to Security not are XDR connect and goes Humio things performance like HR management to it and way things want you that. all system, systems, cases your in beyond workflows the various environment. that

Thank you.

Deutsche of next comes Our Bank. Colville from question Patrick

is line Your open.

understand kind partnership of growth investors next-gen the the kind Can partnerships? I I in hoping partner-sourced know the that guess, you And hopefully around, deals. other just partner-friendly. in remarks a opening statistic a right? of I shared reason I have that sequential ask about is some because the of mistaken, vendors that dynamic. guess that you to talk I EDR are not I'm mean, I'm more XX% just concern if

be very kind any helpful. to the quantify CrowdStrike around you seeing give kind try can trend color So and would there of partnerships and of you're

Sure. Sure.

was MSSP It and year-over-year. XX% just very digits clarify me triple growth Let to on be specific. quarter-over-quarter

partner-friendly. we're So extremely

where are business I our people from. that are larger think some sourcing there's there a to the because partners system, should we probably lot in of talk that's out of and noise the

are opportunities partner Our up.

partners of money Our partner-first And us. is company. a with our to goal lot be a jointly making are

-- in the So -- out with what done. that. of been and you FUD rightly it's said, and that's point that's a environment. lot We've we've consistent very you as And

Thank you.

of question comes Josh from Wolfe Research. Our next Tilton

is line open. Your

for for Burt. This I is on just Josh. one have Strecker

year just helpful. year, XQ. year framework? But So from This to pronounced, be But for you seasonality, is again. a next the had that color net new or there We're increase not you is should there to sense. less guidance, as provide sequential look any new looking goalpost ARR expecting as will -- mentioned start a ARR will that be but net not out net and year XQ -- and to the new very looking we I'm to model seasonality next we we seasonality any makes

Sure.

me and record momentum, So start. notable so -- financial the already we're a landed QX. off new record pipeline, But at financial first, We've in a we $XXX financial large great QX record is start obviously let got global proud to again, start this really year. with to QX and that throughout net a of great million ARR institution, super coming off that off record strong of a

comments guide to the don't what when -- not comps, what that when fact at we to don't tables. guiding my running guide more to we we you and So to we We to are know, when we obviously, we're the revenue, look guide know.

bigger, And I of don't about just have and so into you put large The us. that tables, perspective when and -- and you for numbers, numbers you're then are comment for the to put that's comment as wanted getting to law everything you think the bigger running to us. great guide But why know, that's going in that there.

Thank you.

Canaccord next comes Mike of from Our Walkley Genuity. question

open. line is Your

on Daniel Mike. is This for

new your Preempt in? the broad-based there were you net remarks, previously identity pretty demand while they notable strength seeing you're did Are stand-alone. any that prepared the across than Or So more the was the board? modules generated customer noted ARR segments

now And the protection, said, do And visibility right. Demand runtime that Customers critical integration is than protection see a And identity. board, to customers it hit we're agent. effort three-legged they that thing took to it's single point. and we a as identity seen time as across stand-alone together understand security. We've the love an the it, stool, the is is really had They massive Company inflection of data value integrated broad-based in it. that triumvirate, that's putting with with that the growth all more we and company. Preempt the and

a the So seen across you over don't contributor. XX% as any a we look key financial in year, services, identity, And from Sunburst retail, in It that massive is of even the malware. wins things manufacturing. board some which last the problem company. in for breaches when massive obviously, pointed using use They're was like at out, we've attack

there. any element So And and malware a that looking that's beyond it's key above actually ransomware, people to prevention out stopping to up. shore are

been us. they the it, of So another customers have big stone, a we understand value it's and understand that and driver for

Thank you.

Shaul Company. question from Eyal of comes Cowen next Our

Your open. line is

that George, light some customer know joining net actually you is CrowdStrike I customers Congrats question your quarters on think have course months, on take. been give and specifically in on quarterly of prior alliances that new XX to have additions, question now? Is been fact X,XXX to in the beginning My guidance. and leading of the the a or two revenue over was about impact row adding the XX and about partnerships. that the I has results there past,

question a bulk bit? It's you garbled Burt. main open. because is your just little got of line Can Your repeat it the

joining question course asking, have quarters, net past the acting A the a been Burt, customer XX customers given you've about of specifically that, and that is on the XX, to Apologies. additions. beginning new Sure. in Sure. alliances some over I'm months, past two additions over row. leading now impact X,XXX the revenue

Well, some past, look of out, but it the at we've a is has. think Zscaler when sure the there's I can't example. I you companies And a in about that everyone mean, talked good lot. I'm I single

of we're in And customers. we're we're across into doing traction one look You and what a board doing what look the it able meeting gaining -- integrations makes deals, deals. that's at we're them an the and network in into the technology pulling the adding and from with what us our perspective, just at doing, that partnership, value the partnerships. We're alliance doing and on that pulling lot with field They're to customers sense. We're that they're data, example. XDR share to obviously those you side,

comes Powell And Gray you. our last BTIG. Thank with question from

open. line is Your

Great.

just more to question, about but a going I'm if know you're an So yes, that's how you've endpoint endpoint provider, platform I of talked an company than ask okay.

endpoint the two a So level, perfect How like just demand in storm. you last been feel space, do strong. the about just near really almost I'd it's years call it the high the next the than same, XXXX would for relative you on the a basis? for market? do as into looking market whole, better a be Like XXXX environment year think worse just or

with cloud right, extremely opportunity, proven and things we've have it the in you And the out the strong. like the et opportunity players that at doing servers cloud replacements, that for us, that's look you when When adoption, Microsofts, what a see the I there. and you McAfees, at cetera, massive market expansion, tail. its there, Symantecs, look we're legacy massive long are totality,

You that one year. in don't do

I And as -- that the next-gen as even for smaller some So there. are those next players pointed we customers but driver I I base, big see a year. opportunities as get mean, out pointed out, that the even we see with as out of it's a as dissatisfied players,

but out there's out at scheme So our and are legacy there. because, -- overall bit you technologies that got and you see to and of a customer will as small are still the and are into bifurcate again, that massive that in there it's fantastic, count, a pure lot endpoint displaced. customers still it's of cloud, if And grand I both be opportunities look

I'd Thank you. turn remarks. I'm showing no further at to Kurtz George over closing this for any call to like questions time. the back

and certainly again. your appreciate interest you we today, we'll seeing I to our forward and see safe, virtually want look and you to thank all your of upcoming time investor you Be Thanks at events. soon. for

conclude Ladies for and participating. does this gentlemen, you Thank all today's conference.

disconnect. may day. now You a Have great