CrowdStrike (CRWD) 7 Mar 232023 Q4 Earnings call transcript

Thank you for standing by, and welcome to CrowdStrike Holdings Fourth Quarter and Fiscal Year 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the call over to Maria Riley, Investor Relations. ahead. go Please

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

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

we because expectations While differ are risks could make any on we current based uncertainties. statements believe actual to and are results reasonable, forward-looking the subject are statements materially and

including expressly the obligation results from Further could information result and and future otherwise. of or undertake a not factors events other disclaim new as or do make to the we alter on forward-looking in whether time any We Factors information, with the titled section statements, that the and affect to filings included our is annual report. Risk update financial Company’s time in the quarterly SEC Company’s these

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

to With will turn George to begin. now the that, over call I

and Maria, thank joining us. for you you, all Thank

across points. board. today a delivered record few on focus key a expectations I quarter our comments exceeded will fourth the CrowdStrike that my

challenging record of $XXX a operating retention is of environment. cash rule the and macro of record of strong customers well income, showcased by new is quarter’s CrowdStrike in on fourth free million, flow best this net We a million basis. a record record $XXX ARR XX free First, flow cash exceptionally executing rates, X,XXX, believe new net

Second, of of faced a lower better efficacy security low and customers. AI total and market the consolidator. TCO dual for share the that leadership ownership showcases and platform’s mandate Falcon CrowdStrike’s strength automation high cost the leading growing as technology CrowdStrike advanced outcomes, drives

grow. reuse conviction to We our collect leverage platform opportunity our data third, share to AI-driven across And in markets. see expansive continues to a opportunity our massive once, CrowdStrike’s many times expand

ending As grow our and and sometime Burt to line reach and to model we investing steadfast bottom to balanced fiscal in $X year ARR of both, target year billion by remain our our within discuss, to XXXX. thoughtful continuing the end vision drive line are top operating We to growth. fiscal approach will XXXX

work a strong typical platform. budget not our to record into our continue elongated wins as did see QX late the success organizations we quarter Falcon market QX, through to and The built the even demand was we and converted cycles execution key and We the fourth flush sales pipeline in as macro pipeline for concerns. as saw in

strong best-in-class and win ASPs a year we net rate rate. retention ended consistent, remain a high and gross retention and rate competitive Our the remained with

each and and of fourth their and for our quarter the our fourth businesses, QX market the quarter CrowdStriker the performance to strong CrowdStrike’s for resiliency our as every work pipeline nature believe quarter I’d to We best the cybersecurity demonstrates like in leadership of dedication growing date. cybersecurity of platform hard record mission-critical record. modern and thank making

about excited the of proud achieved and be of should us. we team, ahead a accomplishments have the As opportunities amazing we

to moment that billion. FYXX Ending several I’m grew take most a excited new record. We’ll XX% XX% Net that a about. new in ARR year-over-year milestones delivered team $X.XX reach million, setting reach highlight CrowdStrike to grew $XXX to ARR

total and year over contributed ending ARR million ARR This Our ARR, net growing of Identity over XX% XXXX. identity the time category standout XXX% X,XXX in which our modules, $XXX at XX% a emerging net of new million CrowdStrike’s million, ARR ARR all Emerging a which surpassing IPO included in net and $XXX new to for Protection to customers. ended $XXX was contributed product products increase. new

posted Additionally, ending ARR LogScale over XXX% growth.

$XXX a U.S. XX% From increase. the the banks. reach bring the XXX $XXX milestone and top X,XXX XXX a year subscription CrowdStrike added million. the view, fiscal of new million the to cloud net a XX,XXX we to serves XXXX, for now us of Global XX ARR record of surpassed public customers, XXX XX Fortune And to ending deployment customers

grew model. line, the operating On leverage reach $XXX million. grew to a EPS diluted year-over-year $X.XX. a the our growth a cash achieved outpaced for third FYXX bottom year. consecutive revenue Non-GAAP $XXX and to the income operating XX% grew income XX% million, flow Non-GAAP and record in reach well at growth, reach Free margin to we XX% least XXX% record showcasing flow free record net cash

of the Market share, as Endpoint consecutive wallets. year posting third report grow annual IDC’s in Security and for Our by their XX.X% ranked market all market Share voting largest leadership outpacing in with increase the share. for are CrowdStrike platform revenue vendors continues choice customers first with Modern Worldwide to their market

Frost technology MITRE, Wave, has SE Falcon Quadrant, awarded been Gartner looking the and superior Falcon’s or recognized TrustRadius, be Peer you number Magic The of a tested lead GX, efficacy for a widely regardless Gartner Insights outcomes or position. Forrester Labs, continues to Sullivan, superior are delivering whether & one platform at of

EDR endpoint time is the highlighted putting help has security XXXX Labs consecutive Development. and in innovation recently era. third most XDR us customers was in Best EDR in This position enter CrowdStrike Best by best pole the further Product category, reinforcing and to SE our This the award the that for won winning the

Additionally, platforms consecutive Quadrant innovation, to attack protection this including for again for to in long-standing a We our adversaries was third believe as of of once CrowdStrike leader endpoint vision our use record disruptive Gartner’s right and in indicators time. recognition track cyber stop AI of for the of the positioned furthest completeness highlights Magic year. real

to While designed the use up the CrowdStrike. platform become cybersecurity. across and in to topic new in to a and pioneer identify of and through applying platform. chain. AI the detection a enables of effectively fainter activity the From correlate day, volume entire to prevention response, of process AI this is spot data Falcon ground kill signal required has new earlier was the from The not effective massive it leverage Falcon AI our and We for it were and

experts efficient platform leverage in drives our science and become have prevention more across to leveraging customers. best-of-breed than discovery deliver better, and immense attack for our the We outcomes data customers. This XX,XXX more for

reduce a agents, of This complexity reuse from built Falcon current advanced exact engine was its macro is is acute products imperative climate, clear that There platform reduce customers: given customers and they for and and it collect simplify more from the is one mandate AI cost operations. number want reduce point many headcount, to day mandate even with once, deliver and and to the architecture. the

that CrowdStrike cost accelerates to customer. delivers with our mandates savings on hallmark for these customer immediate value the time

few consolidation, to a TCO Let’s better that look CrowdStrike environment. and lower customers their outcomes a at are drive take using realize within

threat multiple protection financial our drove products four Falcon holistic on to the and of CNAPP testing including replacing customer incumbent along cloud One this Fortune platform. leading over Falcon and decision quarter Their visibility, enterprise play superior with was proved new vendors. the marquee that with and our vendors the environment hunting both, wins XX a Trellix, in These to approach adopt offering and prospective institution Falcon’s Micro, Symantec, and Trend with is consolidating abilities factors, integrated Falcon’s the protecting Aqua.

highlight F-PROT customer reduce outcomes. deployment Falcon customer a eliminate Carbon of multinational to Sophos, and I’d and Falcon, their provides with eight vendors. agent like they security partner the vendors identified including them TCO This Microsoft, security ClamAV. Trend Black, significantly to Trellix, initial fintech The company reduce platform Another ESET, of a and bloat, for their hodgepodge complexity, improve with to Micro, reduce ability looking next-gen win consolidate could legacy their was

gain solutions. management purchased store Additionally, security to customer avoid log its LogScale and performance the existing to better data this associated with cost high

across cost this Falcon win quarter wanted their that customer per XX plans leading that orders tools. query over was delivered log LogScale with system. terabytes with retained time. data expanding LogScale gain now existing than their testing high management legacy data with faster usage global faster Another the of on as associated is of their to standardize financial institution and volume the LogScale magnitude Their a increase day avoid This well close the query results to of ingesting showed of organization as to speed,

like share logistic wanted customer round-the-clock In win to with transportation exciting expansion adversaries, stock. the this is a a The sector cyber and next you one to with global highly Falcon Complete companies. targeted largest by of I’d an XXX-day

for reserve and Complete, determined headcount. best Falcon this cost-benefit protection that value analysis, identity customer after adding While internal deliver headcount to Falcon this build Complete customer the protection coverage, budget an stock, performing including and had thorough out threat would without a

time and security protection run Complete was the program the identity aspect identity win cost to and it they without to associated with a internally. managing sought threat burden, Falcon key for effective as an mature

internal Even stopping fewer many normal and the the become new outcome for CIOs. companies, one has CISOs of breaches doing remains if resources priority the for number

the threat the in of number increase the campaigns cloud our As cases XX% global growth remains in exploitation an XX% threat of cited elevated interactive number observed with in XXXX. report, intrusion landscape of and

can compromised catastrophe. Compromising added translate complexity and to coverage, on security easily

take a no is actors. enough to free. OS point, against Good Let cyber recent demonstrate the after participation clear, good adversaries. never up is signature-based an a I’d product me perceived never on coming that share win breach free vendor for be enough when a suffered with second claimed on was company threat good cyber battlefield today’s on legacy trophy and place their is to that my there relying To like in

deployed take find threat initially replace Unfortunately, leaving existing into This Microsoft their their quickly across be service environment not these ran but heterogeneous they vulnerable. fully to company when AV breach their and trouble actors to their within environment. did products that had for could long gaps chosen it discovered not Defender estate,

incident They remediation SI part partners, service. responsive turn to of of a as a Falcon our that key global leading response the one uses

fall that than and heterogeneous Falcon they operating engagement, signature-based found to needed was short determined systems. Defender the far functionality, efficacy the much cost It The CrowdStrike enough CISO obvious as in the became was faith low-cost, and customer to simplicity excluding adopted simpler still technologies, superior and also protection this operationalize. times quickly of lost breach, customer Having Falcon AI that more Microsoft’s new across to coverage company remediate would protection During Falcon. Complete. why provided the X.X twice and this world-class much of good promise to cost Defender

organization proactive of professional Our engagements The professional through services To or past a to $X.XX for is response the Falcon services services of incident has dollar to years XX, organization’s revenue lead average summarize, as XXXX. dollar professional January our these new ARR. into two services in generation $X.XX every CrowdStrike of platform. per from strong the turned ARR grew engine derived from

grew to ecosystem ARR MSSP over ARR ending lead In also grew year-over-year. growing become over Our FYXX, source thriving generation. is a XX% XXX% partner-sourced and powerful of ending partner

channel expanding in with our top the as of through as further in in total market to partner within the SMB our partners expanding ecosystem our initiatives Additionally, reach well of down XX% revenue one is enterprise FYXX. investing goal strategically grew revenue, and the of

through As partnership Falcon Dell’s we into to now to cybersecurity new we made Falcon organization cornerstone including recently is announced, multifaceted device Dell’s the traditional through a the go-to-market offering. customers a and new resell several Dell’s platform globally. avenues, as via sales agreement on team offered to global strategic for service direct Dell deliver purchases managed entered platform with The Dell’s

choice we expand enterprises partnership, to it has our S early and from Customers it large chosen so for in go-to-market the the as reach expect still across CrowdStrike have market Dell. is to this small While of the the SMB. platform days significantly new

Falcon or quarters with had starter two sensitive. with bundle endpoints as XXX initial designed little for package tremendous launched ago more be X,XXX businesses Go point Go We that may landing more less, customers and success a or Falcon specifically was new already through program. smaller a which price We the over added have a net our than

best-in-class CrowdStrike’s the organizations. in demand We S the smallest demonstrates for believe this the cost-conscious immense protection, even reaching and endpoint early the SMB success among

process We of out top the engine with higher removing of goal In even late friction connection January, we driving e-commerce the our of between buying the more digital of launched iteration funnel our next-gen and digital buying. in few conversions. post within these And in no-touch a advancements launch, and as weeks seen conversion a have just we increase into view e-commerce engine a differentiator. dramatic

the recognized SaaS, for and the appointment Chief and record market Daniel the cybersecurity structure opportunity, Business leading in channel has and customer dynamics within of increase drive created and velocity is several in our channels, SentinelOne’s development as a new different our a of partnerships cloud changed Officer. growth leadership proven traditional market and awareness. SMB all Bernard The as role transforming with from SMB the driven enterprise companies at recently through accelerate business massive high-growth Daniel most growth base. track as To share very well market organizational are and we

like us to him Raj welcome have to our drive Product in CrowdStrike the joined to with our Reporting I’ve I’m for worked past, and we the join from as excited Raj to also team to Officer disruptive identity, Chief continue team Raj also cloud endpoint. is and innovation. Amol SentinelOne. Rajamani who I’d Kulkarni, data,

on scale I’m beyond. as to he contributor to CrowdStrike responsibility been go-to-market President. and to alignment has our customers Mike and success are vision in and finally, leadership invaluable CrowdStrike’s proud extremely meeting with designed and functions. ARR we and billion Sentonas And to congratulate President, more ending key promotion the growth drive achieve his to an product company’s These me for Mike as changes time $X focus to across initiatives our enable of spend has greater

facets our and all In in summary, powers customers our protection with across winning markets CrowdStrike executing of them. strategy, is that providing

over financial to will detail. discuss in that, more the call our turn to With I Burt results

good and afternoon, everyone. George, you, Thank

my all except mentioned noted, As revenue a otherwise quick today reminder, numbers, non-GAAP. unless are during remarks

$XXX.X We finish to million the ARR new to strong delivered bringing with year an net over XX% exceptional a ending year. up billion, fourth quarter ARR, and in $X.XX last

saw XX% subscription we over XXX million-plus now for customers expansion XX over customer quarter, modules. strong expansion. an cohort our net the the year-over-year. X-figure ARR ARR average with million ARR $X In We of $X within base, have new Ending at including an grew ending

non-enterprise customers public fueled in net by sector Overall, we landed QX, a growth in of enterprise, accounts. record number new and

the and pleased strategy. with continue success We land to be very of our expand

a retention net last the throughout was ending bigger which above year, rate at base. benchmark dollar-based XXX.X%, the higher XXX% QX Our is than much year and on

XXX.X% XXX.X% For was the in net interim QX quarters, XXX.X% QX, FYXX QX. in in retention and

gross Our best-in-class of retention exceptionally as at strong year-end. rate XX.X% remained

and X year-over-year, with XX%, X more, and grew customers X more or or or Subscription XX% XX% more modules respectively.

represent the XX%, customers, cohorts and of XX% Now, module XX% respectively. adoption subscription respective

in our we metrics investor our the website. Go we momentum for have with customers bundle periods these Given metrics our the excluding modules of on prior Falcon provided from small strong very businesses, seen three comparable have for module now are and adoption presentation

dive forward business on through given as our that have an look the number discussed our don’t of quarterly reflects exceeds usual we for MSSP end serve of as are reporting logo scheduled growing cohorts of annual on George downmarket annual our We we Therefore, partners, webinar fluctuations we our deep Xth. details, that XX,XXX customer and bundles, we only. to the appropriately new the additional basis providing investor discussed, estimate including previously. metric metrics which Additionally, our logo to in customers health moving smaller April we our believe

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

XX% revenue terms margins year-over-year. QX, growth to In XX%, international respectively. strong continued performance geographic XX% at XX% total U.S. subscription gross of the we were and in and at quarter non-GAAP and our Fourth in see growth

by QX, X optimization. we up quarter-over-quarter, to to cost driven percentage into increase subscription point margin Looking expect gross by

expenses was efficiency QX, our Number and the a our quarter of In revenue of and XX% expenses operating operating Fourth go-to-market year compared XXXX in revenue of fourth reflecting non-GAAP billion, operating the Magic were income $XXX.X fiscal in year year-over-year Operating $X.XX year X.X, to million, grew XXXX. to reach non-GAAP fiscal in continued XXXX respectively. of million and were $XX.X engine. quarter we reported Total fiscal XX% XX%. XX% record margin

at non-GAAP year operating XX% the income basis year. Looking fiscal of XXX margin up $XXX.X XXXX, reach and million to revenue, growth outpaced points year-over-year of increasing growth, picking XX% for operating revenue

As our model. have Rule a and XX reflect, we highly of Number Magic efficient

three we robust drive growth For with than faster income the remain efficiency, leverage. and have focused years, increased we past to revenue, operating continuing balancing on grown

market we XX% took we of team in advantage saw In by FYXX, year. and opportunities labor the over the last expanded

than CrowdStriker to to goals us the hires and We are new the gives now strong. invest continuing long moderate a head significant term. enables for to us our FYXX significantly more achieving This for responsibly while pace of X,XXX start

net attributable on grew million the per CrowdStrike $X.XX income basis. $XXX.X in a or a to Non-GAAP QX record diluted share to

quarter shares. shares EPS totaled XXX common a to average approximately was to and non-GAAP diluted weighted basis million calculate CrowdStrike on attributable Our fourth used

cash cash equivalents of year a flow of to million to million. XX% revenue. Cash million We XX% with Free XX% the record brings and $XXX.X from a increased or to This XX% strong $X.XX sheet. a ended or $XXX.X cash free the year-over-year quarter grew flow year-over-year revenue. to fourth operations short-term flow balance record $XXX.X approximately grew Cash, approximately billion. investments for

view modeling a business the provide on to current few our climate a ongoing like I’d few notes. guidance, our how to comments we of macro and move impact I the Before about

have pipeline. record a record a delivered QX and QX We

full very ago. ARR environment on and budget net continued up sales new cycles, of year expected year albeit we it discussed imply flat elongated year. to than last we low-XXs three the higher is for months call our rate normalized scrutiny ARR the a with This first that the increased believe assumption modestly ARR year-over-year, macro a to maintain prudent growth on half for a the FYXX However, ending current roughly given assumptions of base would earnings the

guidance our leverage growing the for with we to deliver operating than As margin income implies, full year operating revenue. expect faster

leverage to margin operating expect weighted the in we year seasonality, of to of terms to back FYXX. comparison more be half In the

deliver free flow income approximately This revenue of in taxes of to as expect million and margin cash of cash FYXX. $XX for with compared FYXX a outlay percentage a CapEx between to for We XX% X% $XX FYXX. X% million and approximately assumes in be in revenue

count of income And with we million as expense consistent midpoint interest we interest implied to to increase lastly, The remain our $XXX in weighted less diluted expect XXXX. assumes guidance share our fiscal in X% expect non-GAAP average FYXX. FYXX than income, and in guidance,

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

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

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

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

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

scheduled details look on April our sharing about next investor We additional business Xth. forward to our for webinar

take questions. now your will I and George

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

here. my Good question maybe you… for taking afternoon, Hey. Thanks guys. George, for

Thanks. Saket. Hey,

if there all, wouldn’t if Hey the you particularly my to and industry is talk that indicate Very Microsoft Microsoft it, helpful switch of curious impacting The customer I’ll out. competitive example direct numbers to but can George. that general pricing? how, about certainly Maybe environment, question at you. competitive one with just respect backdrop

Thanks, Sure. Saket.

when Certainly, where I in gained including do think been you’ve think we’ve pointed where Our which have ASPs is market an any positioning, competitive on to modern And just were in the But we’ve I we able example, X.X outpacing the percentage seen than at run that I market. very more out, IDC’s points, XX.X%. security share designed some promotions consistent. be share, is remain endpoint the vendor, what you been which SMB Microsoft. to we as as we look other promotions, gain focused And run.

And that systems, are is telling because operating multiple security X across And the enough. customers Microsoft, of been good what really consoles. not winning our we’ve good enough, Microsoft’s is us coverage complexity of

catastrophe, In alone, signature as is response during last in updates. And are engagements, Cs, Defender. X using incident them they of fact, the systems majority one X just our I January, the that are breached the today call the had

you from consistent. So, that good together, competitive a remained wrap we feel again, ASPs about our have perspective, positioning. when pricing And all

Thank you.

Sterling of MoffettNathanson. from Our the Auty comes line next question of

George, you velocity area business? that I’m you a there if terms the seen to sluggishness what in that’s wondering you to layer actually SMB. much So how we’ve what my you’re of What you? on, that doing because durability deeper go doing some gives think do the are touched that business drive with vendors. one on kind And you out is drive question in of can of

really we’re excited about Well, segment. that

And big and of channel remit, Officer. As was SMB He’s in our his not Chief I a part only partnerships is we Daniel mentioned, hired the who at SentinelOne. now Bernard, Business market.

with the You Dell. partnership saw

as partner piece an market. endpoint in exclusive for excited their We’re the that about

the is when perfect SMB the Falcon it really a market, then about And Go, think very for is lightweight SME/SMB. we that bundle

And e-commerce some in And engine seen technology frictionless best make acquire markets. our great even customers. updates only to it to more go it’s can the we’ve the in down got motion those market. it also best partnerships and we what go-to-market believe channels. we’ve making that our we not with delivering done adoption is So, We’ve but

So, on to that. focus we continue

innings want SMB why again, But which they wanting still Dell technology, that we early were SMB Dell is but our are of our the early We’re selected of journey. to and and in in They’re the this. go, the very innings telling customers by more favorable market. likes

you. Thank

next Fishbein from Our of Truist. comes the line Joel question

Mike, promotion. Congrats, Burt, the for on you.

Just -- you had ARR a very tough comp the this quarter, net X-figure and you called new out expansion.

any Just big color That larger really like a on to deals And quarter? how obviously, Thank get is as those the would quarter, contributed helpful. any that more you. this to be trended renewal well?

really were we Yes, sell deal into an an being with Joel. able existing X-figure client. to Hi pleased

general, happy as the well overall of as were with I our million-plus think deals really we our in SMB. mix $X

just overall, well-balanced result. quarter, a really really So and happy we’re with that

question the RBC. Hedberg of from next Matt Our of line comes

metrics. year-end of great lot a George,

And why? you look the think you forward think ‘XX what out sticks do what we’ve fiscal year now, us we’ll emerging having which exciting. and is and identity emerging growth really product the said Fast from on product particularly I biggest incremental hearing. impact a at from back to been

Microsoft. single our easy modules a actually to how of it including of be identity, excited continue the agent us. turn called those on amount business between to this likes of It’s as tremendous in competitors, we what differentiation competitive and big we versus one a Well, works that’s super have for out. you It’s about

really So, about that. good we feel

And called then, LogScale. I out

tested. able have results, we’re world the one I of in think the understand that excited the sub-second battle incredibly financial -- to do that. search institutions scalability largest about and They technology, adopt our to what it’s in

has surface, post which the even our adopter management of fastest-growing of been attack modules one early sort surface And enterprise is acquisition.

showcases So, great the platform. really sort growth. large, business, by of I emerging of look there, cloud, opportunities kind power the including And the when think fantastic you of and at it

Our next Piper Owens the of line from comes of Sandler. Rob question

seeing us tip as you new as with at some question on the bit, seeing you can those a And of modules that? to are emerging spear color little this the Building point? customer regard Matt’s give you’re acquisition

come how Sure. of -- customer easy way nature. AV, of core it’s When EDR, like into to family, the get when up can and we But about the running. endpoint, CrowdStrike traditional things something been surface, you modules certainly a it’s on your look at think the that has so

you can anything. trial, in, use in to a get can don’t it, have we various you And customers install see you Just coming ways.

think is LogScale example. I good another

Someone first they might think plenty enter cloud they have in even actually of we us our might us before have that a actually faster, of at looking and we give and a their way. cost need to And SIM offering, current this about at the cloud saying, scale looking the collection at and and then when that deploy something you expense better, the can "Hey, data that’s customers of come and on for internal cheaper," network.

in and various customers think modules are. coverage got breadth needs enough the the can get to depending we’ve that I ways, on what in in and their So, marketplace environment, us

Wells comes Fargo. line question of Our the from next Nowinski of Andrew

partnership. a the macro. nice a Okay, the I change from had in great. Thank you. not Great despite Dell on quarter, just last question seeing recovery real quarter and

So, will really help guidance? it will color ‘XX you your reach work? that as you I fiscal how all relates know that us enterprise. it for how large framework I sort can was any it any about give thought said interesting. the And you’re around you SMB of partnership And But, to thinking to way maybe customers more up

Sure.

that. of first the Let me part take

Dell, the about doing So when be with we’re box. what on we think we’ll

sell computer. buy actually So, button you have check actually a as the Dell and can ability the box to We’ll it -- on to will customers. Dell shipped a you be will subscriptions

and so interesting, they us have side. as and small And will think XX% bundle, so the a managed actually of their service, cover on of really be a which they Fortune have service, part customers. is to a large they that. that’s And SMB selected service service XXX, managed drive part device endpoint subscription I actually the they their then of

excited because have really technology the about. So, it clamoring showcases And this there’s the Dell. which market customer and various in go-to-market pull motions again, technology been with our leadership customers we’re think I them, to

talk So the to you Burt, do outlook? want about

Sure. partnership is the just Thanks, George. started. getting Look,

factored our guidance. not that have we So, into

with As reengaged excited any with to we does but are time new alliance, to take it ramp, Dell. be

question comes (sic) Bank Liani [Tal of Our the of Liani] from of America. Tai next line

Did you say Tal Liani?

go Please sir. ahead. Yes,

Okay.

hear I have name. I my questions. Sorry. few didn’t a

on expectations. numbers, was above beat above is EBIT but margin of gross not not down you So, revenues, and -- kind great much

to the Maybe, give environment pricing deteriorating? price in is anything faster, the is impact and with or and start I’ll it you of difference have beat revenues on Microsoft? pricing the that. Did about So, the margins? between grow to Just concessions order

Sure.

on really it’s about first, margin, gross So pricing. not

think prepared as I short term, impacting the that we term. in are to the which there expect X% long QX. fluctuate are in things And it expect in up few to a will it I But pay remarks, to we in dividends the increase gross said quarter-over-quarter. margin

in fully acquisition that’s is continuing term, to to believe And but data that right again centers. what we’re margin is continue short Humio, to do our One impact gross strategy. of we invest long the our the it’s synchronized. our that, not second, been with going term, as in And we is

will take some does of that So when off COGS. pressure our happen, that

drivers subscription margin So, strongly and looking I more And about talks things XX-plus-percent. some those QX think that which side. into beyond, our model, and of cost And to to as our cost on gross of believe the going for firmly move are we’ll still in be continue two up I optimization. long-term really the we

question line from next Morgan Fodderwala Our of Stanley. of Hamza comes the

about you a how this new days George, customers. opportunity equipping end from threat how yourself lot of in in you you’re handle being talk there’s cybersecurity. it And growing that of point gives sort real Can nothing about talked AI on growing you this to to around being estate on AI? focus Obviously, these threat? the attack strategic

started data when the We have we to are Company from security seen Sure. think that big able Thanks. we never a AI And identify pioneers in the one AI threats to AI, and of really prevent against perspective. been those. before about leveraging be

with data modules week. as all continually capabilities can the and our to and to smarter massive more continues use data train out AI across learn. build to we mind-boggling. different continue We telemetry our system. our put We that AI the into we collect It’s of And that get every

spear area, So, at through doing in That’s are endpoint, of damage. And when on workloads. the and they’re lead the focused you we where look and it is stopping outlets. data that’s really and our think when think technology the adversaries efficacy where the tip targeting, about breaking the we’ve breaches, proven our stealing testing in this I various and encrypting

moat at the And it’s about advantage and to a those get continue AI able stopping competitive the of incredible stop do what And end we brand promise breaches, to how does really is a We part day, and to of for implement the breaches. us. we’re scores. of represent massive it

comes Our the from next question Essex line from Morgan. Brian JP of

had the Burt, on guess, would of bit little in margins XXXX, terms dig XX% sounded and for I about XXXX, in already levers expansion. accelerated but moderation you commentary like you I you’ve in the of flow hit about for that you, it margins cash on a XX%. appreciate some in of operating margin free hires that see like to

that kind cash between next be? about two so the with success fine how think think over tune we’ve we better we growth the understand few the seen spread What should our we should expansion? -- have years, and models levers been you’ve that out consistently obviously, of you versus operating to But for profitability about the flow? far As of you. how model spend and should and Thank want conservative. the the the prioritization how you’re margin just And thinking given

Yes, great question.

supporting greater with we’re continue to growth scale even profitability. approach at rapid number our So our going one, balanced our to

about rule being Magic in we’ve always continue cost, I slider to are a to being bottom. realized a a in and best be but a that. at I to able done I to X watch cash Number and above a monitor think going think it’s manage the at operating we’re and all great at free growth, excited not that a on XX mean, job class. that flow of able And basis with

Look, for I in FYXX, operating record to QX and think we the XX% margin posted income operating year. growing

moderating think pace with who we’re hiring -- we’re that. And we’ve hiring the hiring to for last matters, and it And doing that for this with pace how about best. respect talked hiring, and that us, to we’re watching sure going that our to an we eye approach by increased really and really making the of of results that goes to the get to we want quarter get solid I what a our think taken hiring about I year.

from Sachs. of the comes Our Goldman Borges Gabriela of next line question

on taking on environment. So, I’d gave ask change you rate of to budgeting quarter Last to [ph] you statistic a question more deals XX% like the close. the

And to XX either So a endpoint George maybe on you’re customers, update qualitative for spend or I’m there. Thank quantitative you in willingness you. they what what days from sharing from an expecting versus looking XXXX any then yourself -- from were ago? overlay

your it’s Gabriela, great voice. Hi to hear

those this our throughout about see first, So over last quarter. we said do I’ll next George. did it and that to We longer for to we think are take year, continue us, did next we quarter. thoughts headwinds deals close see as what to turn consistent anticipate And with year.

Yes.

capabilities of consolidate of terms hodgepodge endpoint, doesn’t center. we technologies haven’t security terms There that’s just want that I talked their stack, that things a again, In isn’t that I there. outcomes. of and the goes think right, and to front out to offer modernizing that and And beyond in their CIO the the

market again, spend. there’s still to a out right? the numbers, take customers looking are massive, there. talked modern about go, XX.X%, endpoint and lot their consolidate And IDC more itself, think really you if as There’s technology amount that’s a about, platform to approach we the legacy were of And a massive

just are customers to with worse, that a breaches they getting something protection not any and better what with been not and They’re it’s sophisticated going require looking outcome. it’s better better. are have getting So, to more are stick threat being actors

of line of Our next Brian comes Colley question the Stephens. from

in the the XDR adoption has Insight introduced wondering if implemented acceleration you you’ve Falcon So, that seen share if those an ARR have also from or what then customers of there. kind could you uplift since XDR ASP I’m And average like looked curious XDR an front, strategy. XDR on and new strategy pricing

sure. Yes,

information haven’t that to specific of level XDR. now we given So,

it’s I I comment XDR, that. innings. think So as can’t we on still in when about industry, an the But early think

one pioneers of We’ve the into with We’re of out of XDR extended course, that EDR. the integrations.

I received think we’ve CrowdStrike it’s multiple the into is the early that far, CrowdStrike been and good and platforms got able decisions flowing or being on including across in still some platform partners but whether something advanced so to well we’re make bad data innings. incredible

that just we I’d add early seeing great traction. are

you. Thank

Our next question Kidron comes Oppenheimer. from Ittai the line of of

--off much very reference, -- opportunity I or a of was tier? -- Clearly, a ARR get tell it’s Go could bundles I as point then with think the the concentrated time? a in how you think you How is and hoping can very can do go much a you start you do where your revenue maybe of some color doing that us how there. do year’s within But -- for SMB. big you on to more good you’re that

imagine enterprise type customers is on that specifically of the rate, opportunity those of dollar any with Burt, the also, customer. to I And that similar retention can’t expansion

of about of those do I dollar of based impact retention type rates? think the the mix how of on those growing -- customers So, the

for to be not customers. So our come Daniel in space. expand. board. is certainly enterprise, just about MBR by enterprise George think SMB look, excited our coming talked got to the It’s we’re although our driven on going really we’ve We to Bernard and [ph] them about to limited great products

dollar than think ARR new going retention, net slightly from new as coming see next ARR I and year, we’re about expansion to For I new more coming deals net logos. based from think

we certainly modules and continue to incredible of and stack security continue XX,XXX delight more we’ve think them. this to base got their I that subscription to add can customers today,

we how that’s So, about splits. the think

comes Patrick Our Colville of Scotiabank. next from question of the line

is Scotiabank. This about Colville Patrick My question Hey. net cash. from is

basis of cash programs. limit balance the saw CRM, that Do XXXX last guys have guys Workday on you consider just announced Snowflake You beyond? that’s calendar and about and dilution net might $X something we go-forward think sheet. on to billion week, you a saw buyback in We

Look, proposition. that Yes. will every quarter we evaluate

But that. at what’s decision quarter-by-quarter There that were in just that’s a at happening to look would think do will up. we environment. come that I to go something We in do do like going many factors whether decide the So, we look are it.

evaluation. really on it’s a quarter-by-quarter the would do basis So, where we

comes of question of next line from the DiFucci Our John Guggenheim.

But of think the of this much has many as then guess, it integrated can the customers mid-market they and It how a versus are see less mid-market add-on do again, sort buyers you of IT. George, there. typical makes to since the could I sell -- solution. logos like lot I the easier new macro backdrop, buy think lot for mid-market Will mid-market like and new remind sophisticated I in have say. an really customer? to a to questions typically I sold sales. the several they to you sounds enterprise, -- could, a logos enterprises? and because I as SMB with SMB. would versus have tougher a it’s in it enterprise mean, them you but a quarter, it’s mean, logos security tough to follow-up new of I us how to especially modules eventually to lot or obviously this customer

thoughts curious Just your there.

Sure.

way basically we Falcon of end-to-end, Falcon burden a that’s for can lot sell identity a now and that into take modules. we two people, can have we Complete, this half away. where So security basis. multiple person. you In a about And still one about when have customers, billion-dollar on different APAC, an perfect think all in customer they let’s different. same headcount, the added companies person mid-market they -- think worldwide to a IT Complete, The non-enterprise much mid-market that’s sort mid-market sizing in opportunity but IT is U.S. a a account risk security that SMB. We’ve have right? think the challenging them And the are a than service is These a more macro So, still of problems. But example, as perspective, all from down getting quite environment the so. the great customer they’re the

companies are customers. Complete have Flacon We small very that

an they resonating we is And their the customers if So, they’re overall is environment. have, and that with breaches, outcome reducing challenging and everything quite lowering consolidate can’t macro stopping that’s is cost. as What that okay. outcome, complexity we digest this our in buying

back like the would Thank over Sir? George to conference for now to you. remarks. Kurtz closing turn I

soon. all Great. upcoming our of you webinar. forward look And to We and you time. you investor interest at thank certainly Thanks your I we’ll so want seeing see much. for today to appreciate your

call. today’s Thank concludes you for conference This participating.

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