CrowdStrike (CRWD) 28 Aug 242025 Q2 Earnings call transcript

Hello, and welcome to CrowdStrike's Fiscal Second Quarter 2025 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the call over to Maria Riley, Vice President of Investor Relations. Maria, please go ahead.

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

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

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

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

continued remarks my to this which want worked apology to everyone today's XX. with show us our File by Channel on incident. my everyone I gratitude Thank transpired moment also to your to XXX with Thank our living team broader history. start the take our relentless to incident, through us to of our the impacted Thank standing you in cybersecurity to July CrowdStrikers would and to like I challenging who for you our most trust. we face you event the as for company and customers for IT community with partners mission.

experienced. me of The [ felt XX commitment incident career deeply magnitude again. the ] most my in customers I following never and the never this on will incidents were lost because be July These among happens challenging our what my

response immediate, activated the and XX customers was Our the status through with in media, communicated and We response to phone CrowdStrike's e-mail, focused. lead social deliberate the incident broadcast. in large We our partners website, at July crisis plan incident. market to clearly

accelerated techniques technical response. automated devise for Our new recovery teams

highest focused impacted as of XXX% our were mobilization efforts host. and impacted large to the Our recover customers online, as at devices with partner of on CrowdStrikers in speed back then This level communicate and transparency. and bringing market transparently the proactively the well community included

a build within was implemented platform. already recovery the to resilient actions more many, For hours. We've Falcon following

First, enhance content visibility and control.

the when choose a with customers allows content granular is and version where sensor configurations. Falcon control Falcon cornerstone deployed control was content we've This of controls. always new released to experience, While new already operational new

over content work We've the security actions X external independent And These to process. long refactored validation. the content enhanced major properly to components are security and to in and function. quality vendors and software sensor which components medium QA ongoing addition enhancing been have in focuses both resiliency an X August. review were short, prevent third-party validator and did term. These Second, engaged Falcon and the and earlier enhanced not third, content X content made We GA erroneous content shipping interpreter, review shipped an on already release This enhancements. of process.

and internal sample that deployment response starts process safeguards platform of platform for and from our release customer canary the policy It best settings. The focused adherence XX lab we've the content with regimen. lessons SOC early future. and new learnings ring mirrors content July release built-in CrowdStrike, consists cybersecurity's addressed sensor redundancy immediately Our evolve ensuring now modes, systems most and with cybersecurity's incident automation will a operations, chapter into to AI and and incident a also concentric enhanced soaking for new testing, lastly, continue is on testing, staggered visibility, access protection, and resilient one apply these controls

QX our to Moving results.

incident execution July CrowdStrike's the Our business. XX of following highlights resiliency the

focus transparency continues inspire to accountability and on Our trust.

AI-powered Our of best protection to delivering continues validation track third-party scale. at record industry's resonate the and

in operating free million, of in technological cash CrowdStrike's to platform choose XX% Customers, free prospects the This income growing million, and of that July we trust the customers within of continue pre-incident ongoing results the business its stated our of need had they role for was by year-over-year. with revenue impact, XX XX of of why resilience CrowdStrike. close, July hundreds XX% and by of QX is of year-over-year sizes encouraged ending messages illustrate results weeks The of market of into the XX. These $XXX million up growing flow enduring profitability with interactions our quarter, ahead the non-GAAP the XX% customer $X.X have our pipeline. Despite In I'm organizations X in cash year-over-year. a ARR guidance. majority also in the at sales net meaningful flow in market XX% Rule I've revenue GAAP team. billion, performance, ARR subsequent new when CrowdStrike and quarter recognize QX the demonstrated of a thematically is the final Record consolidation. our consecutive $XXX financial delivered. prospects, assumptions. As portion sixth partners of it serving me. million, shared for of our deals $XXX incident, leadership QX the $XXX remain quarters. all of these and incident X deals our typically The delayed our vast and

to and necessity incident, doesn't our the response again. understand to ensure happen our it actions First,

next-generation compliance cloud EDR, acknowledgment personas diversified. digital, their IT, the variety stopping protection, innovation across AI-powered our of more portfolio breaches protection, years. and of covering over security, to the device is CrowdStrike support identity revolutionize for partner SOC, and CrowdStrike CrowdStrike our a automation be that steadfast cybersecurity's is IT consolidation and cybersecurity, than of and spans tomorrow's for much appeal safeguarding data leader for And third, platform gratitude record, their we SIEM, teams. risk of trust and security, to XX Second, depth modules cybersecurity, continuing Falcon breadth organization choice. The

expanded protection Falcon ending LogScale the Next-Gen hypergrowth Over the the once considered of [ in ARR These our investment the started market grew our Next-Gen cloud past SIEM, I LogScale businesses Falcon and security results innovation, our resilient chapter XX% power QX, year, reaffirm identity and more and the each security $X of year-over-year. reach our billion when the growth vectors identity in cloud platform. in than together next what surpassed representing businesses continued back protection each company. ushering platform, and outside ] was SIEM, of In

these disrupting markets. Let respective examples products how showcasing their me provide few are a

start customer wins, ASPM, CrowdStrike's next-gen and only Falcon began. ARR DSPM, across is firm, protection. XX integrated software Falcon faster with Importantly, deal an standardize $XXX each than opportunity year-over-year. X replacing another solution. running and the and million after in in the Security cloud where already cloud agentless of post-July security CSPM, these this a to of business Cloud, XX% [ major Cloud management part allowed Cloud superior closed enterprise July CWP distributions CIEM, X-figure was ] on wins industry's [ XX customer more I'll on security cloud Falcon broad grew security incident of than vendor ease a Security the ] environment, for the was noteworthy

Falcon space. security in Protection X-figure CrowdStrike enterprise across and scoring evaluation purchase threat leading one protection, the Cloud million in a for a response other detection visibility to environment. continues Cloud operational industry large of cloud their and the hosts production Identity security ahead products. Falcon in identity Security's set Falcon their place standard Next,

year-over-year. of differentiator our category in this over ending As million, pioneered identity $XXX XX% proposition. QX, it's key ARR a growing value XDR and surpassed We

greater SIEM market The management. to of Next-Gen state move business LogScale let's in year-over-year. all their SIEM security a IT to organizations of in the data million $XXX and ARR XXX% is be than drafting sizes which next Now continues of more than grew where chapter are renaissance and

CrowdStrike Falcon data a and expansions Falcon importantly, a standardized X-figure by X-figure ability leading Next-Gen in actions LogScale CrowdStrike customers SIEM large the store legacy LogScale on problems, lower do continuing increasing AI-powered deals. wide cases on of for demand effective, operations. X What also SIEMs than AI and response SOC Winning visibility a the a third-party include data a Next-Gen not component customer natively stopping SIEM nature multiple year CrowdStrike's visualize amounts customer more SIEM. I'm their SIEMs technology finally, achieving resilience, evidenced cost with Eliminating cybersecurity exciting most wanting a is more the and search business speed, range XX wins a SIEMs. breaches. which totality and company Falcon. And only customer of into capitalize large and differentiated platform and cost and X key TCO natively and on native is with Next-Gen SIEM platform is response win Falcon XX%, every our relative scale more that brings win. This in improved by post-July ability was to X- as AI-powered novel SIEM help of at their as and a generative momentum X-figure LogScale already opting the legacy simplifying over third-party legacy as was in platform, using workbench, the first-party we in most to displace showcases and see of complexity once CrowdStrike but now of to the of SIEM function solve while Our by started coupled functionality. to market platform use significantly which reassured prospects incident to of the hands Ingesting SOC observability multiyear LogScale well post-incident to replace and an Next-Gen legacy data Data with ago, act for feedback, took analyst. X

business best-in-class industry in driver In new delivering XXX% partner by sourced go-to-market. In Our XX% partners, partner-first partner CrowdStrike's serves our a to by vendor position top connecting competitive existing and go-to-market number and a size technology year-over-year, security deliver grew our our as cybersecurity business as business logo multidisciplinary scale, systems QX, new our platform an was over of transactions continues integrator with of moat. showcasing customers. preeminent Falcon QX, at our as highlighting transformation.

were partners in among and Our with E&Y Accenture, KPMG engagement recover a customers from instrumental others. helping dozen noteworthy

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through additional increasingly expanded With relationship committed MSSPs are the looking Cloud ecosystem Google their fastest-growing CrowdStrike our vendor to aligning wins to an together. Marketplace from is distributors resilience partner into CrowdStrike spend, integrator, go-to-market, this the cybersecurity's reseller on systems of makes choice. quarters Google, ecosystem CrowdStrike, cybersecurity our hyperscaler the entire entire utilize to year. Customers of all adding X of layer our Now sizes with

unchanged opportunity go-to-market Decreasing market on TAM because, Our platform cost. efficiencies whether sizes position remain SOC This organizational need product our today, faster, operational resilient with transformation to our XX and cybersecurity remain mission, are the and goes on or August at through effective simplification will of come. to lineups. business Streamlining is processes consolidate unchanged. on and organizations simplify, voiced goal July vision hand-in-hand years clearly their first, execute the XX, to and and all rationalize CrowdStrike cybersecurity of TCO for and delivered with automation more AI eager be and for priorities increasing lower cybersecurity

more $XXX,XXX is from rooted than requiring costly greater is only the is the its X because and the single deployed threat threat CrowdStrike threat is Released and platform and most Falcon. annual a and allotted the resounding built and own that a This analyst organizational firmly CrowdStrike's average With of threat intelligence companies. around actively realities, an that is not cyber landscape is for face threat ] benefits of than applying several per multi-vendor, teams and on in or control. In Falcon realities uncover universally-accepted the on process landscape of XXX past Second, with and acceleration. groups. adversary effective actors weeks XXX only ] report and the The customers protection tracking abandoning TCO consolidation. because our intelligence platform I the organization of orchestration of process, over performance ago, cybersecurity modules protection, and also industry adversary needs a necessitate time-consuming threat unique more product working and in [ adversary to year, [ our hear spending year, now class feedback their market replacement effective intensifying. In efficacy of #X and but proliferation

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the Our term. from package Customers our identity. win positive XXX differentiated Flex for were in see It over has for the and the blueprint referenced both an best-in-class insurance behavior. This and more differentiating commitment CrowdStrike, been this platform been The a years of time Falcon want, cementing customers realization customer this discussion. in for us value utilization and short X they indicator customers' from benefit automation I discussion, like objectives. In deal achieve of and they module adoption because in Falcon platform the on they also as customer next-gen is record. Customer our and CrowdStrike long-term the deals our protection, cybersecurity immediate of We platform. before post their with will the has maximum this a building happened. leading recovery. even more what because approach CrowdStrike customer SIEM Fortune rapid Falcon is Falcon. incident, commitment They them and drive organization's as where get a feedback with work value we're that And packages of long aspirations win had saw and as realize firm midst us to incident proactive extremely to could economic endpoint consolidation platform

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want our like words. recover of our or than We no teams quickly moments work I true apologies, and customers. focused speak we the Challenging need, on unprecedented Beyond test location louder and are even customers these the to helping actions to matter companies, individuals.

with the alive to is shown that role will to has cybersecurity, thriving. Cybersecurity's society continue rule mission-critical cybersecurity response bringing first just in me redefined the and isn't it's undeniable. cloud, led AI Our today's I've since industry, to well do X, put customer golden cybersecurity always, and the the to contribution day CrowdStrike so. we bringing profoundly has CrowdStrike's digital

today crowd, at breaches world invest to The will is we AI-powered stopping as the most the part resilient well CrowdStrike place Working to fight, platform. The CrowdStrike cybersecurity's the prior the rings creativity by mission make important growth mission, it here. did to innovation the job, safeguards build stop continue July and of a a the in just most isn't of people. is as as breaches it's to and safer a as We XX. true

very us. Thank Burt I'll ahead turn over CrowdStrike's that know unwavering trust. best I call of and our well, the for your and now Podbere. alive to CFO, you days is And mission Our are

good afternoon, and everyone. George, you, Thank

pace weeks the discipline added of over last operating to of better-than-expected ARR in customers, resilience, within expansion our net all and ending assumptions assist remarks investment the QX, to billion, achieved except these we in mentioned $X.XX unless second net on largest demonstrates quarter noted, assumptions of incident ] net of couple impact well believe, the deal up numbers Despite we the identity [ for July non-GAAP. business summarize and and was quarter XX% of to financial briefly results. fiscal X time growth of are The for our net quarter, durability execution, quarter significant previously last the today's we for a stated our teams XX% In we new and and strength ARR of and million In second long-term to reminder, quick from all the the of ahead LogScale ARR weeks XX, we results, income. In QX priorities but grew year of our revenue, otherwise X-figure new QX, focused to combined. Prior value the quarter, close to additions our of a during revenue we mobilize our today a and net delivered contribution including quarter. customer rapidly July results quarter deliver deals, year. The As commitment as XX $XXX had our the of expansion. on last new continue I cloud, challenges new business. which are discussion, second provide my financial half second will year-over-year profit the

million that we quarter, push quarter this can in had remain of Monday. quarter, more sight than deals open any While line in of deals for with elevated the experienced $XX we and as given levels

future deals close We to in expect these quarters.

strong customers partnership in the value delivers. Platform adoption metrics with retention remained QX, and module significant Falcon Our deep and our that highlighting metrics

more modules, with modules percentage at X modules of ending increase our gross or expectations dollar-based X XX% customers grew more Subscription year. retention $XXX,XXX with the the XX%, Notably, an customers, and of customers in for were or over more XX XX% prior X, and prior respectively. and more rates than year subscription with by represented over and the net points ARR least of deals XX% quarter. all adopted X with XX% Our X or consistent

I last year expectations of ahead of in the July of quarter, representing professional help over our to Moving margin grew to of million, year-over-year QX with services and XX% gross quarter. revenue would our by note following: flow XX XX% to the expenses operating is time. reach Free pace $XXX.X potential of delivered second the year. Consistent expectations. XX% flow of or on a and to grew a subscription related have difficult XX% the grew regards basis. In $X.XX too year. us gross and Rule early the to Professional by XX% XX% cash compared to in last XX grew over Subscription grew increased margin more the CrowdStrike million million. million, and by of P&L. last Record of Total cash this was revenue operating over legal were to reach in any to sequential on $XX.X total prior second of hiring the the per XX% incident, points attributable like And still was over XX% predict, grew we prior our to we XX% $XXX.X XX $X.XX headcount operating $XX.X QX of year the estimate potential to delivered July year-over-year. sales income the non-GAAP million the year-over-year equivalents to revenue revenue $XXX.X the over and revenue growing attributed primarily of impact for decrease revenue, of to $XXX.X $XXX.X CrowdStrike diluted areas reach XX% deploying to marketing free basis approximately billion. litigation X legal attributable incident. Record year. to to XX% for to of services year growing basis. revenue QX than with points XX reach income XX Total reach The a exposure to quarter last or complementary net exposure GAAP particularly approximately or increased basis million, line primarily Xx of customers in in the of to services more increased Non-GAAP net $XXX.X remediation QX stages by than increased growth. non-GAAP percentage early share million, margin Cash XX%. We is impacted we at total of inherently year-over-year XX% reach year-over-year. outcome plan, R&D, In it cash points in may million income the

Our contain certain maintain limiting potential mitigate and policies claims impact intended strong our customer agreements provisions we liability, have insurance a the and of to cash position.

We continue to to their the work and in to investing for customers growth. hand-in-hand with success continue business our long-term positioned ensure well are

Turning expect care [ lower not the was dollar-based and has us of Gross retention do strong customers benefit the modestly to was will Friday commitment last our we believe the term. focus We last #X our future. continue always as of to meaningfully weeks outlook. our foreseeable Taking over change and the retention to will X and of this than Customer end remarkably been this long and XX% remains ]. priority. them same churn the period at in QX and year in be

typical. the back into is less half visibility the than However, year of

requiring level; the packages, to mentioned, Board some additional George time. commit Directors to customers encouraging our approval We outbound and resumed pipeline expect with expect vast July rising at the see pre-incident is levels the to Falcon to a of are scrutiny we Outbound levels generation first, fully of third, following as platform we majority customers of our of delayed new prospecting responses; cases, longer since activities weeks second, has for through both customer the few near-term following and factors and XX higher of incident. results: for of periods more CEO to sales impact cycles commitment extended the for we in existing

We are on the platform are best IT teams the make. decisions to Falcon and security focused sure commitments these that making one of

service subscription and $XX muted these in in to customer with higher due single-digit ] fourth, long and high expect payment we our deeper typical the specific commitment our professional packages and to ARR In free revenue 'XX. will traction have values ultimately estimate temporarily result for expect of dollar our short [ back customers. And FY million levels We and customers. will flexible elongated platform dollars temporarily adoption packages and subscription guidance we the the terms term, new by our to in will reflected by revenue higher upsell lead expect impact than partnerships to As module cash packages half revenue flow, approximately term, commitment of increased terms. in net million we

incur will are free incident. expectation with margin At July in time, We a costs full G&A year. the the additional cash for associated providing XX this flow not we point

discipline focus on of bottom will use We maintain on best our long-standing our financial and the the every line with and highest squarely attention dollar.

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headwinds perspective, half remain back an about basis of degrees starting year. From FY expect see to next 'XX. for year a in improvement we We these in varying operating on with margin annual the expect the in acceleration longer-term to

ARR detailed our of will long-term the target on model basis fiscal a of our update in annual I XXXX. XXXX reaching ending committed conclusion year and an XXXX. by the achieving operating 'XX model fiscal end by year Additionally, billion provide outlook we after non-GAAP FY remain $XX and fiscal year to of

our to Moving guidance.

we reflecting to rate million discussed $XXX.X of be commitment revenue range estimated to we expect the 'XX, from FY XX%. package million, includes $XXX.X an impact of total in quarter This year-over-year million earlier. third the $XX For of customer growth the a

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

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

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

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

As please our to questions. customer many going you held will biggest yet. with XXXX September The will event the of conversations Fal.Con in mentioned, The will partners. We webcast XX join on there. George and be registration briefing Fal.Con investor briefing information. live IR To for be and also customers on seeing be George our and person, is our team IR your I website. now will look to take contact forward feature

question Fodderwala Stanley. Morgan first at Our Instructions] from [Operator Hamza comes

entire transparency outage since strong on commend results. to wanted your the Mike I you, CrowdStrike team the for George, Congrats the Great. and event. and response

updates. limit map? around from future George, to you have innovation a meaningful approach the to And will future in away So be or undertaking want may road might whether there's of this CrowdStrike so, if kernel not or response to that rearchitect Microsoft been I'm that their for would talk, to the push agent? Falcon curious, customers lot perhaps outage, whether a access

of Yes, Thank you to Hamza. a with detail. me take this through just let try little bit you,

was update, be So false about of not a the it the in code and prior This a our misinformation update, our remarks. When was we despite update. want the of well. from competitors, remediation to was -- think we've rearchitecting a record a code and already narratives this as clear built we kernel a I I've configuration update it covered was and lot that not it, architecture to that on what got straight set the

we lead industry architecture, the We and have best-in-class reason. a for

and greater scalability competitors. an of efficacy, you give just greater to our example have I We And greater that. want manageability than

Falcon at If Midor coverage. you had [ XX% results, look latest the ]

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about #X become we that by We having forward. didn't we #X about in So updates, our a feel confident in configuration terms great architecture. the architecture. what having by talked changed here going market a our we've and feel about We that. poor And of confident customers became

software, further work that that to virtualization VPN, the Microsoft as software well they as like and are security, around continue kernel there kernel we'll a be part are just look to of drivers enhancements lot out there of thousands backup software So IT provide to management beyond clear, ecosystem with access. But go more. software

allow to about So other adding the we as are and going one that's certainly player we're think a to flourish. the with and mechanisms to they ecosystem, part help work ecosystem Microsoft of

comes question Brian Our from JPMorgan. Essex with next

benefit from numbers. me you've a in George, for to ] their I seeing me, still that the into that love number Great. called pipeline. $XX perspective, impressive. process about see get you there We in competitive terms pipeline. pushed around would color out the fantastic on, is have at to But insight of in would incident; on be two, what that get you're to insight. your really out that those in invited of are and into response the Congratulations the your leading cycles C But of guess, obviously, from you've perspective, from million then to that [ into execution peers got some that little XQ. Obviously, seeing back the from you're one, that of extended level that are a of the deals conversations and helpful are the the a kind peers to what sales talking having maybe

won I start of out We about And our And a problem. and we I some best the that recount were won we another were controls with Sure. had what with some just articulate can through satisfied of project way to control. had fact, And one talked in we the noise we can more had this talk against said of They X to an CrowdStrike. I talk that in the in this morning. conversations. next-gen with mitigating They lot SIEM most dealt only competitor. we we've response, was impact. they how for calls the place. the is morning, And Obviously, there's how marketplace, the we steps of had think the to basically put that next-gen me customer SIEM it. transparent want about ends we call, which taken. and on the control them same. with, that do it We a which generally the we customer they

and seeing, of what of my sort many in same started calls them So and I'm this way. recounting is the again, many, we're

coming customers hasn't to XXth X the about gives bank. are that move and all of changed we've time, get we've we built Yes, them the what we XX. me reasons transparent. But to the this lot this about and to consolidation in X, than all with. way more our consistently, have money, talked time. on customers saved take in July for us We've That a on And trust the Falcon incident all with hasn't outcomes lot times issue July, ability clear and the very been, again, that put a very past, before had So is the and encouragement been platform. And the an CrowdStrike. you after trust X play, and have we save calls the of better changed the over X, we're July of us XXth that and of products in are and in back

from Kalia comes question next with The Barclays. Saket

and your you me? me? Burt, Can Great. Okay. hear George hear can

Go Yes, we can. ahead.

about that. Yes, Awesome. sorry

before congrats I'd in like how helped Sorry just and tough outage? guys. maybe investing of is it's little as Flex on a well to security were that something Can you it's conversation the is touch outcomes outage customers This bit. couple can George, my question for helping resilience that love offer about drive that also you as well. to I on that sounds Falcon better maybe the it very my as weeks. maybe post face touch maybe that, in the be a for just just But here well. you. something on of

from Falcon we this when customers. out think of about Flex, was our demand Well, Sure. born

have want times If us They again, and you past, look way when to at easier our with gone CrowdStrike. to continue module many one attach on we've which said, more in up "Hey, a started flexible more to and today, came CrowdStrike, they is and which as to and and they wanted where more with your to the cycles is more us that consume easier the how meet it wanted lot ultimately then you wanted make and they you And through through them XX company customer. to to customers to the customers you platform." When rely go module, an we Falcon we when allow it. and consume procurement consume through, it rates, be, start go I read

And it's of table consume for to long to to the package. And them very which love. it's modules have customers to our prepared our you able problems. a of to flexible term we for because and we're able you, some offer with through also, now customers. we and continues of able and commitment to great that Flex. went heard again, a through, as or down this commitment CrowdStrike, the we that journey consume remarks, or CrowdStrike be we We've a be know traction our Falcon are part time started we're it's can this in we gain allow things model our lot the package my back. it And allowing to they because customer business great think, customers solving to And coming taken whether customer and So continue this what while overall,

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

go. we Here

Now, hear was afraid a upsell they'll just that upsell any see, guidance know -- buy if Last be over to any customers. And very of evidence competitors -- you, you came in calculate cetera. to single their vendor quarters, there's there's buy opt buy night, this single for appetite to in me. from change one make basket, seen least from but -- we one from willing buy your big question but follow-up would to question, a year more diversification it's them of existing can et to that is I more have event other one previous Burt, have you eggs all one and that a on the the go the that to have of modules of at from customers it said modules, for there your to the vendor your meaning change customers you buy you growth put vendors. And you EPS, now just into customers didn't somehow EPS And is the specifically, customers right something, a quarter, XQ for sorry, thing translates full numbers. if about to of X/X I to whether sure can ability

the first take me let Tal, Okay. part.

they I not want when why through, with to it talk happen to again, buy about go between again, we want comments between customers' want And products. don't Obviously, to disparate went what So the the don't a back bunch do adversary want from it's bunch we gaps are told they to want us. me what in to of us. just the more don't going me more back seams They backwards. specifically think that products, about they happened, more lives They customers consoles. And of modules, a different products. in gets but

telemetry they're allows to view. you when the CrowdStrike for from estate, complete it of So more look and logs is cover And a their us that right, ability looking first-party to other to in generating. next-gen beyond take have at what is systems the data SIEM,

products to So us looking don't backwards and one they're as the I would of the at are is in and the of the the consolidation on they focused market. go customers of want still short say that long consolidators key a patchwork piece, have and

Yes.

be mostly consistent to EPS to house. the guide So thought way of year. we of And non-GAAP question the as and the in on to from respect that we try headwinds the full income, we some your about talked both we with that approach had, operating about we revenue-side QX on driven impact the

when about our thought So that's we we guidance. how it gave

Joel question from next Truist. with comes Fishbein The

can all the changed just through half relative And I bit back came with of done of would the guide considering year, you is helpful. also question, question George And how your before? be a it you go the for how you've guess My guidance That moving guidance the Burt, really methodology. transparency, Burt. really the great and little on how up pieces. to

Sure.

impact from biggest George the side, customer walked that comes the revenue the On through. commitment package

half, numbers and one drive and we revenue, impact, we the going $XX the the that's in through to impact, of QX. the $XX million back million said QX million in So $XX terms biggest the in walked that's in

the So biggest income. revenue. operating And to falls that non-GAAP was driver down obviously, on then that

we were big we how And we changes -- been we guide nothing applied we both about approach. we it to the revenue see, in and we and terms to impacts was we that top how so bottom. And did it commitment everything it, impacted has don't in thought packages really we as not customer of the approach. There consistent EPS, impact in But guide from the terms to prudent the of how about thought what how took see. they what again, biggest

Our next Goldman Sachs. from question comes Gabriela with Borges

and George dynamics I of there detail, Burt, commitment the and And a would alongside more love to packages. you mentioned get duration couple a bit little concessions. customer on

million just came keep platform? you are to customer concessions on or and how CrowdStrike And with $XX the or some how amount give with XQ? up and of of in to maybe the more appropriate about satisfied you little a happy guardrails discounting you that number want So them that the XQ and think duration what

Gabriela. Thanks,

focus $XX just the of -- delay million got we the We talked about about, the came on in hey, So about terms generation. right? we've We we'll net thought half, how about pipeline we ARR. things, the back new X in in thought

people cycles, I So think, we but then talked that's to sales that value. not tech. And for, about for due the in that's And has software longer an We most us, scrutiny. and talked about muted impact. upsell that's just increased

things when those consideration all we took customer we on packages. the So commitment impact into thought the about

As far as you're packages the right. themselves,

pretty George, on of impact We have package, also some ARR. product talked outlaid them new them But talked an we talked an duration. net COGS. about being We of We different being pieces of course, will Duration has some them have within the and on discounts. well. impact more product about about

So that's going to impact the bottom.

up those with So to with how that's together and we all we our million. took guide, $XX come factors came up the

Owens question from Sandler. Rob with Piper next Our comes

for that. weakness Burt, million $XX follow-on in year but new through Yes, guess, to I remainder this potentially some the a of as ARR. terms about persisting a net you the of year, talked of

the not I starts guiding commitment and ARR normalizing you're these think about kind growth and this, to as anniversary margins then but net selling were out to more contemplate know new relative So of year, should of package on historically? relative this we XX-month the maybe we customer to where as to And more a basis?

Rob. Thanks,

think that So right? over life, this diminishing a half impact I has be time. incident there'll of a type So

will So and QX. be on harder will QX forth. so and be QX harder than QX than so

to we'll piece acceleration everybody that's what in picture. biggest start we year, the away back think when the that the an us to And half next walk see of the to I get from. business. that's for want is I big And

Hedberg Matt from RBC. with comes question next Our

Actually, bit maybe a to Rob's question. little of a follow-up

year a In that acceleration what's some bit you do usage? think you a is other I these been it of of is kind now think, that Burt, headwind of words, [ addressed ] is part words, expanding of commitment's of that about commitments? part tailwind we cycle this think that of should other kind In compounds of these on commitment that that of part itself. renewal next broader in just that

George. is This Yes.

we're of originally Flex, they we've think it So when providing faster what of is more customers consumption consume about we the because than Falcon typically, seen anticipated value.

to in So use, Burt's over for do upon them, other modules that? go Anything next what comments think ability it'll be obviously, I of based flex using looking additional back customers the think what add period can have understand about, the at we time. to things those to when opportunities last we to and including been year, and to we more they've

think next starts play seeding talked to it's think back the -- half year. I take No, George what I that Yes. future. for of about, And it's

question comes Citi. next with Our from Fatima Boolani

George, and even chime Burt, in. please

So data points. procurement a clearly, amount seen on Flex, you've Falcon vehicle, this positive of tremendous

about incentivizing deal shared that, all, should as out ARR the still one You've you me contracts think about of Can of of to go-to-market in the script. created the the think you some in with for in this those going is year years coming that predominant cycles of an beyond implications if $XXX growth. get just market. approach then conversations terms these framed renewal Burt, to steer related the million them extrapolating broader of now we portfolio adoption? And new wondering renewal value I'm that guidance. you up such your straddle financial in could we do in you help maybe net X? How sort potentially period elongated be towards

Yes.

Falcon out where leverage because So of choose when to it, our up and success product entire it. we seen opens want. pick customers. think it with born want They they about tremendous portfolio wanted. what can the Flex, can again, We've they They modules what customers it

new acquire example, or as workloads. companies modules add or for cloud endpoints new to they procurement As them minimizes very new It it's easy an cycles.

a us. It's go-to-market motion from we're a of -- a thing great is it primary thing the So And using forward. a customers. mechanisms for great it's for one going

that in into lead it, tremendous We've with place. something we'll seen continue to we So our it is put base. and that from the customer results

Yes.

things So consume all well that opportunities, renewal I the customers about just does cycles, take want and are that looking we're future in the things the them more that. Flex the right? on as terms to to We and to bodes think more, offer renewal of for, for our those do our for more, ability

by customers, so more for to future better them now, in that's the bode seeding the us importantly. only going And better and for

come to look, they're to to more those benefit right? think And them. going out going I going we're and with be products, as, more to new are available

into the future. we and possibilities that's how we about the so new as out renewal renewals look And the think

Nowinski comes Andrew Wells Our with Fargo. next from question

today. organization you transparency and And the have appreciates sure was I'm [indiscernible] that the response impacted every

most would more QX I around us on So I any to give mix wanted wondering cycle could ask the renewals -- as renewal has I really throughout just the don't you year. do more case risk a of of the there's mix provide maybe typically is about But mix, maybe if imagine well. was renewals color could renewals renew? quarters. quarter just you to you color the they potentially higher which more the if out X on think in all of

Thanks, Andy.

X things. So

talked we've definitely right So one, there about our business, it. is in seasonality and

of You've quarter farther deals. highlighted the relief. you I and And this the farther half-life. QX, is, is The that's more terms to closer you of our you see headwinds. in it are earlier, second, talked And it's difficult the what about move the hotter idea of I think, sun, typically a out, it more highest as

gets So the less. impact

cycle. the combine things, X we So how those renewal you think if about that's would

with Boyd Roger from comes UBS. question next Our

view the kind as sounds reiterated my that response see on any over those how congrats view towards and on add there. play a sounded of George, month. ARR like out, on Nice just of the the -- the It to resilience of there's this you Would billion your get the that provided before. see kind modules, to timeline I range like or target. but $XXX speed right you will expect of -- pass on durability growth X- timeline, demonstrated you kind get view It the the uncertainty, love towards got hypergrowth to collectively. longer guidance. last group bump I just billion pushed billion a it X-year just lot of the side the $XX the $X is X-year of to longer-term you just

about SIEM, the solving CrowdStrike, look some demonstrated and start is we've that had when I'll talked we're I'll of think look real history businesses Burt. turn you $X the you of to because durable then problems it Yes, When next-gen and growth for we growth quarter, when about we rate. we've identity a it the incredible at this think customers. billion cloud over durability of at and I And

and growth And for a a opportunity bigger. We've always, the that's multiple CrowdStrike. we continue TAM to got long-term at we've market. vectors have will So got view of CrowdStrike, only massive of getting take

And term. in this So the think the this obviously, future. well short going I sets we're us to for deal with up Burt? then

Yes.

it. reaching range that I gave XXXX. the is the here in we was remain the that key in out committed that of the periods, Roger, So part to -- that's we're of committed prior ARR by and billion end the $XX to mean still we

question Gallo with next Our from comes Joseph Jefferies.

update the momentum. you Can us federal just on

You're entering given there, about their we quarter. business? biggest conservative? typically they're momentum And should the outage think how IT that slow Does pretty

Sure. federal Well, quarter. the QX obviously is

that talking local, for state We've deals right? think we about takes we've do it things and the win in continue think I think, just good world. strong this got build done as well not U.S., the we federal, the categories. of those I to about in incredibly rest we're time the And we only have. momentum. And but We the many federal And sister space, momentum and board. relationship and across the with

long-term the are opportunities, but terms had opportunity we've encouraged of our always So Those certainly in we far. so we're like there. that success

Moskowitz with Our comes Mizuho. from next Gregg question

Okay. words, Is dollar upsell seating referring this the of existing modules speak of effectively about just commitment well packages you're an muted and done clarification expectation away [ the values upwards of for other year? strategy And CrowdStrike's expansion part in and levels In Is plan on had of higher future getting of customers customer transparency, I the the to ] also strategy. when that terms of part to? the temporarily you a contraction.

greater they we like to our should our into when seen history I'll adoption, the we to we -- over right? the adoption. be solving love technology, module of customer a the always they And what do added we've time think opportunity about with, start problems, certainly, drive and that greater conversation. platform for want thing customers So we're the built business and and right technology,

You see can that from IPO. tracking our since this been you've

So from for use more thing, good always modules do we're we on. a the what standpoint, And well and customers that's is focused think having that opportunity proves long-term CrowdStrike.

to George This turn Kurtz question-and-answer the over you. I back concludes to closing remarks. Thank now session. like would for today's call

So for We you all at Fal.Con. our forward investor seeing today. look you. continued to event your upcoming appreciate support thank and time at your you Thank