CRWD - Earnings call transcript Q3 2021 | CrowdStrike Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the CrowdStrike Fiscal Third Quarter 2021 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] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference to your speaker today, Maria Riley. ma’am. ahead go Please

Maria Riley

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

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

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

versus at currently our a which reconciliation be non-GAAP. our unless financial and use discussion showing found we measures website release, on GAAP of non-GAAP Relations Additionally, discussed this provide call do intend note or in basis. will revenue, excluding this A press of our to assumptions. non-GAAP will Preempt available be We additional otherwise Investor third stated, information may and financial light recent that is all measures on in results also SEC ongoing schedule filed Please not on Security, X-K acquisition management information quarter the results additional into guidance an of ir.crowdstrike.com our with today. our on Form why provide

turn to will the I Now, over to begin. call George

George Kurtz

thank all CrowdStrike delivered third exceeding across today. Thank our the a for you joining board. expectations Maria results with you, and quarter record us

help subscription at defenses security growing to leadership in over of net for ending a value for new posture. million Our record we few underscores and setting in Cloud to consolidate, a generated new subscription revenue seeking growth record scale with the revenue; quarter growth services A in category strengthen based cash using capabilities operating data robust and free the customers; among Falcon new help a the strong insider record professional delivering Security our setting threats; deliver their flow fortify acquiring XXX net to operating the cyber our attacks and third quarter customers and by and the the transform, XX% introducing income with consecutive driving generating Preempt forces non-GAAP new prevent posture and positive expands three and consecutive which and joining quarter; Zero quarter to and and Trust module the their modules customers; critical behavior analysis adoption CrowdStrike’s customers Security their fortify identity and EY identity for client ARR include third ARR; new accomplishments X,XXX security incorporates fifth for immense adding platform. strong

represent very last was and the our year. achieved. of exceptional lastly, multiple a conference hosting It we’ve alliance execution user successful these EY in-person proud prospects active enough quarter. event with phenomenal attending already virtual what customers Xx the has deals; I Our an compared I’m team our and highly with that and influenced can’t with and of emphasize results

demand the the multiple million end and in million ARR Now added quarter fueled trends in and dollar and land in customer strategy, Broad based at XX% based areas power subscription grew net We we are quarter in believe the and the year-over-year the of our market we our more rate positioned $XXX and and to strength our again scale. strong discuss ARR. $XXX well our our XXX%. seeing in third are base to of expand new results our sales detail. net let’s the business once in growth. engine leadership Demonstrating retention We expand growth exceeded drive with

Today, new opportunity drive existing and market at modules and to new and rapid winning international new assets, to modules a is growing their We adoption cross growth cloud sustained existing this our have new our our competitive selling and believe we customers moat. more with pace, modules to introduce of rapidly to customers adjacencies, core ability drive business. new multiple among as avenues both on our customers, including growing I focus will protecting and

by and Let innovate to market me enables The native modules Threat expand powered on nature ability this more point bring actually cloud our of architecture in very that to customers Graph our adopt. detail. new

an others stored us recognize the All that one customers in and in to unique is Our the place, Threat Threat This vendors, Graph. data upstarts from market. from very the we CrowdStrike different including in capabilities, with is silo Graph differentiates other Threat any collect is to unable clear, ability To solution customer’s to that vendor competitive Graph deepen currently limiting environment. us the data, scale allows their on-prem their our our is moat. which replicate to be

fidelity and also providing week. smarter services, the massive differentiates data per Threat our managed our gets within minute, signals high Graph customers. detection Threat over by processes Graph across grows all trillion which visibility Our lake X

acquisition of base and drive with the preventing training providing one store, to data cases our use recent insider immunity for threats. With a be behaviors can entire across almost Additionally, and data new user to analyzed AI of such real-time customer Preempt new access set better as have community data our instantaneously will Security, protection we the algorithms.

new for billion accelerate next in which within the we detections, the cloud leadership. customers nine last reach addressable for management and which on third platform of introduced including close encompasses the response investment we group announced further quarter, months development have the new our customers Horizon Forensics, increased security know the build our now user In the time with like-for-like subscription extensibility three the extensibility XX IPO. discovery total, recently disclosed the modules, rapidly CrowdStrike awareness also situational CrowdStrike difference in others cloud threats, workload as and store for product will to like features expanding The market $XX.X In building XXXX, they for platform also estimated the investigations. the we to of points calendar automates in market of posture, the slideware, to by experience alone, modules. market workflow, net Combined XXXX, at and and Falcon Falcon result to and features modules, new incident $XX.X app. formalized we previously to cloud third proactive a level Recon dark our analysis year standalone While Falcon. need a CrowdStrike points in policy, quarter, each believe available Falcon the billion are being platform our to In compared its X,XXX Falcon chosen X web as we the In claim the is protection of reducing party took same enables to third This modules. partners integrations. made store

platform Our fundamental data us many industry-leading advantage once a cloud native we and as it also capture model gives business monetize the times.

that our pleased or a we and to subscription modules new XX% process those customers or provide all six continued to milestone making any it percentage customers five the to the more look growth customers more a modules. expanding without subscription rates. also adopted modules higher is infrastructure of a modules increased I’m as with are have strategy able to to deploying announce adopt customers, try XX% new or value rapid module modules. which in or to translates increased and In Importantly, our our measure quickly customers adoption more four to QX our four frictionless. the agents, lineup percentage success, of we the third we module retention to new more Falcon quarter, To keystone reached of as increases that or see with strategic with Driving adoption having all subscription of we at XX%.

longer markets, competitive landscape. landscape, we favorable see and a around move world Moving their to Organizations technologies just proof identity mission for demands and encompasses positive Stopping future the businesses continue Trust to adopt to protecting foundational today’s to security cloud It long-term threat transformation. business. endpoints. our heightened threat We shedding Zero and critical security a model. of trends, secular trends outdated environment, native security digital security modern are to positive accelerating and is the transformation Security world protection. the breach the no a workload their our strong meet architecture, is believe these cloud are and systems is to sustainable also about around

have Zero and in significant will opportunities growth in both we our capabilities cloud been years and We the see Trust workload innovating investing believe we and ahead.

more is the CIOs. to is those move more business As and conducted workloads workloads protecting a virtually for cloud, priority

often keep heavy because built they the scalability required up legacy training technology are However, behind agility, the left in can’t and on performance with agents cloud. speed,

the one XXXX, we’ve and XX% we are all for cloud in have the the the workloads. than our estimate of XXx webinar differentiator believe fleet XXx October. than offer of entire built compared market illustrated in through a more Falcon our cloud in security result, for of CrowdStrike and represent containers protection in the XXXX, investors and a Falcon protected XXXX core in could of public for that growth as massively From under platform all seen opportunity we cloud IDC’s greater this cloud. are servers across Conference architecture workloads is customers a As Fal.Con we of our March in the for in protect we October today’s cloud security market Virtual to was at cloud

With insider conventional This models threats. area will advantage that with which security and Security, mentioned enables security We the for huge our briefly compliance clear also with a workload a to teams and enhanced where the a by protection organizational Horizon, for is with This we development protection combining an securing solution. applications IDC well and customers workload our security environments. to cloud posture Trust approach closes security and security and and is efficiency the estimates, into be securely end-to-end the of is endpoint private, expanded charge distributed against a XXXX. cycle the with true in the as multi-cloud regulatory governance $X.X leading can policies. requirements. and providing earlier, As considerable application Zero of This launch life protection, the establishing foundational minimize provide proactively and against Falcon hybrid, ensure CrowdStrike cloud hole compliance Zero delivering today’s analytics, recent with believe platform for Based protection Zero continuous combines as in market across workforce on a market provider. a we enables environments CrowdStrike major greater in cloud can’t Preempt market visibility identity another and is AI. deploy that management acquisition solves It in satisfying identity cloud Trust Trust security public, recently protection billion behavioral automates in speed problem Trust threats provider Falcon and every capabilities provides identity Zero leading identity believe address. attacks

and a at a workload As displacing to endpoint the created next new legacy both customers gain believe and pace pioneer cloud in vendors. formula rapid we CrowdStrike security, winning generation delivered has

to may Okta Trust with recall, quarter, joined customers you we Zero security help a forces last identity-centric ecosystem. modern, adopt As

with highlights thrilled are months us. marquee single and to to console, cloud by and a cloud differentiators we now how be a single win to agent CrowdStrike not opportunity deployed rapid years. and include Target deepen rapidly Symantec transition announce continue days, could our move was significant A that Okta a wins from intuitive few that in agent our quarter, solution This this deployment native customer architecture, Corporation relationship. that is excited additional to or be rebootless capabilities to away for looking Target

manufacturing XX firm advantage take of [Pella], their would with drive more was the and now looking was and a Complete growing and company security platform organization, less of across mature expansive business their fast with days, to endpoint impacting without allowing critical in looking them a Iowa immediately than systems. fortify defenses X,XXX As that employees a they a security their Falcon solution estate performance design a deployed to their were posture enhance ROI. Falcon in environment is customer. than for across

delivered Micro. Cylance, of mind. Microsoft, and able rapidly legacy endpoints expanding cloud Trend customer with single I’d With our to customer Falcon business has give took and independently number advantage the of that in as company to assets Fortune aspects customer the peace an and could security and disparate value teams of to across of to win set and a like traditional and dozens that the SentinelOne, well Falcon were Symantec, equal subsidiaries highlight technologies, as the solve security organization. Another including its security platform multiple customer solution a and Complete, of Board cyber operated X,XXX This demonstrates This and standardize to diverse a Directors deploy level they Falcon quarter next-gen and company solution a deployed multiple needed of problems remove and parent by teams posture solutions. be bringing managed their a of rapidly their the platform immense servers, best-in-class McAfee, several Sophos,

Cloud for Containers, making us having their the and picked of workloads with technology Falcon visibility they competing and frictionless CrowdStrike solutions of services. now AWS one deployed many clear the much proposition, response and ease deployment, Additionally, only already Discover proactive their for and incident this Despite value needed leveraging its across environment, in have our into use, are standardized organization. customer entire fast

help systems These hunting, without Insight in a reboot. elite-level next-gen next including it mission did this customer a threat Our visibility, their is to partner healthcare critical just win security organization. our impact and customer modules support device fully not a for It AV, select days managed compatible OverWatch performance was with customer for unique control, and was adopted package. Prevent had for servers This three from their few leading because multiple for as be transform problems. removed turned to interoperability Unlike services to posture, breaches, have and performance deployed are X,XXX our their or IT SentinelOne able security the thousands CrowdStrike subscription be was them of our of just endpoints competitors, environment end operations. of uptime. customers to a that quarter and/or of the and CrowdStrike not to their McAfee streamline could or deploy of and stop to

the are our of from and the our early is our We world. mainstream As enterprises positioned in we believe momentum results expand the and our platform you reported see well can exceptional further market continue a recognized increasingly we today, as Falcon are still choice journey leadership. for innings to around growth

industry company call deep to that, asset XXX Lastly, global call like is CrowdStrike distinguished Chief before of welcome Board We to Fortune of we her believe and Affairs I has as turn a into a and will Officer Laura company. the to Vice biopharmaceutical a to would experience global a External over Burt. critical to the build continue the Laura turn leader. be AbbVie, career Directors. to Legal Chairman, Burt, I’ll I With our Schumacher currently over

Burt Podbere

everyone. afternoon good and George you, Thank

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

note Preempt’s I we select that get of models, details today Preempt acquisition we impact the reporting will include assist your we results started, are with To share on the will Security. Before QX. regarding

in we to of an new customers ending these ongoing The new the not addition acquisition However, XX to $X.X in of intend resulted disclose and million approximately on do the ARR Preempt net and basis. contributed net details quarter.

September also to de represents our expenses. into recognized acquisition Given the operating month Preempt impact approximately $X was quarter, XXXX, quarter quarterly results. revenue, GAAP purchase closed accounting adjustments months from about again fair deferred the the The the to minimis added million of which in on expenses the XX, value to and one which related was acquisition of two revenue

delivered our results, to Moving quarter. outstanding we another

performance ability our record execution the operations. continued Our highlights while and business rapidly same at exceptional time to scale best-in-class our maintaining

between was we future as quarter, areas and multiple expansion being and the indicates pipeline, deals, the new in expansion large to ARR Demand record enterprises with business quarter again multiple and a mid-market believe solutions well and Rapid customers record for strength well accounts. During of in in once existing commercial large between QX within with of business again once substantial net balanced ended a ARR our broad-based strong none saw foundation new quarter, $XXX.X reach million. business year-over-year the XX% We outsized. the growth resulting drove as we customers In the growth acquisition, we delivered third which for growth. $XXX.X million. quarter in customer new

our exceptional retention consistent Additionally, and rate. remained maintained we contraction churn gross in

dollar-based Our rate again retention net exceeded XXX%. once

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

continued translated deals heightened consecutive our in a record second to number We to brand see business the our to engagements our for from ARR services of we record resulting are threat quarter. as environment for continues and subscription seven-figure services demand This grow. a

SaaS in markets. as we from sustainable business model continued operating the of to Approximately and building growth remain markets, East, quarter U.S., cloud as In in focused and of compelling and and we from long-term see third derived customers In X% global Pacific, reach performance, QX, margins. from benefits as terms geographic on well leverage and we strong the was growth increased a X% from recognized in scale with our other Middle significant our revenue international in We markets. investments Africa of our U.S., XX% Europe, XX% Asia our even platform. the

record gross up to XX% ago. year a improved margin non-GAAP from quarter a Third XX%,

year. QX subscription non-GAAP to increased XX% last margin XX% gross Our with compared in of

or which quarter last year million gross in expenses points million $XXX.X subscription or of strong revenue the quarter-over-quarter. versus basis Total XX% margin of were performance increased our with this pleased XX% operating XX revenue. third very quarter, are non-GAAP $XXX We again

including We on this we aggressively our a Scaling to is continue and remains ended believe will our up new focus and record. year-to-date to as well lead leverage in unit our continued other generated demonstrates growth enables geographies including efficiently capabilities. attribute marketing go-to-market international top in long-term. over quarter. why digital with Number to a business our us in The of economics priority, the we QX, which during model lead our is business investments We X.X, generation We Magic investing the aggressively. and as we step hire engine, In e-commerce our intensely sustained self-service a programs, which Magic to Number. efficiency this have frictionless the

of of result operating Non-GAAP gross a basis. drove As over approach X.X%. a and on $X.XX quarter disciplined our margin and to a in eighth strong our operating of XX leverage both year QX QX $XX.X on business, to basis. million our a points top Non-GAAP margin, net operating and and last growth, reach record income per rapid or in operating the quarter. line was diluted record non-GAAP was we million income $XX.X QX dollar represents improved margin income investing continued performance consecutive improving in share

of approximately sheet. weighted income from flow ended the million non-GAAP basis common our totaled was the takes quarter operations shares acquire flow reported on into cash third free Cash measures a we in balance expectations. We $XX.X average billion. and Given non-GAAP Preempt we $X.X Security. calculate and EPS shares. This quarter, a was to $XX.X $XX.X million account million, with ahead the used million quarter both diluted cash and to cash equivalents the consideration strong invested XXX.X Cash third was was

our to Moving guidance.

for fueling secular our growth. about to trends continue demand offerings remain optimistic We powerful our the and the

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

ending net be QX. While outperformance to we expect from new exceptional relative prior seasonality guide less did to move specifically pronounced QX into net not in to as ARR, we given we in or QX the ARR new years

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

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

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

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

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

Operator

Instructions] [Operator question Sterling Morgan. you. Thank first with from comes Auty Our J.P.

line now Your open. is

Sterling Auty

Yeah, thanks. Hi guys.

do the point protecting etcetera? cloud So what road? as the will workloads percentage George with in these this of two a year like the about workloads, down maybe and look you the containers, of a mix sense, talk that a cloud or business at years traction us can And part the terms is think what give you protecting

George Kurtz

a our in you going transformation we servers digital some to hey, perspective; on-prem, Sterling. massive one know, of we and about in seen to think talked in cloud cloud it’s but When that’s about customers XX% the continues the people continue from areas movement skinning it’s, of to transformation, seen accelerate. we think cloud. down of the workloads we’ve cloud being Well, terms Yeah, and to explosion of believe of about We’ve and that our itself. the grow. in When XX% servers, those digital we their

many see for trend. long-term as a but sustainable journey cloud it the in obviously companies, days early still it’s So, we

Sterling Auty

one customer it’s for around while, and a I’m reaction technology? umbrella the Preempt, that early been little what’s and follow-up, curious quick Great now the your then under conversations

George Kurtz

and looking reception see been we’ve our They for, into others a property they’ve home fantastic do a being for don’t acquired that been it’s see and very this our architecture, that integrated as that able some a solution. our They Well, customers. to single been unique something agent platform it’s combined from with This time. is run.

and the in the about field process that’s now the integration and early wins but we’re with we’re running, excited all So, up getting forthcoming. teams sales Preempt enablement really and of

Sterling Auty

you. thank Great,

Operator

Thank you.

Our from Kalia next question comes Saket with Barclays.

now line Your open. is

Saket Kalia

my first guys, George, hearing here. for we’ve Endpoint for explore you of some Maybe taking what end from Symantec think guess thanks you to seen customers other question move Hey announce and that great. the maybe questions do Broadcom on legacy customers for options? you agents. some Okay, that Protection is, are I support to what extent encourages

George Kurtz

have Thanks, that’s of removed kinds whenever is require Saket. install have agent you where shift a deprecating, or lift Well, agent an all reboots. and another being traditionally, there you and

I think up get is unparalleled some and ability in to stories, and our the success in running our as of we’ve articulated install industry.

solution CrowdStrike. has they of a and for to a Their it’s they legs just just terms coming with they’re this in coming I architecture I and to need unhappiness choose people why looking of modern to support. more CrowdStrike. forced companies why about an accelerant talk are some to is that multiple just why anti-malware think is function they another accelerator what would CrowdStrike a to in, as for their think think So, it, and not that’s do They’re

Saket Kalia

the how but business, Burt, my you remarks, gross on Burt, the for isn’t margins think sense. the in part Makes and been this prepared of drove is bit little on follow-up do you, actually that The expected. a would quarter? what that is Maybe strength anything for the a services call maybe better it. touched the you services have there huge sustainable in Got obviously than out you question,

Burt Podbere

our services are question momentum a business, you’re for Hey, smaller is business. our seeing strong Saket. and for we services Thanks piece right, but of your

had brand earlier, because so about of mentioned our really about for deals seven-figure to it we in results number a as getting subscription inbound and service that’s as I record platform ARR build, resulting remarks, prepared calls more we as we’re good continues or in the As momentum, I engagement. talked us thing from our deals a more and talked

pleased yeah, we with margins in In terms of QX. gross very achieved gross we margins, were that our

to and is we of specifically speaking, we terms in go our did if but you inferences based services revenue make really see lot a obviously, don’t gross dollars gross explicitly would generally we down. to In outlook, guidance both on quarter margin, holidays, can margin gross – business, and don’t with guide of you provide margin some there the a seasonality can

So how that’s services think about general. in we

Saket Kalia

Very helpful. Thanks guys.

Operator

Thank you.

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

line now is Your open.

Tal Liani

I’m I to want guys. will Hi see to bigger the ask look like. next picture about because how year trying

at growth last year. at very XX% year, the four to if be we expect it’s I into Your that not look even stable this quarters, it XX%, high, extremely did going strong the

things quarters, you meaning solutions, for the things that to such look XQ, careful be question, guidance to next we your factor you when I with is into it differently, the have start As you XQ, will that to what what and you when another – great look the comps? at your this that which but then will question was basis COVID will do slow is think the need you And COVID various year, is, you in next like you think a same, the give – components great how the big kick down year-over-year comparing are of guidance naturally for look the year? giving year Thanks.

Burt Podbere

take for first for the Thanks second George the part. the over I’ll Tal. and part to question. it turn Sure,

until guide don’t So, next year. specifically we of course,

going this products. enter QX what our in go we’ve that that in there deeper that’s us we’re second pleased with into being a for terms good quarter turn – able a think seen for of to We’re respect in extremely of we’re looks to we’re George record of momentum terms I demand and terms extremely of with your what I’ll quarter pipeline like about excited over pleased seeing out to it little next a next and and signal question. part with year really so with us, QX. the We for your

George Kurtz

at think like that are our look the cloud certainly I look Horizon Sure, rapid winners delivering when I you you think offerings just a at modules forensics pace, in at for us. things general we’re new and all

expand the more have. modules at have capabilities we to continue We We’ll some across the modules next all year. point

it’s strong So, of board demand and about that. the continue demand across modules broad-based to excited from and we we’re lots see

you. So thank

Tal Liani

for concerned may are year that create was this comp or you COVID numbers a not – not driver? a year to And of big uplift the this was difficult next

George Kurtz

to a think of So, acceleration the for us, security as we catalyst to the about more COVID digital transformation.

into digital companies and purchased it continuing overall home of a now think that’s work and from quarters through of laptops continues transformation. lot to and seeing for as the I acceleration respect future and in see of cloud lot their strength state how this future. of That’s kind to we have so demand so that folks steady and a we’re we’re the how about think we with the broad-based products prior

Tal Liani

Got you. it. Thank

George Kurtz

Sure.

Operator

Thank you.

Brian Essex Our Goldman next with comes Sachs. question from

line Your is now open.

Brian Essex

regard relative expansion I and and with drivers subscriber size Hi, landed to in in I really a things and or terms are if quarter, the some was little into subscriber install well afternoon versus to good revenue dig deal key wanted some per periods to results. to on question count, wondering of taking your thank ask could changing initial the of as you how selling specifically as base? congratulations for great bit into growth the prior

George Kurtz

good Brian, question. hey, Yeah,

in see and parcel lot expansion a with and good and the So, to today of larger headroom to we we value part and both able sell. news that been we’ve obviously is that big and more is, deals come with see logos respect new picture, still have modules the

our I continue offerings, tremendous have So, to is, the value bigger. we and expansion both opportunities. new a sell, amount headroom to opportunity have as increase end being in deal think The news of great we we and up going as tremendous sizes after we continue for logos

Brian Essex

what the – still Got of the or see to acceleration view what from growth were opportunity? mean year, it. opportunity modules will do the And would gauge in your over you grade realize with you base the where or next of going installed then into you greatest you might be do think several incremental have I you I if than kind incrementally in next two your quarters? you kind growth for guess Do impactful your customers more in new larger

George Kurtz

it’s Brian, George. Hey,

look all I strength from that modules a trials, to our just constrained stands should our to it’s SMB, I lot all with process, of in this I our the think fantastic think very broad I at ways – frictionless smaller based area there expansion at the the adopt that and board across It’s drive really perspective, when to all ability in-app SMB been certainly it’s even nature, talk cross-sell down module has things you one cloud looking mean, they’re about easy but cloud look deals, we delivery doing the modules you delivery customers and way times, say, of a cost our enterprise business to companies enterprise our our across segment particular and efficiency. out. the because isn’t for and for

broad based modules, So, across think I geographies. even segments the and board,

Brian Essex

it. Got you. Thank helpful. That’s

Operator

Thank you.

Our comes question from Alex Needham. Henderson with next

open. Your line is now

Alex Henderson

that clear of that a and bit help little particularly percentage of about not Can it appreciate Can revenue per that on opposed of bit? and telling there it, to a is you little it’s just Great, in hard you comparability us footprint. a it’s the between think to that as remote the data workload user is about the the mechanics difference thank talk workloads you it in amount much. on-premise are workloads utilize get context around very your understand how It’s cloud. revenue great to you of XX% simply but type point your there? given you appreciate as the from you or a we I us percent to us business per because a edge

George Kurtz

Alex, don’t that comment and my days disclose really for Hey, it’s early still that cloud. we specifically is, on

it’s everybody we else think areas where we we what curve it’s of of and can opportunity. just think have one tremendous days and think amount runway in a early still ahead ahead huge, offer, those and ahead I we’re of huge we I think but of of us see we’re we a still the

Alex Henderson

It’s two in three XX% think another XX% it say is look revenues of revenues. Okay, obviously that four over today, could it of out be but three years, of be reasonable next I the or as or XX% it could try workloads way, we to years? this could well,

George Kurtz

Alex. a that how three see of a turns space, years is just we’ll then, and in there Two out. or this things it wait lot is between now time long We’ll see, can that happen but and on one,

Alex Henderson

guy trying]. Thanks. [a all right. blame Okay, for Can’t

Operator

Thank you.

Sandler. Owens comes Rob question Piper next with from Our

open. now is line Your

Rob Owens

even in I my additions point net mean –the meaningful the COVID Great, to why thanks that reason and there and the we this guys. June here. March some guess I business just for yet it’s point? I probably you’re guess at hitting touched play earlier, on you’re showing little in quarter, quarter customer taking more start questions want you the bit inflection Is saw acceleration velocity seeing trader I you’re and the an your here? a – the with but

George Kurtz

Yeah, here. George Rob. Hey,

So, think customer purchases laptop you winning us, behind agents, beyond that’s technology, when adoption. real that’s an our transformation, be the consolidation that right? of real hit seen the We’re even market acceleration and are nail on the technology in well we’ve we in clear, adoption To talking the head. because about why big really solving you’ve and got problems of security best about

because lots lots particular value. delivering it’s enterprise, across it’s areas earlier, mentioned SMB, is we’re of those saving technology I and works just As board, companies not not the it’s money of of all just across just not mid-market, it’s it and the

that as So that’s is and They sustainable well for transformation to part the people trend when this of about mentioned security the future their as you move much sort a us think behind more have COVID that. cloud as digitally. transform it, we to the of foreseeable have and piece I see of

Rob Owens

of the standpoint I you appreciate against competitive their so. evangelical and totality of the the in versus if look and cloud a at are relative where who more and customer it cloud containers, there up servers XX% an it’s being and metal workloads in pulled is terms sale the running we bare on from color terms buying, in is cloud Thanks. how much to

George Kurtz

maybe can with Rob you bare metal? clarify, respect with Yeah, to – so

Rob Owens

so and from have workloads a containers that Yeah, more you solution. protecting at think when because perspective the you’re more I looking holistic

when cloud generation looks transition we’ve natural running what servers a and that technology of lift sales kind and in definitely there’s had into George there servers historically, shift and just that versus like? your think but type on-prem native, more next will, who to you cloud process I if I’m application, you’re looking more of

George Kurtz

about it it’s again say or all on-premise the there’s think on containers, an know as a rolling architecture or and we agents have have can of hybrid when a and whether cloud again in is agent, to that whether it’s that you own their depending in architectures. People of we’re we companies lot they’re a those infrastructure which provider, different Well, have certainly have environments single industry, I marketplace. whether different fairly across with us security to provide unique their and would

protection when is fact to built security why out added the choosing but work think to or you and an players that and hybrid the choose posture So are what particular, cloud in is to cloud another look there’s I CrowdStrike. people one there environment, us on-prem seamless are there, it lot small of at just management runtime reason we’ve it’s we’ve isn’t how our that public private reason a

Rob Owens

thanks. right, All

Operator

Thank you.

Fatima from comes question Boolani UBS. next with Our

now open. is line Your

Fatima Boolani

you flourish strokes a as follow-up to for taking standpoint, just And as a if the a a talk expect my you go-to-market financial curious relationship launch. can well with in start have how with as from then new couple product I to both announced that Good standpoint? relationship broad for a pretty Burt. you, questions. afternoon, around you to weeks ago I’m marquee of EY gentlemen. you George, distribution Thank just

George Kurtz

the really EY some that seeing about well, deals. fruit Sure, we’ve already relationships big the with and of we’re excited relationship

As tremendous of know, I win executives secure They’ve in have included. Board got ear the for they’ve think with amount to of transformation EY you that and large enterprises. partner a and everyone digital CrowdStrike to is the help a of penetration got Directors

always up throughout looking the them, go-to-market good in important, drive is make two set CrowdStrike. and The performance between well we think that focused creating want both comp deals EY, driving customers right? value with to for models too We area to other field we’ve sure how in is EY on and I and these the between delivering to as larger as the are got CrowdStrike alignment people really organizations

Fatima Boolani

of and cautioned around you just ARR were aberration think That’s year. very helpful respect back into seasonality the ARR had and Burt moving us some as of with half we for to the you, I

the mentioned that business churn in think I stable. you relatively and contraction was

relative ARR to curious specifically factors So, heading some of to discussing half, can back if you I’m into your around as your upside half? were you trajectory to conservatism caution of the what ARR were provided we pinpoint as the relative the that some maybe — maybe back into

Burt Podbere

question. great Yeah,

allowed the got overperformance – So biggest think I Those positive we heightened the environment, on and which adoption I modules continue reason tailwinds, look secular and we we solution, of security things in first, that that of favorable the security that the competitive or backdrop nice saw are is them you customers for a in the for they it’s think a executed the QX regardless size so the backdrop the and to record mission critical easy have threat other the well and extremely were wherever pipeline going platform environment. and customers overperformance, strong that industry. remains to QX of clear the to in had were for

changed looking assumption our I us that forward. think we’ve and contraction is what’s churn for lowered on

for the what the customers that really to with them and able rates of customers, by for seeing is haven’t mentioned adoption to adopt which George looking of and more, the particular long think value, more, adopt our cloud seen we piece move provide. time seeing are customer on stable been we’re seeing a any seeing business. base, It’s they’re we as we’re we’re I respect we’re really them movements more to

think for things us together and news both highly budgets seeing you’re even So a we’ve Complete, to is think industries we churn constrained provide forward, what today. then all good and we and you’ve when you and selling, effective up things in got good contraction like QX got The affordable. of solutions and combine assumption limited lowered when we’re those looking come with impacted resources about those are you’ve tremendous about solution which the value we got Falcon that’s a to add able overperformance for and

that’s we So at look how it.

Fatima Boolani

for color. appreciate the Thanks that. I

Burt Podbere

Sure.

Operator

Thank you.

Our next Company. question comes & from with Oppenheimer Shaul Eyal

Your open. line is now

Shaul Eyal

or and it? Netskope, guidance. initial easier George same much. congrats when you way. success were Thank calls. been announced potential this the life They and Freddie from that alliance Proofpoint. XXX indication talk the summer Burt, and question Okta, results the from about displacement afternoon, Good with quarterly the it seeing I that Is concurrent conference absolutely Can ago your a we back so you’ve you’ve to their guys, it in us just on little think a about with by bullish brought for making disclosure, about Office and alliance Todd minutes on you

George Kurtz

these having best the than platforms. the CIO want work breed want platforms are past, breed to for because best days to together and for breed – another assemble value add against is choice it, and products. at voice. and all your you early together. They for we their all of organization hear tired you solution they at are Yeah, hey, for after about interoperate we’ve the want of they on It of us looking that breed CIO the know, has, looking but to of an integrated a you they provide are they combination, best thanks. are that opportunity certainly say, the customers we’re love we this best to them talked this looking into. building want put and Customers when They Good Microsoft look of and want are to and rather seen to of tremendous for, breed pieces to platforms alternative, locked come and In when best what it we something and own. we’ve any of us can great we’re connect look have looking things

good, so the early days. so still So, far but in

Shaul Eyal

showing for were professional And being about it. a number on years brainstorm Burt, $X been got the accelerated bit accelerate the could subscription quarters, adoption in of potentially great it, within little next with couple that obviously mistaken into so I’m $X services ago, we new every talking subscription know that into That we’ve recent seeing. you in to, a can question converted $X dollars, converting dollars number two, revenue. rates Got new of us you’ll if recall three you not What professional has services years conversion if on front?

Burt Podbere

comments. So, to for and thanks you your great hear from

think it’s and and a but our closely. be we and that’s we continue of I which continue for when many it That’s going continue a in to as that boost. tell, something to to think continues us. to to it’s something try compensate pay the services I we we’re monitor call, to go? going about metric we’re going a to on obviously is are in, That’s you strategic we invest opportunistic on and metric it follow it’s for really with could that will Time accelerate professional and strategic actually – as mentioned teams us metric it’s just the one ways, earlier described, cross-sell. Where

Shaul Eyal

Congrats Understood. again. you. Thank

Burt Podbere

Shaul. Thanks,

Operator

Thank you.

next with D.A. Our question Nowinski comes from Davidson. Andrew

Your line is now open.

Andrew Nowinski

– to announced. on that just a another on quarter. you question Congrats with Okay. like start amazing a I’d Target deal the

of so the long a with number legacy years stayed breach sustained So mega considering it’s pretty interesting they’ve that provider ago. a they for

the you competitive how how wondering on and Thanks. a And then follow-up. just long was? have working that I been deal have So,

George Kurtz

they running lot forward a of that broader and quickly a past it time deployed very came we spent moving with we are. actually solution The dissatisfaction forward, their deal look the immediately vendor, certainly time of. was value. who deliver like in again, and and very had how period organization unheard certainly know, quickly, situation they which they of knew an in going could looked, together that part contemporary very for be they’ve them a at we and and was deliver to of more current effort a were solution. well, Yeah, short is They’ve for there lot that were get a and treated they up To looked can you market, of across they looking we thorough they were being with our such

So, great and continue future forward. the team we’re looking partnering with them. become a going to got excited to be them fantastic with They’ve a to partner forward to we’re

Andrew Nowinski

because fight but really many endpoint That’s vendors, that legacy from competitive George, many thanks. as as is And the great, knife so people people a standpoint of legacy it’s market then with selling of I think vendors competitive would think a there’s lot security somewhat nearly reality is just guess so the not solutions. a

into in that sustain Are in I’m the have just more vein, you or same share of of market as sort kind losses they Thanks. it dollars marketing I’m their from to seen try McAfee Symantec? the to pressure is any change IPO? So, wondering, following putting same competitive their any

George Kurtz

rolled and is is and So built the issues don’t them scratch, out in things right, just few to never the the in hard put is why wrong, Well, I through I actually when of you this CrowdStrike. a legacy from in it stuff which lab, we and a marketing you goes hope can’t industry doesn’t earnings reality reason cloud the think right? dollars to seen the when called get part it legacy the big it’s process started things that it, call, was vendors. the delivering out slideware work, works, a the and we board add born technology work when a testing a good it’s the cloud, but from into we unfortunately incompatibility and across customers next-gen question think go actually practice, for of PowerPoint both I’ve and

but continue we to lot today. you’ve there’s get So, of it a results as noise, the seen from through

Andrew Nowinski

Okay, good guys. work, the keep up

George Kurtz

Thank you.

Burt Podbere

Andrew. Thanks,

Operator

you. Thank

Markets. from Our Matt with Capital Hedberg last question RBC is

now Your line open. is

Matt Hedberg

and I of curious the broad, a little percentage the where asked double-click more guys, E&Y go again deals but that Hey George, me. future? congrats from and I on partner-led bit partnership, what are great wanted might it I’m to guess in today

George Kurtz

of majority the are the partner-led. Yeah, all deals

some just fashion. all channel company, in the through first channel deals the a As go about

by our the deals them excited are in the brought seen so general, really we’ve what we’re Because seen fact that by the deal CrowdStrike you we’ve are channel partners, with they’re to other and AWS of right technology, success. are some the for marketplaces like and them unique of but where we these about us, is marketplace, and sourced Some more our making continue and demand grow, demand kind partners being have continue from sourced our of that strong money strong will then registration winning, a see channel. to and is there by areas

because excited have we large worldwide we’re and for enterprises, EY, win our trusted when of is so us solution in they’re about really just them the to as technology are part and So they great customer. a the think embedded so really and

Matt Hedberg

us at again sort about it your and remind was where to sort great providing? you the view customer and user That’s and what your both we the Okta of and Obviously, of partner great on maybe services about side. is but hear versus and end start then customer just identity Okta identity know talked event, maybe this of your

George Kurtz

That we right? it’s is a We Sure, the and data we down the unique tremendous a of of very visibility know the we we we’ve – identity that have, and of in the when ago, think know question, set workload the when do amount are users what about involved it. of visibility we some and we time of this there. that got state down we state but journey endpoint, started started a that good know

happening in on like or that nature. [indiscernible] information provide to or system additional what’s identity things our So, able broker identities, of to this identity an can So, and provide be the and brokering that Okta is challenges, they role information others, that they’re to provide and right? on trust score

to for customers. So joint well together our decisions providing so it we’re works in much tandem information make because better both

Matt Hedberg

thanks. Got guys. it, done, Well

George Kurtz

Thank you.

Burt Podbere

Matt. Thanks,

Operator

Thank back any not to now Kurtz at questions for closing like further showing to this call I over George remarks. turn I’m time. would the you.

George Kurtz

and We to appreciate everyone I’d Well, Thank We so attending talking look stay for to you today. everyone’s next well time. everyone with forward you wish quarter. much. and like we safe Great. thank

Operator

Thank and participating. concludes gentlemen, conference today’s for call. you Ladies this

now disconnect. may You

CrowdStrike (CRWD) 2 Dec 202021 Q3 Earnings call transcript