CRWD - Earnings call transcript Q4 2022 | CrowdStrike Holdings, Inc.

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Operator

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

Maria Riley

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

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

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

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

George Kurtz

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

acknowledge to would I started, get the like Ukraine. war we Before in

reminded terrible thoughts this support toll the military of that of with impacted we are and deepest all those human by brings. Our are tragedy as conflict

for broader We peace hoping are Ukraine and region. in the

results. will summarizing four by Turning key start I today's our to financial points. call

delivered CrowdStrike expectations. exceeded that quarter our exceptional far First, fourth an

are second results growth tax flow or of quarter $XXX net million. to by in cash XX% million to new when the margin free IP quarter's acquisition ARR an transfer $XXX for This and of acceleration approximately related excluding the Humio. consecutive headlined Record million non-GAAP operating the record $XXX payment reach

punctuated both Second, modules vulnerability growth hygiene, our collectively. protection growing success now by outside year-over-year for hyper $XXX ARR log and scale identity management, million as of is we and surpassed in of IT security the our while traditional endpoint excess XXX% management milestone,

our top ARR than CrowdStrike as with more by AWS volume Furthermore, grew customers ended year. partner public the we both fiscal XXXX, ISV the AWS. alike. year-over-year. where can largest milestone we the the deployments success cloud, XX% believe to In for of the Marketplace, with partner as cloud million includes can We engine momentum of transform to effort the derived partner, highlight speaks on ecosystem. the the growth and the through partnership growing security our source this the AWS grew Third, from Falcon our partners provide public ending transacted XXX% provider which public One for eclipsed exited $XXX I'd value highlights as from one in is quarter-on-quarter and cloud. marketplace fourth, and the cylinders, all outstanding results, year executing transaction world's strongly to with ARR the our year tremendous you see is like ARR lead thriving throughout to the on partners deals we And

for multinational new customers, and government and XX continue module, for the wins education XXX companies companies among posture sizes of including on total in the small customer as market quarter by such a and large higher multiple sector quarter, from enterprises Complete significantly and over added time included Cloud lands and the technology agentless our milestone. expansion to in telecommunications, in the Fortune CrowdStrike was media, accelerated Workload wins agencies others. all financial management results a for global management, that Growth X,XXX modules, million Fortune consecutive identity bringing in for the insurance Fortune driven multiple core was leader sectors, the at our customer verticals the a $XXX rely company, $XXX field businesses. subscription customers Fortune of number We third customers manufacturing, Record Falcon a and Humio module across discuss Demand Horizon, and by sizable to experience XXX. the across to global reach services protection record row the protect let's among surpassed differentiates cloud, for endpoint of also in was number win and technology, multiple Now, second our XX% increase energy rapid with top many new detail. and a our history, million, as retail, including also first record well Protection quarter broad-based services, QX record ARR to a quarter growth company more business transportation. to another rates. in achieved We new record was financial for organization, Demand identity fueled wins cloud company. company, deals protection the Humio. expansion quarter year-over-year. public in to security as for another their which global a Key large XXX lead a a and XX,XXX, software Net in wins quarter US provider, financial with included services wins Falcon

Falcon partner, on relationship approximately action its data endpoints that and ops additional announce lastly, and trust scalability even that Complete think exponential financial some Among Our server a Internet, next-gen a still customer are to together. share captured map months, this promises. a reboots, financial existing competitor And given server struggling with forced a a being work I had of matter. why have thrilled success with They environment. their opportunities prohibitive securing to customer, trusted to displace plagued became by a advantage forward a included vendors' growth fantastic whose dev organization solutions We to protect CrowdStrike usage deepening the Cloudflare, adopting road Humio more and identifying log unmet to deal budget At But same Mid-year, we after a time, chosen deploy services protect seven-figure the products legacy reasons, significant technology look CrowdStrike six and quarter by XX had with this memory these management details become me were the customer traditional the its our Fortune let environment. natural take a about quarter, to Horizon. recent this better and expansion moment exemplifies other in to technology mission particular product new in our institution many for they both in a partnership the build chosen wins, were incumbent. to and the team.

Falcon and better a business ability rich contract see consolidate was the was production to year growing rates efficacy, customer reason showcased our significant get we ecosystem. batch of of In record manageability, and our broad of of number leverage QX across demonstrate their is cloud, requiring record displacement, to we a environment. differentiation in their real-world ecosystem. protected, fiscal a the with scale services This real matter now of in scalability, thousands partner solving all real fully quarter time endpoints our and Side-by-side, service total, hundreds stories without while This on real-time While protect have our from just a versus to customer Falcon win one for they Falcon in a vendors the of a to able our customer is problem. why globally. gained This telemetry earned leadership deploying mode partner XXXX, importantly, weeks we our for and struggle increased their the power many also that agents was deployed terminated and security provided resulting efficacy. other reboot. fundamental

year-over-year grew During XXX%. our the ending ARR year, more MSSP than growing with business XX% partner stores

is architecture the we other in from any vendor see different Our fundamentally market.

design these real stream and While while to aperture foundational the architectural us our technology a platform from all cloud capabilities we beginning to starts the storing rich created the batch the endpoint. believe gives our advantages on mode with smart have elements high entry, the data on operate filtering are struggle dynamically how with We vast, competitors adjust time. with barrier telemetry to in which it agent, ability the to

platform. entire We extend continue across the our leadership technology to

X standard benchmark Humio leverage over ingestion yesterday, of position engine and streaming a of to and the reached the to announced scale we As continue XDR data sets petabyte the index-free our the space. day. Humio per for data speed new ingestion in extend CrowdStrike will of

subscription You have customers from the XX%, success which modules In have growth The of reflected our five increased or than quarter-after-quarter. an our is and or six or adoption QX, more provider. heard that hyper platform say modules deriving is our me endpoint are as more just CrowdStrike in strategy many we of to and module respectively. as strong with increased XX%, consistently four XX% well metrics, more more,

endpoint, Falcon trust we security challenges multiple and product significantly new ARR areas of existing both to to have As growth. outside core increasingly contributing solve customers

well and drivers outside group overall ending FY includes $XXX contributing and modules We collectively. representing modules quarter-over-quarter These endpoint as our more significant protection. are new from our XX% solve business ARR traditional grew for as modules products than year, are use that growing this last approximately QX seeing spotlight, these for our cases XXX% net growth ARR ending identity Humio. XX% ARR with over tremendous emerging XXXX of million to our protection ARR. discover, growth This of for

meaningful $XXX business to new to runtime date our AV reach the Our TAMs. Changing adjacent modules. a deployment outside QX ability collect million next-gen these success our and extensibility in and areas milestone platform and $XXX public protection to deployed from our of surpassed speaks modules the inroads the encompasses our CSPM ending cloud, our the accessing view, a in in environment in to including This milestone cloud public million ARR. in core cloud we data make perspective EDR, of module to

X% Cloud increasingly are under-protected, a and XXXX exit approximately tremendous business we the and through We deployment business, representing in growing as ARR. outpaced represented a our ARR when business have significant beyond. FY for and new adversaries quarter-over-quarter QX in seen growth targeted XX% overall of year. growth Ending growth our our lens opportunity by largely momentum net of viewed cloud the this workloads are

trends these will powerful the do anytime slowing adversaries we to There not tailwinds not market quite soon. and dynamics. The currently abate markets, certainly actually that Moving down, our the any see are opposite. are driving indication

we've As increase report, global for published with in no data leaks. most weary XXXX in ransomware-related provided XX% recent threat our the an rest

putting saw as we extend bounds, Last these no government state events every As is risk has of are There their of XX% attacks joining land, the far the at can center identities. as of targets no dimension fifth the weeks compromised radius malware-less in and past we space nation's with warfare. year, cyberspace and have few with observed beyond most cyber were as borders NotPetya. the cyberspace blast stage air, attacks of organization sea, involving intended and demonstrated,

tradecraft adversaries environments and We nation-state exploit and expect credentials to defenses. bypass the and alike use around continue cloud and of across identity to stolen that legacy vulnerabilities will e-criminals up endpoints ramp both

Falcon tactics to ongoing we must gap, have organizations To seen advancing addition security skills last offering. demand teams of security in help Complete, drive scale In our attacks Falcon a companies a complete environment, new identity to against breaches. which for customers increased Identity combat threat way increasing the the heightened adversary with solution week compromised managed threat to industry's identity, sophisticated protect we Protection Threat and launched stop help first and the their contend

believe our chain lead organizations digital expand, transformation workloads foreseeable Additionally, embrace to will move the cloud. as expanding supply and to the for TAM ever factors the sustained digital these continues rapidly and growing to growth is is all of future. We and the surface market attack more

to runway our We to security vendors, transform multi-year legacy is as which also bolstering favorable stack. see look and endpoint their to continue a very environment competitive growth companies displacing

the to hand what on thoughts I over Before unfolding. Burt, will I we of final see some provide big picture it

to scale now addition in As we shared what comments, leadership have the EPP you I outside vectors in some with my in opening our that our consider driving core. are multiple might growth market, our growing and

risk innovating is risk core and identity investing, have areas around we endpoints CrowdStrike's coalescing in see needs, mission. looking to these deliberate markets. or represent as areas to products These the enter are and most very platform to for their the to all as value We the been been organizations, increasingly customers customer. have solve struggle in choosing legacy purposeful three Enterprise and data, and critical brittle, workloads, Falcon complicated are biggest three to and markets to areas: pressing security deliver

that, thank which to I'm workload, endpoint we innovate these translates well to reflected categories, execution success and of our see for daily will of is growing markets the endpoint to a architecture to results financial discuss in Given the our multitude financial make every world and their to In observability, the the which our turn work emergent data like the log in and such commitment results over as everyday as customers, the collect inspired disrupt ultimately hard Cloud more our I management, are around level you. solving in we SIM possible. Burt company. With advantages footprint our for newer the of tireless basis. I as detail. our afford, and dedication on in They and protection. fourth to CrowdStriker these a or CrowdStrikers would strength the customers, exemplify closing, and like as, and champions by protecting that great our quarter great opportunity in approach on Thank call Security the of problems alignment humbled we

Burt Podbere

everyone. Thank and afternoon, good you, George,

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

year. contributing the Before that we of we than $X million acquisition are ARR, results get less de QX include delivered customers the acquisition which was again started, will XX reporting to minimis new note I revenue today in The finished in once ARR. the the top resulted to flow billion $X.XX XXX% XXX% SecureCircle, ARR SecureCircle net growth, phenomenal in both XX% the in and of results off with growth fiscal growth, record cash revenue quarter. of year We growth, delivered over We ending net row of in exceptional addition free with flow is $XXX million, XXXX, income we free And line XX% This of second total year revenue. in is income year cash ARR. margin, operating and delivered or target better our the CrowdStrike XX% XX% or a which a model. in

our fundamentals expanding in and results our investing these by XX%. accomplished that performance we highlights aggressively Importantly, while and the SaaS strong market also that addition leaders cloud-native and position flow. remarkable leadership team gross scale, a ability rapid have growth the our our business in rates, believe We hallmark markets, characteristics business come enduring our and possess highly of to clear model defined respective mission to leverageable dominate transformed deliver including an to the well best-in-class at ever-increasing dynamics growing retention as cash their free with as a phenomenal and architecture,

CrowdStrike's best I our continue firmly believe to days position, unique on are we market capitalize As ahead.

was newer products, customer consecutive fueled the with fourth strong including new Demand success record leadership segment, accelerated the expansion net distinct and to was reflects multiple Net and quarter represents in leverage protection, all-time figures this new believe even contributed by acquisition. deal expanding management a new to business adoption in continued ARR well ARR differentiation. initiatives growing to our accounts second in grew deal eight high our new across the broad-based, each million. composition ARR reach though continued for rapid Now The very XX% this areas enterprise attributable of and of pricing product the We net the new the and quarter. two of core product size, ARR growth log of approximately to large Net $XXX.X our customer business continued balanced moving identity our new strength quarter. quarter. sizes cloud,

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

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

year-end. best-in-class and XX.X% rate at gross high remains retention at Our

but retention base. the level benchmark net dollar-based end throughout bigger FY year. Our essentially was XXXX, retention as XXX% a last which of similar of the year XXX.X% is on Net much was to the a rate above

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

engine by platform. organization XXXX, customer Falcon each proactive Our customers February a our is on their the for after first generation Among services $X for those become organizations engagement or for professional a X, strong and response who lead spent services. initial incident

contracts, As of of those $X.XX for January subscription year. XXXX, in reported up ARR last we XX, average derived an $X.XX from

revenue a Total setting XX% last XX% and services year-over-year over XX% quarter gross year respectively. QX million, was Professional million. Subscription growth. new margins record of quarter non-GAAP reach to and at XX% P&L. last the million. consecutive to grew Fourth revenue QX Moving consistent year subscription sixth reach representing total grew relatively to over revenue $XX.X the $XXX.X and $XXX.X for remained XX%,

We of revenue. QX, magic we continue as subscription last at continue XX% quarter we million to to invest growing opportunity hand globally. demand. revenue the as the ramp $XXX.X investments market versus XX% number gross $XXX.X year In or to fourth ended with be approximately X.X to strong were million expenses operating for capture or and pleased of in more non-GAAP a of continue with Total our margin performance we expand of

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

position QX are we $XX.X Fourth making income lead security choice. maintain to step geographies new sustained continue new marketing the growing We to improved that number and demonstrates as diluted of last a international non-GAAP as leverage We to opportunity. CrowdStrike in reach the and partner over in well per as and million record technologies, quarter a doubled six year in enables also share today year X.X believe approximately generated growing even hire QX up we more also long-term growth our million, on of Non-GAAP operating XXX% increase that to should or this record investments year-over-year market given $XX.X margin massive pole and continues more more percentage model over than of The to a XX%. investments to efficiency to doubled, programs investments points us other trusted the than reach income believe the a to indicate attributable net magic $X.XX the operating we aggressively. our basis. will

common average basis on cash to XXX with diluted reflects payment, strong totaled shares. shares fourth calculate for increased transfer weighted and a operations payment CrowdStrike the to million quarter Our ended flow $XX $XXX.X a and and approximately grew the million of attributable tax million IP used approximately Humio. cash was EPS acquisition quarter and to or cash acquisition fourth $XXX.X in a non-GAAP was record Cash of to balance of We the cash billion acquired new cash equivalents approximately net the revenue. of and the $X sheet. for flow SecureCircle to million XX% Cash a fourth of $XX from record quarter free million, the related

tax the Excluding transfer related revenue the XX% free QX for Humio, the cash million $XXX XX% have of fiscal million IP $XXX year. for of acquisition revenue payment been $XX or to of and million approximately or approximately would flow

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

would I have the to quarter ever First, that strongest for entered QX. pipeline note the like we with

to new eight the figures each ARR, ARR, framework ending to for that which incredible think I'd new like QX, QX. contributed net two included net provide approximately to net guide for about given new of specifically not do ARR we While to performance or how a accounts

recall, revenue last XX% may in was the that, significantly QX, to was to Consistent of it more we years ARR, this large new is prior for which two this typical indicative with overperformed typical net our not QX, after for year, we seasonality. in and expect sequential would in adjusting QX seasonality and As you XX% contributors implied guidance.

percent remain continue of investments time, fiscal we the anticipate We At delays, supply the XX% are we and of same as for the year margin more planning be a be than the chain to growth free will scale to of XXXX. weighted and and XX% ahead between to year, second. any weighted first flow future year expenditures for revenue invest potential XX% expect in more to to Second, as capital revenue second cash the of half. these half towards maintain the invest we at

guidance. our Moving to

remain New we a starting powerful are We and fueling about our growth. demand and the Year, offerings with secular the our pipeline, robust for the trends optimistic

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

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

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

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

I XXXX we on $XXX.X expect We attributable a April non-GAAP range take to XXX will business non-GAAP to be weighted on shares net to about to our average scheduled $XXX.X per diluted fiscal additional between million CrowdStrike investor $X.XX sharing look now share expect and X. million next basis, net million. forward the George attributable details to to be Utilizing your of and in questions. income for CrowdStrike income We our $X.XX. webinar

Operator

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

is line open. Your

Saket Kalia

Maybe George. Okay. Great. question taking Thanks you, Hey, guys. for my here. for

a on talk over also, to like products. more sizes? little contribute differentiates a competition? module the some a traction zero bit how bit you feel couple on Preempt, could it from gaining if one? I we just the just in disclosure And it little might Maybe wondering, about could you was First that's deal of feels been it been nice your of last of lot talk like a of quarters. all, helpful it's about non-endpoint how if Can

George Kurtz

directory you Thanks, module, Saket. because us, Preempt Zero acquisition we now threat we've Identity and been when think environment, it platform, When compliance of massive integrated breaches has a live of the just It's our has from about there's where for seen services, into abuse in been Trust seamless. understanding issue these Sure. the identity, which to a who many the obviously these at abuse makes privileged access and accounts standout look which all they came accounts.

So, this is a highly differentiated module.

Our competitors really Preempt don't around it we built and have that anything have this works, we The have from the the that's way close that to in it got this. team, area. algorithms that AI the we expertise

platform think way And certainly important time for effort do integration a I looks platform. right, we've is help has an absolute it is part among for to many its way it So, taken which the us. the differentiate the been us of to at CrowdStrike standout And the others. big and an

Saket Kalia

you. Thank

Operator

you. Thank

question next JPMorgan. Auty comes Sterling from of Our

open. is line Your

Sterling Auty

in security Hi wanted what talked does opportunity about cloud sell, thanks. I -- you you in that capture go is when versus security to that Yes about. curious guys. look think on capture and in zero the you I'm endpoint? what do you the like And kind of percentage rate what get the stack of cloud? on-prem with can the you And that wallet

George Kurtz

greenfield And have second makes there important opportunity. and protection; our companies business put is cloud is plane, very beauty control around that is security which runtime very the penetration of at integrated the we are and look areas; across actually still we effective. or And one When the posture Falcon a one both, cover our two there. We Sterling. have some cloud disclosures our I think it good that other. we us, the To one Thanks management. they're and platform it's Sure.

to different We misconfigurations. just have ability which than is attack, the also identify of indicators much

stack So, are about clusters, overall in the of combine we're protection visibility. traditional virtualization part it's people when the think they big covering what whether everything security and looking have together and runtime for those containers between, in configuration, vulnerabilities, whether and you a of you that Kubernetes

these part for DevOps both to So, and management. feel -- easy we're we've great early it to effective gotten posture it, of still who and that's is innings. to areas it's good if got security with be pretty But the able agentless the make in to we in and CICD side, selling as We've the we implement in teams the will, at you agent of some cloud it this pipeline. very technology

Sterling Auty

you. Understood. Thank

Operator

Thank you.

question next Nowinski Andrew Fargo. Our comes Wells from of

Your line is open.

Andrew Nowinski

Thank you. another amazing on Congrats guys. quarter

So, our the top CrowdStrike results. last reseller survey, in had

So, deal last maybe inflection any wondering within I'm I'm wondering And CISA if quarter market? an US that sort you're of partners. and with created channel similarly, if has resellers inflection the federal seeing

George Kurtz

Sure.

thanks. When CrowdStrike, and partner first, it. way the you company. opportunities partner-first about built So, our That's think I a we're

talked about from resellers providers And AWS partnering, I many wavered earlier. haven't We that. there's and hyperscalers of like cloud areas everything to that providers from traditional to service managed

they managed we we've do. is best approach that to compete managed plug services. platform the can and partners, the in successful offer the looking world service Well, with taken augment what they're service what other to not there? for And we've endpoint seen to have been are in why providers the So, right trying that

out those we've in areas, complement technology. a it's think and way effective. figured that they to I have customers services And been the want of very course, our

clamoring they're to us. with partners to So work these

points being So proof that. resellers. the government. in when put do validation deployed the technology think time there there's Washington, And Federal be success in there. out was just our I've about to I able in cloud some And service, I a about great well managed think spent it's for recently. CISA, traditional on a And as we us we as providers will fantastic our continue lot we've finally excitement of to in

we those. know, of to sell in through to worked get through different and you have you to a compliance Federal and the As government accreditations go lot

past. levels. continue particular We it those in seen customers' the vertical of to us that And from the been because at through saddled that aging opens opportunity they've massive different for with up technologies interest we've a pull work in big that a

to on opportunity the that, come more today very about and future. So the in excited but

Operator

Thank you.

Fishbein next comes from of Our Joel Truist. question

Your open. line is

Joel Fishbein

a you GA-ed fantastic question and quick you on have just Hey, George, execution. and for a XDR a could. thank I if follow-up I Burt, George Falcon congrats for module.

I in than Falcon that think it's you there's a going XDR lot and of out about the different forward? important there? how are the Can noise products talk And why other it's space.

George Kurtz

that's the and to different engine streaming outcome our to about than and And times right leverage been of that in When to the to think organizations we the just then to past what we been do on with to you think powerful, many tried the market, efficient more have and technology. detection in our the be in all petabyte leveraging that's able best we've shapes the what just sizes, We security we've seen don't extend And what And best apply Humio. best over benchmarks start places. response is acronym. about they companies approach. of we've slap combine We Graph, EDR that. able is marketing Sure. believe We talked just validated think get on is and to of XDR, have Threat fusion the and the it's legacy. our that have XDR top very you EDR fast with it AI threat the

around So subsume we believe we we're in we're the think pole be more to position and market, that just about really in capture SIM days. lot we're will of technology to perfect integrations customers. that Obviously, and we still able with really it. a it. that's We're But working a excited a adding We're that. the early launched

Operator

Thank you.

from Brent Our Jeffries. Thill next comes question of

open. is Your line

Joe Gallo

guys. Hey,

how for endpoint? OpEx additional just unreal you give opening the results then of an and the through would revenue anything Maybe shift typically to the You disclosures. Burt, opening fiscal guide XXXX. have the methodology? for And to fantastic impacts really extent we were for of Thanks mix And walk outside expect I revenue on appreciate Thanks. And what And Joe the maybe revenue inflationary us changed with what do for for Brent. guidance? core XXXX? fiscal and question. has

Burt Podbere

Hey, Joe, thanks that. for

We see. guide has We tables. to nothing really not So to in running do guide we of the terms our changed. what methodology,

So absolutely no change there.

think and of about our are the going mortgage some that and any endpoint, see of the disclosures core momentum We products. of additional question excited outside about some markets of that and some core we emerging don't good think I capturing of both about our momentum. given some fading we've I

companies in world and and opportunities. so both at us, both all pipeline when we front of you our the being the down about we those both we in look when it drill the And think a excited even then of really largest to And we sell at about we further, get opportunities down excited get look some opportunities the enterprise able little smallest. to way to the about and

it. So how about think we that's

Operator

you. Thank

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

Your line is open.

Matt Hedberg

many was had sequentially, about Burt, for really that things next sequential was Congrats. of that this it kind Thanks assumptions me Lots declined to we ability. about when this customer? when think ending per of according about for X% quarters. question little upward to some up was for that continue of your QX, Great. kind are to for taking subscription talk look at one here. trajectory think the math, out subscription I And guide ARR my strong. bit. that me, around to point? sequentially the ending really, you customer, But of cross-sell guys. year, QX, wondering, what a per to up flattish, I my things of speaks guess, In I'm the it really maybe you, ARR stood at Should

Burt Podbere

be Matt, existing could from new really think ARR, we don't come could It base. come with from it look about fair that Hey, to new come logos. It net you could when it from you, our anywhere. because way, so at

always you has it wherever focus, from. will net been Our and be as know, new ARR, comes

bring So in year, net think customer. going the new looking into a the when logo we we same have team sales it this done we're they last a team from or sales year, existing an they same to perspective our with from about our as doing whether whether we're compensation bring out thing meaning pay

position in in able of logos. in. CrowdStrike great be we to headroom go. early of on net in of base And a amount being tremendous go care don't both, talks terms have new think it tremendous right? ARR. innings that's where amount to expanding that course, cross-sell that fact comes is, The a really great the for kind of terms pay with So to And of a it have after about helps still to But is We really Our new headroom of we the journey we in sure. our news of of lot headroom we from.

to that hopefully, makes So sense you.

Operator

you. Thank

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

Your open. line is

Tal Liani

what to is you XX quarter. have changing Great count didn't How rates? hear ask want the the have quarter, now, you the customers more can hear how four, it. than kind percentage modules? additional of Normally And five landscape competition. the is about maybe talk customers have you is of I have competitors? guys. I it how of and I -- acceptance about didn't six subscription I modules, And -- with modules? many last give Hi, out it this just And

your give the take you do see see it ramping acceptance can new where And Thanks. you of do et the a modules? update little on historical cetera? kind of trends, the So versus And how speak rates about of bit -- rate modules? you an

George Kurtz

quarter and When a just a point. we truly our competitive here. environment I lots next-gen with of at growth, differentiated with platform the never the Yes. Thanks, of us. when the and clear. that the combination. like so a better entering together replacements cross-sell, winning that put we look space, in better offerings outcomes. platform very world. We've certainly on they SecureCircle. Complete a world-class that visibility at data looking we us of understand is a customers to it, agents, have then you core. in much got be SaaS think, with some in lots quarter, And consolidate mark can combine combined outside you this buy see and protection to top the don't are you replacements and see It's you modules punctuation the competition, that reduce We've of largest put the of OverWatch which to is When and have, legacy unique And our others modules, see with George the the XX, We're we you look what And on it true costs and get for combine identity, now, with seen competitive world, the just pipeline. endpoint workload

steam the to take believe industry. the the rates. let you Burt, best build full platform take us So competitive module we the on from side, and what and out-innovate in I'll is we ahead continue

Burt Podbere

give because we're I'll out them very again Sure. of they're -- them. proud

percentage the of customers more is is six modules increases XX%, are of five So modules modules more all with or last quarter. over XX%, more or XX%, four is which

Operator

Thank you.

comes question next from Alex Our Needham. of Henderson

open. is line Your

Alex Henderson

a very actually I've question. you got Thank a much. and clarification

The is growth kind throwaway about considering a you're you first have clarification. I to mean, a pipeline record have record talked one I keep going. of that's a a fast, to your so growth you growing mean, pipeline, rate. the

very the open they having and or of your your be whether Does in is internal So It's which done on you opposed here companies has piece forward been the think bought the events announced a a successful well I ratio record coping my in of using I have targeting to with have And for out smaller pipeline increase revenue the but the that of understanding past. that with to bought I been important which in at were Mandiant runway planning ARR as products really you? the expected fact, is that was to upsell. did for them. wondering, Ford obviously very predominantly to look more ARR, as well. pipeline in what you out, one Google the With your up for actually Mandiant services one, to is, a business, then obviously on business, relative new net is question if a

and So a the player you does preeminent, up even further that you're a in can that opportunity of open that so not for more expand but you upsell? new to that not the get become preempting security, already,

Burt Podbere

it's questions. it I'll Alex, clarification talk about take your George to Thanks Burt. then I'll pass for Mandiant the and point, Hey, the first acquisition. to

pipe our obviously, year said ever the company So the that, is seen what in and we that into pipe history. out going greatest came is we've

turn think I'll think of to to kind and that George the generally, over ARR. of of question. year. starting the in talked out I net everybody leave else that, part on But to second we means that business, the it I it -- good for figure the we've in really feel combine what momentum about to that new I'll you terms about then the And call your with

George Kurtz

Yes.

them. congratulate And we and at Kevin years Burt. the Kevin of want to you, a business, they're thank worked best Calstone known fantastic team. with entire I've So, the I organization, lot many respect [ph] a first, of and in and have one for and the

also big So -- work being of them opportunities. on CrowdStrike. is We partnering think of we great opportunity partner Google, continue who to with another it's a part

think lot of a both I organizations So sense. make

the them. continuing world-class overall additive that progresses to how Mandiant with You technology across we to seeing our the capabilities partner be look to and can got And solution, board. think and forward we

it's think net-net positive overall, I parties. So, a all for

Operator

you. Thank

Fatima comes Our of Boolani from Citi. next question

open. is line Your

Fatima Boolani

you. look Burt, afternoon. questions. the revenue have you XXXX operating that to Thank from Good at XX% and your comparison in fiscal to And for income. this guidance for in one taking at the implies XX% a I growth to a I end operating close you've it my standpoint. I income for high look guided

trend wage And inflation helpful. around it the and what some was do and retention there? talent Any place of some your travel the in me. a acquisition vis-à-vis And maybe as growth that your would that's your you has So Thank and contemplated in of your talent of frankly, reverting have peers. to outstripping doubled been operating that levels buck some pre-COVID I for thoughts very considerations you And to revenue contributing what expense how factors be growth? ask and to to wanted costs income able levels, are you. you've what guidance

Burt Podbere

Sure, question. Fatima. your for Thank you

on the So look similar is course, first, what necessarily of to do, saying guide, in let our strong, off take aggressively, revenue which it's to look of power one think really a about not model. leverage and and me in at, by lot got we invest it's see we the don't And our the when side. at pointing thing, a continue the then take what reflected we see, to we we model. just of which start a economics plan is We've guide. Unit we

it how a think things piece is to us. for attract I want think respect in and that space, get visit was there be the travel, it like to And idea with see But we One knock we that of few think guide. hiring. a to we consideration business, but shape are pandemic of we've and Obviously, lot a to collaborate. one to terms us. it's seen metal to done We right? we’re more folks terms others We on got really a we've into the result what it's things really tailwinds pedal go we're out for there ourselves last how into to on the And this in about then of inflation; your customers margin but take I join big and going we question in more momentum We and do others want role wood. job I want differentiate of guide only together. guide, how than consideration that the so We plays seeing seeing year, out in people people the travel. is But come from terms so basis, to plan the far, our a talent, about in plays do day us good hand. is year. talent not take scale to on last the that think that a we of think on that day revenue we've really the for to war

at exception. the is of in out highest a there the I taking I'm best travel, what was then looking done every On look they and for and past how use other and hand, about future the no think think CFO and is

company use we doing that think will take the in goes And that finance. dollars sure we've well-plated for market that are a I be make we from to make a of continue the all it question. appreciative that the sure looking best that. to I think business, to really, of going got all aspects our I'm really, place story and go-to just in answers sure the controls company, really being to just tech are as So I at to opportunity everybody that, to travel. hope making highest that, And about your

Operator

you. Thank

Wolfe next Research. Tilton Our comes of question from Joshua

is open. line Your

Joshua Tilton

Hey guys, thanks for taking my question.

identity on for You for spoke you endpoint the to Can demand the and maybe a compare ago? modules. how does modules? seeing non-endpoint lot of highest modules a in categories? cloud more the and just versus time that success demand the specifically year, about the this the comment but remarks those compare the three environment the prepared Where security demand as And you of are contrast we the enter year demand

George Kurtz

at look go When together. there the identity, modules and they endpoint security you

which we both; module, broad-based given environment. which that for the revenue, don't they've on to security identity the makes primarily endpoint are protection protection, even get enhance all sense breaches malware we many see buying two the visibility, people to So necessarily of the reasons: demand add today's in modules in order use one,

who the not time, add because there's architecture given great -- And So to us opportunity be much much don't activated other and to they a have many -- we than who for platform. we've again, there's built. we identity, for do not existing see module, with that together, going to that's their that long identity to been customers able see them have newer a they a have

level and then They're a they all is other general, just distributed environment. well. you -- very is Understanding the going visibility in lots reside. we hygiene in and right, which need their no vulnerabilities to wherever and look the systems in and done of to protecting understand when management So modules their some exceptionally have the has vulnerability then We've today, to the important even ability them. vulnerability. of this protection It's may perimeter. world, there assets seen at of configurations And

what to in endpoint the continued protection, pleased outside look module we growth growth just call overall, of those we areas. So we're forward with core and

Operator

Thank you.

comes question next from Owens of Our Rob Piper Sandler.

open. line Your is

Rob Owens

Great. technologies? guess, the on next-generation Thanks with verticals broadly, we Thanks. for under-protected that you taking touch could vendors. if Just I about project recently infrastructure these announced? I these came was more it are you defense my how relative wondering, to how critical question. in And

George Kurtz

what variety appropriate our see important you enforce of look where of hospitals, aren't concerned of whole some critical protected thought can is when that, these the that nature. we things some in reasons. infrastructure there the protected. a to Yes. times, with it about for And was government Sure. at a we pipelines, parts bunch Rob, areas. And and of really help. under super lot of in they're And they're It's standards of industry

it we it how think, at out the good. our going not that may look to see first protection offering been do perspective. the as foremost, hopefully have trying thing. we'll thought, So where and just to But in has period places business from terms pans And in move And the of thing was there out we're right technology to time. do to right be a able then needle for we some we're to of obviously,

Operator

Thank you.

Jonathan from comes next Baird. of Our question Ruykhaver

open. Your line is

Jonathan Ruykhaver

be whether color Congrats. guys. Humio could you some on just free it if Hey, I'm wondering, edition. provide the tiers, the community Yes.

introduced capabilities as sort well. that you've think I some

to introduce Just there those tiers motion. curious, more free about Is broadly thinking an how forward? you're sales going that opportunity

George Kurtz

Well, yes.

for automation ties think, an built to which The can wasn't that we XDR it's which in. outstrips And our is, it bolt a Falcon talk into customers. just extremely by capabilities. our -- the built achieve, amount bit, beauty do, let's into that strategy. There's And been far store it, you if well our about had what Falcon customer, been of we the It our loved get So is Fusion competitors able seamlessly response you're to a platform. acquisition we've and has it's on. if

us. a lot have we has of it, go making we happy really there, with But sure we're about the into differentiator everybody that to been think have for a not knows and than motion it addition, there's We as So talked make When other we really Humio but as the community I well to able good world, in DevOps where wins observability. of it with protection Humio. been we've inroads think, cloud goes to some of heart in the the about big some that. both

The about not from The Some security They're source simply are and just data even of to get that the technology of answer any at beauty them very community question observability. is related. received. well ability any addition, scale.

great a using think and want saying We We to licensing have people to technology. it. that we obviously are then learn it about more. it's want

still able innings out, of we're the to our early brings is goes that we're platform and underappreciated the which sales So, perspective on but and it e-commerce built that, CrowdStrike. candidly think heart I that a do what efforts in our in to business to efficiency from it we actually the

Operator

Thank you.

Our next Ittai Kidron question comes of from Oppenheimer.

open. is line Your

Ittai Kidron

margin at great solutions? And customers have operating side. you so for I it But have is for much here. thanks job raise range, in first I operating target disclosures. to tell George, the these do pretty review how you actually guess and the new the Clearly, that good time first modules. all on quarter you, very margin couple. land Great much guys. Burt, progress for progress Hey a you're can the you're us making it finally? on Thanks. of you your

George Kurtz

All right.

land, about take a examples. customers of I'll take part. So, let's we couple the When how first think

about of the management we a And can identity, for saying, protection, So, before us. They're endpoints. all on we'd first calling see they cloud caution land a security think at becomes solution they're workload that the what need you call cloud like hey, their looking When any Humio. existing horizon. there we Falcon identity Absolutely, solutions, with they same endpoint in that their why time, put traditional something driver space.

or EDR. again, are will folks detection the beauty, with to probably become the the one data time, all amongst modules it, collect have something model else, endpoint is us. that our only of And And come we available. and land the that single-agent right, then guys in talk traditionally, You

we us module get up from system, opens on a agent everything once the So, to that perspective. else

like to management. their So, demand specific natural just able cross-sell protection there's us which cloud then organization, drivers. sell And technologies, there and lead with be for and and in Burt? posture other in different workload to then are security cloud are place

Burt Podbere

question. Thanks George. Thanks, the Ittai, for

number on one, really with So, and happy bottom. the performance our the top

amount the of business. that really us. There's invest I year, do aggressively of is We've think big it. we're we a which a reflects this what think in really We opportunity guide front for us, opportunity the tremendous tremendous to want demand. in and there's this going got for

I all guided, took that of when we that into So, think we consideration.

go It's that's the right And and And we're our a leverage our the to about open use so is going economics, decision good really feel now, we course, I guide terms invest business. we And business, look great of model to it, driving are. how the in that to into all unit itself leverage, where well-flighted, right? thing at right? of are about that metrics aggressively some that we of

Operator

from And question you. Thank Moskowitz comes our Mizuho. of Gregg last

is open. Your line

Gregg Moskowitz

of keep question. for just Hi much X thank to the I'll taking the it interest you thanks in very and time.

based these statistics. So, half the of you total. past mean just Fortune than you've now And I on months. are the over XXX the XX added XX XXX numbers, our of remarkable Fortune both have of in more

So this. I guess relating to things two

new your ahead First, current to with specifically XXX to at expand as characterize the Thank runway customer you level? there And larger fiscal how continue how XXXX, then your customers CrowdStrike? look enterprise is to Fortune you pipeline, would much you. for

George Kurtz

understand potential CrowdStrike that the of arena. manageability, Crown our if aren't scale tracking, the think customers a lot protection Fortune I of looking on runway obviously big standard the customers, seen we've that they're Great. choice, is gold we've reputation of there. still technology for see Well, built enterprise in a at interest and the we customers with XXX And in best

that's we're would add? there. I know I to anything Burt, time. say on short So what else

Burt Podbere

question. great a It's Yes.

in more look, about enterprise. continue Gregg, George to a success that the being do. success opportunities and same George George We've potential happy we're again, Fortune to, the lots versus -- when right? right started, of we're think about come rest a thinks bunch really to lot our where XX% we've and I business, I in of technology, of both forward, way a build endpoints think X where over the were we going looking XXX. and business the and that's of see able really and that's flighted that to down go to those now, tremendous for has our hard think think, got and had agent we have That's then has I X company I X. market, going That's whole million

so and to why And turn And And have subscription we it -- got or beauty mid-market that's right upsell. customers. moderator. And -- Those the are in And we've of go enterprise, are. this we we're we logos cross-sell voices. now over are is XX,XXX excitement the to you're amount the an of beauty I'll to where tremendous over after, open our then new now got where hearing whether SMB. of all to it's that's we've back be the able

Operator

you. back call Kurtz further the I’m like closing questions, over to showing I'd Thank for no Mr. turn to any remarks.

George Kurtz

Well, thank and everyone We much. healthy, the best stay time seeing Thanks so attention, we Okay. appreciate we next you you quarter. to much. to so forward everyone's and and wish look

Operator

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

a now may You great Have day. disconnect.

CrowdStrike (CRWD) 9 Mar 222022 Q4 Earnings call transcript