CRWD - Earnings call 3 2024 | CrowdStrike Holdings, Inc.

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Operator

Thank you for standing by, and welcome to CrowdStrike Holdings' Third Quarter Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to VP of Investor Relations, Maria Riley. Please go ahead.

Maria Riley

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

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

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

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

George Kurtz

their joint to customers for to mission, who you, our expressing journeys cybersecurity the as today Thank taking and device passionate CrowdStrike, to to proudly platform and platform to my AI adversaries breaches, team era. stopping our to begin transformation thank would delivering dedication partners, consolidator our our win and from remarks to like Gratitude their trust on the gratitude with beyond, our outcomes. by CrowdStrike all cybersecurity Falcon who very for joining best us identity, customers, for and I fighting cloud, you today. data Maria, to

our powered in we against the LogScale well to as CrowdStrike's a AI-native and Moving fastest billion our am ARR pure macro a business our to proud on achieve rates at customer QX. challenging exemplified of new CrowdStrike in SIEM and depth ARR by and delivered play only XDR environment business. scale CrowdStrike QX. and execution quarter ARR growing software tension, businesses Despite our year-over-year. an we with for a rising acceleration record next-gen that resilience this milestone. In win milestone the the ending XX% and QX, the security cybersecurity geopolitical cloud breadth $X.XX is by net terrific record $X double-digit of of in history delivered platform, acceleration and identity surpassed I of extremely demand billion, competitors vendor as

to standout performance QX line profitability top our as indeed was tandem discipline in quarter records. soared record Our came of P&L with a heights.

non-GAAP CrowdStrike's widening the standout from market $XX cash gross million, outlined margin; net that us Burt financial latest our free representing free flow several XX validate we subscription $XXX cash GAAP ARR non-GAAP operating flow last cash from margin new share of achieving path ARR representing record financials position. rule well free quarter flow places our This billion record record will Let acceleration business; platform new year-over-year XX% briefing. The to me our profitability; $XXX more up expansion leadership of color my on and share investor and quarter. remarks. million, on XX, of and a growth adoption in following record highlights: of steps and was and continues XX% to in in

While our others we investments scale back R&D, of company. the are is increasing as our innovation lifeblood

to To in awards consistently growth. this quarter. go-to-market make received firms, profitable the CrowdStrike multiple industry of industry investments we meaningful continue end, over course Across analyst and and We rated. top this is accolades

named IDC the In and of and detections first; vulnerability industry customer QX, was Report; latest security; leader for in their leader Forrester in one awarded rated for a as MarketScape. across analytics Customer of latest management Gartner the The MITRE's testing, protection, and in the the CrowdStrike Peer as choice Insights endpoint an Voice EPP perfect positioned Wave visibility XXX% recognized highest in ATT&CK a

Our is the on solution Management record quarter in its for demand into market. first translating leadership position our Exposure

security, entire offering São Security the of apps. We Our announced offering that and platform. Enthusiasm CrowdStrike's X,XXX something attendees and Falcon have our so market and linerless for illustrates customers exciting data data a outstayed multiple are lets security XX for want. beta comprehensive true application enabling our incredibly where to with development of hosted is ASPM. customer force hygiene where Road gravity, In approach with and on is on that unify our is the our Cloud for the value and it both Falcon cybersecurity, across in CWP IT CIEM, adoption industry's IT power we technology uniting to followed automation most fast Cloud eager AI-powered Data AI, which replace work Fal.Con platform Charlotte IT innovative pain hygiene build witness than IT democratizing because event generative which with long-neglected XDR single-agent a Data solution, customers of was clear our a QX, received. Falcon. Bionic, Falcon partners customers flagship their legacy hours unlocking for data series, legacy epitomizes consolidate intuitive our CrowdStrike XDR customers the management all agentless the legacy and to Like liberates Falcon. Falcon ecosystem presence release, Tokyo approach. acquisition into Falcon Falcon products drumbeat is Falcon multiple Falcon well posture builds and for CSPM, application module loud that enabling directly complexity. Fal.Con security the cybersecurity. and open our to AI, attendance. SecOps with This for with leveraging hosted and analyst, pricing for Paulo to architecture; prevents our no-code can On teams, frictionless products CrowdStrike's exfiltration; of and Fal.Con, customers cloud customers including a more Security patching, and already a Falcon native by Protection and module platform cases to breadth and was the new as bringing now Foundry integrated sponsors. on the Falcon foundational Customers was their with our IT, rely coupling This minutes to for are IT, the definition of and DLP and suite. estate Protection, single the IT showcasing SIEM Falcon solves further from module new have data to customers Foundry, third-party We Falcon agent consolidate LogScale. ingest, long use and our platform modern, The point, agent data while realize and announcements cases leader, which SOC clear use platform while turn released with of cost in forced multiple welcome. models, reducing the products to from innovation on releases we Fal.Con standardizes multiple XDR of and thousands Raptor platform

real engagements our throughout foundation failed CrowdStrike quarter CIOs, at We have Fal.Con from and have customers disrupting the the choice estate is to solve teams the that boards. customer use to cases, ever-evolving and vendors and executive data is my right takeaway resounding for while that CSOs, evolve. The delighting

Here's why.

single design, platformization. requires and platform architecture Our stitching build no no no integration, by

cybersecurity's point liberating pressures in Illustrating to matters Our looking for XX% native unknowns deals consolidator, cloud a like. And moving boards than estate quarter. with and platform increasing faster third, preparing legacy the point, modules their today is CrowdStrike breach increasingly critical executives AI of turning increased today's SEC from pseudo dark platforms. the the agents, to products legislative challenges evil. X consolidation tools, and customer This beachfront more regulatory looks stopping same cybersecurity what of unified the are a naturally while data cybersecurity. falling tomorrow. Organizations for use this multiple real the of is and year-over-year weapon consolidator. AI, estate or oversight fragmented organizations cybersecurity trusted ever. within ineffective into evolve, prioritize time, more and Adversaries continue a for AI for gravity, creates litany and At

is CrowdStrike With the let's customers on start data these security to consoles platforms, X the Multiple single force on why mind, fragmented platform. by and not integrating first, definitive expanding security outcomes. silos focus in takeaways

and a and next-gen to innovation single cloud, on cybersecurity platform platform focus SIEM commitment identity relentless build-by-design on of are hyper-growth Built businesses. our products source of truth. LogScale foundation, this IPO-worthy examples Our creates

with X-figure a look our and where in replaced of security of as ARR protect and ecosystem. record XX% vertical Cloud quarter, we The with product, largest has total Security; emerged the CIEM Cloud cloud acquisition, Falcon replace vendor has we of increased rapidly cloud in hardware adopts replacement; businesses with Combined a cloud secure SaaS in Point completed offering an that, where value the a a new our major a multiple one entering offering. CrowdStrike cloud accelerated we agentless the as cloud our at the Bionic a public enterprise and our security hospitality rapidly we easiest and expansion take last cloud API-based number market one unified count. have umbrella. customers view consolidated CNAPP agent products the vast part and ASPM, to now with stops the their firewall with the as by broader deal with recently security Falcon replace as single a X-figure cloud estate included from we're momentum breach. Growth Let's vendors multi-cloud a with the security customer in expansion year, together, we're where the other the CSPM, security. in customer of point quarter only brand, Microsoft Security apparel fastest-growing under providers the Falcon security existing CSPMs vendor's in pipeline. QX a wins we replaced Noteworthy X-figure security largest CWP

from on runway frictionless unified to that secures name financial where with a including long for a are largely deal an single aren't More transformation organizations threat Threat multiple quarter. Threat few identity goods see the domain in in controllers the our Directory. prominently pioneered value Identity Moving few. We cloud protected identity protection landed covered record the rapidly diverse over a most highly unmatched our are as category, for Identity the of investing in companies Falcon quarter services, breaches and in and identity-based a news a growing their we to Identity in CrowdStrike where where with agent Trust Identity more across and security Threat manufacturing months. protection solution X-figure Active Protection, visible on-prem packaged win wins devices, delivered the vector, government, choice; with company market Zero growing and Protection consumer number threat included we a the market past Protection as wins both organizations X-figure across federal and the given environments. verticals untapped identity clouds, architecture and the of total the guiding solution only attacks and

Moving to LogScale.

SIEM platform, apart new efficiencies, cost Falcon and ARR achieved sets QX, milestone. records search combination $XXX the within surpassing data miles million from speed, business in LogScale the all of its Our competitors. integrated LogScale gravity next-gen The

business However, the of me. that future it excites is this really

of opportunity Our as LogScale activity SIEMs, position SIEM and M&A pervasive by with platform CrowdStrike's discontent record. is next-gen recent growing legacy supercharged cybersecurity's

have seen looking in slow SIEMs. pronounced interest and significant and among expensive, increase to a customers legacy their cumbersome leapfrog We

ingest in market time the of next-gen long-term retention; X-figure the a include SIEM data expansion data major CrowdStrike benefit offering where and a parties, was to wins dynamics services a from scale from in financial breach. Our right is LogScale alerts land, place called at benefit right selected in from consumer to company, to the staples CrowdStrike. QX and correlate third the new technology a stop customer right X-figure

Cloud platform in Security. fidelity easy high new replace without a an was to a data and compromising land Identity cost, desire SIEM decided firm was their the operationalize adopting had Falcon the on process With Falcon Microsoft; it XDR, outsourcing LogScale choice that incumbent X-figure with the to their for time replace LogScale to also business while logo antiquated security

into on of the SIEM With SIEM and first-party easier significantly build and Falcon by platform which our advancement of it forefront Raptor, we've efforts customers lake LogScale for Our to of brings any next-gen to the top market Raptor the made experience. data release, LogScale security native accelerated third-party is data across their that next-gen product. the

is the one No businesses. Most financial clunky the broadens growing. liberating vulnerability products. associated consolidator, soup This approach losses aperture today breach immature industry the of don't up with a are cybersecurity. CrowdStrike SIEMs, tools, EDRs the geography the confusing of vertical, compliant, far exceed AV, The point from choices matter business from stopping device be alphabet behind costly point make. and a thus breach and of organizations business cybersecurity's products Our legacy importantly, can and disruption single Adversaries millions of costly lengthy is stopping The of costs before. evolves list the breaches matters management more saving discriminate. and hygiene, the can or platform than a AI cloud cleaning of is annually side, nonnegotiable. for business most hodgepodge $XXX and million. security a costly can on left corners breach tens ever Cutting

service Our durable win. business we This is well expertise This delivers. outcomes. security platform the seminal why our incredibly cycles. Stopping the as the CrowdStrike breach makes security economic and diverse best innovation cybersecurity as intelligence threat in that outcome is delivers

they a the their were unmatched business large time of thousands CrowdStrike, was this this CrowdStrike's large and They of quarter remediated Falcon need Complete We power the legacy breached. we purchased Complete, differentiation. until Identity and multinational platform, necessity. A of the next-gen for SIEM workloads. capabilities this quickly using customer called Falcon a hundreds EDR exemplifying showcases LogScale Helping are breach. in Seeing who multinational win is our of

have incident the on legacy expertise that pronounced on purpose, creating accelerate cybersecurity. million is release user industry's release We businesses customer the trained easy to problem of where the small. one the business. With from concern. a protection button to Removing small and makes drives for businesses Falcon over for skills, their mission extends cybersecurity, cyber stopping for an for threat businesses. remain curating Falcon cybersecurity's need comprehensive IT X Go, stopping comes as that new leading always remove purchase just SMBs go-to in SMB our sizes, for richest Go breaches We the intuitive CrowdStrike large this the Go Amazon stuck the the automation. most responders cybersecurity's with couple best AI right Our With just brightest We're is platform data is the new set from of enterprise and is SMB technology as industry's the The and where signature-based SMB, experience, S to Falcon market. knowing SMB success. deliver or and their intelligence. The a Go oftentimes looking fit in exists for click sales for delivering console especially of as friction latest the Go, for immediate now Falcon of preconfigured major them. better customer AV, experience, protection breaches easy is need market, new adoption. a users business, Falcon Falcon not big our we and step of on not to whole Go all investing and for marketplace are launched and we everything

industry were drive The existing new all market endpoint the of research. reported accounts platform channel's logo partner most to leading cybersecurity growth our and wins of channel-led Canalys as Year-to-date, by customers. adoption new partner their Partners #X sourced. was efficacy firm, of share in recent into bring CrowdStrike's reported ecosystem. market go by propelled our our CrowdStrike analyst Canalys, in success Our is and ahead Microsoft. XX%

In as others. among cybersecurity Alto in addition, fastest-growing CrowdStrike and of research Networks the ahead the Palo Microsoft highlights channel vendor the

of And in sales. momentum the records. We was the to fastest quarter this first and new This We Marketplace milestone CrowdStrike billion CrowdStrike's AWS are surpassing a cybersecurity record exemplifies AWS our as AWS reach leadership platform not past vendor slowing. setting choice. is $X cloud's cybersecurity announced position Being quarter. Marketplace

systems alliance engaging partners integrator Falcon across increasingly with platform. the are Our us global entire

built EY global practice a growing technological and demand next-gen XXX-person are the based strong they example, seeing transformation SIEM for For and our LogScale on SIEM superiority.

EY free In new pure-play vendors, ARR largest to over in cash impacted XX the done addition, macroeconomic CrowdStrike record record flow net environment, billion digital ARR million engagements which achieve EY to To fastest $X market with we date, in transformation the their record clients profitability. accelerating vendor as closing, of for business response projects. cybersecurity even a in we cybersecurity have double-digit leadership. refers only validates growth, incident delivered a CrowdStrike's countries. In and secured this across $XXX QX, and history and milestone Surpassing software challenging

has consolidator at increases scale. The dark built Our record excited and to CrowdStrike the we to $XX cyber in and faster competitive QX I path enterprises. world's effective the strong of is CrowdStrike in Simply is ARR. Today's largest market the of players pipeline why and a gap CrowdStrike. small other I'm moving the businesses sophistication. choice. for on setup AI and cybersecurity the is platform making adversary about between are to significantly we widen. is made attacker billion and The cybersecurity's easy environment are continues progress with platform exactly is Falcon the put, rise winning

QX Burt I it for exciting more turn cases now busy promise for over outcomes. breach. With more, a and in ahead performance. and to of the that, unrelenting commentary CrowdStrike Our we customers more looking to our are our will remains on stopping focus use Falcon have and financial security us, more workloads, and

Burt Podbere

good and everyone. George, you, afternoon, Thank

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

Additionally, ARR. Outstanding to third we of despite a during in ARR and continued from reporting ARR acceleration milestone; the record CrowdStrike closed than net macro quarter quarter operating free acquisition ending record profitability environment. net quarter, growth minimis the the which an well margin; today year-over-year; third we new income ARR the highlights and year-over-year as businesses. execution third record achieved the growth flow. In are included our the GAAP and above we for $X in and record quarter; new challenging across consecutive broad-based a include more small de which team in record growth, results driving large quarter the XX%. the income, operating doubled net Financial accelerating billion was enterprises record of XX% $XXX.X in Bionic, market revenue was expanded to with leadership million, resulted to the in quarter Demand cash year-over-year the from

reached New customer year-over-year. within quarter in $X.XX and growth acquisition, record ARR billion, up a the federal with new government strong existing ending customers the ARR contributed expansion and to U.S. business net acceleration XX%

We as or and subscription continue to now platform strategy represent XX%, XX% with more subscription respectively. X our be customers, XX% X very more modules or customers of pleased with X and more, or

and Our high, land ARR deals. new above dollar-based we remained gross of below customers our from continue slightly our and retention mix expectations QX, rate was our as remained net new rate retention net the to in benchmark has bigger

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

$XXX.X bear expenses our XX% data optimization or marketing in in QX in respectively. subscription the September, in of grew XX% in XX% quarter. Total $XXX.X versus year in investor record continuing operating and the XX% gross above resulting and investments expenses that to fruit, and and XX% million we third non-GAAP sales or center million year-over-year, revenue of briefing quarter were R&D performance Fal.Con margin last workload third Our revenue. outlined

expectations. profitability in to continue while We our and growth invest exceeding aggressively innovation

million, operating Third XX% and to X grew quarter margin reach record to XX%. non-GAAP a points reach percentage year-over-year $XXX.X operating by increased income record a year-over-year

of Fal.Con As XX% subscription model, free again have we margin our raised investor outlined operating gross to now XX%. target during for in which our once margin XX%, and margin XX% to XX% briefing to of calls cash of XX% September, we flow

next model on a $X.XX also X X QX X to to the attributable we year-over-year. years. Non-GAAP reach million a X in to flagged income basis, diluted to the than grew CrowdStrike billion share company expect $XXX.X record new target within years $XX doubling our ARR of We more achieve to the next per net or each to as over

million CrowdStrike shares. We to totaled sheet. a third a calculate XXX ended $XXX.X or Our short-term balance of cash of weighted net EPS a attributable acquisition flow and was and on Free free the payment million to operations $XXX.X billion rule was quarter cash third reflects common and the diluted Cash revenue, record average Cash of investments non-GAAP from of for strong flow used shares on basis. QX flow and cash equivalents reached totaled a quarter XX a million record of a with the basis achieving cash $X.XX XX% approximately $XXX.X acquired Bionic. million.

Moving outlook. to our

new demand platform pipeline strong outlined, for is heights. to Falcon driving our George As the

modestly continued However, net QX new ARR net the flush. Balancing the new half. are our the result, not up with growth assumptions, double-digit call line expecting ARR to in and in new year-over-year full are typical maintaining second and remains we year scrutiny, budget the to for for increased we ARR net macro factors, challenging environment these as budget see a which

full reflects, year. guidance raising revenue year expectations our are for we our and profitability the As

of of for a $XXX.X the in the FY to growth fiscal quarter range revenue expect reflecting total million, specifically, million margin the our we XX% cash Additionally, rate we full $XXX.X 'XX, to are of maintaining for free of fourth target year-over-year year. More to flow XX% be XX%.

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

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

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

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

Operator

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

Saket Kalia

see you. here. maybe through, in for lot but the George, just to to stuff great prepared question in to to I'll the quarter. new run ARR your return of maybe stick Great remarks growth A one net

customers M&A about we've talked probably It's how some that maybe And about question to saying that explore Does did. is SIEM starting too solutions course, the their in SIEM. early, you the SIEM other feel besides seen to but LogScale You've legacy recently market. the to are traditional market make sense? what is like AV kind market prospective of willingness their of and legacy

George Kurtz

it's question. great a Yes, does. It

a like legacy are different markets dissatisfaction, to context patching tend want XXXX market faster, in cloud found -- their to I talking all at legacy and they of to of entrenched that the have And CrowdStrike SIEM. What a at when where is of this complexity customers together. and talking where just replacing that degree is with I AV, something is replacing it's this place, today same conversation I and So and in the businesses XXXX they started like in feels works where and want to and legacy technology I their incumbents cheaper, in it compare where tie I stuff look XXXX when the in better, just customers, about high the really but the scale.

the it's ahead If you SIEM, look done We next-gen a of which same version is couple we've our now of when we to the much modern Humio, it SIEM. do integrated now ago a XDR a into on and LogScale, with platform. extended got it's log bought curve more and our it LogScale. years We've and technology, out us a at of what allows SIEM platform,

the is only So CrowdStrike building the from not from are but like perspective, M&A now This time opportunity for gotten the look willingness of a we've practices data around customers for feedback massive environment EY our that dissatisfaction, us is in the and the this. for right to much the and platform. also solution, gravity and level given gives a better customer's us which partners

Operator

next Our Truist. of Joel Fishbein comes [Operator of from the line Instructions] question

Joel Fishbein

SIEM side. the than be Love market about you question Good line some of you The quarter on say there. Data made to George, players in with the And how as net new tooth market. Protection. hear another DLP the to the out ARR around Saket's you along longer but know, the could regard comments legacy same said are. would I even that's

you talk really helpful. there? competitive And be like Cloud in about did et LogScale, market? didn't do that how cetera. displacement you it You And the we Would think Protection, How are? what's far Identity dynamics they are Security, big

George Kurtz

to Sure. to months the at one through customer off all track reimagine certain our to same looked way is move we Fal.Con, with in some to AV. there, way Well, that Protection Data technology requirements And a the their data look of the out We're is largest type their account close ago. we make for. as places looking and willing DLP showed in to legacy touches for enterprises couple the of actually very should be we ability leveraging moving our working it AI actually understand it is incredibly what moves, at be sure services, the at actively be environment of important. is to from we something being to to that going There's I've motion, product. a particularly on they're for endpoint their that not what And DLP to Falcon to ability way we through able and today's in they to where able fine cloud Data product, better customers actually very, in release data into that write legacy with data that we're are period. And to cloud There's what check like a their talked Protection. DLP continue put says world the

stay another us. So market tuned but for opportunity massive

Operator

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

Robbie Owens

George, I early with can where user what I your extensible on these recent response you opportunity on Maybe it touch since, here staying at IT, has on you showing that adjacencies. for see guess, Falcon conference front. guess, been and the theme

George Kurtz

Fal.Con, item had. the of all out coming feedback across I great Well, requested announcements say would the #X that that was we

think overdue be the and in to it's so unify IT space to I technology security. able

part. technology harder It's the in Sometimes is structure. org the the

so having both the can a what is use, now, we'll agent terms security IT, gathering large of and feedback, with in look already our and a think, We're product a for for out working then their additional customers capturing capabilities very to and home right QX. But probably amazing So single we've delivered, actually first now important. I have has in we're far, feedback release. that IT been

monetize that in certainly for security We've IT us given one think anything lot is to a has estate, cloud we we real massive it. and to got -- of opens and up the in a legs plan I that agent So it well opportunity the architecture beyond built. TAM

Operator

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

Matthew Hedberg

breadcrumbs at 'XX, pencils ARR. growth guideposts we a Burt, you think comment about our profitability? sharpen didn't or how fiscal are you of sort I've I should think of last 'XX. point just couple on Obviously, it's for to this got as we whether any I'm things that on believe year, you. curious, gave there one or about

Burt Podbere

question. great Matt,

time, to maximize the same So paying attention for are line. at to looking growth while we the us, always bottom our

that's changed. never So

We at our innovation. got we the on lot the to announced we seeing same that for don't we're of -- absolutely continue at company time, people momentum, we changing certainly sure all but invest Fal.Con. We've we to also, make are and plan well-run that a output very on quarter, this to recognize that year. continue next much We're got of going invest a so to momentum. to are in to last We've continue at that going want that, and

Operator

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

John DiFucci

through your that did really others. of quarter? of didn't is heard it not a of generally relative I'm shown consistency the hear industry, actually into business across some through -- actually, the most up into I it's activity end period. I we're peers. mean, then curious, the this at results scale asking to sort the we George, But And impressive but October you mean, And to here. it's November the in fade of in again of just team we've continue of October necessarily reason October to I'm And traction the almost security with across how your with you. see

period? of So of quarter? wondering What January the beginning you I'm are what And just the are see seeing. did end maybe into the seeing the you what you at

George Kurtz

Yes. had strong We certainly a October.

lot sign-offs. enterprise more nature, as I which said still And there's takes that. remarks, into mistake these enterprise take the macro no a that even deals And longer, lot deals, like about a I more think, environment are in make Deals is scrutiny, time. done larger work of in getting like my their more FalconFlex, lot a goes prepared we challenging.

provide So are we other in had general, think but to we're buyers a a time it able get team and the strong to save I money the lot accrues of and did was great a them in the for that us. deals and value cautious. effort October, certainly ultimately consolidate play that platform line. to allows But technologies job, October the fact through And to takes a great goal us, real but still

Operator

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

Tal Liani

Bionic First is question contribution.

Why with do seeing across I are are weakness billings, what just strong was define you, execution? the what's then But about phenomenal, do weakness weakness seeing some in with contribution you net deferred see deferred, quarter IRR? down but billings. reconcile revenues. was I to also we billings underlying minimis. case, see new strong for with some the new I not with very that -- In I with minimis de net see Can are was we across maybe why your board weakness it entire X%. companies space? And and How the de it the cyber with the said your drivers You board? of with

Burt Podbere

I'm start going to Good Tal. Thanks, with billings. correct. Yes, question. you're

relevant proxy billings. you business that have we you that metric billings and that's And is since we out that know, disclose gives us, more for of you they to metric mean, billings revenue, about guides specifically, ARR. as that's ARR things of that's public sort metric, manage give probably best not typically the most and of like health. With I metric, we the the ourselves, we right? we the to We bookings billings a that felt hardware not the don't to the For absolute similar don't as really just feel health when think that are right there, you that companies you as went transparency into business. use billings think our us, to any on to certain respect And

the P&L You're is comparing item balance P&L a health going for the item, sheet business. us, to the a and of dictate to

So things for by and that. into take you the a one want there think that we're up basis, on that you us, and year-on-year still thing And it when billings are to remember away. on obviously many that's think is go going duration, about I to also impacted billings, be that

the it since gives that think we're we by about how doing. think want we way, that continue notion ARR that's For I where to went focus, the be of how really and us, to going transparent, public. has been, we're you and we when And

we we cetera, Even that's private et at reps, how look the cetera. business one that That's company, how as give et quotas our manage to to the a out to.

that going I to not that that's And hope answers change. us, question. for So

Operator

comes question of next Borg from of the Our Stifel. line Adam

Adam Borg

to obviously hear just Maybe great George the on traction. for it's CNAPP,

ahead, this customers? needs still As drive to happen upsell to to logos? more new should of to a we look spear of Or view net what we an existing of tip more opportunity for be this

Maria Riley

Would question? sorry. your you mind I'm repeating

Adam Borg

now? Great. hear okay Can you me

Maria Riley

hear can can you now. -- I Yes, we

Adam Borg

Great.

continued Sorry to should there. of matures, the opportunity? it's the as great market just logos? to for Or net more upsell drive of this an new happen more to needs what tip And a on of be to spear about traction see CNAPP, Maybe that. we view as this

George Kurtz

a the when workload really protection, cloud selling it. to. We're -- that cloud capabilities CSPM, the CNAPP It's industry. Bionic. CIEM, deals the you in leading star forward us most We leaning Yes. for with of complete our we're one at bright And offerings think, really have, cases, ASPM security in particularly cloud look I of with now companies, many we're winning

abused agentless together of type world with in so authentication you I those the go have would us how very and runs best are at ageless multiple happening anybody X-factor cloud suite have to systems say and what's is look protection, threat being cloud harmonize deliver to X And a those we're gives environment technology protection where that going sort we've for real a silly who being identities a time that right? and awakening the the in the is just industry you industry or of that's it's cloud of bypassed, inflection fact agent silly latest been something XX, ago. protection. the kind point of say, run cloud think combined hey, to robust and years And things, companies many, workload didn't both levels If years it many many, advantage. in able think this XX-plus to and technology. of important an I the antivirus, alone. I remember full from that antivirus sort the and a It got we've you're going can't provider ago, And to at wasn't this companies

Operator

of Our next of line question comes Mike Walkley Genuity. from the Canaccord

T. Michael Walkley

target segment Can just new business soft the your is And release George, segment? macro? is starting SMB of as us Falcon trending color rates with helping address spending you to you're Go due out smaller touched SMB accelerate some this to this competitors give more of release it points customers concise pain the some to just in of your customers this better on win packaging. these you how called because on for also new like have seems the how

George Kurtz

Well, a, market. of segment. done partners like a and with starting others, very a lot that work, we Dell, in strong saw SMB We've PaxX our

important. made think and easy-to-use to like SMB, that buy is thing designed And customers you're we've I install. wow, where easy going I've so they up to are see technology more adoption feedback the coming easiest Falcon the is really like, even And seen. gotten the really, of the broad meeting literally we've Go a it is then very latest this It customers release install. from one-click for So to because And works. just innovative our with

got are an be building then network to we've have that it. don't around professional. And partner You services IT our

able bearing in taken sell And they their over the meet to we've months, effective year, product they're customers. it and we've very fruit now. So really to through that XX a something right generate able and partnering the innovative We're we're I on our of where worked dollars. strategy, channels this last our approach think is and the

Operator

line comes question next BTIG. Powell of Our the Gray of from

Gray Powell

the on Yes, I flush. potential the if repeat commentary just you a wondering could was for year-end budget

year, going budget there's going I correctly, commentary year. be I little more not like remember last to that typical be flush. And it if to think a no was the you said is or

in And of worse? this look same, guess it how comparison. sort I on confidence question your trends? So like what's does my better, level year is Is just

George Kurtz

necessarily in So to, that well. I think not year-end at have looking And new the on not fiscal we're we're again, a that. it if happen, beginning saying it keep of counting budget fantastic. it, may And right? our happen, as cycle does mind is you

the environment, I the budget -- So steady. have we in would it January. But in December if budgets macro and has new say, we year-end comes remained

that's a counting on. budget still we'll if earlier, not but we're that said see challenging, and something flush I As comes,

Operator

of Our from next comes William Blair. of Jonathan question Ho line the

Jonathan Ho

what around Congratulations more Charlotte AI far. on get the the use little so maybe a strong most seeing customer are the bit color cases I wanted quarter. to potential and interest revenue just

George Kurtz

the they things customers. Falcon they with Fal.Con. level I've our money like X, to was use do you them to would for in That a the automation, better us the time SOC for in customers a ever way to things received right mode faster going or How focus we've is their which organizations of Charlotte driving pricing Just to be and questions Charlotte able to information ask and -- in drive behalf. than so up make able about an been on big helping makes well Charlotte or easier. SOC something to at save cases, to day, action do they its into preview talked seen gather explore the give Tier and they're things all pay be themselves with as it terms it announced end their in really, the take X it's of is Foundry. outcomes? At then a are just now using what really job overall could have that we they're right? actually And the haven't automation And It's Tier do and past, right? it's willing like them easy in if analyst the who up past, able Well, to

it's We'll it overall, do is that customers. into out together get a, the So resonated into full and we the as that shakes and with service, we has all home the modules, a think of chatbot, pricing fact put well how But a everything independent allows an foundational it's what we've run I for wired things. isn't really us. swing through see automation it platform

Operator

Our comes next Mizuho. the of Moskowitz of line Gregg question from

Gregg Moskowitz

a you expressed lot Falcon IT, go-to-market in standpoint? me a ROI-driven as that of Do sale with George, be to you so, really potential in a better for if an be going IT. angle that But after to to the addition it that? from is security, customers. with many better you And prepared go real strikes agree your for for unification remarks, having excitement also

George Kurtz

they to I the document and to then them find from what Well, with work night, were it's -- last customers. customer we've we're we and got problems. we're Falcon We with we've was for exactly excited saying because hearing work so IT a got to of that. And and teams they with do themselves of with well we is it capabilities Falcon because fixed. do with can we end lot behind up the get the IT what sort to them IT fixing just tooling have a their times,

then IT assets those And on it goes matter So out understand carve beyond home is kind remediation. incredible. a to to their simple exposures able their for to help drive remediate and the that of seamlessly them actually and automation be just

are about think hey, internal HR, might in investigate on employee have Systems the use all an If an to might have cases They remote it, a might to all technology. have systems. We've an issue. many, over IT that you forensics the airlines many got screen. to person Microsoft world. kiosk use out want send fix our to go blue has don't They that a do

can use of tremendous Falcon they can and to health, what for do? cost So IT in terms savings and bring They travel it to complexity. back

working this excited So about. build think we really really, then I can is first release. to components the need what I'm the for And out what limit we're one of And sort at least get again, on this there. the all of sky customers

Operator

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

Gabriela Borges

question about and think you your year I a George you 'XX assumptions. have planning as for fiscal Burt,

you You new is as your growth priorities environment that year, observations execution times what's changing. mentioned this very think the I'd profitability consistent. consistent. Meaning, about and into year? love couple on of last on what's incrementally next macro is your the a very versus Clearly, time

George Kurtz

Well, I'll then in. let I'll Burt start and jump

continue we go fiscal a from to about the to on Burt. But perspective, I'll innovation. priority just and think product, market I you talk let piece, drive

release we've not products. how richest to market been that's has we've of on Falcon our been focus the what integration. fast been to technology. Our in And able deliver was in shown I able innovation, come think out

sure segment be right security, a it can down and SMB, enterprise them compress to then get and innovation will leader the I really and there's go-to-market in across terms that. From sure also, of want in really, the we deals we've that we to we into delivering market work customers got that the recognize to done channel. creating then hygiene lot done perspective, in, making that we've these in right a the sales through to right for and go and as when need factor continue cycles products basically the we think So making time of

working. have what So we is

innovation, and remove to going partner motion in continue it's up to the drive the operational and excellence So a down friction and continue sales to Burt? continue go-to-market organization.

Burt Podbere

George. Thanks,

But in we're see change macro that in that's take. certainly wait-and-see companies, going think for So about not we're see how to predict we actually think it. the going the going until next that's I to the right? most terms to of how I macro it, the that's year, one game the we and be

Operator

of comes Needham. Alex the from of line next Our question Henderson

Alex Henderson

Fal.Con, key you said track up. cycle stable, in metrics whether could I a the know significant hoping give us you or rates, clarity pipeline closure they at the increase some -- was use And build. talked improving are around deal size time. at is you've conditions, some eroding, people your think I I about that to of

was I think build the the comment target stage had to your was double pipeline that on the that more made they than tried target.

So like I and the as was into talk hoping what you into could this looks we about new quarter the pipeline go year.

George Kurtz

Q&A it depends current And at Great. environment, stable, remarks, of on macro and challenging in effort segments. again, look It done. it's the I lot deals about as environment. a a Well, it is we still but the when to in get prepared takes the the talked

And like product SMB us to that go when suite can platform look I what through the capabilities your best down things road the are got we've pipeline we've at and And bigger our shorter. But encouraging and buy but key industry. They're the metrics out sit think what tough driving our piece little leveraging pipeline, absolutely identity and be of to look like as People and which pipeline. are individual things across at have to the growth. our entire truly because Some I these platform, with still when openness like coming you and and are some to said, mean, got buying business, they're business, that at out wanting let's are customers coming us. said, selling the let's able what's understanding record we've our the we more segments us got saying, being to a the it's, we commits and keep a LogScale overall, bright that platform. that's and CrowdStrike, And map figure little not a we're parts. FalconFlex built. cloud in And is consolidate." So look environment, to mind, have is I and of going in be We've the to have the stars bit road again, we and I in "Hey, think enterprise that map, a bit we we important. longer

Operator

from comes KeyBanc Markets. line Heath question the of Our Capital last Eric of

Eric Heath

I to conversation. back guess SIEM I'll George, the Great. come

color first-party to of top your bit tend more of first-party you're using I can SIEM the that capturing. analytics seem the the on data why a appreciate guess have But out synergies do already your ton data LogScale a flesh Makes to many as you to of to and sense. that your So on is proprietary AI the sources? more that to targeting, endpoint engine approach those capture next-gen opportunity be data including a better

George Kurtz

endpoint. really you of what perspective, from. where the customers source from of that's a the of look data the that's just data value of really richest data is the the XX% and Well, when kind the I and comes security about gravity generated at would say it's because from data generated care That

network, the of gets you selected lose across and a goes lot it down it the As fidelity.

a lot of have already that we So data.

at and without its into of index index, capabilities the ingest get robust very So you an which immediate very you LogScale, let's the just about third-party LogScale is is effectively type data there. Then start capabilities, means unique when to creating has look and results. any product reingestion, which

data. we perspective, got gravity platform that a of XX% of the from already. We've So sort data have the

us case. LogScale rather replacing XX% don't use replace leverage we SIEM, So give that's would customers have that to and beyond the SIEM. And their their security

customers use of all We Kubernetes management, their logging have clusters. customers infrastructure, it that many performance logging kinds -- their many, for

that's and we're Falcon beyond with which It than think security, opportunity you opens just we out now when IT, architecture organization above data combine for of itself. an the So coming LogScale, data the up broader to entire can CrowdStrike. much a SIEM log with any that fact

Operator

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

George Kurtz

first of Well, on who And CrowdStrike's thank our dedication I to team remain in acknowledging close mission. want focused the heroic to continue by you. Israel

in appreciate your war. investor at these one you seeing holidays. look Our thoughts all Thanks you for your today. of every to are with We our and each of time interest upcoming you times happy trying and and of event forward

Operator

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

disconnect. now may You

CrowdStrike (CRWD) 28 Nov 232024 Q3 Earnings call transcript