CRWD CrowdStrike Holdings, Inc.

Operator (Operator): Hello, and welcome to CrowdStrike Holdings, Inc.'s Fiscal Second Quarter 2026 financial results conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, we will conduct a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the call over to Maria Riley, Vice President of Investor Relations. Maria, please go ahead. Maria Riley (Vice President of Investor Relations): Good afternoon, and thank you for your participation today. With me on the call are George Kurtz, Chief Executive Officer and Founder of CrowdStrike Holdings, Inc., and Burt Podbere, Chief Financial Officer. Before we get started, I would like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plans, objectives, growth, including projections, and expected performance, including our outlook for the third quarter and fiscal year 2026 and any assumptions for fiscal periods beyond that, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this call. While we believe any forward-looking statements we make are reasonable, actual results could differ materially because the statements are based on current expectations and are subject to risks and uncertainties. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise. Further information on these and other factors that could affect the company's financial results is included in the filings we make with the SEC from time to time, including the section titled Risk Factors in the Company's Quarterly and Annual reports. Additionally, unless otherwise stated, excluding revenue, all financial measures disclosed on this call will be non-GAAP. A discussion of why we use non-GAAP financial measures and a reconciliation schedule showing GAAP versus non-GAAP results is currently available in our earnings release, which may be found on our Investor Relations website at ir.crowdstrike.com or on our Form 8-Ks filed with the SEC today. With that, I will now turn the call over to George. George Kurtz (CEO): Thank you, Maria, and thank you all for joining our Q2 FY26 earnings call. Reflecting on our second quarter, the key theme was reacceleration. We've talked about reacceleration coming in the back half of this fiscal year, and it's here now. I'm proud of CrowdStrike Holdings, Inc.'s ability to deliver reacceleration, our return to year-over-year net new ARR growth a quarter early. Our reacceleration is driven largely by AI necessitated demand for the Falcon platform and stellar execution across the business. Q2 was a robust quarter where we exceeded all guided metrics. Highlights included one, record Q2 net new ARR of $221 million, double-digit millions ahead of our expectations, showcasing accelerating net new ARR. Two, ending ARR of $4.66 billion, growing more than 20% year over year. Three, record Q2 free cash flow of $284 million or 24% of revenue. Four, record operating income of $255 million or 22% of revenue. Five, total revenue growth of 21% year over year, reaching $1.17 billion and exceeding the high end of our guidance. Six, cloud, next-gen identity, and next-gen SIEM platform solutions are now more than $1.56 billion in ending ARR, growing more than 40% year over year. And seven, we surpassed the 1,000 Falcon Flex customer milestone, with the average Flex customer representing more than $1 million of ending ARR. Building on last quarter's reflex momentum, now more than 100 customers have already reflexed. We're very pleased with adoption rates, seeing so many customers reflex validates the flex model and illustrates customers accelerating consolidation with CrowdStrike Holdings, Inc. Quarters like this one highlight our momentum and progress on the path to $10 billion in ending ARR. Setting new records, achieving net new ARR reacceleration sooner than anticipated, and rising competitive win rates highlight CrowdStrike Holdings, Inc. leading the way in cybersecurity. Our innovative solutions are winning at scale, like exposure management, which surpassed $300 million in ending ARR and was named a leader in the 2025 IDC worldwide Exposure Management MarketScape. CrowdStrike Holdings, Inc.'s market leadership was further recognized in Gartner's latest Magic Quadrant for endpoint protection platforms, where we were placed in the leader box for the sixth consecutive year, being positioned furthest to the right for completeness of vision and highest for ability to execute out of all vendors. For the third year in a row. In cybersecurity, as well as the broader technology market, AI's impact is palpable. As organizations of all sizes embrace AI transf ... [transcript truncated at 5,000 chars — full text available via API]

Operator (Operator): Welcome to CrowdStrike Holdings, Inc.'s fiscal first quarter 2026 financial results conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, we will conduct a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the call over to Maria Riley, Vice President of Investor Relations. Maria, please go ahead. Maria Riley (Vice President of Investor Relations): Good afternoon, and thank you for your participation today. With me on the call are George Kurtz, Chief Executive Officer and Founder of CrowdStrike Holdings, Inc., and Burt Podbere, Chief Financial Officer. Before we get started, I would like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plans, objectives, growth, including projections, and expected performance, including our outlook for the second quarter and fiscal year 2026 and any assumptions for fiscal periods beyond that, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this call. While we believe any forward-looking statements we make are reasonable, actual results could differ materially because these statements are based on current expectations and are subject to risks and uncertainties. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events, or otherwise. Further information on these and other factors that could affect the company's financial results is included in the filings we make with the SEC from time to time, including the section titled Risk Factors in the company's quarterly and annual reports. Additionally, unless otherwise stated, excluding revenue, all financial measures disclosed on this call will be non-GAAP. A discussion of why we use non-GAAP financial measures and a reconciliation schedule showing GAAP versus non-GAAP results is currently available in our earnings press release which may be found on our Investor Relations website at ir.crowdstrike.com or on our Form 8-K filed with the SEC today. With that, I will now turn the call over to George. George Kurtz (CEO): Thank you, Maria, and thank you all for joining our Q1 FY2026 earnings call. Our fiscal year started from a position of strength. While the market navigates evolving conditions, CrowdStrike Holdings, Inc. is capitalizing on accelerated demand through continuous innovation, increasing win rates, and platform consolidation at scale. We consolidate point products without compromise and, most importantly, CrowdStrike Holdings, Inc. stops the breach. In Q1, we met or exceeded our key metrics; highlights include: one, Q1 net new ARR of $194 million, double-digit millions ahead of our expectations; two, Q1 ending ARR surpassing $4.4 billion, maintaining our leadership as the only pure-play cybersecurity software company of this size; three, subscription gross margin of 80% demonstrating our AI platform efficiency; four, sustained 97% gross retention as customers remain firmly committed to Falcon; five, free cash flow of $279 million or 25% of revenue demonstrating double-digit quarter-on-quarter growth; and six, added $774 million of total FalconFlex account value bringing the total deal value of accounts that have adopted FalconFlex to $3.2 billion, growing 31% sequentially and more than six times year-over-year. Seeing our customers and ecosystem embrace FalconFlex at this speed and scale gives me confidence—confidence in improving sequential net new ARR growth next quarter and accelerating back half net new ARR. Falcon Flex is significantly evolving our go-to-market and customer experience. The subscription model sparks Falcon platform adoption, delivers point product consolidation, and fuels partner success. I'd like to share where we are with Falcon Flex, as well as a thematic customer win showcasing the power of the model. In less than two years since starting FalconFlex, we've closed more than $3.2 billion of total account deal value across more than 820 accounts that have adopted this subscription model. Here are the trends we're seeing: one, customers spend more. The average flex customer deal size is greater than $1 million in ending ARR; two, customers commit to longer durations. The average flex subscription length is 31 months; and three, flex customers adopt Falcon faster. More than 75% of flex contracts are already deployed. The outcome of these points taken together is a phenomenon we're already seeing, Reflexes. 39 flex customers have already deployed their initial contract demand plan and have returned to us for a reflex. These customers' initial flex contracts were 35 months, nearly three years on average, and within just five months, they came back ... [transcript truncated at 5,000 chars — full text available via API]

Operator (Operator): Hello, and welcome to CrowdStrike Holdings, Inc.'s fourth quarter and fifth fiscal year 2025 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we will conduct a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the call over to Maria Riley, Vice President of Investor Relations. Maria, please go ahead. Maria Riley (VP of Investor Relations): Good afternoon, and thank you for your participation today. With me on the call are George Kurtz, Chief Executive Officer and Founder of CrowdStrike Holdings, Inc., and Burt Podbere, Chief Financial Officer. Before we get started, I would like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plans, objectives, growth, including projections, and expected performance, including our outlook for the first quarter and fiscal year 2026, and any assumptions for fiscal periods beyond that, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this call. While we believe any forward-looking statements we make are reasonable, actual results could differ materially because the statements are based on current expectations and are subject to risks and uncertainties. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise. Further information on these and other factors that could affect the company's financial results is included in the filings we make with the SEC from time to time, including the section titled 'Risk Factors' in the company's quarterly and annual reports. Additionally, unless otherwise stated, excluding revenue, all financial measures disclosed on this call will be non-GAAP. A discussion of why we use non-GAAP financial measures and a reconciliation schedule showing GAAP versus non-GAAP results is currently available in our earnings press release, which may be found on our investor relations website. With that, I will now turn the call over to George. George Kurtz (CEO): Thank you, Maria, and thank you all for joining us today for our Q4 2025 earnings call. I'm extremely proud of the engagement we've had with customers, partners, and prospects in the market, navigating a year that tested CrowdStrike Holdings, Inc. Q4 showcases the fruits of our labors, giving me strong conviction in our AI-native single platform, excellent execution, and accelerating market opportunity. Q4 and FY 2025 highlights include Q4 net new ARR of $224 million, well ahead of our expectations, closing FY 2025 at $4.24 billion in ending ARR. FY 2025 ending ARR for cloud security, identity protection, and next-gen SIEM of over $1.3 billion, growing nearly 50% year over year. Gross dollar retention of 97% as customers remain firmly committed to the Falcon platform. Q4 free cash flow of $240 million, and for the full year, we delivered free cash flow of $1.07 billion, or 27% of revenue, setting a new record and for the first time exceeding $1 billion in annual free cash flow. CrowdStrike Holdings, Inc. is the first cybersecurity ISV to cross $1 billion in deal value on AWS Marketplace in a single calendar year, setting a new standard for ecosystem execution. And record and accelerating FY 2025 total contract value of $6 billion, the first and only pure-play software cybersecurity company reported to achieve this metric, which increased 40% year on year, showcasing the scale and commitment of customers' long-term cybersecurity consolidation on the Falcon platform. Everyone loves a comeback story, and that's exactly what we've started experiencing in Q4 as we've closed out the year. The results tell our story. One, we've never been closer to our customers and partners with market-leading customer satisfaction levels. Two, we're playing best-in-class defense as well as offense with our Falcon Flex subscription model, and three, our innovation engine hasn't missed a beat. The Falcon platform has never been more market competitive, whether that's winning new logos or third-party analyst research. We find ourselves placed at the epicenter of a rapidly evolving demand environment. A new administration, a new wave of technology, and a new threat landscape necessitate all businesses to evolve their cybersecurity programs. Consolidation, cost reduction, and automation are now the accepted enterprise and federal priorities. These priorities are accelerating the shift from ineffective, narrow, or duplicative point products. I'd like to share AI-specific trends on the broader demand environment and how these trends relate to CrowdStrike Holdings, Inc. First, AI experimentation is just starting to evolve into AI outcomes ... [transcript truncated at 5,000 chars — full text available via API]

Operator (Operator): Hello, and welcome to CrowdStrike's Fiscal Third Quarter 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, we will conduct a question-and-answer session. Please be advised that today's conference call is being recorded. I would now like to hand the call over to Maria Riley, Vice President of Investor Relations. Maria, please go ahead. Maria Riley (Vice President of Investor Relations): Good afternoon, and thank you for your participation today. With me on the call are George Kurtz, Chief Executive Officer and Founder of CrowdStrike; and Burt Podbere, Chief Financial Officer. Before we get started, I would like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plans, objectives, growth, including projections and expected performance, including our outlook for the fourth quarter and fiscal year 2025 and any assumptions for the fiscal periods beyond that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this call. While we believe any forward-looking statements we make are reasonable, actual results could differ materially because the statements are based on current expectations and are subject to risks and uncertainties. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise. Further information on these and other factors that could affect the company's financial results is included in the filings we make with the SEC from time to time, including the section titled Risk Factors in the company's quarterly and annual reports. Additionally, unless otherwise stated, excluding revenue, all financial measures disclosed on this call will be non-GAAP. A discussion of why we use non-GAAP financial measures and a reconciliation schedule showing GAAP versus non-GAAP results is currently available in our earnings press release, which may be found on our Investor Relations website at ir.crowdstrike.com or on our Form 8-K filed with the SEC today. With that, I will now turn the call over to George. George Kurtz (CEO): Thank you, Maria, and thank you all for joining our third quarter FY '25 earnings call. I'd like to start today's comments by sharing three key themes that excite me about this quarter and our bright future. First, trust. The trust that customers, partners, and the market have in CrowdStrike. We grew ending ARR more than 27% year-over-year and maintained stable gross retention rates. Second, widespread platform adoption. Our Falcon Flex subscription model is supercharging Falcon platform adoption. With CrowdStrike, cybersecurity consolidation is rapid and ROI is measurable. Falcon Flex is increasing both our share of wallet and enterprise real estate, furthering CrowdStrike as cybersecurity's AI-native platform of record. And third, trailblazing innovation from cloud to device, data to GenAI, application to identity, and compliance to resilience. Our innovation disrupts legacy markets and creates new categories. CrowdStrike is leading the future of AI-powered cybersecurity. The themes of trust, platform adoption, and innovation guide CrowdStrike's customer obsession and continued strong execution. Following the summer's incident, as a company, we were tested, we responded with speed, care, and resolve, and we focused on becoming even better, continuing to deliver industry-leading cyber protection on the Falcon platform's proven, resilient, and scaled AI-native architecture. I'm encouraged by CrowdStrike's Q3 results, our first full quarter post-incident. First, ending ARR surpassed $4 billion, making CrowdStrike the fastest pure-play cybersecurity software company to achieve this reported milestone, tracking to our $10 billion ARR vision. Second, Q3 revenue surpassed $1 billion. Subscription revenue grew 31% year-over-year, and total revenue surpassed $1 billion for the first time in company history. Third, free cash flow of $231 million or 23% of revenue, achieving a Rule of 51 on a free cash flow basis. Fourth, we closed more than 150 Falcon Flex transactions, with these customers representing more than $600 million in total deal value. And fifth, more recently, we announced and closed the acquisition of Adaptive Shield, adding SaaS posture management to our portfolio, further differentiating and connecting the Falcon platform's Cloud Security suite and Identity Protection offerings. In addition to these achievements, I'd like to provide some perspective on what we saw in Q3. First, Falcon customers are staying with CrowdStrike as their trusted cybersecurity platform of choice. Q3 gross retention was over 97%, down less than 0.5 percentage points. Strength in retention wa ... [transcript truncated at 5,000 chars — full text available via API]

Operator (Operator): Hello, and welcome to CrowdStrike's Fiscal Second Quarter 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, we will conduct a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the call over to Maria Riley, Vice President of Investor Relations. Maria, please go ahead. Maria Riley (Vice President of Investor Relations): 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. Before we get started, I would like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plans, objectives, growth, including projections, and expected performance, including our outlook for the third quarter and fiscal year 2025, and any assumptions for fiscal periods beyond that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this call. While we believe any forward-looking statements we make are reasonable, actual results could differ materially because the statements are based on current expectations and are subject to risks and uncertainties. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise. Further information on these and other factors that could affect the company's financial results is included in the filings we make with the SEC from time to time, including the section titled Risk Factors in the company's Quarterly and Annual Reports. Additionally, unless otherwise stated, excluding revenue, all financial measures disclosed on this call will be non-GAAP. A discussion of why we use non-GAAP financial measures and a reconciliation schedule showing GAAP versus non-GAAP results is currently available in our earnings press release, which may be found on our Investor Relations website at ir.crowdstrike.com or on our Form 8-K filed with the SEC today. With that, I will now turn the call over to George. George Kurtz (President and CEO): I would like to start today's remarks with my apology to everyone impacted by our Channel File 291 Incident, which transpired on July 19. I also want to take this moment to show my gratitude to everyone who worked with us through the incident. Thank you to our customers and partners for your continued trust. Thank you to our team of relentless CrowdStrikers for living our mission. Thank you to the broader cybersecurity and IT community for standing with us as we face the most challenging event in our company history. The magnitude of the July 19 incident will never be lost on me and my commitment is to make sure this never happens again. The days following the incident were among the most challenging in my career because I deeply felt what our customers experienced. Our response to the July 19 incident was immediate, deliberate, and focused. We activated CrowdStrike's crisis response plan to lead through the incident. We clearly communicated status with customers, partners in the market at large on our website, social media, email, phone, and broadcast. Our technical teams devised new automated recovery techniques for accelerated response. Our efforts were 100% focused on bringing impacted devices back online with the highest level of speed and transparency. This included the mobilization of CrowdStrikers in our partner community to communicate proactively and transparently with customers, as well as the market at large, and then recover impact at hosts. For many, recovery was within hours. We've already implemented the following actions to build a more resilient Falcon platform. First, enhanced content visibility and control. While sensor version control was always a cornerstone of the Falcon operational experience, we've already released new content control configurations. This allows customers to choose when and where new Falcon content is deployed with new granular controls. Second, content QA enhancements. We already shipped an enhanced content validator and content interpreter, two of the components which did not properly function. These components have been refactored to prevent shipping erroneous content and were both made GA earlier in August. And third, external review and validation. We've engaged two independent third-party software security vendors to review the Falcon sensor code and quality control process. This ongoing work focuses on enhancing security and resiliency over the short, medium, and long-term. These three major actions are in addition to an enhanced content release process. Our content release process now mirrors the sen ... [transcript truncated at 5,000 chars — full text available via API]