Q2 2025 CrowdStrike Holdings Inc Earnings Call

Kaye filed with the SEC today. With that, I will now turn the call over to George.

George Kurtz: I would like to start today's remarks with my apology to everyone impacted by our channel, File291 Inc., which transpired on July 19th. 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. We activated CrowdStrike's Crisis Response Plan to lead through the incident. We clearly communicated status with customers, partners in the market at large in 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.

George: 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.

George Kurtz: I would like to start today's remarks with my apology to everyone impacted by our channel File291 Inc., which transpired on July 19th. 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 crowd strikers for living our mission. Thank you to the broader cyber security and IT community for standing with us as we face the most challenging event in our company history.

George: I also want to take this moment to show my gratitude to everyone who worked with us through the incidents.

Speaker Change: Thank you to our customers and partners for your continued trust. Thank you George team of relentless crowd strikers for living our mission.

Speaker Change: Thank you to the broader cybersecurity and IT community for standing with us as we face the most challenging event in our company history.

Speaker Change: The magnitude of the July 19th 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.

George Kurtz: The magnitude of the July 19th 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 19th 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.

Speaker Change: Our response to the July 19th incident was immediate, deliberate and focused.

Speaker Change: We activated CrowdStrike's crisis response plan to leave through the incident. We clearly communicated status with customers, partners in the market at large in our website, social media, email, phone, and broadcast.

George Kurtz: 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 impacted hosts. This, for many, recovery was within hours.

Speaker Change: Our technical team's device new automated recovery techniques for accelerated response.

Speaker Change: Our efforts were 100% focused on bringing impacted devices back online with the highest level of speed and transparency.

George Kurtz: 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 impacted hosts. For many, recovery was within hours. We have 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 have 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.

Speaker Change: This included the mobilization of crowd-shikers in our partner community to communicate proactively and transparently with customers as well as the market at large, and then recover impact at host. For many, recovery was within hours.

Speaker Change: 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.

George Kurtz: 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 refactor to prevent shipping Aronis content and were both May-GA earlier in August.

Speaker Change: This allows customers to choose when and where new Falcon content is deployed with new granular controls.

Speaker Change: Second, Content QA enhancements

Speaker Change: We already shipped an enhanced content validator and content interpreter, two of the components which did not properly function.

George Kurtz: These components have been refactored to prevent shipping erroneous content and were both May GA earlier in August. 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 sensor release regimen. It consists of sample testing, internal lab and canary systems testing, early access soaking, and lastly a staggered concentric ring deployment and adherence with customer policy settings.

Speaker Change: these components have been refactor to prevent shipping a Roni's content, and we're 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.

George Kurtz: 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 sensor release regimen. It consists of sample testing, internal lab and canary systems testing, early access soaking, and lastly a staggered concentric ring deployment and adherence with customer policy settings.

Speaker Change: 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 sensor release regimen.

Speaker Change: A consists of sample testing, internal lab and canary systems testing.

Speaker Change: Early Access Soaking, and lastly is staggered concentric ring deployment, and adherence with customer policy settings.

George Kurtz: The July 19th incident starts a new chapter for CrowdsRike. One focused on ensuring that cybersecurity's best AI platform for SOC operations, protection, visibility, response, and automation is also cybersecurity's most resilient platform. With built-in redundancy modes, new content controls, and enhanced safeguards, we've immediately addressed learnings from the incident and will continue to apply and evolve these lessons into our... Future.

Speaker Change: The July 19th incident.

George Kurtz: The July 19th incident starts a new chapter for CrowdsRike. One focused on ensuring that Cybersecurity's best AI platform for SOC operations, protection, visibility, response, and automation is also Cybersecurity's most resilient platform. With built-in redundancy modes, new content controls, and enhanced safeguards, we've immediately addressed learnings from the incident and will continue to apply and evolve these lessons into our... Future.

Stark: Stark's and new chapter for CrowdsRake. One focused on ensuring that cybersecurity's best AI platform for sock operations.

Stark: Protection, Visibility, Response and Automation is also cybersecurity's most resilient platform. With built-in redundancy modes, new content controls, and enhanced safeguards, we've immediately addressed learnings from the incident and will continue to apply and evolve these lessons into our future.

George Kurtz: Moving to our Q2 results, our execution following the July 19th incident highlights the resiliency of CrowdStrike's business. Our focus on transparency and accountability continues to inspire trust. Our track record and third-party validation of delivering the industry's best AI-powered protection continues to resonate at scale. As the July 19th incident was in the final two weeks of the quarter, when a meaningful portion of our sales typically closed, it delayed deals into subsequent quarters. The vast majority of these deals remain in our pipeline. Despite this impact, I'm encouraged by the results we delivered. The enduring trust that prospects, customers, and the market having Crowdstrike is demonstrated by our Q2 performance.

Stark: Moving to our Q2 results, our execution following the July 19 incident highlights the resiliency of CrowdTracks business.

George Kurtz: Moving to our Q2 results, our execution following the July 19th incident highlights the resiliency of Crowdstrike's business. Our focus on transparency and accountability continues to inspire trust. Our track record and third party validation of delivering the industry's best AI-powered protection continues to resonate at scale.

Stark: are focused on transparency and accountability continues to inspire trust. Our track record and third-party validation of delivering the industry's best AI powered protection.

Stark: Continues to resonate at scale. As the July 19 incident was in the final two weeks of the quarter, when a meaningful portion of our sales typically close, it delayed deals into subsequent quarters. The vast majority of these deals remain in our pipeline.

George Kurtz: As the July 19th incident was in the final two weeks of the quarter, when a meaningful portion of our sales typically closed, it delayed deals into subsequent quarters. The vast majority of these deals remain in our pipeline. Despite this impact, I'm encouraged by the results we delivered. The enduring trust that prospects, customers in the market having Crowdstrike is demonstrated by our Q2 performance. Ending ARR of $3.86 billion, growing 32% year-over-year. Q2 net new ARR of $218 million, up 11% year-over-year, within our pre-incident state of assumptions.

Stark: Despite this impact, I'm encouraged by the results we delivered.

Stark: The enduring trust that prospects, customers in the market having cross-wrake is demonstrated by our Q2 performance.

George Kurtz: Ending ARR of $3.86 billion, growing 32% year-over-year. Q2 net new ARR of $218 million, up 11% year-over-year, within our pre-incident state of assumptions. Q2 revenue of $964 million, also ahead of our guidance. Record non-GAP operating income of $227 million, growing 46% year-over-year. GAP profitability for the sixth consecutive quarter, and free cash flow of $272 million at 28% of revenue, with a free cash flow rule of 60. These financial results illustrate the resilience of our business and our team. Customers, prospects, and partners recognize CrowdStrike's technological leadership and role in serving the market need for ongoing platform consolidation.

Stark: and being ARR of $3.86 billion growing 32% year over year. Q2 net new ARR of $218 million up a 11% year over year within our pre-infinite state of assumptions.

George Kurtz: Q2 revenue of $964 million, also ahead of our guidance. Record non-GAP operating income of $227 million, growing 46% year-over-year. GAP profitability for the sixth consecutive quarter, and free cash flow of $272 million at 28% of revenue, with a free cash flow rule of 60. These financial results illustrate the resilience of our business and our team. Customers, prospects and partners recognize Crowdstrike's technological leadership and role in serving the market need for ongoing platform consolidation. This is why they continue to choose Crowdstrike.

Stark: Q2 revenue of $964 million also ahead of our guidance.

Stark: Record, non-gap operating income of $227 million, growing 46% year over year. Gap profitability for the 6th consecutive quarter and free cash flow of $272 million, at 28% of revenue with a free cash flow rule of 60.

Stark: These financial results illustrate the resilience of our business and our team.

Stark: Customers, prospects and partners recognize CrowdStrike's technological leadership and role in serving the market need for ongoing platform consolidation.

George Kurtz: This is why they continue to choose CrowdStrike.

George Kurtz: In the hundreds of customer interactions I've had since the July 19th incident, organizations of all sizes thematically share three messages with me. First, necessity to understand the incident, our response, and our actions to ensure it doesn't happen again. Second, acknowledgement of our trust record; gratitude for CrowdStrike safeguarding their organization over the years. And third, steadfast support for CrowdStrike, continuing to be cyber securities, innovation leader, and their consolidation partner of choice. The breadth and depth of the Falcon Platform spans 28 modules that revolutionize cybersecurity, stopping breaches for tomorrow's AI-powered SOC, covering cloud security, identity protection, device security, data protection, IT automation, and next-generation SIM. Our portfolio is diversified.

Speaker Change: This is why they continue to choose CrowdShrake.

Speaker Change: in the hundreds of customer interactions I've had since the July 19th incident.

George Kurtz: In the hundreds of customer interactions I've had since the July 19th incident, organizations of all sizes thematically share three messages with me. First, necessity to understand the incident, our response and our actions to ensure it doesn't happen again. Second, acknowledgement of our trust record, gratitude for Crowdstrike safeguarding their organization over the years. And third, steadfast support for Crowdstrike, continuing to be cyber securities, innovation leader, and their consolidation partner of choice.

Speaker Change: Organizations of all sizes to medically share three messages with me. First, necessity to understand the incident, our response and our actions to ensure it doesn't happen again.

Speaker Change: Second, acknowledgment of our trust record, gratitude for crowd strike safeguarding their organization over the years, and third, steadfast support for crowd strike continuing to be cybersecurity's innovation leader and their consolidation partner of choice.

Speaker Change: The breath and depth of the Falcon platform spans 28 modules that revolutionize cyber security, stopping breaches for tomorrow's AI powered sock.

George Kurtz: The breadth and depth of the Falcon Platform spans 28 modules that revolutionize cyber security, stopping breaches for tomorrow's AI-powered sock, covering cloud security, identity protection, device security, data protection, IT automation, and next-generation SIM, our portfolio is diversified. Crowdstrike is much more than EDR, and we appeal to a variety of personas across cyber security, IT, digital, risk, and compliance teams. Over the past year, our lock-scale next-gen SIM, identity protection, and cloud security businesses, each expanded the power and reach of the Falcon Platform.

Speaker Change: Covering cloud security, identity protection, device security, data protection, IT automation, and next generation sim, our portfolio is diversified.

George Kurtz: CrowdStrike is much more than EDR, and we appeal to a variety of personas across cybersecurity, IT, digital, risk, and compliance teams. Over the past year, our lock-scale next-gen SIM, identity protection, and cloud security businesses, each expanded the power and reach of the Falcon Platform. Each representing resilient growth vectors, outside of what was once considered our market back when I started the company. In Q2, our lock-scale next-gen SIM, identity protection, and cloud security hyper-growth businesses, together surpassed $1 billion in NDRR and grew more than 85% year-over-year. These results reaffirm our continued and increasing investment in innovation, ushering in the next chapter of the Falcon platform.

Speaker Change: Cross-Track is much more than EDR, and we appeal to a variety of personas across cybersecurity, IT, digital, risk and compliance teams.

Speaker Change: Over the past year, our lock scale next year in Sim, identity protection and cloud security businesses, each expanded the power and reach of the Falcon platform.

Speaker Change: He's representing resilient growth factors outside of what was once considered our market back when I started the company. In Q2, our lock scale next gen sim, identity protection and cloud security hypergrowth businesses.

George Kurtz: Each representing resilient growth vectors, outside of what was once considered our market back when I started the company. In Q2, our lock-scale next-gen SIM, identity protection, and cloud security, hyper-growth businesses, together surpassed $1 billion in NDRR, and grew more than 85% year-over-year. These results reaffirm our continued and increasing investment in innovation, ushering in the next chapter of the Falcon Platform.

Speaker Change: Tugther surpassed $1 billion in NDAR and grew more than 85% year over year. These results reaffirm our continued and increasing investment in innovation, ushering in the next chapter of the Falcon Platform.

George Kurtz: Let me provide a few examples showcasing how these products are disrupting their respective markets. Importantly, each of these customer wins was closed after the July 19th incident began. I'll start with Falcon Cloud Security. The industry's only integrated CSPM, ASPM, DSPM, CIEM, CWP agent, and agentless solution. CrowdStrike's cloud security business is now more than $515 million in ARR and grew faster than 80% year-over-year. Two noteworthy posts, July 19th wins, an eight-figure deal in a major enterprise software firm where Falcon Cloud Security was already running on a part of the environment. Replacing another next-gen cloud security vendor allowed this customer the opportunity to standardize on Falcon Cloud Security for ease of management across broad distributions and superior cloud security protection.

George Kurtz: Let me provide a few examples showcasing how these products are disrupting their respective markets. Importantly, each of these customer wins was closed after the July 19th incident began. I'll start with Falcon Cloud Security. The industry's only integrated CSPM, ASPM, DSPM, CIEM, CWP Agent, and Agent List Solution. Crowdstrike's cloud security business is now more than $515 million in ARR and grew faster than 80% year over year. Two noteworthy posts, July 19th wins.

Speaker Change: Let me provide a few examples showcasing how these products are disrupting their respective markets. Importantly, each of these customer wins was closed after the July 19 incident began. I'll start with Falcon Cloud Security.

Speaker Change: The Industries only integrated CSPM, ASPM, DSPM, CIEM, CWP agent, and Agentless Illusion.

Speaker Change: Crowdswrecks Cloud Security Business is now more than $515 million in ARR and grew faster than 80% year over year. Two, noteworthy post July 19 wins.

Speaker Change: and eight figure deal in a major enterprise software firm where Falcon Cloud Security was already running on a part of the environment. Replacing another next-gen cloud security vendor, allowed this customer the opportunity to standardize on Falcon Cloud Security.

George Kurtz: An eight-figure deal in a major enterprise software firm where Falcon Cloud Security was already running on a part of the environment. Replacing another next-gen cloud security vendor allowed this customer the opportunity to standardize on Falcon Cloud Security for ease of management across broad distributions and superior cloud security protection. Next, a nine-figure Falcon Cloud Security purchase across a million hosts in a large enterprise for their production environment. Falcon Cloud Security's leading protection, visibility, and operational scoring in their evaluation placed Crowdstrike ahead of other cloud security products.

George Kurtz: Next, a nine-figure Falcon Cloud Security purchase across a million hosts in a large enterprise for their production environment. Falcon Cloud Security's leading protection, visibility, and operational scoring in their evaluation place, CrowdStrike, ahead of other cloud security products. Falcon Identity Protection continues to set the industry standard in the identity threat detection and response space. As of Q2, identity ending ARR surpassed 350 million, growing over 70% year-over-year. We pioneered this category, and it's a key differentiator in our XDR value proposition. Now, let's move to the log scale next-gen SIM business, which is greater than $220 million in ARR and grew more than 140% year-over-year.

Speaker Change: for ease of management across raw distributions and superior cloud security protection. Next, a 9-figure Falcon Cloud Security purchase across a million hosts in a large enterprise for their production environment.

Speaker Change: Falcon Cloud Securities, leading protection, visibility, and operational scoring in their evaluation place, cross-rrike ahead of other cloud security products.

Speaker Change: Falcon Identity Protection continues to set the industry standard in the identity threat detection and response space. As of Q2, identity ending ARR surpassed 350 million growing over 70% year over year.

George Kurtz: Falcon Identity Protection continues to set the industry standard in the identity threat detection and response space. As of Q2, identity-ending ARR surpassed 350 million growing over 70% year over year. We pioneered this category, and it's a key differentiator in our XDR value proposition.

Speaker Change: We pioneered this category and it's a key differentiator in our XDR value proposition.

Speaker Change: Now let's move to the log scale next gen sim business, which is greater than $220 million in ARR and grew more than 140% year over year.

George Kurtz: Now, let's move to the log scale next-gen SIM business, which is greater than $220 million in ARR and grew more than 140% year over year. The SIM market continues to be in a state of renaissance where organizations of all sizes are drafting their next chapter of security and IT data management. Our log scale next-gen SIM momentum showcases Crowdstrike's ability to displace legacy SIMs at scale and capitalize on market demand for AI-powered SOC operations.

George Kurtz: The SIM market continues to be in a state of renaissance where organizations of all sizes are drafting their next chapter of security and IT data management. Our log scale next-gen SIM momentum showcases CrowdStrike's ability to displace legacy SIMs at scale and capitalize on market demand for AI-powered SOC operations. Two exciting post-July 19th wins include an 8-figure win in which log scale next-gen SIM replaced two legacy SIMs. This customer was already a large CrowdStrike customer, and the ability to store, visualize, and action large amounts of first-party CrowdStrike data natively in a platform significantly lower cost by more than 60% while increasing functionality.

Speaker Change: The sim market continues to be in a state of Renaissance where organizations of all sizes are drafting their next chapter of security and IT data management.

Speaker Change: Our law scale next gen, Sim Momentum, showcases crowd-fraxability to displaced legacy Sims at scale and capitalized on market demand for AI-powered stock operations.

George Kurtz: Two exciting post-July 19th wins include an 8-figure win in which log scale next-gen SIM replaced two legacy SIMs. This customer was already a large Crowdstrike customer, and the ability to store, visualize, and action large amounts of first-party Crowdstrike data natively in a platform significantly lower cost by more than 60% while increasing functionality. Ingesting third-party data into the Falcon platform is not only more cost-effective but also differentiated in our incident workbench, which brings novel visibility and AI-powered response to the hands of every SOC analyst.

Speaker Change: to exciting post July 19th wins, include an 8th figure win in which Lockscale next gen sim replaced two legacy sims.

Speaker Change: This customer was already a large craft strike customer and the ability to store, visualize, and action large amounts of first party craft strike data natively in a platform significantly lower cost by more than 60% while increasing functionality.

George Kurtz: Ingesting third-party data into the Falcon platform is not only more cost-effective but also differentiated in our incident workbench, which brings novel visibility and AI-powered response to the hands of every SOC analyst. What once took two legacy SIMs is now natively in Falcon. And finally, a leading generative AI company that started using log scale next-gen SIM over a year ago, standardized on the technology and a 7-figure win. Winning the totality of their SIM business as well as observability use cases was a function of log scale next-gen SIM search speed, the native nature of Falcon data coupled with third-party data in response actions, and improved TCO relative to their legacy SIM.

Speaker Change: In justing third party data into the Falcon platform is not only more cost-effective, but also differentiated in our incident workbench, which brings novel visibility and AI power response to the hands of every sock analyst.

Speaker Change: but once took two legacy sims is now natively in Falcon. And finally, a leading generative AI company that started using Lockscale Nexian Sim over a year ago, standardized on the technology and a seven-figure win.

George Kurtz: What once took two legacy SIMs is now natively in Falcon. And finally, a leading generative AI company that started using log scale next-gen SIM over a year ago, standardized on the technology and a 7-figure win. Winning the totality of their SIM business as well as observability use cases was a function of log scale next-gen SIM search speed, the native nature of Falcon data coupled with third-party data in response actions, and improved TCO relative to their legacy SIM.

Speaker Change: Winning the totality of their sim business, as well as observability use cases, was a function of lock scale, neck-sense sim's search speed, the native nature of Falcon data coupled with third-party data in response actions, and improved TCO relative to their legacy sim.

George Kurtz: I'm reassured by customers and prospects' feedback, wanting to do more with CrowdStrike post-incident, as evidenced by multiple 7-8-figure platform expansions, with most opting for multi-year deals. Eliminating complexity is a key component of achieving resilience, and we see the Falcon platform continually to help solve a wide range of customer problems, simplifying cybersecurity and, most importantly, stop- Breaches. Our partner first go to market continues to deliver at scale, connecting our technology platform with new and existing customers. Crowdstrike's pre-eminent partner position as a top security vendor by business size and number of transactions serves as a competitive mode.

Speaker Change: I'm reassured by customers and prospects feedback, wanting to do more with cross-right posts incident as evidence by multiple seven and eight figure platform expansions.

George Kurtz: I'm reassured by customers and prospects feedback, wanting to do more with Crowdstrike post-incident as evidenced by multiple 7-8-figure platform expansions with most opting for multi-year deals. Eliminating complexity is a key component of achieving resilience, and we see the Falcon platform continually to help solve a wide range of customer problems, simplifying cybersecurity and most importantly stop- Reaching Breaches. Our partner first go to market continues to deliver at scale, connecting our technology platform with new and existing customers.

Speaker Change: with most opting for multi-year deals.

Speaker Change: A eliminating complexity is a key component of achieving resilience, and we see the Falcon platform continuing to help solve a wide range of customer problems, simplifying cybersecurity and most importantly stopping breaches.

Speaker Change: Our partner first go to market continues to deliver at scale, connecting our technology platform with new and existing customers.

Speaker Change: Kraus strikes pre-eminent partner position as a top security vendor by business size and number of transactions serves as a competitive mode.

George Kurtz: Crowdstrike's pre-eminent partner position as a top security vendor by business size and number of transactions serves as a competitive mode. In Q2, 66% of our new logo business was sourced by our partners, showcasing our best in class partner go to market. In Q2, our systems integrator business grew over 100% year-over-year, highlighting Falcon as an industry driver in delivering multidisciplinary cyber security transformation. Our partners were instrumental in helping customers recover with no worthy engagement from Accenture, KPMG, and EY among a dozen others.

George Kurtz: In Q2, 66% of our new logo business was sourced by our partners, showcasing our best-in-class partner go-to-market. In Q2, our systems integrator business grew over 100% year-over-year, highlighting Falcon as an industry driver in delivering multidisciplinary cyber security transformation. Our partners were instrumental in helping customers recover with no worthy engagement from Accenture, KPMG, and EY, among a dozen others. Our strategic alignment and deep partnership extend our reach. In this vein, global system integrators are increasingly becoming a central part of our partner strategy as a Falcon Flex subscription model for highly resonates with the transformative nature of GSI engagements.

Speaker Change: and Q2, 66% of our new logo business was sourced by a partners, showcasing our best-in-class partner go-to-market. In Q2, our Systems Integrator Business grew over 100% year-over-year, highlighting Falcon as an industry driver in delivering multi-disciplinary cybersecurity transformation.

Speaker Change: Our partners were instrumental in helping customers recover with noteworthy engagement from Accenture, KPMG and EY among a dozen others. Our strategic alignment and deep partnership extend our reach.

George Kurtz: Our strategic alignment and deep partnership extend our reach. In this vein, global system integrators are increasingly becoming a central part of our partner strategy as a Falcon Flex subscription model. We now highly resonate with the transformative nature of GSI engagements. We unite and align our entire partner ecosystem with our use of cloud marketplaces in Crowdstrike's go-to market. We've demonstrated the success and results of this strategy with AWS, helping customers not only secure their AWS cloud services, but also procure Crowdstrike for the full range of their cyber security needs.

Speaker Change: In this vein, global system integrators are increasingly becoming a central part of our partner strategy, as a Falcon Flex subscription model highly resonates with the transformative nature of GSI engagements.

George Kurtz: We unite and align our entire partner ecosystem with our use of cloud marketplaces in CrowdStrike's go-to-market. We've demonstrated the success and results of this strategy with AWS, helping customers not only secure their AWS cloud services, but also procure CrowdStrike for the full range of their cyber security needs.

Speaker Change: We unite and align our entire partner ecosystem with our use of cloud marketplaces in cloud products. We are going to create a new cloud market.

Speaker Change: We've demonstrated the success and results of this strategy with AWS, helping customers not only secure their AWS cloud services, but also procure a crowd strike for the full range of their cybersecurity needs.

George Kurtz: Now, two quarters into our expanded relationship with Google, Crowdstrike is the fastest-growing cyber security vendor on the Google Cloud Marketplace this year. Customers of all sizes are increasingly looking to utilize their committed hyper-scaler spend, adding an additional layer of resilience to our go-to-market. Aligning our entire ecosystem from reseller to systems integrator, MSSPs to distributors, makes CrowdStrike cyber security's partner of choice; with CrowdStrike, the entire ecosystem wins together.

Speaker Change: Now, two quarters into our expanded relationship with Google. Crowd Freight is the fastest growing cybersecurity vendor on the Google Cloud Market places year.

George Kurtz: Now, two quarters into our expanded relationship with Google Crowdstrike is the fastest growing cyber security vendor on the Google cloud marketplace this year. Customers of all sizes are increasingly looking to utilize their committed hyper-scaler spend, adding an additional layer of resilience to our go-to market. Aligning our entire ecosystem from reseller to systems integrator, MSSPs to distributors, makes Crowdstrike Cybersecurity's partner of choice with Crowdstrike the entire ecosystem wins together.

Speaker Change: Customers of all sizes are increasingly looking to utilize their committed hyperscaler spend, adding an additional layer of resilience to our go-to market.

Speaker Change: A lining our entire ecosystem from reseller to systems integrator, MSSP's to distributors, makes CrowdShrike cybersecurity's partner of choice, with CrowdShrike the entire ecosystem wins together.

George Kurtz: Our resulting business platform and go-to-market position Crowdstrike to execute on our unchanged vision and mission, whether on July 18th or today on August 28th, our TAM and market opportunity remain unchanged. This is because, first, the need for cyber security simplification, organizations of all sizes remain eager to simplify, consolidate and rationalize their cyber security product lineups. Streamlining operational processes goes hand in hand with SOC transformation, with the goal of faster, more effective cyber security delivered at lower cost. Decreasing TCO and increasing efficiencies through AI and automation are clearly voiced organizational priorities and will be for years to come.

Speaker Change: Our Brazilian business platform and go to market, position craft strength, execute on our unchanged vision and mission, whether on July 18 or today, on August 28, our Tam and Market Opportunity remain unchanged.

George Kurtz: Our resulting business platform and go-to market position Crowdstrike to execute on our unchanged vision and mission, whether on July 18th or today, on August 28th, our TAM and market opportunity remain unchanged. This is because, first, the need for cyber security simplification, organizations of all sizes remain eager to simplify, consolidate, and rationalize their cyber security product lineups. Streamlining operational processes goes hand in hand with SOC transformation, with the goal of faster, more effective cyber security delivered at lower cost. Decreasing TCO and increasing efficiencies through AI and automation are clearly voiced organizational priorities and will be for years to come.

Speaker Change: This is because, first, the need for cybersecurity simplification, organizations of all sizes remain eager to simplify, consolidate and rationalize the cybersecurity product lineups.

Speaker Change: Streamlining operational processes goes hand in hand with sock transformation with the goal of faster, more effective cybersecurity delivered at lower cost.

Speaker Change: T-Creecing TCO and increasing efficiencies through AI and automation are clearly voiced organizational priorities and will be for years to come.

George Kurtz: Second, adversary proliferation and threat landscape acceleration. Released in our annual threat report several weeks ago, CrowdStrike's analyst and industry-lauded threat intelligence is in a class of its own, now tracking over 245 adversary groups. In the past year, our threat intelligence teams uncovered threat actors applying to and actively working for more than 100 unique companies. The realities of the threat landscape necessitate effective cyber protection, and that is only intensifying. In the face of universally accepted market needs in adversary realities, the resounding feedback I hear from customers is that CrowdStrike is their number one and most effective cyber security control.

Speaker Change: Second, adversary proliferation and threat landscape acceleration.

George Kurtz: Second, adversary proliferation and threat landscape acceleration. Released in our annual threat report several weeks ago, Crowdstrike's analyst and industry lauded threat intelligence in a class of its own, now tracking over 245 adversary groups. In the past year, our threat intelligence teams uncovered threat actors applying to and actively working for more than 100 unique companies. The realities of the threat landscape necessitate effective cyber protection, and that is only intensifying. In the face of universally accepted market needs in adversary realities, the resounding feedback I hear from customers is that Crowdstrike is their number one and most effective cyber security control.

Speaker Change: Releasing our annual threat reports several weeks ago, cross strikes analyst and industry law that threat intelligence in a class of its own, now tracking over 245 adversary groups.

Speaker Change: and the past year our threat intelligence teams uncovered threat actors applying to and actively working for more than 100 unique companies.

Speaker Change: The realities of the threat landscape and the sensitive, effective cyber protection, and that is only intensifying.

Speaker Change: In the face of universally accepted market needs in adversarialities. The resounding feedback I hear from customers is that CrowdSrike is their number one and most effective cyber security control.

George Kurtz: This is not only because of product performance and efficacy, but also because of the organizational process and orchestration built on and around Falcon. With greater than seven modules on average deployed in organization spending $100,000 or more per year, the Falcon platform is firmly rooted, with replacement requiring a multi-vendor, costly and time-consuming process, abandoning the protection and TCO benefits of a single platform consolidation. Our best-in-class module adoption, supercharged by Charlotte AI, our gendered AI sock analyst, makes the Falcon platform sticky for all users as well as the data foundation of the sock. This is why we continue aggressively investing in innovation to advance our track record of revolutionizing cybersecurity.

George Kurtz: This is not only because of product performance and efficacy, but also because of the organizational process and orchestration built on and around Falcon. With greater than seven modules on average deployed in organizations spending $100,000 or more per year, the Falcon platform is firmly rooted with replacement requiring a multi-vendor costly and time-consuming process, abandoning the protection and TCO benefits of a single platform consolidation. Our best-in-class module adoption, supercharged by Charlotte AI, our gendered AI sock analyst, makes the Falcon platform sticky for all users as well as the data foundation of the sock.

Speaker Change: This is not only because of product performance and efficacy, but also because of the organizational process and orchestration built on and around Falcon.

Speaker Change: With greater than seven modules on average deployed in organization spending $100,000 or more per year, the Falcon Platform is firmly rooted with replacement requiring a multi-vender costly and time-consuming process, abandoning the protection and TCO benefits of a single platform consolidation.

Speaker Change: Our best-in-class module adoption, Supercharge by Charlotte AI, our Genitor of AI Sock Analyst, makes the Falcon platform sticky for all users as well as the data foundation of the Sock.

Speaker Change: This is why we continue aggressively investing in innovation to advance our track record of revolutionizing cybersecurity.

George Kurtz: This is why we continue aggressively investing in innovation to advance our track record of revolutionizing cybersecurity. This is why customers are looking to not only stay with us, but also expand their Falcon platform adoption.

George Kurtz: This is why customers are looking to not only stay with us, but also expand their Falcon platform adoption.

Speaker Change: This is why customers are looking to not only stay with us, but also expand their Falcon platform adoption.

George Kurtz: This is why our upcoming annual customer and industry conference, Falcon, is what I refer to as our largest selling event of the year. It is already in overflow with more than 5,000 security and IT executives and more than 95 sponsoring partners. Our unchanged vision and mission propels us to become even better, even more resilient, and even more customer-obsessed Crowdstrike. In working with customers post-incident, we quickly mobilize around customer loyalty. We took inspiration from our Falcon Flex subscription program, a licensing model that's been rapidly gaining traction across all of our customer segments. In the year since we built the Falcon Flex program, the customers who have subscribed to this new licensing model represent over $700 million in total deal value.

George Kurtz: This is why our upcoming annual customer and industry conference, Falcon, is what I refer to as our largest selling event of the year. It is already in overflow with more than 5,000 security and IT executives and more than 95 sponsoring partners. Our unchanged vision and mission propels us to become even better, even more resilient and even more customer-obsessed Crowdstrike.

Speaker Change: This is why our upcoming annual customer and industry conference, Falcon, is what I refer to as our largest selling event of the year.

Speaker Change: is already in overflow with more than 5,000 security and IT executives and more than 95 sponsoring partners. Our unchanged vision and mission propels us to become an even better, even more resilient, and even more customer-obsessed crowd strike.

Speaker Change: In working with customers post-intinent, we quickly mobilize around customer loyalty.

George Kurtz: In working with customers post-incident, we quickly mobilize around customer loyalty. We took inspiration from our Falcon Flex subscription program, a licensing model that has been rapidly gaining traction across all of our customer segments. In the year since we built the Falcon Flex program, the customers who have subscribed to this new licensing model represent over $700 million in total deal value. Flex Supercharges platform adoption, making it easier and faster for organizations to displace other technologies through flexibility, turning on and moving between modules without procurement and legal friction.

Speaker Change: We took inspiration from our Falcon Flex subscription program, a licensing model that's been rapidly gaining traction across all of our customer segments.

Speaker Change: In the year since we built the Falcon Flex program, the customers who have subscribed to this new licensing model represent over $700 million in total deal value.

George Kurtz: Flex supercharges platform adoption, making it easier and faster for organizations to displace other technologies through flexibility, turning on and moving between modules without procurement and legal friction. Customers love the flexibility as it makes it easy to use more Falcon. In Falcon Flex, we also found a simple and effective mechanism to drive retention by offering compelling customer commitment packages. Our customer commitment package takes traditional module-by-module licensing into our Falcon Flex model, where customers can use any and all modules they wish at compelling economic values. Depending on need, the customer commitment package encompasses discounting, module ads, professional services, flexible payment terms, as well as adding duration to a customer subscription.

Speaker Change: Flex Supercharges platform adoption, making it easier and faster for organizations to displace other technologies through flexibility, turning on and moving between modules without procurement and legal friction.

Speaker Change: Customers love the flexibility as it makes it easy to use more Falcon. In Falcon Flex, we also found a simple and effective mechanism to drive retention by offering compelling customer commitment packages.

George Kurtz: Customers love the flexibility as it makes it easy to use more Falcon. In Falcon Flex, we also found a simple and effective mechanism to drive retention by offering compelling customer commitment packages. Our customer commitment package takes traditional module by module licensing into our Falcon Flex model, where customers can use any and all modules they wish at compelling economic values. Depending on need, the customer commitment package encompasses discounting, module ads, professional services, flexible payment terms, as well as adding duration to a customer subscription.

Speaker Change: Our customer commitment package takes traditional module by modular licensing into our Falcon Flex model, where customers can use any and all modules they wish at compelling economic values.

Speaker Change: Depending on the customer commitment package encompasses discounting, module ads, professional services, flexible payment terms, as well as adding duration to a customer subscription.

George Kurtz: Our best-in-class module adoption is a differentiating and leading indicator of CrowdStrike customer's behavior. And post-incident, our customer commitment package will drive even more Falcon utilization and platform value realization in both the short and long term. Customers see this as an immediate win to realize maximum and differentiated value from the Falcon platform. It is also a long-term win for CrowdStrike, cementing us as the organization's cyber security platform of record. Customer feedback has been extremely positive because we're proactive in our approach, and customers benefit because they get what they want: more Falcon.

Speaker Change: Our best-in-class module adoption is differentiating and leading indicator of CrowdStrike customers behavior.

George Kurtz: Our best-in-class module adoption is differentiating and leading indicator of CrowdStrike customer's behavior. And post-incident, our customer commitment package will drive even more Falcon utilization and platform value realization in both the short and long term. Customers see this as an immediate win to realize maximum and differentiated value from the Falcon platform. It is also a long-term win for CrowdStrike, cementing us as the organization's cyber security platform of record. Customer feedback has been extremely positive because we're proactive in our approach and customers benefit because they get what they want more Falcon.

Speaker Change: and post-incident our customer commitment package will drive even more Falcon utilization and platform value realization in both the short and long term.

Speaker Change: Customers see this as an immediate win to realize maximum and differentiated value from the Falcon platform. It is also a long-term win for CrowdSryke, cementing us as the organization Cyber Security Platform of Record.

Speaker Change: Customer feedback has been extremely positive because we're proactive in our approach and customers benefit because they get what they want more Falcon.

George Kurtz: The blueprint for our customer commitment packages, where Falcon Flex deals like this Fortune 500 insurance firm that I referenced before in the next video in some discussion. This customer has been with us for five years, building over time from endpoint to identity. They had aspirations of consolidation and saw CrowdStrike as a platform where they could achieve their protection, automation, and economic objectives. In the midst of this deal discussion, the incident happened. We worked with them on a rapid recovery. Our trust record and value from the platform over time stood out. Through Falcon Flex, this customer accelerated consolidation.

George Kurtz: The blueprint for our customer commitment packages, where Falcon Flex deals like this Fortune 500 insurance firm that I referenced before in the next video in some discussion. This customer has been with us for five years building over time from endpoint to identity. They had aspirations of consolidation and saw Crowdstrike as a platform where they could achieve their protection, automation, and economic objectives. In the midst of this deal discussion, the incident happened.

Speaker Change: The blueprint for our customer commitment packages, where Falcon Flex deals, like this Fortune 500 insurance firm that I referenced before in the next year's end discussion.

Speaker Change: This customer has been with us for five years building over time from endpoint to identity.

Speaker Change: They had aspirations of consolidation and saw crowd strike as a platform where they could achieve their protection, automation, and economic objectives. In the midst of this deal discussion, the incident happened.

Speaker Change: We work with them on a rapid recovery.

George Kurtz: We worked with them on a rapid recovery. Our trust record and value from the platform over time stood out. Through Falcon Flex, this customer accelerated consolidation. They contracted for every Falcon module, displacing seven technologies. And through the AWS marketplace, their spend with Crowdstrike will grow from $2.2 million in ARR to more than $5 million in ARR over the subscription. Falcon Flex Group platform adoption, through the subscription term, and increased ARR over the multi-year period. Our customer commitment package will grow Falcon adoption, increasing platform stickiness, ROI, and protection levels. Customer commitment packages are a proactive and concerted investment we're making to build long-term loyalty and seed long-term platform adoption.

Speaker Change: Our trust record and value from the platform over time stood out. Through Falcon Flex, this customer accelerating consolidation, they contracted for every Falcon module, displacing seven technologies.

George Kurtz: They contracted for every Falcon module, displacing seven technologies. And through the AWS Marketplace, their spend with CrowdStrike will grow from $2.2 million in ARR to more than $5 million in ARR over the subscription. Falcon Flex grew platform adoption through the subscription term and increased ARR over the multi-year period. Our customer commitment package will grow Falcon adoption, increasing platform stickiness, ROI, and protection levels. Customer commitment packages are a proactive and concerted investment we're making to build long-term loyalty and seed long-term platform adoption.

Speaker Change: and through the AWS Marketplace, their spend with craftstrike will grow from $2.2 million in ARR to more than $5 million in ARR over the subscription.

Speaker Change: Falcon Flex Group platform adoption through the subscription term and increased ARR over the multi-year period.

Speaker Change: Our customer commitment package will grow Falcon adoption, increasing platform-stickiness, ROI and protection levels.

Speaker Change: Customer commitment packages are a proactive and concerted investment we're making to build long-term loyalty and seed long-term platform adoption.

George Kurtz: In closing, the past few weeks have been some of the most formative for CrowdStrike. Beyond apologies, I want our actions to speak even louder than our words. We work to recover customers quickly, no matter the location or need. We focused on helping customers. Challenging and unprecedented moments like these are the true tests of companies, teams, and individuals. Our response has shown me that the golden rule I've led Crowdstrike with since day one, that the customer first always, isn't just alive and well, it's thriving. Cybersecurity's mission-critical role in today's digital society is undeniable. Crowdstrike's contribution to cybersecurity, bringing cybersecurity to the cloud, bringing AI to cybersecurity, has profoundly redefined the industry, and we will continue to do so.

Speaker Change: In closing, the past few weeks have been some of the most formative for CrowdStrike. Beyond the apologies, I want our actions to speak even louder than our words.

George Kurtz: In closing, the past few weeks have been some of the most formative for Crowdstrike. Beyond apologies, I want our actions to speak even louder than our words. We work to recover customers quickly, no matter the location or need we focused on helping customers.

Speaker Change: We work to recover customers quickly, no matter the location or need we focused on helping customers.

Speaker Change: Challenging an unprecedented moments like these are the true tests of companies, teams, and individuals.

George Kurtz: Challenging and unprecedented moments like these are the true tests of companies, teams, and individuals. Our response has shown me that the golden rule I've led Crowdstrike with since day one, put the customer first always, isn't just alive and well, it's thriving. Cybersecurity's mission, critical role in today's digital society is undeniable. Crowdstrike's contribution to cybersecurity, bringing cybersecurity to the cloud, bringing AI to cybersecurity, has profoundly redefined the industry, and we will continue to do so.

Speaker Change: Our response has shown me that the Golden Rule I've led Crowd Strike with since day one, put the customer first always, isn't just alive and well it's thriving.

Speaker Change: Cyber Security's mission critical role in today's digital society is undeniable.

Speaker Change: Kraus Drake's contribution to cyber security, bringing cyber security to the cloud, bringing AI to cyber security as profoundly redefining the industry.

George Kurtz: We continue to invest in growth and innovation, as well as safeguards to build cyber securities, most resilient AI-powered platform. The mission of We Stop Breaches brings just as true today as it did prior to July 19th.

Speaker Change: and we will continue to do so.

Speaker Change: We continue to invest in growth and innovation as well as safeguards to build cyber security's most resilient AI-powered platform.

George Kurtz: We continue to invest in growth and innovation, as well as safeguards to build cyber securities, most resilient, AI-powered platform. The mission of We Stop Breaches brings just as true today as it did prior to July 19th. The most important part of Crowdstrike is the crowd, the people. Working at Crowdstrike isn't a job, it's a mission. The fight, the creativity, and the will to make the world a safer place by stopping breaches is here.

Speaker Change: The mission of We Stop Breaches brings just as true today as it did prior to July 19.

George Kurtz: The most important part of CrowdStrike is the crowd, the people. Working at CrowdStrike isn't a job; it's a mission. The fight, the creativity, and the will to make the world a safer place by stopping breaches is here. Our mission is alive and well, and I know that CrowdStrike's very best days are ahead of us.

Speaker Change: The most important part of CrowdTrack is the crowd, the people.

Speaker Change: Working at CrowdStrike isn't a job, it's a mission, the fight, the creativity and the will to make the world a safer place by stopping breaches is here. Our mission is alive and well, and I know that CrowdStrike's very best days are ahead of us.

George Kurtz: Our mission is alive and well, and I know that Crowdstrike's very best days are ahead of us.

George Kurtz: Thank you for your unwavering trust, and now I'll turn the call over to our CFO, Bird Podbear.

Speaker Change: Thank you for your unwavering trust, and now I'll turn the call over to our CFO Burt Podbere.

Burt Podbere: Thank you for your unwavering trust, and now I'll turn the call over to our CFO, BirdPod Bear. Thank you, George, and good afternoon, everyone. As a quick reminder, unless otherwise noted, all numbers except revenue mentioned during my remarks today are non-gap. In today's discussion, I will briefly summarize our second quarter financial results and provide our assumptions and investment priorities for the second half of the fiscal year. The strength of our second quarter results we believe demonstrates our resilience, focused execution, commitment to financial discipline, and the long-term durability of our business.

Burt Podbere: Thank you, George, and good afternoon, everyone. As a quick reminder, unless otherwise noted, all numbers except revenue mentioned during my remarks today are non-GAAP. In today's discussion, I will briefly summarize our second quarter financial results and provide our assumptions and investment priorities for the second half of the fiscal year. The strength of our second quarter results, we believe, demonstrates our resilience, focused execution, commitment to financial discipline, and the long-term durability of our business. Despite the challenges of the last couple of weeks of the quarter, we delivered better-than-expected revenue, operating profit, and netting. In Q2, ending ARR grew 32% year-over-year to $3.86 billion, of which $218 million was net new added in the quarter, up 11% over Q2 of last year and within our previously stated assumptions for the quarter.

Burt Podbere: Thank you George and good afternoon everyone, as a quick reminder, unless otherwise noted, all numbers except revenue mentioned during my remarks today are non-gap. In today's discussion, I will briefly summarize our second quarter financial results and provide our assumptions and investment priorities for the second half of the fiscal year.

Burt Podbere: The strength of our second quarter results we believe demonstrates our resilience, focus execution, commitment to financial discipline, and the long-term durability of our business.

Burt Podbere: Despite the challenges of the last couple of weeks of the quarter, we delivered better than expected revenue, operating profit and net income.

Burt Podbere: Despite the challenges of the last couple of weeks of the quarter, we delivered better than expected revenue, operating profit, and netting. In Q2, ending ARR grew 32% year-over-year to $3.86 billion, of which $218 million was net-new added in the quarter, up 11% over Q2 of last year, and within our previously stated assumptions for the quarter. In Q2, we achieved our second largest quarter of all time for net-new customer additions, expansion business, and net-new ARR contribution from Cloud Identity and Law Scale combined.

Burt Podbere: In Q2, ending air are a group 32% year over year to $3.86 billion, of which $218 million was net new added in the quarter, up a 11% over Q2 of last year, and within our previously stated assumptions for the quarter.

Burt Podbere: In Q2, we achieved our second largest quarter of all time for net new customer additions, expansion business, and net new ARR contribution from cloud, identity, and log scale combined. Prior to July 19th, we are on pace to deliver net new ARR growth well ahead of these results. The July 19th incident had a significant impact on the last two weeks of the quarter, as we rapidly mobilized teams to assist customers, but we continued to close deals, including a nine-figure in deal value expansion. While deals can push in any given quarter, this quarter we experienced elevated levels with more than $60 million in deals that we had line of sight for the quarter and remain open as of Monday.

Burt Podbere: In Q2, we achieved our second largest quarter of all time for net new customer additions, expansion business, and net new ARR contribution from cloud, identity, and log scale combined.

Burt Podbere: Prior to July 19, we were on pace to deliver net new air our group, well ahead of these results.

Burt Podbere: Prior to July 19, we are on pace to deliver net-new ARR growth well ahead of these results. The July 19 incident had a significant impact on the last two weeks of the quarter as we rapidly mobilize teams to assist customers, but we continue to close deals, including a ninth figure in deal-value expansion. While deals can push in any given quarter, this quarter we experienced elevated levels with more than $60 million in deals that we had line of sight for the quarter and remain open as of Monday.

Burt Podbere: The July 19 incident had a significant impact on the last two weeks of the quarter, as we rapidly mobilize teams to assist customers. But we continue to close deals, including a nine-figure and deal value expansion.

Burt Podbere: While deals can push in any given quarter, this quarter we experienced elevated levels with more than 60 million dollars in deals that we had line of sight for the quarter and remain open as of Monday.

Burt Podbere: We expect these deals to close in future quarters. Our retention metrics and module adoption metrics remained strong in Q2, highlighting our deep partnership with customers and the significant value the Falcon Platform delivers. Our dollar-based growth and net retention rates were consistent with our expectations for the quarter. Subscription customers with five, six, and seven or more modules represented 65%, 45%, and 29% of subscription customers, respectively. Notably, deals with eight or more modules grew by 66% over the prior year, and 48% of all customers with $100,000 or more in ending ARR adopted at least eight modules, an increase of more than 10 percentage points over the prior year.

Burt Podbere: We expect these deals to close in future quarters.

Burt Podbere: We expect these deals to close in future quarters. Our retention metrics and module adoption metrics remained strong in Q2, highlighting our deep partnership with customers and the significant value the Falcon Platform delivers. Our dollar-based growth and net retention rates were consistent with our expectations for the quarter. Subscription customers with 5, 6, and 7 are more modules represented 65, 45, and 29% of subscription customers respectively. Notably, deals with 8 or more modules grew by 66% over the prior year, and 48% of all customers with $100,000 or more in ending ARR adopted at least 8 modules, an increase of more than 10 percentage points over the prior year.

Burt Podbere: A retention metrics and module adoption metrics remained strong in Q2, highlighting our deep partnership with customers and the significant value of Falcon platform delivers.

Burt Podbere: Our dollar-based growth and net retention rates were consistent with our expectations for the quarter. Subscription customers with 5, 6, and 7 are more modules represented 65, 45, and 29% of subscription and customers respectively.

Burt Podbere: Notably deals with eight or more modules grew by 66% over the prior year.

Burt Podbere: and 48% of all customers with $100,000 more in ending ARR adopted at least 8 modules, an increase of more than 10 percentage points over the prior year.

Burt Podbere: Moving to the P&L, total revenue grew 32% over Q2 of last year to reach $963.9 million, ahead of our expectations for the quarter. Subscription revenue grew 33% over Q2 of last year to reach $918.3 million. Professional services revenue was $45.6 million, representing 10% year-over-year growth. The sequential decrease in professional services revenue was primarily attributed to deploying complimentary remediation services to help customers impacted by the July 19th incident. Record total gross margin of 78% increased by approximately 80 basis points year-over-year. Record subscription gross margin of 81% increased approximately 90 basis points over the prior year. Total non-GAAP operating expenses in the second quarter were $529.1 million, or 55% of revenue, compared to 56% of revenue in the prior year.

Burt Podbere: Moving to the PNL, Total Revenue Group 32% over Q2 of last year to reach $963.9 million, ahead of our expectations for the quarter.

Burt Podbere: Moving to the P&L, total revenue grew 32% over Q2 of last year to reach $963.9 million ahead of our expectations for the quarter. Subscription revenue grew 33% over Q2 of last year to reach $918.3 million. Professional services revenue was $45.6 million, representing 10% year-over-year growth. The sequential decrease in professional services revenue was primarily attributed to deploying complementary remediation services to help customers impacted by the July 19th incident. Record total gross margin of 78% increased by approximately 80 basis points year-over-year.

Burt Podbere: Subscription revenue grew 33% over Q2 of last year to reach 918.3 million dollars.

Burt Podbere: Professional Services revenue was $45.6 million, representing 10% year over year growth.

Burt Podbere: The sequential decrease in professional services revenue was primarily attributed to deploying complementary remediation services to help customers impacted by the July 19 incident.

Burt Podbere: record total gross margin of 78% increased by approximately 80 basis points year over year.

Burt Podbere: Records subscription gross margin of 81% increase approximately 90 basis points over the prior year.

Burt Podbere: Record subscription gross margin of 81% increased approximately 90 basis points over the prior year. Total non-gap operating expenses in the second quarter were $529.1 million or 55% of revenue compared to 56% of revenue in the prior year. Consistent with our plan, we increased the pace of hiring, primarily in the areas of sales and marketing and R&D growing total headcount by 22% year-over-year. In the second quarter, non-gap operating income grew 46% year-over-year to reach $226.8 million, an operating margin increased by more than 2 percentage points year-over-year to reach 24%.

Burt Podbere: Total non-gap operating expenses in the second quarter were 529.1 million dollars or 55% of revenue compared to 56% of revenue in the prior year.

Burt Podbere: Consistent with our plan, we increased the pace of hiring, primarily in the areas of sales and marketing and R&D, growing total headcount by 22% year-over-year. In the second quarter, non-GAAP operating income grew 46% year-over-year to reach $226.8 million, and operating margin increased by more than 2 percentage points year-over-year to reach 24%. We delivered GapNet income attributable to CrowdStrike of $47.0 million, growing more than 5x over Q2 of last-Stier. Non-Gap Net Income, attributable to CrowdStrike, grew 45% to reach $260.8 million, or $1.04 on a diluted per share basis. Cash and cash equivalents, group to $4.04 billion.

Burt Podbere: Consistent with our plan, we increased the pace of hiring, primarily in the areas of sales and marketing in R&D, growing total headcount by 22% year over year.

Burt Podbere: In the second quarter, non-cap operating income grew 46% year over year to reach $226.8 million.

Burt Podbere: and operating margin increased by more than 2 percentage points year over year to reach 24%. We delivered GapNet income at Tribunal to CrowdStrike of $47.0 million, growing more than 5x over Q2 of last year.

Burt Podbere: We delivered GapNet income attributable to CrowdStrike of $47.0 million, growing more than 5X over Q2 of last- NONCAP Net Income, Attribute to Crowdstrike, Group 45% to reach $260.8 million, or $1.04 on a diluted per share basis. Cash and Cash Equivalence, Group to $4.04 billion. Free Cash Low, Group 44% over Q2 of last year, to reach $272.2 million, or 28% of revenue, in line with our expectations. And we delivered a rule of 60 on a free Cash Low base.

Burt Podbere: Non-gap net income attributed to CrowdStrike grew 45% to reach $260.8 million or $1.4 on a diluted per share basis.

Burt Podbere: Free cash flow, group 44% over Q2 of last year, to reach $272.2 million, or 28% of revenue, in line with our expectations. And, we delivered a rule of 60 on a free cash flow basis.

Burt Podbere: Cash and Cash equivalent grew to $4.04 billion.

Burt Podbere: Free cash flow grew 44% over Q2 of last year to reach 272.2 million dollars or 28% of revenue in line with our expectations.

Burt Podbere: In regards to the impact of potential legal exposure related to the July 19th incident, I would like to note the following. The outcome of litigation is inherently difficult to predict, particularly in the early stages, and it is still too early for us to estimate any potential legal exposure we may have at this time. Our customer agreements contain provisions limiting our liability, and we maintain insurance policies intended to mitigate the potential impact of certain claims, and have a strong cash position. We continue to work hand in hand with our customers to ensure their success, and our well-positioned to continue investing in the business for long-term growth.

Burt Podbere: and we delivered a rule of 60 on a free cash load basis.

Burt Podbere: In regards to the impact of potential legal exposure related to the July 19th incident, I would like to note the following. The outcome of litigation is inherently difficult to predict, particularly in the early stages, and it is still too early for us to estimate any potential legal exposure we may have at this time. Our customer agreements contain provisions limiting our liability, and we maintain insurance policies intended to mitigate the potential impact of certain claims and have a strong cash position.

Speaker Change: In regards to the impact of potential legal exposure related to the July 19th incident, I would like to note the following.

Speaker Change: The outcome of litigation is inherently difficult to predict, particularly in the early stages, and it is still too early for us to estimate any potential legal exposure we may have at this time.

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

Speaker Change: We continue to work hand-in-hand with our customers to ensure their success and our well-position to continue investing in the business for long-term growth.

Burt Podbere: We continue to work hand in hand with our customers to ensure their success, and our well-position to continue investing in the business for long-term growth. Turning to our outlook, taking care of our customers has always been and will continue to be our number one priority. We believe this focus and commitment will benefit us and them over the long term. Customer retention remains remarkably strong, and we do not expect this to meaningfully change in the foreseeable future.

Burt Podbere: Turning to our outlook, taking care of our customers has always been and will continue to be our number one priority. We believe this focus and commitment will benefit us and them over the long term. Customer retention remains remarkably strong, and we do not expect this to meaningfully change in the foreseeable future. Gross retention was 98% at the end of Q2, and dollar-based churn in the last five weeks, as of Friday, was modestly lower than the same period last year. However, visibility into the back half of the year is less than typical. We expect the following factors to impact our near-term results.

Speaker Change: Turning to our outlook, taking care of our customers has always been and will continue to be our number one priority.

Speaker Change: We believe this focus and commitment will benefit us and them over the long term.

Speaker Change: Prostomer retention remains remarkably strong and we do not expect this to meaningfully change in the foreseeable future.

Speaker Change: Gross retention was 98% at the end of Q2 and baller-based churn in the last five weeks as a Friday was modestly lower than the same period last year.

Burt Podbere: Gross retention was 98% at the end of Q2, and dollar-based churn in the last five weeks, as of Friday, was modestly lower than the same period last year. However, visibility into the back half of the year is less than typical. We expect the following factors to impact our near-term results. First, we delayed the vast majority of outbound pipeline generation activities for a few weeks following the July 19th incident. Outbound prospecting has since fully resumed and is rising to pre-incident levels of responses.

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

Burt Podbere: First, we delayed the vast majority of outbound pipeline generation activities for a few weeks following the July 19th incident. Outbound prospecting has since fully resumed and is rising to pre-incident levels of responses. Second, we expect to see extended sales cycles for both new and existing customers, with additional scrutiny requiring higher levels of approval at the CEO and, in some cases, board of directors' level. Third, as George mentioned, through our customer commitment packages, we are encouraging customers to commit to more of the Falcon platform for longer periods of time. We are focused on making sure these commitments to the Falcon Platform are one of the best decisions that IT and security teams make.

Speaker Change: We expect the following factors to impact our near-term results. First, we delayed the vast majority of outbound pipeline generation activities, for a few weeks following the July 19th incident.

Burt Podbere: Second, we expect to see extended sales cycles for both new and existing customers, with additional scrutiny requiring higher levels of approval at the CEO and, in some cases, board of directors level. Third, as George mentioned, through our customer commitment packages, we are encouraging customers to commit to more of the Falcon Platform for longer periods of time. We are focused on making sure these commitments to the Falcon Platform are one of the best decisions that IT and security teams make.

Speaker Change: Outbound prospecting has since fully resumed and is rising to pre-incident levels of response.

Speaker Change: Second, we expect to see extended sales cycles for both new and existing customers.

Speaker Change: with additional scrutiny requiring higher levels of approval at the CEO and in some cases, Burt of the Rectar as well.

Speaker Change: Third, as George mentioned, through our customer commitment packages, we are encouraging customers to commit to more of the Falcon Platform for longer periods of time. We are focused on making sure these commitments to the Falcon Platform are one of the best decisions that IT and Security teams make.

Burt Podbere: As reflected in our revenue guidance in the short term, we expect our commitment packages will result in temporarily muted upsell dollar values, and temporarily higher than typical levels of contraction due to elongated subscription terms. We estimate these packages will impact net new ARR and subscription revenue by approximately $60 million and professional service revenue by high single-digit million dollars in the back half of FY25. In the long term, we expect our customer commitment packages will ultimately lead to higher platform and module adoption and deeper partnerships with customers.

Burt Podbere: As reflected in our revenue guidance in the short term, we expect our commitment packages will result in temporarily muted upsell dollar values and temporarily higher than typical levels of contraction due to elongated subscription terms. We estimate these packages will impact net new ARR and subscription revenue by approximately $60 million and professional service revenue by high single-digit million dollars in the half of FY25. In the long term, we expect our customer commitment packages will ultimately lead to higher platform and module adoption and deeper partnerships with customers. And fourth, specific to free cash flow, we expect to have increased flexible payment terms for our customers.

Speaker Change: As reflected in our revenue guidance in the short term, we expect our commitment packages will result in temporarily muted upsell dollar values and temporarily higher than typical levels of contraction due to elongated subscription terms.

Speaker Change: We estimate these packages will impact net new ARR and subscription revenue by approximately $60 million and professional service revenue by high single digit million dollars in the back half of FY25.

Speaker Change: In the long term, we expect our customer commitment packages will ultimately lead to higher platform and modular adoption and deeper partnerships with customers.

Speaker Change: and fourth, specific to free cash flow, we expect to have increased flexible payment terms for our customers.

Burt Podbere: And fourth, specific to free cash flow, we expect to have increased flexible payment terms for our customers. Summers, and we will incur additional GNA costs associated with the July 19th incident. At this point in time, we are not providing a free cashflow margin expectation for the full year. We will maintain our long standing focus on financial discipline and the bottom line with our attention squarely on the highest and best use of every dollar.

Burt Podbere: and we will incur additional GNA costs associated with the July 19th incident.

Speaker Change: and we will encourage additional GNA costs associated with the July 19th incident.

Burt Podbere: At this point in time, we are not providing a free cash flow margin expectation for the full year. We will maintain our long-standing focus on financial discipline and the bottom line, with our attention squarely on the highest invest use of every dollar. As reflected in our guidance for the remainder of the year, while we will shift some plan investment from sales and marketing to further R&D, quality assurance, and customer support, we are continuing to invest in our FY 2025 plan for the remainder of the year at this point in time. This will enable us to remain focused on our customers, protect the world against cyber threats, and stay on track with our long-term investment and growth priorities.

Speaker Change: At this point in time, we are not providing a free castle of margin expectation for the full year.

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

Speaker Change: as reflected in our guidance for the remainder of the year.

Burt Podbere: As reflected in our guidance for the remainder of the year, while we will shift some plan investment from sales and marketing to further R&D, quality assurance, and customer support, we are continuing to invest in our FY 2025 plan for the remainder of the year at this point in time. This will enable us to remain focused on our customers, protect the world against cyber threats, and stay on track with our long term investment and growth priorities.

Speaker Change: While we will shift some plan investment from sales and marketing to further R&D quality assurance and customer support, We are continuing to invest in our FY-2025 plan for the remainder of the year at this point in time. This will enable us to remain focused on our customers.

Speaker Change: Pertek the world against cyber threats and stay on track with our long-term investment and growth priorities.

Burt Podbere: We expect these headwinds to remain in varying degrees for about a year, with accelerations starting in the back half of next year. From the longer-term perspective, we expect to see operating margin improvement. Additionally, we remain committed to reaching 10 billion in ending ARR by the end of fiscal year 2031 and achieving our target non-GAAP operating model on an annual basis by fiscal year 2029.

Speaker Change: We expect these headwinds to remain in varying degrees for about a year, with accelerations starting in the back half of next year.

Burt Podbere: We expect these headwinds to remain in varying degrees for about a year with acceleration starting in the back half of next year. From the longer term perspective, we expect to see operating margin improvement on an annual basis in FY 26. Additionally, we remain committed to reaching 10 billion in ending ARR by the end of fiscal year 2031 and achieving our target non-gap operating model on an annual basis by fiscal year 2029.

Speaker Change: From the longer term perspective, we expect to see operating margin improvement on an annual basis in FY26.

Speaker Change: Additionally, we remain committed to reaching 10 billion in ending ARR by the end of fiscal year 2031, and achieving our target non-gap operating model on an annual basis by fiscal year 2029.

Burt Podbere: I will provide a detailed update of our long-term model and FY26 outlook after the conclusion of fiscal year 2025. Moving to our guidance. For the third quarter of FY25, we expect total revenue to be in the range of 979.2 to 984.7 million dollars, reflecting a year-over-year growth rate of 25%. This includes an estimated 30 million dollar impact from the customer commitment package we discussed earlier. We expect non-GAAP income from operations to be in the range of 166.7 to 170.8 million dollars and non-GAAP net income attributable to CrowdStrike to be in the range of 201.2 to 205.2 million dollars.

Burt Podbere: I will provide a detailed update of our long term model and FY 26 outlook after the conclusion of fiscal year 2025. Moving to our guidance. For the third quarter of FY 25, we expect total revenue to be in the range of 979.2 to 984.7 million dollars reflecting a year over year growth rate of 25%. This includes an estimated 30 million dollar impact from the customer commitment package we discussed earlier. We expect non-gap income from operations to be in the range of 166.7 to 170.8 million dollars, and non-gap net income attributable to CrowdStrike to be in the range of 201.2 to 205.2 million dollars.

Speaker Change: I will provide a detailed update of our long-term model and FY26 outlook after the conclusion of fiscal year 2025.

Speaker Change: Moving to our guides.

Speaker Change: For the third quarter of FY-25, we expect total revenue to be in the range of $979.2 to $984.7 million. Reflecting a year over year growth rate of 25 percent.

Speaker Change: This includes an estimated $30 million impact from the customer commitment package we discussed earlier.

Speaker Change: We expect non-gap income from operations to be in the range of 166.7 to 170.8 million dollars, and non-gap net income attributable to CrowdStrike to be in the range of 211.2 to 205.2 million dollars.

Burt Podbere: We expect diluted non-GAAP net income per share attributable to CrowdStrike to be approximately 80 cents to 81 cents, utilizing a weighted average share count of approximately 252 million shares on a diluted basis. For the full fiscal year 2025, we currently expect total revenue to be in the range of 3,890.0 to 3,902.2 million dollars, reflecting a growth rate of 27 to 28% over the prior fiscal year. This includes an estimated 60 million dollar impact from the customer commitment package we discussed earlier. Non-GAAP income from operations is expected to be between 774.7 and 783.9 million dollars. We expect fiscal 2025 non-GAAP net income attributable to CrowdStrike to be between 908.8 and 918.0 million dollars.

Speaker Change: We expect diluted non-gap net income per share, attributable to CrowdStrike to be approximately 80 cents to 81 cents, utilizing a weighted average share count of approximately 252 million shares on a diluted basis.

Burt Podbere: We expect diluted non-gap net income per share attributable to CrowdStrike to be approximately 80 cents to 81 cents utilizing a weighted average share count of approximately 252 million shares on a diluted basis. For the full fiscal year 2025, we currently expect total revenue to be in the range of 3,890.0 to 3,902.2 million dollars reflecting a growth rate of 27 to 28% over the prior fiscal year. This includes an estimated 60 million dollar impact from the customer commitment package we discussed earlier.

Speaker Change: For the full fiscal year 2025, we currently expect total revenue to be in the range of 3,890.0 to 3,902.2 million dollars, reflecting a growth rate of 27 to 28% over the prior fiscal year.

Speaker Change: This includes an estimated $60 million impact from the customer commitment package we discussed earlier.

Speaker Change: Non-gap income from operations is expected to be between 774.7 and 783.9 million dollars.

Burt Podbere: Non-gap income from operations is expected to be between 774.7 and 783.9 million dollars. We expect fiscal 2025 non-gap net income attributable to CrowdStrike to be between 908.8 and 918.0 million dollars utilizing approximately 252 million weighted average shares on a diluted basis. We expect non-gap net income per share attributable to CrowdStrike to be in the range of $3.61 to $3.65. As George mentioned, SproutCon 2024 is going to be our biggest customer event, yet.

Speaker Change: We expect fiscal 2025 non-gap net income attributable to CrowdStrike to be between $918.0 million.

Burt Podbere: Utilizing approximately 252 million weighted average shares on a diluted basis, we expect non-GAAP net income per share attributable to CrowdStrike to be in the range of $3.61 to $3.65.

Speaker Change: utilizing approximately 252 million weighted average shares on a diluted basis.

Speaker Change: We expect non-gap net income per share attributable to CrowdStrike to be in the range of $3.61 to $3.65.

Burt Podbere: As George mentioned, Falcon 2024 is going to be our biggest customer event. yet. The investor briefing will be held on September 18th and will feature conversations with customers and partners. To join Falconn in person, please contact our IR team for the registration information. The briefing will also be webcast live on our IR website. We look forward to seeing many of you there.

Speaker Change: As George mentioned, Falcon 2024 is going to be our biggest customer event yet.

Speaker Change: The Investor Briefing will be held on September 18, and will feature conversations with customers and partners.

Burt Podbere: The investor briefing will be held on September 18th and will feature conversations with customers and partners. To join Falconn in person, please contact our IR team for the registration information. The briefing will also be webcast live on our IR website.

Speaker Change: To join Falkon in person, please contact our IR team for the Registration Information.

Speaker Change: The briefing will also be webcast live on our IR website.

Unknown Executive: George and I will now take your questions. Thank you.

Speaker Change: We look forward to seeing many of you there. George and I will now take your questions.

Burt Podbere: We look forward to seeing many of you there.

Unknown Executive: If you would like to ask a question, please click on the raise hand button, which can be found on the bar at the bottom of your Zoom window. You may remove yourself from the queue at any time by lowering your hand. When it is your turn, you will hear your name called and receive a message on your screen, notifying you that you may unmute yourself.

Unknown Executive: George and I will now take your questions. Thank you. If you would like to ask a question, please click on the raise hand button which can be found on the bar at the bottom of your Zoom window. You may remove yourself from the queue at any time by lowering your hand. When it is your turn, you will hear your name called and receive a message on your screen, notifying you that you may unmute yourself.

Speaker Change: Thank you. If you would like to ask a question, please click on the raise hand button which can be found on the bar at the bottom of your zoom window.

Speaker Change: You may remove yourself from the queue at any time by lowering your hand. When it is your turn, you will hear your name called and receive a message on your screen, notify you that you may unmute yourself. In the interest of time, participants will be limited to one question.

Unknown Executive: In the interest of time, participants will be limited to one question.

Hamza Fodderwala: Our first question comes from Hamza Fodderwala at Morgan Stanley. Unmute your line and ask your question. Great. Thank you for taking my question, and congrats on the strong results. I wanted to commend you, George, Mike, and the entire CrowdStrike team for your response and transparency since the other event. So there's been a lot of talk, George, around whether Microsoft or customers, perhaps, may want to limit kernel access for future updates. I'm curious in response to this outage whether or not CrowdStrike will have to re-architect their approach to the Falcon agent. And if so, would that be a meaningful undertaking that might push you away from the future innovation roadmap.

Unknown Executive: In the interest of time, participants will be limited to one question.

Speaker Change: I'm your first question, comes from Hamza Fauderwalla at Morgan Stanley, I'm your line and ask your question.

Hamza Fodderwala: Our first question comes from Hamza Fodderwala at Morgan Stanley, unmute your line and ask your question. Great. Thank you for taking my question and congrats on the strong results.

Hamza Fauderwalla: Great, thank you for taking my question and congrats on the strong results. I wanted to commend you George Mike and the entire crowd strike team for your response and transparency since the Outers event.

George Kurtz: I wanted to commend you, George, Mike, and the entire Crowdstrike team for your response and transparency since the outage event. So there has been a lot of talk, George, around whether Microsoft or customers perhaps may want to limit kernel access for future updates. I'm curious in response to this outage, whether or not Crowdstrike will have to re-architect their approach to the Falcon agent. And if so, would that be a meaningful undertaking that might push you away from the future innovation roadmap?

Speaker Change: So, there's been a lot of talk George around whether Microsoft or customers perhaps may want to limit kernel access for future updates, I'm curious in response to this outage.

Speaker Change: Wether or not, CrowdStrike will have to re-architect their approach to the Falcon Agent and if so, would that be a meaningful undertaking that might?

George Kurtz: Thank you. Thank you, Hamza. Let me just try to take you through this with a little bit of detail. So, despite a lot of the false narratives and misinformation from our competitors, I want to be clear that this was not a kernel update. This was a code update. It was not a code update. It was a configuration update, and we already covered the remediation in our prior remarks.

Speaker Change: Duh, push you away from the future innovation roadmap. Thank you.

George Kurtz: Thank you. Thank you, Hamza. Let me just try to take you through this with a little bit of detail. So despite a lot of the false narratives and misinformation from our competitors, I want to be clear that this was not a kernel update. This was a code update. It was not a code update. It was a configuration update. And we already covered the remediation in our prior remarks. When we think about the architecture of what we've built and re-architecting it, I've got to set the records straight on that as well.

Speaker Change: Thank you, Hamza. Let me try to take you through this with a little bit of detail. So despite a lot of the false narratives and misinformation from our competitors, I want to be clear that this was not a kernel update, this was a code update.

Speaker Change: was not a code update. It was a configuration update and we already covered the remediation in our prior remarks.

George Kurtz: When we think about the architecture of what we've built and re-architecting it, I've got to set the records straight on that as well. We have best-in-class architecture, and we lead the industry for a reason. We have greater efficacy, greater manageability, and greater scalability than our competitors. And I just want to give you an example of that. If you look at the latest MITRE results, Falcon had 98% coverage. Our next-gen competitor had 79% coverage. It took Falcon four minutes for meantime to detection. It took our competitor 47 minutes. And the list goes on and on. If we think about the architecture as well, we have a very lightweight agent.

Speaker Change: Um...

Speaker Change: when we think about the architecture of what we've built and rearchitecting it. I've got to set the record straight on that as well. We have best in class architecture and we lead the industry for a reason. We have greater efficacy, greater manageability and greater scalability than our competitors. And I just want to give you an example of that if you look at the latest minor results.

George Kurtz: We have best-in-class architecture and we lead the industry for a reason. We have greater efficacy, greater manageability, and greater scalability than our competitors. And I just want to give you an example of that. If you look at the latest MITRE results, Falcon had 98% coverage. Our next-gen competitor had 79% coverage. It took Falcon four minutes for meantime to detection. It took our competitor 47 minutes. And the list goes on and on.

Speaker Change: Falcon had 98% coverage, our next gen competitor had 79% coverage. It took Falcon four minutes for me time to detection. It took our competitor of 47 minutes.

Speaker Change: and the list goes on and on. If we think about the architecture as well, you know.

George Kurtz: It requires 100 megs of storage. Our competitor, as a heavy agent, requires three gigabytes of storage in the Windows environment. So we didn't become number one in the market by having a poor architecture. We became number one by having a great architecture. We talked about what we've changed here in terms of our configuration updates. And we feel confident about that going forward. And our customers feel confident about that. So we'll continue to work with Microsoft as part of the ecosystem as they look to provide further enhancements around kernel access. There are thousands of software kernel drivers that are out there that go well beyond security, like VPN, virtualization software, IT management software, backup software, and a lot more.

George Kurtz: If we think about the architecture as well, we have a very lightweight agent. It requires a hundred megs of storage. Our competitor, as a heavy agent, requires three gigabytes of storage in the Windows environment. We didn't become number one in the market by having a poor architecture. We became number one by having a great architecture. We talked about what we've changed here in terms of our configuration updates. And we feel confident about that going forward.

Speaker Change: We have a very lightweight agent, requires a hundred megs of storage, our competitor, as a heavy agent requires three gigabytes of storage in the windows environment.

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

George Kurtz: And our customers feel confident about that. We'll continue to work with Microsoft as part of the ecosystem as they look to provide further enhancements around kernel access, but just to be clear. There are thousands of software kernel drivers that are out there that go well beyond security, like VPN, virtualization software, IT management software, backup software and a lot more. So we are one part of the ecosystem and we're certainly a player that's going to help and work with Microsoft as they think about adding other mechanisms to allow the ecosystem to flourish.

Wilkins: Wilkins, you know, we'll continue to work with Microsoft as part of the ecosystem as they look to provide further enhancements around Colonel Axis, but just to be clear.

Wilkins: there are thousands of software.

Speaker Change: Colonel drivers that are out there that go well beyond security, like VPN virtualization software, IT management software, backup software and a lot more.

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

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

Brian Essex: Our next question comes from Brian Essex with JP Morgan. Please unmute your line and ask your question. Great, good afternoon, and thanks for taking the question.

Speaker Change: Our next question comes from Brian Essex with JP Morgan. Please unmute your line and ask your question.

Brian Essex: Our next question comes from Brian Essex with JP Morgan, please unmute your line and ask your question. Great, good afternoon and thanks for taking the question.

George Kurtz: Congratulations for me on a more and a fantastic response to the incident, and then to execution on the back of that is impressive. I guess George for me, obviously we've got peers out there talking about benefit in our pipeline. We still have to see that in their numbers, but from your perspective, we'd love to get insight into what you're seeing from the pipeline. You know, obviously you've called out that the 69 and deals are kind of pushed into into 3Q, but from a competitive perspective, what are you seeing in terms of the number of peers that are invited into the process.

Speaker Change: [inaudible]

Brian Essex: Good afternoon and thanks for taking the question. Congratulations for me on a fantastic response to the incident and then too.

George Kurtz: Congratulations for me on one fantastic response to the incident and then two execution on the back of that is impressive. I guess George for me, you know, obviously, we've got peers out there talking about benefit in our pipeline. We still have to see that in their numbers, but from your perspective, we'd love to get inside into what you're seeing from the pipeline. You know, obviously you've called out that the 69 and deals are kind of pushed into into 3Q, but from a competitive perspective, what are you seeing in terms of the number of peers that are invited into the process? You know, the convert and maybe a little color around the conversations that you're having at the sea level that are leading some of those extended sales sites will so be really helpful to get that insight.

Brian Essex: Execution on the back of that is impressive. I guess George from me, you know, obviously we've got peers out there talking about benefit and their pipeline. We still have to see that in their numbers. But from your perspective, we'll love to get...

George: Insight into what you're seeing from a pipeline. You obviously have called out that the 69 and deals are kind of pushed into 3Q but from a competitive perspective.

Speaker Change: What are you seeing in terms of the number of peers that are invited into the process? You know, in maybe a little color around the conversations that you're having at the C-level that are leading some of those extended sales cycles, that will be really helpful to get that insight.

George Kurtz: You know, the convert and maybe a little color around the conversations that you're having at the sea level that are leading some of those extended sales sites will so be really helpful to get that insight.

George Kurtz: Sure, obviously there's a lot of a lot of noise in the marketplace, and we can only control what we can control. I think the best way for me to articulate that is to just recount some of the conversations. I had two customer calls this morning, and most of them start out the same. They talk about our response, how transparent we were, and how we dealt with the problem. We talked about some of the mitigating steps that we've taken, and it generally ends with, we want to do more with crouch right. I had one this morning, which was a customer that had an impact. We talked through it; they were satisfied with the controls we put in place.

Speaker Change: Sure, obviously there's a lot of noise in the marketplace and we can only control a weak control and I think the best

George Kurtz: Sure, obviously there's a lot of a lot of noise in the marketplace and we can only control, we can control and I think the best way for me to articulate that is to just recount some of the conversations. I had two customer calls this morning and most of them start out the same. They, you know, talk about our response, how transparent we were and how we dealt with the problem. We talked about some of the mitigating steps that we've taken and it generally ends with we want to do more with crouch right.

Speaker Change: and we're going to talk about our response, how transparent we were and how we dealt with the problem.

Speaker Change: We talked about some of the mitigating steps that we've taken and it generally ends with we want to do a more with CrowdsRike I had one this morning which was a customer that had an impact we talked through it they were satisfied with the controls we put in place

George Kurtz: I had won this morning, which was, you know, a customer that had an impact. We talked through it. They were satisfied with, you know, the controls we put in place. And in fact, on the call, they basically said we won the next-gen SIM project they had, which we won against another next-gen SIM competitor. So this is what we're seeing. And again, I'm recounting my calls and many, many of them sort of start in the same way.

George Kurtz: And in fact, on the call, they basically said we won the next gen SIM project they had, which we won against another next gen SIM competitor. So this is what we're seeing, and again I'm recounting my calls, and many, many of them sort of start in in the same way. So that gives me encouragement again that we've built a lot of trust with our customers over time. And we put a lot of trust in the bank. Yes, we had an issue on July 19th. We've been very clear about that and very transparent. But consistently the calls have been; you have saved us way more times than this incident, and we are all in on crouch strike.

Speaker Change: and in fact, on the call they basically said we won the next year in Sim Project they had.

Speaker Change: which we want against another next-gen sim competitor. So this is what we're seeing and again I'm recounting my calls and many, many of them sort of start and end the same way. So that gives me encouragement again that we've built a lot of trust with our customers over time.

George Kurtz: So that gives me encouragement again that we've built a lot of trust with our customers over time. And we put a lot of trust in the bank. Yes, we had an issue on July 19th. We've been very clear about that and very transparent. But consistently, the calls have been, you have saved us way more times than this incident. And we are all in on crouch strike. And we're all in for all the reasons we've talked about in the past.

Speaker Change: and we put a lot of trust in the bank. Yes, we had an issue on July 19th. We've been very clear about that very transparent, but consistently the calls have been, U.S. saved us.

George Kurtz: And we're all in for all the reasons we've talked about in the past: the consolidation play, the ability to save time, money, get better outcomes, and take four, five, six, and seven products and move them to the Falcon platform. That hasn't changed before the 19th of July and hasn't changed after the 19th of July, and this is what customers are coming back to us with.

Speaker Change: Wai more times than this incident and we are all in on CrowdStrike and we're all in for all the reasons we've talked about in the past The consolidation play, the ability to save time money get better outcomes

George Kurtz: The consolidation play, the ability to save time, money, get better outcomes and take, you know, four, five, six, and seven products and move them to the Falcon platform. That hasn't changed before the 19th of July and hasn't changed after the 19th of July. And this is what customers are coming back to us with.

Speaker Change: and take, you know, four, five, six and seven products and move them to the Falcon platform. That hasn't changed before the 19th of July and hasn't changed after the 19th of July. And this is what customers are coming back to us with.

Unknown Attendee: The next question comes from the cat, Julia, with fireplace. Please unmute your mind and ask your question. Okay. Great. Can you hear me? Hey, uh, hey, uh, why can't you hear me? Yes, okay. Here you go. I bet that. Awesome. Sorry about that, guys.

Speaker Change: The next question comes from the Kat Kalea with barclays. Please unmute your mind and ask your question.

Unknown Executive: The next question comes from the Catalia with Barclays. Please unmute your line and ask your question. Okay, great. Can you hear me? Hey, do you want to hear me? Yes, okay, here you go. I got that. Awesome, sorry about that guys.

Speaker Change: [inaudible]

Speaker Change: [inaudible]

Kat Kalea: Hey, hey, are you watching me here, Maria? Yes, I'm going to hear you go.

George Kurtz: Thanks a ton for taking my question and offer my, uh, my, my, my congrats as well just on, on, uh, the resilience here in, in the face of a, of a very tough couple of weeks. Um, George, maybe my question is for you. Uh, I'd love to just touch on Falcon Flex a little bit. You know, this is something that, that you were investing in before the outage as well, but it sounds like it's something that can also be helpful for customers to maybe drive better security outcomes as well. Can you just maybe touch on that and how it's maybe helping that conversation post outage?

Kat Kalea: Awesome, sorry about that, guys. Thanks a ton for taking my question and offer my congrats as well just on the resilience here in the face of a very tough couple of weeks.

George Kurtz: Thanks a ton for taking my question and offer my, my, my congrats as well, just on, on the resilience here in the face of a very tough couple of weeks. George, maybe my question is for you. I'd love to just touch on Falcon Flex a little bit. You know, this is something that that you were investing in before the outage as well, but it sounds like it's something that can also be help for, for customers to maybe drive better security outcomes as well.

Kat Kalea: and George made my question as for you. I'd love to just touch on Falcon Flex a little bit.

Speaker Change: You know, this is something that you were investing in before the outage as well.

Speaker Change: but it sounds like it's something that can also be helpful for customers to maybe drive better security outcomes as well. Can you just maybe touch on that and how it's maybe helping that conversation post-outage?

George Kurtz: Can you just maybe touch on that and, and how it's maybe helping that conversation post outage? Sure, well, when we think about Falcon Flex, this was born out of demand from our customers. If you look at our, our module attach rates, which we've gone through, again, many times in the past, and they continue to go up as customers rely more and more on Crowdstrike, they came to us and said, hey, we want an easier and more flexible way to consume your Falcon platform.

George Kurtz: Sure. Well, when we think about Falcon Flex, um, this was born out of demand from our customers. If you look at our, our module attach rates, which we've gone through, again, many times in the past and they continue to go up as customers rely more and more on CrowdStrike, they came to us and said, "Hey, we want an easier and more flexible way to consume your Falcon platform." When you start with one module, when I started the company and you're, you're at 28 today is a lot, you know, that you have to go through with a customer.

Speaker Change: [inaudible]

Speaker Change: Sure, well, we think about Falcon Flex. This was born out of demand from our customers. If you look at our module catch rates, which we've gone through again many times in the past, and they continue to go up as customers rely more and more on CrowdStrike.

Speaker Change: They came to us and said, hey, we want an easier and more flexible way to consume your Falcon platform.

George Kurtz: When you start with one module, when I started the company and you're, you're at 28 today is a lot, you know, that you have to go through with a customer. And we wanted to meet customers where they wanted us to be, which is more Crowdstrike, make it easier through procurement cycles, and then ultimately allow them to consume it, how and when they wanted to consume it. So we started down this journey a while back, and it continues to gain a lot of traction with our customers.

Speaker Change: When you start with one module when I started the company and you're at 28 today is a lot that you have to go through with a customer.

George Kurtz: And we wanted to meet customers where they wanted us to be, which is more CrowdStrike, make it easier through procurement cycles. And then ultimately allow them to consume it, how and when they want it to consume it. So we started down this journey a while back, and it continues to gain a lot of traction with our customers. We've taken this, and you heard this in my prepared remarks, and we are able now, through our customer commitment package, to be able to offer Falcon Flex. And again, some of the things that we went through, whether it's modules or time or what have you, we can, we can allow our customers to be able to consume that as part of the customer commitment package.

Speaker Change: and we wanted to meet customers where they wanted us to be, which is more crowd strike, make it easier through procurement cycles, and then ultimately allow them to consume it, how and when they wanted to consume it. So we started down this journey a while back, and it continues to gain a lot of traction with our customers.

Speaker Change: We've taken this and you heard this and my prepared remarks and we are able now to our customer commitment package.

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

Speaker Change: to be able to offer Falcon Flex, and again some of the things that we went through, whether it's modules or time or whatever you can...

Speaker Change: We can allow our customers to be able to consume that as part of the customer commitment package. And we think overall it's great for our customers because we're coming to the table and solving business problems.

George Kurtz: And, you know, we think overall it's great for customers because we're coming to the table and solving business problems. And also it's great for CrowdStrike long term because we're allowing them a very flexible model to continue to consume CrowdStrike, which they know and love.

Speaker Change: and also it's great for CrowdStrike long term because we're allowing them a very flexible model to continue to consume CrowdStrike which they know and love.

Tal Liani: Our next question comes from Palliani with Bank of America. Please unmute your line and ask your question. Oh, here we go. Now I, now you can hear me. Last night, there was one of your competitors that said that customers would be more afraid now to buy, to put all the eggs in one basket, meaning buy more modules from the single vendor, and they'll opt for the vocational customers. Sorry, Vendors. And for you, at least in previous quarters, I didn't calculate this quarter, but about two thirds of your growth came from upsell to distinct customers.

Speaker Change: Our next question comes from Paul Iani with Bank of America. Please unmute your line and ask your question.

Paul Liani: Our next question comes from Paul Liani with Bank of America. Please unmute your line and ask your question. Oh, here we go. Now I know I can hear me. Last night there was one of your competitors that said that customers would be more afraid now to buy to put all the eggs in one basket, meaning buy more modules from the single vendor and the opt for that is vocational customers of sort of vendors.

Speaker Change: [inaudible]

Paul Iani: Oh, here we go. Now I can hear me.

Speaker Change: Last night there was one of your competitors that said that customers would be more afraid now to buy, to put all the eggs in one basket, meaning buy more modules from the single vendor and they'll opt for the Vesficational customers, of sort of vendors.

Paul Liani: And for you, at least in previous quarters, I didn't calculate this quarter, but about two thirds of your growth came from upsell to existing customers. And the question is whether you have any evidence if the events change the appetite of customers to buy from a single vendor to buy from you specifically. Have you seen any change of customers willing to buy up, you know, for your ability to upsell to them, the other modules, et cetera. And there's just, I know it's one question, but there's just one thing that is a follow up on something. First, see.

Speaker Change: and for you, at least in previous quarters I didn't calculate this quarter but about 2-thirds of your growth came from upsell to existing customers.

Tal Liani: And the question is whether you have any evidence if the events change the appetite of customers to buy from a single vendor to buy from you specifically. Have you seen any change of customers willing to buy up, you know, for your ability to upsell to them, the other modules, et cetera. And there's just, I know it's one question, but there's just one thing that is a follow-up on something. First, she...

Speaker Change: And the question is whether you have any evidence if the event.

Speaker Change: Change the appetite of customers to buy from a single vendor to buy from you specifically.

Speaker Change: have you seen any change of customers willing to buy up, you know, for your ability to upsell to them, the other module, etc. And there is just, I know it's one question, but there's just one thing that is a follow up on something.

Tal Liani: Paul Year, EPS guidance, translates into a very big 4Q EPS, if you can somehow go over it to make sure that we have the right numbers. Thanks.

Burt C.: Burt C.

Speaker Change: Full year, EPS guidance translates into a very big 4Q EPS if you can somehow go over it to make sure that we have the right numbers. Thanks.

George Kurtz: Paul Year, EPS Guidance, Translates into a very big 4Q EPS, if you can somehow go over it to make sure that we have the right numbers, thanks. Okay, Tal, let me take the first part. So when we think about more modules, it gets back to what I just went through, customers want to do more with us, you know, obviously we talk about what happened when it's not going to happen again, but they want to buy more from us.

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

Speaker Change: Okay, let me take the first part. So when we think about more modules, it gets back to what I just went through customers, wanted to do more with us, you know, obviously we...

Speaker Change: Wicked Wicked Wicked Wicked

Speaker Change: and we talk about what happened when I was talking about it again, but they want to buy more from us. And again, customers' comments back to me are, they don't want to go backwards. They don't want a bunch of disparate products. They don't want a bunch of different consoles.

George Kurtz: And again, customers, comments back to me are they don't want to go backwards. They don't want a bunch of disparate products. They don't want a bunch of different consoles. And they specifically told me that the adversary lives in the gaps between products in the seams between products. So what they're looking for is the ability to cover more of their estate, right, to have a complete view. And when you look at next gen sim, it allows us to take telemetry and logs in from other systems beyond the first party data that Crowdstrike is generating.

Speaker Change: and they specifically told me that the adversary lives in the gaps between products, in the seams between products. So what they're looking for is the ability to cover more of their estate, right, to have a complete view. And when you look at next gen, Sim, it allows us to take telemetry.

George Kurtz: So what they're looking for is the ability to cover more of their estate, right, to have a complete view. And when you look at next gen sim, it allows us to take telemetry and logged in from other systems beyond the first-party data that Crowdstrike is generating. So I would say that the long and short of that is customers don't want to go backwards and have a patchwork of products. They're still focused on the consolidation piece. And they're looking at us as one of the key consolidators in the market.

Speaker Change: and logs in from other systems beyond the first party day to that crowd strike is generating.

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

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

Burt Podbere: Yeah, so on your question with respect to EPS, you know, as we thought about the impacts to non-GAAP operating income, we talked about the some of the headlines that we had mostly driven from, you know, revenue side of the house. And we tried to be consistent in the way that we approached the guide on both Q3 and full year. So that's how we thought about it when we gave our guides.

Speaker Change: Yeah, so on your question with respect to EPS, you know, as we thought about the impacts to non-gap operating income.

Burt Podbere: Yeah, so on your question with respect to EPS, you know, as we thought about the impacts to non-gap operating income, we talked about the some of the headlines that we had mostly driven from, you know, revenue side of the house. And we tried to be consistent in the way that we approached the guide on both Q3 and full year. So that's how we thought about it when we when we gave our guides.

Speaker Change: We talked about the, some of the headwinds that we had, mostly driven from, you know, revenue side of the house. And we tried to be consistent in the way that we approached the guide on both Q3 and full year. So, that's how we thought about it when we, when we gave our guides.

Joel Fishbein: The next question comes from Joel Fishbine with Truist. Please unmute your line and ask your question. Thanks for taking my question, and also really great transparency, George and Bert. Thank you very much.

Speaker Change: [inaudible]

Speaker Change: The next question comes from Joel Fishbine with tourists. Please unmute your line and ask your question.

Joel Fishbein: The next question comes from Joel Fishbine with Truist.

Unknown Executive: Please unmute your line and ask your question. Thanks for taking my question and also really great transparency, George and Bert, thank you very much. My question is on guidance methodology for can you just go through a little bit of how you came up with the guide for the back half of the year considering all the moving pieces. And I guess the question, you know, how it changed relative to how you've done your guidance before that would be really helpful.

Joel Fishbine: Thanks for taking my question and also...

Burt Podbere: My question is on guidance methodology for can you just go through a little bit of how you came up with the guide for the back half of the year considering all the moving pieces. And I guess the question, you know, how it changed relative to how you've done your guidance before, that would be really helpful. Thank you. Sure, on the revenue side, on the revenue side, the biggest impact comes from the customer commitment package that George walked through. So that's the one that's going to drive, you know, the biggest impact. And we walked through the numbers in terms of revenue, the impact we said 60 million in the back half, 30 million in Q3, and 30 million in Q4.

Joel Fishbine: really a great transparency at George and Burt. Thank you very much. My question is on guidance methodology of Kurtz, can you just?

Joel Fishbine: So through a little bit of how you came up with the guide to the back half of the year considering all the moving pieces. And I guess the question, you know, how it changed relative to how you've done your guidance before that. You really helpful. Thank you.

Speaker Change: Sure, on the revenue side, on the revenue side, the biggest impact comes from the customer commitment package that George Walker.

Unknown Executive: Thank you. Sure, on the revenue side, on the revenue side, the biggest impact comes from the customer commitment package that George walked through. So that's the one that's going to drive, you know, the biggest impact. And we walked through the numbers in terms of revenue, the impact we said 60 million in the back half, 30 million in Q3 and 30 million in Q4. So that was the biggest driver on revenue and then obviously that falls down to done gap operating income.

Speaker Change: So that's the one that's going to drive, you know, the biggest impact in.

Speaker Change: We've walked through the numbers in terms of revenue of the impact. We said 60 million in the back half, 30 million in Q3 and 30 million in Q4. So that was the biggest driver on revenue and then obviously that falls down to Don Gap Popperi income.

Burt Podbere: So that was the biggest driver on revenue, and then obviously that falls down to don gap operating income. And so we did, you know, as we thought about it and we thought about how, you know, it impacts everything from revenue to EPS. We really took that prudent approach. There has been nothing in terms of big changes in terms of how we got it. We guide to what we see, not to what we don't see. But again, the biggest impact was the, you know, how the customer commitment package impacted, you know, both the top and bottom, and they were consistent in how we applied the approach.

Speaker Change: And so we did, you know, as we thought about it and we thought about how, you know, it impacts everything from revenue to EPS. We really took that prudent approach. There has been nothing in terms of big changes in terms of how we got it. We got it. We got it. We got it. We got it. We got it. We got it. We got it. We got it.

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

Speaker Change: but again, the biggest impact was the, you know, how the, the customer commitment factions impacted, you know, both the top and bottom and they were consistent in how we applied the approach.

Gabriela Borges: Our next question comes from Gabriella Borges with Goldman Sachs. Please unmute your line and ask your question. Hi, good afternoon. Thank you. I would love to get a little bit more detail.

Speaker Change: Our next question comes from Gabriella Borhead with Goldman Sachs. Please unmute your line and ask the question.

Gabriela Borges: Our next question comes from Gabriella Borges with Goldman Sachs. Please unmute your line and ask your question. Hi, good afternoon. Thank you. I would love to get a little bit more detail, Jordan Bert on the customer commitment packages and you mentioned a couple of dynamics there are alongside duration and concession.

Burt Podbere: George and Bert on the customer commitment packages, and you mentioned a couple of dynamics there are alongside duration and concession. So maybe just a little more on how you came up with that 30 million number in 3Q and 4Q. And what are some of the guardrails and how you think about the appropriate amount of duration or discounting or concessions that you want to give a customer to keep them happy inside. Thank you. Thanks, Gabriel.

Gabriella Borhead: Hi, good afternoon. Thank you.

Gabriella Borhead: I would love to get a little bit more detail during Burt on the customer commitment packages and we mentioned a couple of dynamics there, alongside

Gabriella Borhead: Terration and Confessions. So maybe just a little more on how you came up with that 30 million memory in Trituan Falkue. And what are some of the Godrails and how you think about the appropriate amount of duration or discounting or concessions that you want to give a customer to keep them happy and satisfied with the crowd strike problem. Thank you.

Burt Podbere: So maybe just a little more on how you came up with that 30 million number in 3Q and 4Q and what are some of the Godrails and how you think about the appropriate amount of duration or discounting or concessions that you want to give a customer to keep them happy and satisfied. Thank you. Thanks, Gabriella. So in terms of how we came about the 60 million in the back half, we'll just focus on on the net new ARR.

Burt Podbere: So, in terms of how we came about the 60 million in the back half, we'll just focus on the net new ARR. We thought about three things, right? We thought about, hey, we've got, you know, we talked about the delay in pipeline generation, so that has an impact. We talked about longer sales cycles; you know, that's due to increased scrutiny. And that's not just for us, but that's for, I think, most people in software and tech. And then we talked about, you know, the muted upsell value, so we took all those things into consideration when we thought about, you know, the impact on the customer commitment packages.

Speaker Change: Thanks, Gabrielle, so in terms of how we came about the 60 million of the back cap, we'll just focus on

Speaker Change: on the net new ARR. We thought about, you know, three things, right? We thought about...

Burt Podbere: We thought about three things, right? We thought about, hey, we've got, you know, we talked about the delay in pipeline generation, so that has an impact. We talked about longer sales cycles, you know, that's due to increased scrutiny, and that's not just for us, but that's for I think most people in software and tech. And then we talked about, you know, the muted upsell value, so we took all those things into consideration, when we thought about, you know, the impact on the, on the, on the, on the customer commitment packages, as far as the packages themselves, you're right, we have different pieces within the package George out, you know, outlay them pretty well, we talked about some of them being discounts, we talked about some of them being duration duration has an impact, of course on on net new ARR, but we also talked about, you know, product and product will have an impact, you know, more on on on on on Cox, so, you know, that's going to impact the bottom. So we took all those factors together to come up with our guide, and that's how we came up with the, you know, the 60 million.

Speaker Change: Hey, we've got, you know, we talked about the delay in high blind generation, so that has an impact. We talked about longer sales cycles, you know, that's due to increased scrutiny. And that's not just for us, but that's for, I think, most people in software and tech.

Speaker Change: and then we talked about, you know, the muted upsell value. So we took all those things into consideration when we thought about, you know, the impact on the on the on the on the on the customer commitment packages.

Burt Podbere: As far as the packages themselves, you're right; we have different pieces within the package. George, you know, outlay them pretty well. We talked about some of them being discounts. We talked about some of them being duration; duration has an impact, of course, on net new ARR, but we also talked about, you know, product, and product will have an impact. You know, more on, on, on, on rent on Cox, so, you know, that's going to impact the bottom. So we took all those factors together to come up with our guide. And that's how we came up with the, you know, the 60 million.

Speaker Change: as far as the packages themselves.

Speaker Change: You're right, we have different pieces within the package doors, you know, outlayed them pretty well. We talked about some of them being discounts.

Speaker Change: and we talked about some of them being duration, duration has an impact.

Speaker Change: of course on net new ARR, but we also talked about product and product we'll have an impact more on on on red on cox so you know that's going to impact the bottom.

Speaker Change: So we took all those factors together to come up with our guide and that's how we came up with the, you know, the 60 million.

Rob Olin: Our next question comes from Rob Olin with Piper Sandler. Please unmute your line and ask your question. Yeah, Bernie, I guess is a, is a follow-on to that.

Speaker Change: Our next question comes from Rob Owens with type or family. Please unmute your line and ask your question.

Rob Olin: Our next question comes from Rob Olin with Piper Samler, please unmute your line and ask your question. Yeah, Bernie, I guess is a follow on to that. Thanks for taking my question here is 60 million through the remainder of this year, but you talked about some of it, the weakness potentially persisting for a year in terms of net new ARR.

Burt Podbere: Thanks for taking my question. Here is 60 million through the remainder of this year, but you talked about some of it, the weakness potentially persisting for a year in terms of net new ARR. So I know you're not guiding to be out here, but as we kind of contemplate this, should we think about this more on a 12-month basis. And then ask the selling of these customer commitment packages starts to anniversary and more normalizing relative to net new ARR growth and relative to maybe where margins were historically. Thanks. Thanks, Rob. So I think that this type of infinite, this type of incident, you know, has a half light, right?

Rob Owens: Yeah, Burt, I guess it's a follow-on to that, thanks for taking my question here. It's 60 million through the remainder of this year, but you talked about some of it. The week is potentially persisting for a year in terms of meant to where or so. I know you're not guiding to the out year, but it's kind of contemplate this.

Burt Podbere: So I know you're not guiding to the out here, but as we kind of contemplate this, should we think about this more on a 12 month basis, and then ask the selling of these customer commitment packages starts to anniversary and more normalizing relative to net new ARR growth. And relative to maybe where margins were historically, thanks. Thanks Rob. So I think that this type of infinite, this type of incident, you know, has a half light, right?

Speaker Change: should we think about this more on a 12-month basis, and then ask the selling of these customer commitment packages, starts to anniversary and more normalizing relative to met new era growth and relative to maybe more margins where historically, thanks.

Speaker Change: Thanks Rob. So...

Burt Podbere: So there'll be a diminishing impact over time. So Q3 will be harder than Q4; Q4, you know, will be harder than Q1 and so on and so forth. I think the biggest piece for us is that when we get to the back half of next year, we'll start to see an acceleration in the business. And that's the big picture.

Speaker Change: I think that this type of incident, you know, has a halfway, right? So there'll be a diminishing impact over time.

Burt Podbere: So there'll be a diminishing impact over time. So Q3 will be harder than Q4, Q4, you know, will be harder than Q1 and so on and so forth. I think the biggest piece for us is that when we get to the back half of next year, we'll start to see an acceleration in the business, and that's the big picture.

Speaker Change: So Q3 will be harder than Q4, Q4, you know, will be harder than Q1 and so on and so forth. I think the biggest piece for us is that when we get to the back half of next year, we'll start to see an acceleration in the business. And that's the big picture, and that's what I want everybody to walk away from.

Burt Podbere: And that's what I want everybody to walk away from.

Matt Hedberg: Our next question comes from Matt Hedberg with RBC. Please unmute your line and ask your question. Thanks for taking my question. Actually, maybe a little bit of thought to Rob's question. I think, you know, Bert, you kind of addressed it that, I mean, do you think part of that acceleration is some of these commitments been, you know, expanding usage; in other words, you know, what's a bit of a headwind now is part of that, you know, broader commitment that that just kind of compounds on itself. In other words, think of that part of that tail in that we should think about next year is this renewal cycle of these commitment.

Burt Podbere: And that's what I want everybody to walk away from.

Speaker Change: [inaudible]

Speaker Change: Our next question comes from Matt Headberg with RBC, please unmute your line and ask your question.

Matthew Hedberg: Our next question comes from Matt headberg with RBC, please unmute your line and ask your question. Thanks for taking my question. Actually, maybe a little bit of thought to Rob's question. I think, you know, Bert, you kind of addressed it that, I mean, do you think part of that acceleration is some of these commitments been, you know, expanding usage in other words, you know, what's a bit of a headwind now. He's part of that, you know, broader commitment that just kind of cop hounds on itself.

Matt Headberg: and I think you know, Bert, you kind of addressed it. Do you think part of that acceleration is somebody's commitment then expanding usage, in other words, what's a bit of a headway now?

Matt Headberg: is part of that broader commitment that just kind of cop hounds on itself in other words, because that part of that tailwind that we should think about next year is in this renewal cycle of these commitments.

George Kurtz: In other words, think of that part of that tailwind that we should think about next year is this renewal cycle of these commitment. Yeah, this is this short. So when we think about the consumption of Falcon Flex, typically what we've seen is customers consume more of it faster than the originally anticipate because we're providing values. So when we think about to birth comments next year, obviously, you know, be more modules in use.

Burt Podbere: Yeah, this is this short. So when we think about the consumption of Falcon Flex, typically what we've seen is customers consume more of it faster than the originally anticipate because we're providing values. So when we think about to birth comments next year, obviously, you know, be more modules in use. And I think we have the ability to go back to those customers and understand, you know, what other things we can do for them, including, you know, looking at additional Flex opportunities based upon what they've been using over the last period of time.

Speaker Change: Yeah, this is short, so when we think about the consumption of Falcon Flex, typically what we've seen is customers consume more of it faster than the originally anticipate because we're providing values.

Speaker Change: when we think about to Burt's comments next year, obviously, you know, be more modules in use and I think we have the ability to go back to those customers and understand, you know, what other things we can do for them, including.

George Kurtz: And I think we have the ability to go back to those customers and understand, you know, what other things we can do for them, including you know, looking at additional Flex opportunities based upon what they've been using over the last period of time. I think that Yeah, no, I think it's, you know, what George is talking about, it's seeding for the future.

Speaker Change: and I'm looking at additional flex opportunities based upon what they've been using over the last period of time. I think that to that. Yeah, no, I think it's, you know, George is talking about it. It's seeding from the future. And I think, you know, that starts to take, start to take, you know, play, you know, back after next year.

Burt Podbere: I think that. Yeah, no, I think it's, you know, what George is talking about; it's seeding for the future. And I think, you know, that starts to take, start to take, you know, play, you know, back after next year.

Burt Podbere: And I think, you know, that starts to take, start to take, you know, play, you know, back after next year.

Fatima Boolani: Our next question comes from Fatima Boolani with City. Please unmute your line and ask your question. Good afternoon. Thank you for taking my questions. I appreciate it. George, and even Burt, please chime in. So, on this procurement vehicle, Falcon Flex, clearly you've seen a tremendous amount of positive data points. You've shared them in the script $700 million deal that you created with just one year in the market. I'm wondering if this is now going to be the predominant go-to-market approach for you all in terms of incentivizing broader portfolio adoption. And then, related to that, Burt, as we think about extrapolating some of the financial implications in the market.

Speaker Change: Our next question comes from Fatma Boulani with City, please unmute your line and ask your question.

Fatima Boolani: Our next question comes from Fatima Boolani with City. Please unmute your line and ask your question. Good afternoon. Thank you for taking my questions. I appreciate it. George, and even Burt please chime in. So on this procurement vehicle, Falcon Flex, clearly you've seen a tremendous amount of positive data points. You've shared them in the script, $700 million deal that you created with just one year in the market. I'm wondering if this is now going to be the predominant go-to-market approach for you all in terms of incentivizing broader portfolio adoption.

Fatma Boulani: Good afternoon. Thank you for taking my questions. I appreciate it. George, and even Burt, please chime in. So on this procurement vehicle, Falcon Flex, clearly you've seen a tremendous amount of positive data points you've shared them in the script.

Speaker Change: 7 million dollars deal value created with just one year in the market.

Speaker Change: and I'm wondering if this is now going to be the predominant go-to-market approach for you all in terms of incentivizing broader portfolio adoption and then related to that bird as we think about extrapolating some of the financial implications in the out year, you know, beyond your...

Fatima Boolani: And then related to that, Burt, as we think about extrapolating some of the financial implications in the market. In the out years, you know, beyond your framed guidance, how should we think about renewal cycles and renewal conversations coming up that you could potentially steer towards these contracts, such that you do still get a elongated period of maybe net new era growth. Can you help me sort of straddle those two? Thank you.

Burt Podbere: And the out years, you know, beyond your framed guidance, how should we think about renewal cycles and renewal conversations coming up that you could potentially steer towards these contracts, such that you do still get an elongated period of maybe net new era growth. Can you help me sort of straddle those two? Thank you.

Speaker Change: Framed Guidance, how should we think about renewal cycles and renewal conversations coming up that you could potentially steer toward these contracts such that you do still get an elongated period of maybe net nowhere or growth. Can you help me sort of straddle those two? Thank you.

George Kurtz: Yeah, so when we think about Falcon Flex, again, born out of what customers want, we've seen tremendous success with it because it opens up the entire product portfolio to our customers. They can pick and choose what modules they want. They can leverage it where they want it as they acquire new companies. As an example, it's very easy for them to add new modules or new endpoints or cloud workloads. It minimizes procurement cycles. So it's a great thing for customers; it's a great thing for us. And you know, it is a prime, one of the primary mechanisms we're using from a go-to-market motion going forward.

Speaker Change: Yeah, so when we think about Falcon Flex, again, born out of what customers wanted, we seem tremendous success with it because it opens up the entire product portfolio to our customers, they can pick and choose what modules they want, they can leverage it, where they want it, as they acquire new companies as an example, it's very easy for them to...

George Kurtz: Yeah, so when we think about Falcon Flex, again, born out of what customers wanted, we've seen tremendous success with it because it opens up the entire product portfolio to our customers. They can pick and choose what modules they want. They can leverage it where they want it. As they acquire new companies as an example, it's very easy for them to add new modules or new endpoints or cloud workloads. It minimizes procurement cycles.

Speaker Change: Tick to add new modules or new endpoints or cloud workloads, it minimizes procurement cycles. So it's a great thing for customers, it's a great thing for us and...

George Kurtz: So it's a great thing for customers, a great thing for us. And, you know, it is a prime, one of the primary mechanisms we're using from a go-to-market motion going forward. So it is something that we put in place. We've seen the tremendous results from it, and we'll continue to lead with that into our customer base. Yeah, so all those things are the things that we're looking for. And as I think about the future in terms of our renewal opportunities, the Flex does offer more ability for the customers to consume more, to take on more, and that just boasts well for our new cycles.

Speaker Change: It is a primary mechanisms we're using from a go-to-market motion going forward. So it is something that we put in place. We've seen the tremendous results from it, and we'll continue to lead with that into our customer base.

Burt Podbere: So it is something that we put in place. We've seen the tremendous results from it, and we'll continue to lead with that into our customer base. Yeah, so all those things are the things that we're looking for. And as I think about the future in terms of our renewal opportunities, the Flex does offer more ability for the customers to consume more, to take on more. And that just boasts well for our new cycles. We want them to do that. And so by treating them now, you know, that's only going to build, you know, better for us in the future and better for the customers, more importantly.

Speaker Change: Yeah, so, you know, all those things, you know, are the things that we're looking for, and as I think about, you know, the future in terms of, you know, our renewal opportunities.

Speaker Change: The Flex does offer you know more ability for the customers to consume more, to take on more and that just votes well for our new cycles, right? We want them to do that.

George Kurtz: We want them to do that. And so by cheating them now, you know, that's only going to build, you know, better for us in the future and better for the customers more importantly. I think they're going to benefit more and more as, look, we're going to come up with new products, right? And those will be available to them.

Speaker Change: and so by feeding them now, you know, that's only going to build, you know, better for us and the future and better for the customers more importantly. I think they're going to benefit more and more as, look, we're going to come up with new products, right, and those will be available to them. And so that's how we think about, you know, the renewals and the new renewables possibilities as we look out into the future.

Burt Podbere: I think they're going to benefit more and more as look, we're going to come up with new products, right? And those will be available to them. And so that's how we think about, you know, the renewals and the new renewal possibilities as we look out into the future.

Burt Podbere: And so that's how we think about, you know, the renewals and the renewal possibilities as we look out into the future.

Andrew Nowinski: Our next question comes from Andrew Newinsky with both Fargo. Please unmute your line and ask your question. Okay, good afternoon. Thank you for taking the question, and I'm sure every organization that was impacted appreciates the transparency and the contrite response you have today. So I wanted to ask about really on the renewal cycle as well. You know, I was wondering if you could just give us any more color around the mix of renewals throughout the year. I would imagine Q4 is typically as the most renewals out of all four quarters, but maybe if you could just provide more color on the mix, maybe wish quarter.

Speaker Change: Our next question comes from Andrew Nguyenski with both Fargo, please unmute your line and ask your question.

Andrew Nowinski: Our next question comes from Andrew Newinsky with both Fargo. Please unmute your line and ask your question. Okay, good afternoon. Thank you for taking the question and I'm sure every organization that was impacted appreciates the transparency and the contrite response you have today. So I wanted to ask about really on the renewal cycle as well, you know, I was wondering if you could just give us any more color around the mix of renewals throughout the year.

Andrew Nguyenski: Okay, good afternoon. Thank you for taking the question and then I'm on assure every organization. I was impacted appreciate the transparency and the constraint that was sponsored by today. So I wanted to ask about...

Andrew Nowinski: I would imagine Q4 is typically as the most renewals out of all four quarters, but maybe if you could just provide more color on the mix, maybe wish quarter. Do you think there's more risk, you know, to a higher mix of renewals in case they don't eventually remain? Thank you. Thanks Annie, so two things, so one, there is definitely seasonality right in our business and we talked about it, you've highlighted Q4, that's typically our highest quarter of deals and I think second, what I talked about earlier, it's, you know, this, this idea of a half life, you know, the closer you are to the sun, the hotter it is, the more difficult it is in terms of the headwinds and as you move farther and farther out, you see, you know, more relief, so the impact gets less.

Speaker Change: really on the renewal cycle as well, you know, I was wondering if you could just give us any more color around the mix of renewals throughout the year. I would imagine Q4 is typically as the most renewals.

Andrew Nowinski: Do you think there's more risk, you know, to a higher mix of renewals in case they don't eventually remain? Thank you.

Speaker Change: and I would like to ask you a question from me if you could just provide more color on the mix and maybe which quarter do you think there's more risk to a higher mix of renewals in case they don't potentially remain.

Burt Podbere: Thanks, Annie. So two things. So, one, there is definitely seasonality, right, in our business, and we've talked about it; you've highlighted Q4. That's typically our highest quarter of deals. And I think, second, what I talked about earlier, it's, you know, this idea of a half-life; you know, the closer you are to the sun, the hotter it is, the more difficult it is in terms of the headwinds. And as you move farther and farther out, you see, you know, more relief. So the impact gets less. So it's easy to combine those two things. That's how, that's how to think about the renewal cycle.

Speaker Change: Thanks, Annie. So two things. So one, there is definitely seasonality right in our business and we've talked about it. You've highlighted Q4. That's typically our highest quarter of deals. And I think...

Burt Podbere: So if you combine those two things, that's how, that's how I would think about the renewal cycle.

Speaker Change: Second, what I've talked about earlier, it's, you know, this idea of a half-life. You know, the closer you are to the sun, the hotter it is.

Speaker Change: The more difficulty is in terms of the headwinds and as you move farther and farther out, you see more relief, so the impact gets less. So if you combine those two things, that's how I would think about the renewal cycle.

Roger Boyd: Our next question comes from Roger Boyd with UBS. Please unmute your line and ask your question. Great. Thanks for taking the questions, and I will add my congrats on the response and resilience demonstrated over the last month.

Speaker Change: Our next question comes from Roger Boyd with UBS. Please unmute your line and ask your question.

George Kurtz: Our next question comes from Roger Boyd with UBS, please unmute your line and ask your question. Great, thanks for taking the questions and I will add my congrats on the response and resilience demonstrated over last month. George, just on the hypergrowth modules, you may see that group pass $100 billion collectively or $1 billion collectively. It's not like the timeline, you reiterate the $10 billion or AR target, it's not like the timeline got pushed towards the longer side of the five to seven year range, you did provide it before.

Roger Boyd: Great, thanks for taking the questions and I will add my congrats on the response and resilience demonstrated over the last month.

George Kurtz: George, just on the hypergrowth modules, you need to see that group pass $100 billion collectively or $1 billion collectively. It's not like the timeline; you reiterate the $10 billion AR target. It's not like the timeline got pushed towards the longer side of the five, the seven-year range; you did provide it before. We just love to get kind of your view on the durability of growth there. I get there's a lot of uncertainty, but just kind of any view on how you expect to play out is the right view that you just see this is kind of a one-year speed bump towards those longer term guidance.

Roger Boyd: [inaudible] it's nice to see that group past $100 billion, quite a bit, or $1 billion, quite a bit. It's not like the timeline, you reiterate, the $10 dollar ARR target. It's not like the timeline got pushed towards the longer side of the five, the seven year range you'd probably have provided before.

Speaker Change: I would just love to get kind of your view on the durability of growth there, get there's a lot of uncertainty but just kind of any view on how you expect that a play out is the right view that you just see this is kind of a one-year speed bump towards those longer-term guidance.

George Kurtz: We just love to get kind of your view on the durability of growth there, I get there's a lot of uncertainty but just kind of any view on how you expect to play out is the right view. That you just see this is kind of a one year speed bump towards those longer term guidance.

George Kurtz: Yeah, I'll start, and then I'll turn over to Bird when we think about the durability of CrowdStrike. I think we've demonstrated this quarter. We've, you know, had a history of durable growth because we're solving real problems for customers. And when you look at some of the businesses that we talked about, identity and cloud and next year and sim, a billion dollars is incredible. And you look at the growth rate. So we've got multiple vectors of growth for CrowdStrike. We've got a massive cam opportunity that's only getting bigger. And, you know, we always at CrowdStrike have and will continue to take a long-term view of the market.

Speaker Change: Yeah, I'll start in an alternative bird when we think about the durability of CrowdStrike. I think we've demonstrated this quarter. We've had a history of durable growth because we're solving real problems for customers. And when you look at some of the...

Burt Podbere: Yeah, I'll start and then I'll turn over to Bird when we think about the durability of Crowdstrike. I think we've demonstrated this quarter we've you know had a history of durable growth because we're solving real problems for customers. And when you look at some of the businesses that we talked about identity and cloud and next year and sim a billion dollars is incredible and you look at the growth rate. So we've got multiple vectors of growth for Crowdstrike.

Speaker Change: Businesses that we talked about identity and cloud and next year in Sim, a billion dollars is incredible. We look at the growth rate. We've got multiple vectors of growth for CrowdStrike. We've got a massive cam opportunity that's only getting bigger.

Burt Podbere: We've got a massive cam opportunity that's only getting bigger and you know we always at Crowdstrike have and will continue to take a long term view of the market. So we're going to deal with this you know in the short term and then obviously I think this sets us up well for the future bird.

Speaker Change: and you know, we always across right have and will continue to take a long term view of the market. So we're going to deal with this, you know, in the short term and then obviously, I think this sets us up well for the future, Burt.

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

George Kurtz: Yeah, so Roger, the key here is that we remain committed to reaching the 10 billion in ARR by the end of 2031. I mean, that's the, you know, that was part of the range that we gave out, you know, in prior periods, and we're still committed to it.

Burt: Yeah, so Roger the Key here is that we remain committed to reaching the 10 billion in ARR by the end of 2021 I mean that's the, you know, that was part of the range that we gave out, you know, in prior periods and we're still committed to it

Burt Podbere: Yeah so Roger the key here is that we remain committed to reaching the 10 billion in ARR by the end of 2031. I mean that's the you know that was part of the range that we gave out you know in prior periods and we're still committed to it.

Joseph Gallo: Our next question comes from Joseph Gallo with Jefferies. Please unmute your line and ask your question. Hey guys, thanks for the question. Can you just update us on the federal momentum? You're entering their biggest quarter, and how, how should we think about that business? Does the IT outage slow momentum there, given their typically pretty conservative? Thanks.

Speaker Change: Our next question comes from Joseph Gallow with Jeffries. Please unmute your line and ask your question.

Joseph Gallo: Our next question comes from Joseph Gallo with Jeffries please unmute your line and ask your question. Hey guys thanks for the question you just update us on the federal momentum you're entering their biggest quarter and how should we think about that business. Does the IT outage slow momentum there given their typically pretty conservative thanks.

Joseph Gallow: Hey guys, thanks for the question. You just update us on the federal momentum. You're entering their biggest quarter and how should we think about that business? Does the IT Outage slow momentum there, given their typically pretty conservative? Thanks.

George Kurtz: Sure. Well, Q3 obviously is the Federal quarter. I think we've got good momentum. We've done. I think well with the sister relationship that we have and, you know, as many things in the federal space, it takes time, and we continue to build momentum and wind deals in those categories. And not only federal, but we think about state and local; incredibly strong across the board. And we're just talking about the US, right? We do this for the rest of the world. So we like our opportunity there.

Speaker Change: Sure, well, Q3 obviously is the federal quarter, I think we've got food momentum, we've done

George Kurtz: Sure well Q3 obviously is the federal quarter. I think we've got good momentum. We've done I think well with the sister relationship that we have and you know as many things in the federal space it takes time and we continue to build momentum and wind deals in those categories. And not only federal but we think about state and local incredibly strong across the board and we're just talking about the US right we do this for the rest of the world. So we like our opportunity there those are always long term opportunities but we're certainly encouraged in terms of the success that we've had so far.

Speaker Change: I think well with the sister relationship that we have and you know as as many things in the federal space it takes time and we continue to build momentum and

Speaker Change: and Windyels in those categories, and not only federal, but we think about state and local, incredibly strong across the board, and we're just talking about the US, right? We do this for the rest of the world.

George Kurtz: Those are always long-term opportunities, but we're certainly encouraged in terms of the success that we've had so far.

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

Greg Moskowitz: Our next question comes from Greg Moskowitz with Mizuhau. Please unmute your line and ask your question. Okay, thank you for taking the question, and also well done in terms of transparency.

Speaker Change: Our next question comes from Greg Mascalskowicz with Mizuhal. Please unmute your line and ask your question.

Gregg Moskowitz: Our next question comes from Gregg Moskowitz with Mizuhau. Please unmute your line and ask your question. Okay, thank you for taking the question and also well done in terms of transparency. I had a clarification just on the customer commitment packages and Crowdstrike's future expansion strategy is part of the plan effectively getting away, you know, module to existing customers for upwards of a year. In other words, when you speak about an expectation of muted upsell dollar values and temporarily higher levels of contraction, is this part of the seeding strategy that you're referring to?

Greg Mascalskowicz: Okay, I thank you for taking the question and also well done in terms of transparency. I had a clarification just on the customer commitment packages and cloud strikes future expansion strategy. Is part of the plan effectively getting away, you know, module to existing customers for upwards of a year. In other words, when you speak about an expectation of muted upsell dollar values and temporarily higher levels of contraction. Is this part of the seeding strategy that you're referring to?

Burt Podbere: I had a clarification just on the customer commitment packages and Crowdstrike's future expansion strategy is part of the plan, effectively getting away, you know, module to existing customers for upwards of a year. In other words, when you speak about an expectation of muted upsell dollar values and temporarily higher levels of contraction, is this part of the seeding strategy that you're referring to? I'll start with we always want to do the right thing for the customer, and you know, customers, we're solving business problems, and they like our technology, love our technology, right? So when we think about the opportunity to drive greater platform adoption, certainly that should be added into the conversation. And what we've seen over time, and we've built a history of greater module adoption, you can see that since you've been tracking this from our IPO.

Speaker Change #100: We always wanted to do the right thing for the customer, and customers were solving business problems and they like our technology, they love our technology, right? So when we think about the opportunity...

George Kurtz: I'll start with, we always want to do the right thing for the customer and you know, customers, we're solving business problems and they like our technology, love our technology, right? So when we think about the opportunity to drive greater platform adoption, certainly that should be added into the conversation and what we've seen over time and we've built a history of greater module adoption, you can see that since you've been tracking this from our IPO. So from that standpoint, we do think the long term opportunity proves well for Crowdstrike and having customers use more modules is always a good thing. And that's what we're focused on.

Unknown Executive: Thank you.

Speaker Change #101: and I would like to try to create a platform of adoption, certainly that should be added into the conversation.

Speaker Change #101: and what we've seen over time and we built a history of greater module adoption.

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

Speaker Change #102: you can see that since you've been tracking this from our IPO. So from that standpoint, we do think the long-term opportunity proves well for CrowdStrike and having customers use more modules is always a good thing, and that's what we're focused on.

Unknown Executive: Thank you.

George Kurtz: This concludes today's question-and-answer session.

I would now like to turn the call back over to George Kurtz for closing remarks. So thank you all for your time today. We appreciate your continued support and look forward to seeing you at our upcoming investor event at Falcons.

Speaker Change #102: Thank you. This concludes today's question and answer session. I would now like to turn the call back over to George Kurtz for closing remarks.

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

George Kurtz: So thank you all for your time today. We appreciate your continued support and look forward to seeing you at our upcoming Investor event at Falcon. Thank you.

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

George Kurtz: [inaudible]

George Kurtz: [inaudible]