Financial Data and Key Metrics Changes - Total revenue grew to $172 million, representing a 7% increase year-over-year [39] - Subscription revenue increased by 7%, while service revenue grew by 3% [39] - Annual recurring revenue (ARR) reached $677 million, up over 9% [39] - Non-GAAP operating margin was 22%, driven by gross margin performance and improved productivity [43] - Non-GAAP net income attributable to BlackLine was $38 million, reflecting a 22% net income margin [44] Business Line Data and Key Metrics Changes - The average new deal size grew by 35% year-over-year, driven by increased adoption of full Record to Report capabilities [10] - Strategic products represented 30% of sales, up from 28% last year, indicating improved cross-sell opportunities [41] - Intercompany, invoice to cash, and transaction matching showed particular strength this quarter [42] Market Data and Key Metrics Changes - The customer count at the end of the quarter was 4,451, slightly up from the previous year [40] - The $1 million customer count rose to 84, up 24% year-over-year [11] - Pipeline growth was up 70% year-over-year, indicating strong market demand [14] Company Strategy and Development Direction - The company is transitioning to a platform model, focusing on serving the Office of the CFO and enhancing go-to-market strategies [9] - The introduction of the new pricing model has driven adoption and larger deal sizes, with about half of eligible new logos adopting it in Q2 [16] - The strategic focus on larger and mid-market customers is validated by a 55% year-over-year growth in mid-market new deal sizes [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and highlighted the importance of customer success in their strategic evolution [8] - The management team acknowledged the challenges in the operating environment but emphasized the strong pipeline and market interest [88] - Future guidance includes total GAAP revenue expected to be in the range of $696 million to $705 million, representing 6.5% to 8% growth [46] Other Important Information - The company is making significant progress on its FedRAMP journey to expand its position in the public sector [37] - The GCP migration is nearing completion, enhancing performance and lowering future costs [36] - The company repurchased approximately 796,000 shares for about $43 million in the quarter [45] Q&A Session Summary Question: Can you break down the large deal momentum and its drivers? - Management noted that the pipeline has been growing, with a combination of deals that slipped from the previous quarter and new opportunities maturing [50][52] Question: What is the impact of the new unlimited user pricing model? - Management indicated that there is early proliferation of licenses across organizations, which is expected to drive consumption and net retention rates [54][56] Question: What are the learnings from customers regarding the new pricing model? - The sales team is observing transformative conversations with customers, focusing on overall platform benefits rather than just license counts [62][64] Question: Can you elaborate on the role of Studio three sixty? - Studio three sixty serves as the foundational platform for all products, with varying levels of access and capabilities based on customer needs [101][104] Question: What is the significance of the partnership with Snowflake? - Snowflake is crucial for handling large data volumes and enhancing the platform's capabilities, allowing for high-frequency reconciliations and data sharing [108][109]

Core Insights - CrowdStrike (CRWD) is experiencing significant growth in subscription revenue, driven by its platform strategy and the adoption of Falcon Flex, with subscription revenues increasing by 20% year over year to $1.05 billion in Q1 of fiscal 2026, accounting for 95% of total revenues [1][10] Subscription Revenue Growth - The growth in subscription revenue is attributed to the rising adoption of Falcon Flex, which facilitates multi-module deployment and platform standardization, with over 820 customer accounts adopting Falcon Flex by the end of Q1 [2] - The total account deal value for Falcon Flex reached $3.2 billion within two years of its launch, reflecting a 31% sequential increase and over six times year-over-year growth [2] Multi-Module Adoption - Multi-module adoption rates are strong, with 48% of customers using six or more modules, 32% using seven or more, and 22% adopting eight or more modules, indicating that the platform approach is simplifying security tools for customers and encouraging increased spending [3] Customer Expansion Examples - A Fortune 100 technology company expanded its initial $12 million three-year Endpoint Detection and Response contract to a five-year agreement exceeding $100 million, while a global healthcare provider included Falcon Identity Protection in an eight-figure deal [4] Future Growth Expectations - Management anticipates that the trends of platform consolidation and multi-module adoption will continue to drive subscription revenue growth, with the Zacks Consensus Estimate projecting a 21.2% year-over-year increase in subscription revenues to $4.56 billion in fiscal 2026 [5] Competitive Landscape - Competitors like Zscaler (ZS) and SentinelOne (S) are also expanding through platform innovation, with Zscaler reporting $2.9 billion in ARR and 23% year-over-year growth, while SentinelOne reached $948 million in ARR, reflecting a 24% year-over-year increase [6][7] Stock Performance and Valuation - CrowdStrike's shares have increased by 39.2% year to date, outperforming the security industry's growth of 17.1% [8] - The company trades at a forward price-to-sales ratio of 22.64X, significantly higher than the industry's average of 14.01X [12] Earnings Estimates - The Zacks Consensus Estimate for CrowdStrike's fiscal 2026 earnings indicates a year-over-year decline of 10.94%, while fiscal 2027 earnings are expected to grow by 34.68%, with upward revisions in estimates over the past 60 days [15]

Financial Data and Key Metrics Changes - Total company revenues in Q4 2024 were $41.4 million, representing a 15% year-over-year growth [51] - Non-GAAP operating profitability was $5.2 million in Q4, improving by $18.3 million from the same period last year [59] - Free cash flow for the quarter was negative $7.2 million, an improvement of $13.6 million compared to negative $20.8 million in the same quarter last year [60] Business Line Data and Key Metrics Changes - Consumer Banking revenue grew 48% year-over-year in Q4, totaling $9.5 million, and 42% for the full year, surpassing the 35% target [55][90] - Mortgage suite revenue was $18.2 million, representing a 6% year-over-year growth [51] - Professional services revenue was $2.5 million, slightly up from $2.3 million in the same period last year [55] Market Data and Key Metrics Changes - The remaining performance obligations (RPO) reached $123 million, a 30% increase year-over-year [62] - The pipeline is now 50% larger than the previous year, indicating strong future growth potential [12][37] Company Strategy and Development Direction - The company is focusing on becoming a software-driven business, simplifying operations, and expanding its partner ecosystem [8][94] - A strategic partnership with Truework for income verification aims to enhance operational efficiency and revenue sharing [48][96] - The launch of a dedicated business unit for Independent Mortgage Banks (IMBs) reflects a commitment to cater to smaller institutions [102][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained growth despite macroeconomic challenges, with expectations of positive free cash flow in Q1 2025 [12][44] - The company anticipates moderate origination growth for the year, with a cautious approach to annual planning [78] - The integration of AI into core banking processes is expected to enhance efficiency and reduce operational costs [118][120] Other Important Information - The company aims to achieve a positive Rule of 40 for its platform segment, combining revenue growth and operating margin [45][81] - The economic value for funded loans is expected to start at a new baseline of $94 in Q1 2025, reflecting strategic changes [69] Q&A Session Summary Question: What is the outlook for the mortgage market in 2025? - Management noted that forecasts for mortgage originations have decreased by 20% for Q1 2025, but they believe the market will perform below these projections [73][74] Question: How does the company plan to manage expenses in the current environment? - The company is focused on tightly managing expenses while investing in sales and marketing to capitalize on growth opportunities [76][80] Question: What are the expectations for the consumer banking suite moving forward? - The projected compounded annual growth rate for the consumer banking suite has been increased to 40% from the previous target of 35% [79]