CrowdStrike(US:CRWD)2025-08-27 22:02Financial Data and Key Metrics Changes - Record Q2 net new ARR of $221 million, exceeding expectations and showcasing accelerating net new ARR growth [7] - Ending ARR reached $4.66 billion, growing more than 20% year over year [7][35] - Total revenue grew 21% year over year, reaching $1.17 billion, exceeding the high end of guidance [8][35] - Record Q2 free cash flow of $284 million, representing 24% of revenue [7][35] - Non-GAAP operating income was a record $255 million, or 22% of revenue [7][35] Business Line Data and Key Metrics Changes - Cloud, next-gen identity, and next-gen SIEM platform solutions exceeded $1.56 billion in ending ARR, growing more than 40% year over year [8] - Next-gen SIEM had year-over-year growth of more than 95%, with ending ARR over $430 million [14][15] - Next-gen identity protection business exceeded $435 million in ending ARR, growing more than 21% year over year [22] - Professional services revenue reached a record $66 million [35] Market Data and Key Metrics Changes - Total cloud ending ARR exceeded $700 million, growing more than 35% year over year [25] - Geographic revenue mix consisted of approximately 67% from the U.S. and 33% from international markets, with both U.S. and EMEA year-over-year growth accelerating compared to Q1 [36] Company Strategy and Development Direction - Focus on AI-driven market demand and customer-driven consolidation, leveraging the Falcon Flex licensing model to drive sustained growth [34] - Intent to acquire ONEM, a leading data pipeline platform, to enhance next-gen SIEM capabilities [16][19] - Emphasis on securing AI at every layer, from model creation to endpoint access, positioning CrowdStrike as a leader in AI security [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued net new ARR acceleration for the back half of FY 2026, with guidance assuming at least 40% year-over-year net new ARR growth [34][40] - The company highlighted the importance of consolidating security operations onto the Falcon platform as customers modernize their security stacks for the AI era [35] - Management noted that the threat landscape is evolving rapidly, with AI driving both opportunities and challenges in cybersecurity [32] Other Important Information - The company achieved a milestone of 800 customers with ending ARR exceeding $1 million [35] - The Falcon Flex model has seen over 1,000 customers, with more than 220 new Flex customers added in Q2 [27] - The company plans to hold its largest customer event, Falcon 2025, with over 100 sponsors and 8,000 attendees [43] Q&A Session Summary Question: Revenue guidance for Q3 and the full year - Management confirmed that the partner rebate program remains in effect and is factored into revenue guidance, with expectations for continued high retention rates and accelerating net new ARR [46][48] Question: Targeting in the identity market - Management discussed their early recognition of identity as a key security element and the success of their next-gen identity solutions, including Falcon Shield and PAM [52][54] Question: Customer care packages and net retention - Management expressed confidence in high renewal rates for modules and the positive impact of Falcon Flex on customer retention and growth [60][62] Question: ONEM acquisition and competition - Management highlighted the disruptive potential of ONEM in real-time data analysis and its complementary role to existing next-gen SIEM solutions [66][68] Question: Competitive environment in cloud security - Management noted that the market is still in early stages, with significant interest in cloud workload protection and the company's leading technology in that area [80][81]