...December 16, 2024 CrowdStrike Holdings Inc.'s performance has been solid over 2024, exceeding our revised expectations following the July 19 outage. CrowdStrike reported better than expected results for the third quarter of fiscal 2025, with annual recurring revenue (ARR), revenue and free operating cash flow (FOCF) ahead of our base-case expectations. Highlights included another quarter of better module adoption rates, and gross retention rates of over 97%. Additionally, the company surpassed $4 billion in annual ARR and exceeded $1 billion in total revenue for the first time. Customers are leveraging the company's customer commitment package (CCP) and Flex subscription model, thereby increasing the adoption of the Falcon platform. This performance underscores CrowdStrike's resilience and adaptability in navigating a challenging environment. Challenges include a decline in net new ARR (NNARR), which fell to $153 million from $218 million in the prior quarter, which we attribute to the...
