CrowdStrike Holdings Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gabriela Borges - Goldman Sachs - Analyst : George. I wanted to start a little bit with some of the conversations you had on July 19th. And specifically with some of the best advice you got in the hours and days following July 19, and who are some of the mentors and advisors that you picked up the phone and call that were most valuable to you.

Question: Gabriela Borges - Goldman Sachs - Analyst : What's the answer to that question? How can they help them. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 10:45PM, CRWD.OQ - CrowdStrike Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Gabriela Borges - Goldman Sachs - Analyst : So one of the comments that you had made at the time of the earnings call was the incredible number and volume and intensity of customer conversations that you've had in the last four or five weeks, walk us through some of the customer conversations. How would you describe the level of engagement and where does it go from here?

Question: Gabriela Borges - Goldman Sachs - Analyst : There was a little bit of confusion around the timing of the root cause analysis and specifically the outage update being perceived as a code update to a [panel] when actually was more of a telemetry or configuration update, explain the nuance for us a little bit? What's the difference?

Question: Gabriela Borges - Goldman Sachs - Analyst : There's a little bit of architectural question here around the lightweight agent that you have, and that's been so much of the strength of your technology from day one, is there inherently a trade-off between having a lightweight agent and the number of updates that you don't need to make at the current level or of the telemetry level to be able to support the agent. How do you think about the trade-offs between lightweight versus frequency of updates?

Question: Gabriela Borges - Goldman Sachs - Analyst : So you're back from the Microsoft meeting yesterday share with us your observations on how the meeting went?

Question: Gabriela Borges - Goldman Sachs - Analyst : There's an interesting dynamic here where they think about how endpoint interacts with the Microsoft channel and I think about something like a Linux or an iOS operating system where there's no current access whatsoever. One of the more interesting statements and the root cause analysis was there could be significant work ahead for windows to support a security product, but doesn't actually need external driver. So walk us through that a little bit, what do you think the world could look like where our security products and other software products can run effectively without access to Windows driver? And is that a realistic outcome.

Question: Gabriela Borges - Goldman Sachs - Analyst : And wanted to move to a little bit of a discussion on your customer commitment program for you've talked about a $30 million subscription revenue impact to 3Q and 4Q. It's an extension of the Falcon flex program, which you had introduced at an earlier stage. So talk to us a little bit about how the customer commitments work in practice.

Question: Gabriela Borges - Goldman Sachs - Analyst : How did you arrive at the $30 million a quantitative amount?

Question: Gabriela Borges - Goldman Sachs - Analyst : So the beauty of Falcon Flex is it's designed to have customers use more of CrowdStrike. And so there is the glass half full glass half empty here. Where could there be a glass half-full where customers actually come out the other side of the customer commitment using more CrowdStrike and how do you reconcile that with a customer saying? Well, perhaps I don't want to expand with CrowdStrike right now because I want to figure out where things stand in the next six, 12 months before I recommit or renew at a higher rate? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 10:45PM, CRWD.OQ - CrowdStrike Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Gabriela Borges - Goldman Sachs - Analyst : Absolutely. So one of the comments from the earnings call was around the potential for reacceleration in the business next year. What are some of the milestones that you and the team will be looking at to determine whether the worst of the impact of July 19, whether it's pipeline churn and upsell, et cetera. What are some of the milestones that you'll be looking at to determine the worst of it being behind you?

Question: Gabriela Borges - Goldman Sachs - Analyst : We'll spend a couple of minutes more on the go to market before talking about some of the more product-focused questions on the go to market. One of the dynamics that we've been debating with investors is this idea that you can have folks that are very close to the CrowdStrike product up. The customers are a huge champions of your internally, but you could have folks higher up in the organization that look at the business impact of July 19 and you get a little bit of tension between those two cohorts. Have you found that in your experience and how do you navigate the blind spots that may exist from your having an excellent relationship with the people who are closest to the product going through a new deal and ultimately having a blind spot on someone higher up in the organization?

Question: Gabriela Borges - Goldman Sachs - Analyst : Many of the goals and conversations you're talking about here on improving customer engagement and the technology roadmap over time. Those are the same goals and conversations that we were having this time last year. Is there any nuance to how the agenda is changing at Celcom and next week on any changes that are priorities and to follow on that perhaps didn't exist before July 19?

Question: Gabriela Borges - Goldman Sachs - Analyst : Want to shift to a couple of product questions. So at this time last year, you talked about being a realist real estate investor specifically on the value of your real estate on the endpoint. I wanted to ask specifically about your roadmap and observability. Two of last year you talked about being at level one and level two of five potential buckets of functionality shared with us, the milestones that you've achieved in observability and where your roadmap is going next. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 10:45PM, CRWD.OQ - CrowdStrike Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Gabriela Borges - Goldman Sachs - Analyst : I want to touch on some of the case studies that you've talked about in next-gen, [Sam], the numbers that you've disclosed around next-gen, [Sam], I think it's north of $220 million ARR. How do you think about the split between customers that use it as usual, technologies augmentation to their existing SIM versus a full rip and replace them.

Question: Gabriela Borges - Goldman Sachs - Analyst : I find it so interesting that the early case studies on financial institutions because you could argue in some ways were early adopters, but in many ways, were not so how much did it come to pass, but you had early momentum in financials?

Question: Gabriela Borges - Goldman Sachs - Analyst : So you mentioned Charlotte, AI., what is some of the early feedback that you've been getting on Charlotte and other? A couple of areas that you think, okay, it's not quite where it needs to be yet, but let us iterate on it and two to three years, it's going to be much more meaningful.

Question: Gabriela Borges - Goldman Sachs - Analyst : You have the ability to track usage and look at usage patterns for the analyst cities in Charlotte.

Question: Gabriela Borges - Goldman Sachs - Analyst : I'd like to ask AI question from a different lens, which is if you think about some of your largest customer, Fortune 500, Global 2000 as they've been figuring out what their own internal AI roadmaps look like over the next couple of years. How does that change the conversation on security? And REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 10:45PM, CRWD.OQ - CrowdStrike Holdings Inc at Goldman Sachs Communacopia & Technology Conference are there examples of customers saying we really need to level off or perhaps actually we need to push out security investments because we need to figure out what we're doing. First, any color on this conversation

Question: Gabriela Borges - Goldman Sachs - Analyst : I want to end with a question around some of the more exciting technical problems your team is working on actually putting generative AI aside because AI and machine learning have been part of the credits, CrowdStrike, short knowledge expertise and so on what I wanted, you have the most exciting technical problems that your team is working on today?

Question: Gabriela Borges - Goldman Sachs - Analyst : When you say results are incredible team (inaudible) being able to predict threat intelligence or?