CrowdStrike Holdings Inc Q4 2025 Earnings Call Transcript

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

Question: Saket Kalia - Barclays - Analyst : Okay. Great. And nice finish to the year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 10:00PM, CRWD.OQ - Q4 2025 CrowdStrike Holdings Inc Earnings Call

Question: Saket Kalia - Barclays - Analyst : Sure. George, maybe for you. We heard on the call that Falcon Flex is the future. I was wondering if you could just talk a little bit about how Falcon Flex is driving better value for customers. And any examples you have maybe how current customers are growing their existing spending with CrowdStrike through Falcon Flex.

Question: Brian Essex - JPMorgan - Analyst : Okay. Hopefully, you can hear me. I guess I want to talk about emerging products. And if I look at the growth rate, it seems as though Cloud and Identity decelerated at a faster rate than logscale. Is that a function of the incentives and how customers may have spent it in Cloud and Identity as opposed to log scale, which may have more injection costs associated with it? Just maybe if you could give a little bit of color on how your customers are consuming those. We understand the sustainability of those emerging segments.

Question: Gabriela Borges - Goldman Sachs - Analyst : Burt, I wanted to ask you a little bit about how you thought about guidance for the year because we had the pause in the external demand gen around the July time frame we have the enterprise sales cycles pushing out, by I think you said 15%. Maybe just talk us through how did you think about the puts and takes to the back half of the year as some of those dynamics reverse? And then to Brian's earlier question. You also have the CCP contracts renewing. Maybe just walk us through how you thought about some of those dynamics.

Question: Tal Liani - BofA Global Research - Analyst : Here you go. I have two questions, so I'll choose one. Contribution from existing customers. If I look at your GRR and NRR and I calculate contribution from existing customers versus new customers. Your performance on new customers is very consistent. You're growing between 10% to 11% a year from new customers. But the growth from existing customers had gone down, which means there are some -- there is a decline in the growth in upselling to existing customers. So you started the year with Q1, with 21% growth coming from existing customers, and you ended the year with 15% and every quarter, it goes down. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 10:00PM, CRWD.OQ - Q4 2025 CrowdStrike Holdings Inc Earnings Call Can you talk about your ability to take NRR back up which is the function of sales to existing customers or upsell to existing customers?

Question: Joel Fishbein - Truist Securities - Analyst : George, thanks for the color around AI and AI strategy in Charlotte. I would just love to get a little bit more color around pricing and competitive environment around the AI security, that would be really helpful.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : George, for you, Exposure Management is near and dear to your heart. And you could sense the enthusiasm with some of your early wins. I'm just curious to put a finer point on that. Are we talking about full like network endpoint replacements there? I just want to make sure that I understand like the composition of your platform versus some of the pure plays?

Question: Andrew Nowinski - Wells Fargo Securities, LLC - Analyst : Congrats on a really strong recovery quarter here. I'd like to just dig a little bit deeper on your net new ARR. If you could just clarify how much the Adaptive Shield acquisition contributed this quarter in Q4? And then if you add back the $56 million you talked about in CCP, it looks like net new ARR is still down about 1% year over year, but gross retention was unchanged. So it doesn't look like churn increased at all. I'm wondering if you think customers might still be holding back on spending as a reason why net new is still down 1%.

Question: Fatima Boolani - Citi - Analyst : George, you referenced the staggering in the period deal value that you have contracted for Falcon Flex specifically. I specifically wanted to ask you about the Falcon Flex dollars that you have given in kind to some of your CCP customers. And I wanted to get an understanding of how quickly they're burning through those in-kind flex dollars that you've given them such that it is triggering earlier renewal, earlier upsell events. And if that was a contributing factor to how robust the in-quarter deal value was for Falcon Flex?

Question: Gregg Moskowitz - Mizuho Securities USA - Analyst : George, exceeding $1 billion in sales through AWS Marketplace in a 12-month period, I mean, that's really stunning and I'm not sure everyone remembers that you only eclipsed $1 billion in lifetime sales on AWS in October of 2023. So clearly, the growth rate that you're showing here is still very high. But given that we're running into the law of larger numbers, it would just be helpful to get your perspective on the growth outlook for CrowdStrike on AWS Marketplace over the next two to three years?

Question: Joseph Gallo - Jefferies - Analyst : It was awesome to see the $600 million of cloud ARR growing 45%. Can you just talk through that competitive landscape? Has that stabilized? One of your biggest cloud competitors noted on the earnings call that customers are gravitating towards workload protection and agent architecture. Is that something that you're seeing as well? And then given your strength in workload protection, when, if ever, do you expect customers to consolidate on a cloud solution?

Question: Patrick Colville - Scotiabank GBM - Analyst : And I guess I want to ask about the bottom line, any questions on the bottom line. So guiding to 20% operating profit margin in fiscal '26, I guess, can you just talk us through the puts and takes there? Is that because of the kind of drag on the first half before the reacceleration in the back half? And then did you soft guide Burt to 23% op margins in fiscal '27? So I guess, a snapback from next year?