CrowdStrike Holdings Inc (NASDAQ:CRWD) Q3 2020 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 05:00 pm ET

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CrowdStrike Holdings Inc (NASDAQ:CRWD) Q3 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
George Kurtz

excited about the Wipro opportunity. Obviously, they got massive scale and reach in that area and in beyond. So early days, but excited about that partnership and overall excited about our APJ business.

Analyst
Yi Fu Lee

That's great. And, Burt, just quickly on the gross margin improvements, we saw a 400 basis point outperformance this year compared to same quarter last period. Can you give us a little color on the -- as you build out the cloud module, the amount of leverage you get as compared to how many modules you build out versus how many basis points of gross margin improvements, is there like a correlation that we should expect to see between the two?

Executive
Burt Podbere

Yeah. Thanks for the question. So, here's the great news about our platform. So once you buy that first module, it absorbs the COGS. Every module after that is virtually all gross margin. So, every module being on top and every module that a customer would buy on top of the first one, we're going to see full incremental new margin enhancements. Now each module that we come out with, it could be a different price, so it would vary on modules.

Executive
George Kurtz

And just to follow on to that, that's really the power of the architecture we built with the Threat Graph. We collect once and reuse many. So once that data is in the Threat Graph, it can be analyzed, used for AI and then obviously, it powers all the other modules. So once we've already collected it, as Burt said, it's virtually pure margin after the effect [Phonetic].

Analyst
Yi Fu Lee

Thank you for taking my question. And again congrats on the strong execution.

Executive
George Kurtz

Thank you.

Operator
Operator

Thank you. Our next question comes from Andrew Nowinski with Davidson. Your line is now open.

Analyst
Hannah Rudoff

Hi. This is Hannah on for Andy. After posting strong customer and ARR growth, what factors do you see accelerating ARR growth moving forward as the year-over-year comparisons get tougher, because your metrics seems to hint that the growth should continue? Thank you.

Executive
Burt Podbere

Thank you. So thanks for the question. So again, I think we don't really comment on ARR in terms of guidance or anything like that. But again, it goes back to, we continue to see this great momentum in the business. And as we entered Q4, I mean the pipe has been more substantial than anything else we've seen before. And so that gives us the confidence to be able to talk about some of the things we've talked about in next year.

Operator
Operator

Thank you. This concludes today's question-and-answer session. I would now like to turn the call back over to George Kurtz for closing remarks.

Executive
George Kurtz

Sure. Thank you. I want to thank all of you for your time today. We really appreciate your interest and look forward to speaking with you next quarter. Have a great holiday. Thanks.

Operator
Operator

[Operator Closing Remarks]