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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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the CrowdStrike Fiscal Third Quarter 2020 Results Conference Call. [Operator Instructions]

I would now like to hand the conference to your speaker today, Maria Riley. Please go ahead.

Executive
Maria Riley

Good afternoon, and thank you for your participation today. With me on the call are George Kurtz, President, Chief Executive Officer and Co-Founder of CrowdStrike; and Burt Podbere, Chief Financial Officer.

Before we get started, I would like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plans, objectives and expected performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this call.

While we believe any forward-looking statements we have made are reasonable, actual results could differ materially because the statements are based on our current expectations and are subject to risks and uncertainties. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise. Further information on these and other factors that could affect the company's financial results is included in the filings we make with the SEC from time to time, including the section titled Risk Factors in the most recent company's Quarterly Report on Form 10-Q previously filed with the SEC.

Also, unless otherwise stated, excluding revenue, all financial measures discussed on this call will be non-GAAP. A discussion of why we use non-GAAP financial measures and a reconciliation schedule showing GAAP versus non-GAAP results is currently available in our press release, which may be found on our Investor Relations website at ir.crowdstrike.com or on our Form 8-K filed with the SEC today.

Now, I will turn the call over to George to begin.

Executive
George Kurtz

Thank you, Maria, and thank you all for joining us today. Across the board, we delivered an exceptional third quarter with record results well exceeding our expectations. Year-over-year, we increased the number of net new subscription customers by 112% and achieved 97% ARR growth, 98% subscription revenue growth and 88% total revenue growth, which was above the high end of our guidance.

I would also like to highlight two significant milestones we achieved in the quarter. First, ARR grew to over $0.5 billion and second, we generated positive free cash flow in the quarter and added to our cash balance. In our view, the strong results in our continued rapid growth at scale, which is significantly outpacing others in the industry demonstrate our increasing leadership in the Security Cloud category and our strong foundation to drive future growth.

Our accelerating momentum in the market is the culmination of years of thoughtful innovation focus and execution, and is a credit to the hard work of all our employees. I'd like to thank every member of the CrowdStrike team for their unwavering dedication to stopping breaches and serving our 4,561 customers.