CrowdStrike Holdings Inc (NASDAQ:CRWD) Q3 2020 Earnings Conference Call - Final Transcript
Dec 05, 2019 • 05:00 pm ET
In Q3, we once again saw an acceleration in customer growth, with the addition of a record 772 net new subscription customers versus 730 last quarter. This is our seventh consecutive quarter that we added a record number of net new customers. We also set a record for net new ARR of $77.9 million, representing 32% growth quarter-over-quarter.
This was driven by strong sales with both enterprise and SMB customers. The reason why our solution is winning with customers across diverse industries geographies and size is simple. Our proven efficacy and stopping breaches, our cloud native platform with the lightweight single agent that is easy to use and rapidly deploy at scale, and we enable customers to consolidate agents and increase endpoint performance, all of which helps our customers realize immediate time to value. It is also important to remember that our solution unlocks the power of CrowdStrike data and gets smarter the more data it consumes.
Our proprietary threat graph is the brain of our system and is capable of dynamically scaling to meet demand. Every week it processes correlates and analyzes over 2.5 trillion events across our global customer base in real time. Each new customer and endpoint or workload joining our CrowdStrike network increases our data lake effectiveness, intelligence and long-term competitive advantage.
I would like to take a moment to highlight a few recent customer wins that showcase the power of the Falcon platform. The first customer win is a competitive displacement of both nextgGen and legacy products and a Fortune 100 Insurance company that highlights the superior performance of our solution.
After a year of trying to deploy a cheaper and less effective next-gen vendor, this company security could not get it to scale beyond 60% of their environment. Additionally, when they attempted to deploy the other vendors agent in the server environment, it was incompatible with their critical business applications and performance was negatively impacted. Their security team was understandably frustrated, prompting them to engage with CrowdStrike. They evaluated the Falcon platform, alongside another vendors' legacy security technology built into the operating system.
Even though this competitor had a strong prior relationship with the customer, their product was found to be too complex and incompatible across the customers' heterogeneous environment. During rigorous testing by the security team and application owners, CrowdStrike demonstrated superior ease of deployment, application compatibility, strong endpoint performance and of course, high efficacy and stopping breaches.
We won the business and this customer is adopting seven cloud modules across the Falcon platform including our NextGen AV, EDR, device control, IT hygiene, vulnerability management, threat intel and our threat hunting module. OverWatch. CrowdStrike is helping protect this customer from breaches, while significantly streamlining their security stack with our single-agent architecture.
The next customer win I will share with you today is with a Fortune 100 retailer, where we are displacing legacy and next-gen vendors with our single-agent Falcon platform. This new CrowdStrike customer was initially looking to replace one of their next-gen