CrowdStrike (CRWD) Q3 2025 Earnings Call Overview

CrowdStrike (CRWD) held its earnings call for the third quarter of fiscal year 2025, concluding on September 30, 2024. The call took place on November 26, 2024, at 5:00 p.m. ET and featured key executives, including CEO George Kurtz and CFO Burt Podbere.

Introduction to the Earnings Call

The earnings call began with a brief introduction by the operator, indicating that all participants were in listen-only mode. Maria Riley, CrowdStrike's Vice President of Investor Relations, welcomed everyone and introduced the speakers. She mentioned that some remarks during the call would include forward-looking statements and encouraged listeners to refer to the risk factors associated with those statements.

Key Highlights from the Call

During the call, George Kurtz expressed excitement over three main themes for the quarter: trust, platform adoption, and innovation. The company achieved significant milestones including:

• Annual Recurring Revenue (ARR) growth of over 27% year-over-year, reaching over $4 billion.
• A record total revenue of over $1 billion for the first time, with subscription revenue increasing by 31% year-over-year.
• Free cash flow of $231 million, representing 23% of total revenue.

Kurtz emphasized the performance of the Falcon Flex subscription model, which has supported customer commitment and platform consolidation, driving both revenue growth and customer satisfaction.

Performance Metrics

Overall performance metrics highlighted:

• Gross retention remained over 97% with minor reductions.
• Dollar-based net retention rate was 115%, influenced by customer commitments and their adoption of the Falcon platform.

Additionally, strong sales were noted in several sectors, with healthcare witnessing significant investment in cybersecurity initiatives.

Innovations and Future Direction

Kurtz detailed CrowdStrike's innovative advancements, including the acquisition of Adaptive Shield, aimed at enhancing SaaS security posture management. He underscored the successful launches and customer interest in their new product offerings.

Financial Overview by CFO Burt Podbere

Burt Podbere followed with a financial review, indicating strong results across all guided metrics. Total revenue for Q3 was reported at $1.01 billion, with subscription revenue reaching $962.7 million. Non-GAAP operating income showed growth, reflecting effective cost management strategies despite challenges posed by earlier incidents.

Outlook for the Future

Looking ahead, CrowdStrike expects to continue its revenue growth, with guidance suggesting potential ARR reaccelerations in fiscal 2026. The leaders communicated optimism regarding product adoption rates and the strategic benefits of the Falcon Flex model, which positions the company favorably in a rapidly evolving cybersecurity landscape.

Conclusion

In closing, the call demonstrated CrowdStrike's resilience and commitment to innovation, emphasizing its trusted position within the cybersecurity market and the strategic initiatives underway for improved customer engagement and financial performance.

CrowdStrike, Earnings, Technology