Earning Date, Transcript Summary & Report

Earnings Beat Expectations: CrowdStrike Holdings, Inc. beats earnings expectations with reported EPS of $1.03, exceeding expectations of $0.857.

Strong Q4 Net New ARR: Q4 net new ARR of $224 million, significantly ahead of expectations, closing FY 2025 at $4.24 billion in ending ARR.

Cloud Security Revenue Surge: FY 2025 ending ARR for cloud security, identity protection, and next-gen SIEM exceeded $1.3 billion, growing nearly 50% year over year.

Customer Commitment Indicator: Gross dollar retention rate of 97%, indicating strong customer commitment to the Falcon platform.

Record Free Cash Flow: Q4 free cash flow reached $240 million, with a record annual free cash flow of $1.07 billion, representing 27% of revenue.

Milestone in Cybersecurity Sales: CrowdStrike is the first cybersecurity ISV to cross $1 billion in deal value on AWS Marketplace in a single calendar year.

Contract Value Surge: Total contract value for FY 2025 reached $6 billion, a 40% year-over-year increase, showcasing customer commitment to the Falcon platform.

Subscription Model Adoption: The Falcon Flex subscription model has seen significant adoption, with over $1 billion in total account flex deal value added in Q4 alone, growing 80% quarter over quarter.

Cloud Security Growth: The cloud security business grew more than 45% in Q4, with ending ARR exceeding $600 million, highlighting the importance of cloud security in the AI revolution.

Identity Business Growth: The identity business grew to over $370 million in ending ARR, benefiting from the growing identity attack surface.

Next-Gen SIEM Growth: Next-gen SIEM business grew more than 115% year over year, finishing the year at over $330 million in ending ARR, demonstrating its foundational role in the Falcon platform.

Partner-First Strategy Success: CrowdStrike's ecosystem strategy is yielding results, with partners sourcing 60% of new business in FY 2025, validating the partner-first approach.

Partnership Success with Google: CrowdStrike achieved over $150 million in deal value in its first year of partnership with Google Marketplace, indicating strong market traction.

Future Revenue Potential: The company is positioned to achieve $10 billion in ARR by FY 2031, with a robust demand environment across multiple large and growing markets.

Net Loss Challenges: GAAP net loss attributable to CrowdStrike Holdings, Inc. was $92.3 million, indicating ongoing financial challenges despite strong revenue growth.

Impact of Incident Expenses: Incident-related expenses impacted Q4 free cash flow by approximately $22 million, suggesting that operational issues are affecting cash flow.

Outage-Related Cost Impacts: The company expects cash impacts of approximately $73 million for outage-related costs in Q1 FY 2026, indicating potential operational vulnerabilities.

Customer Commitment Package Trends: The majority of deals that closed with customer commitment packages in Q4 included additional product or flex dollars rather than extended time and professional services, which may limit future revenue growth from these customers.

Contract Value Growth Concerns: While the company achieved a record total contract value of $6 billion, the growth rate of 40% year over year may not be sustainable in the long term as market conditions evolve.