Operator: Hello, and welcome to CrowdStrike's Fiscal First Quarter 27 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, we will conduct a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the call over to Andy Nowinski, Vice President of Investor Relations and Strategic Finance. Andy, please go ahead.

Andy Nowinski: Good afternoon, and thank you for your participation today. With me on the call are George R. Kurtz, chief executive officer and founder of CrowdStrike, and Burt W. 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, growth, including projections, and expected performance, including our outlook for the second quarter and fiscal year 2027 and any assumptions for fiscal periods beyond that are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 2000. These forward looking statements represent our outlook only as of the date of this call. While we believe any forward looking statements we make are reasonable, actual results could differ materially because the statements are based on 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 Company's Annual and Quarterly Reports. Additionally, unless otherwise stated, excluding revenue, all financial measures disclosed in 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 earnings 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. With that, I will now turn the call over to George.

George R. Kurtz: Thank you, Andy, and thank you for joining CrowdStrike's Q1 FY27 earnings call. We started our fiscal year in an environment where cyber has dramatically risen in organizational visibility and funding priority. CrowdStrike is now being understood as critical AI infrastructure. Frontier AI Lab started a new chapter in the AI revolution. New model releases starting in April connected AI innovation with cybersecurity necessity. CrowdStrike was the only cybersecurity company selected by both Anthropic and OpenAI from the very start to secure these new models their adoption, and the new risks they create. To that, AI adoption is not a nice to have it is an existential imperative across every geography, and vertical. The more AI an organization adopts, the more cybersecurity it requires. In this new agentic era, and we are now guiding net new ARR acceleration for the full year. Q1 highlights included. 1. Record Q1 net new ARR of $256 million up 32% year over year and exceeding the high end of our guidance. 2. Ending ARR of $5.51 billion accelerating over our record Q4 and more than 24% growth. 3. Total revenue of $1.39 billion, up 26% year over year, beating guidance and accelerating for the fourth consecutive quarter. 4, all time record free cash flow of 468 million or 34% of revenue exceeding our expectations. Our free cash flow rule of 40 was 59, increasing for the fourth consecutive quarter. 5. Record Q1 operating income of $326 million or 24% of revenue up 62% year over year, exceeding guidance, and 6. We added over 300 Falcon Flex accounts in the quarter, with accounts that have adopted this subscription model reaching more than $1.9 billion in ending ARR, growing 99% year over year. These data points illustrate momentum, traction, and achievement. it is on the backs of our strong Q1 results and the unprecedented market dynamics I see that we are raising our growth expectations for the full year net new ARR more than 500 basis points. For the full year, we now expect net new ARR growth to accelerate over FY 2026. What I see is AI driving structural demand for cybersecurity that compounds, not decelerates. The AI enterprise is unfolding in real time and CrowdStrike is a necessity to secure it. AI's technology progression has unfolded in waves. Wave 1 of AI adoption was about making information rapidly accessible and foreshadowing the power of reasoning using existing data points to connect new dots. Wave 2 of AI adoption started with the agent, transforming what was once a basic web experience into a rich connected, and human like digital worker. Agents became a major unlock moment for the enterprise. Opening the door to productivity gains and augmentation of human workers. The concept of the agentic workforce was born and for the first time, enterprises could start pointing to economic value creation and newfound outputs from the AI revolution. This brings us to Q1. Right in the middle of wave 2. The wave of agent creation. In April of Q1, more half in a matter of weeks in cybersecurity than in the whole year prior: the Mythos inflection moment. In collaboration with Anthropic, from the start, we saw a new model emerge that had relevance for the cybersecurity market. Relevance for defenders in identifying vulnerabilities much faster than before including the chaining of multiple vulnerabilities to create lethal cyber attacks. Project Glasswing brought together CrowdStrike and a focused group of consequential companies to ensure market readiness for Anthropic's new model. Shortly thereafter, OpenAI announced GPT-5.5 Cyber, later known as Daybreak, where we were selected as a founding member of their trusted Access for Cyber program. CrowdStrike is the only cybersecurity company to secure both Anthropic and OpenAI's introduction programs from the very start. What the Mythos moment proved is that the world starting from the frontier AI labs themselves realize that AI needs a cybersecurity ecosystem. This was the Mythos inflection point. The discussion evolved from is AI going to disrupt cybersecurity, to organizations and even the Frontier AI Labs relying on Falcon as their AI powered defender for the post-Mythos era. Even more consequential is how adversaries can use these new and future models to democratize destruction. Now any human or agent can be a viable hacker or worse, wage serious cyber attacks that threaten enterprise survival, nation state continuity, and critical infrastructure operations. AI has now directly entered the world of cybersecurity across 2 dimensions. 1, you need cybersecurity to secure AI itself, Deploying AI across the enterprise is simply too risky without it from the start. Cybersecurity is now foundational AI infrastructure. And 2, an explosion in greenfield attack surfaces each of which needs cybersecurity. The AI revolution has led to a boom in: 1, hardware, GPUs, MPUs, TPUs, and Trainium chips. 2, data centers and hyperscalers, training and housing AI models, 3, Neo Clouds. A whole new class of cloud focusing on inference for token factories. We are seeing unprecedented, eye watering demand for Anthropic and OpenAI and 5, agentic applications, a whole new class of Agentic tools such as Cursor, Sierra, 11 Labs, Exa, Ligura, and more. The inflection point is that every player in this value chain is experiencing hypergrowth, and every 1 of these technologies needs cybersecurity. The Mythos moment crystallized the reality for the market, And for the first time in my career, the market's view of cybersecurity's role has shifted from being viewed primarily through the lens of risk management, compliance, protection to being recognized as a strategic accelerator and a critical enabler of AI adoption. Here's how we are seeing this shift manifest across our ecosystem customers, and business. As soon as Project Glasswing and Mythos were announced, a deluge of customer, prospect, and partner inquiries followed. Post-Mythos threat landscape readiness reached a fever pitch with the primary question being, is my organization protected? The immediate focus turned to uncovering and remediating vulnerabilities susceptible to being weaponized by new models. Answering this question across tens of thousands of organizations, created an opportunity to showcase the power of our platform and ecosystem. Within days of Anthropic's Project Glasswing and OpenAI's TAC, we announced Project QuiltWorks to unite and mobilize the industry around Mythos readiness. QuiltWorks is a phased process of vulnerability discovery prioritization, remediation, and then executive communication, are we protected? conversations at executive and board levels quickly became opportunities to leapfrog legacy point in time vulnerability discovery. The answer became real time continuous discovery and remediation. This conversation plays right into the strength of Falcon's continuous exposure management solution and Falcon for IT. Both of which saw adoption nearly double year over year in the quarter. We saw immediate interest from our ecosystem to join our coalition At the announcement of Project QuiltWorks, Accenture, IBM, Kroll, and OpenAI, joined us to use the latest OpenAI and anthropic models for QuiltWorks engagements. And a few weeks later, we expanded the coalition to include Armadin, Cognizant, HCL Tech, Infosys, KPMG, NTT DATA, Tata Consultancy Services, and Wipro. And more recently, insurers such as Coalition, Liberty Mutual Insurance, Lockton Resilience, and Marsh joined the coalition to start underwriting frontier AI model risk to the enterprises they serve. QuiltWorks engagements include: engaged with a Fortune 100 account and uncovered more than 45 million vulnerabilities leveraging Falcon Exposure Management and Frontier models. And the engagement is also accelerating next gen SIEM adoption within this account. Kroll, who recently replaced their incumbent next gen endpoint vendor with CrowdStrike, brought us into a clothing manufacturer which is becoming a new logo account on the back of a QuiltWorks assessment. QuiltWorks is how we are preparing the market for cybersecurity's Y2K moment with CrowdStrike as the key security control for AI deployment. QuiltWorks and the AI accelerated demand environment are delivering growth across the business. In Q1, we delivered innovation and saw a pronounced demand across the following platform modules. First, endpoint. Our endpoint business again accelerated for the third consecutive quarter. The endpoint has become the epicenter of where AI happens and our best in class efficacy sets us apart. The rapid adoption of AI tools like Claude Co-Work, Claude Code, and Codex have dramatically expanded the endpoint attack surface. Our endpoint leadership continues to widen with Gartner naming us a leader for the seventh consecutive year and scoring us the very highest on both axes of the Magic Quadrant ahead of all other participants for the fourth year in a row. To that, we are seeing 2 new phenomena on the endpoint. First, AI's rapid evolution has created renewed enterprise focus on endpoint security investment. Second, nonhuman identities and agents require their own underlying hosts, creating greenfield demand for sensors. We are already seeing companies deploying agentic workloads inside virtual machines each requiring its own sensor. Illustrating this was an 8 figure new logo land in a major US government agency. We replaced a legacy AV and operating system EDR and a legacy vulnerability management point product across more than 200 thousand hosts. And that unlocks what is next. We pioneered EDR, We have the endpoint real estate. And that gives us the structural advantage to own what we are bringing to the market. AIDR. AI detection and response. AIDR is quickly becoming a new growth pillar in our business. With ending ARR growing more than 250% sequentially and Q2 pipeline already exceeding $50 million. We went from zero to this in under 2 quarters. In my career, I have never seen adoption happen this fast. As I look forward, I see AIDR as a larger opportunity than EDR. Here's why. First, our structural advantage We built EDR because the endpoint is where attacks execute and you need a sensor there to see them. The same is true for AI. Agents run on the endpoint. They make tool calls, access files, invoke APIs, and move data at the process level. To detect and respond to AI threats in real time, you need a runtime sensor where AI executes. that is Falcon. While competitors may provide AI visibility, only CrowdStrike can detect, block, and respond where AI actually runs. The pattern that made EDR thus repeats. Second, the AIDR market opportunity is structurally larger. EDR secured 1 attack surface, the host; AIDR secures 7: data, models, prompts, agents, identities, infrastructure, and the interaction layer where they converge. Worldwide spending on AI is forecasted to total over $2.5 trillion and only a low single-digit percent of organizations have an advanced AI security strategy. The gap between AI adoption and AI protection is the widest asymmetry in security since the cloud transition. And it is moving faster. We are already converting the demand, an automotive financial services leader added AIDR to more than 30 thousand hosts for shadow AI visibility and protection in a 7-figure win. Greenfield opportunity. Seamless upsell, same sensor. Moving to next gen SIEM, cloud and identity. We saw a record Q1 net new ARR from the combination of these businesses. Combined, these businesses have now exceeded $2 billion in ending ARR. Our next gen SIEM business exceeded $600 million in ending ARR and has transformed CrowdStrike into the operating system of the AI SOC. Charlotte AI, is now the reasoning engine across Falcon. where ending ARR accelerated sequentially over Q4, Triaging alerts, correlating cross domain telemetry, and automating investigation at machine speed. This quarter, we expanded that vision with AgentWorks, our ecosystem of purpose built AI agents built on the Falcon platform. Partners including Accenture, AWS, Anthropic, Deloitte, NVIDIA, OpenAI, and Salesforce are building specialized security agents that operate natively on Falcon data. The result a security operations center that runs at AI speed, orchestrated by Charlotte, extended by the ecosystem, and grounded in the richest telemetry in the industry. A key next gen SIEM win was an 8 figure new logo land in a major fuel retailer. CrowdStrike was selected to replace a legacy sim a next gen EDR, and stitch together software from a network security hardware vendor. The performance and price superiority of next gen SIEM combined with Charlotte AI's autonomous triage, eliminates swivel chair alert management successfully starting this customer's AI SOC journey. Cloud had another strong quarter as enterprises continue securing their AI infrastructure. Concern around elevated risk from new frontier models has pushed customers to harden their cloud environments. An 8 figure win in a high performance AI chip company allowed this customer to secure the rapidly expanding Kubernetes managed data center and cloud environments in the wake of the AI boom. Next gen identity net new ARR growth accelerated versus Q4. In the AI era, every agent needs an identity, every identity needs governance, and every enterprise is realizing they cannot tell a human from a machine in their environment. Falcon for SaaS had another stellar quarter with ending ARR growing nearly 4x year over year as organizations secure their SaaS agentic attack surface. Our recently acquired Signal solution and our fast growing privileged access offering are boasting strong early demand as enterprises lock down what agents can do and access. A major American health care company selected Falcon Next-Gen Identity and Signal in a 7-figure expansion to solve a problem that simply did not exist 2 years ago. Governing what AI agents can and cannot do across the enterprise. Signal delivers granular, policy based authorization over agentic workloads in real time This is the identity opportunity in the AI era. Falcon Flex is how we go to market. With accounts that have adopted the subscription model rapidly approaching $2 billion and ending ARR. The most exciting part is the Reflex dynamic. Customers renewing and expanding their investment beyond their first flex contract, with highlights including the number of Reflex customers reached 480 representing nearly 25% of all Flex customers. The average Reflex uplift was 26% with the average Reflex happening in 7 months. Well ahead of their subscription renewal date and the most compelling, over 130 customers have Reflex multiple times with the average ARR uplift over their original Flex coming in at 51%. Customers are coming back multiple times and they are continuously spending more. Consolidating on CrowdStrike. This is the power of the platform in action. To secure AI, organizations need the Falcon platform. To deliver the platform, you need the right go to market model. Flex is the commercial harness to drive secure AI adoption. In closing, I am proud of the start of our year. Q1 was another beat and as the quarter progressed, we saw the Mythos inflection point. The worlds of cybersecurity and frontier AI collided. The result is that frontier AI needs the very best defender and that is CrowdStrike. The inflection is now. The need for cybersecurity to defend AI is nonnegotiable. CrowdStrike is not only in the right place at the right time, we are the right technology to stop the breach. Think of CrowdStrike as the picks and shovels for the world's largest technology gold rush of all time. CrowdStrike is in the prime position to be the world's AI security layer with nearly 100 thousand businesses, including hundreds of the Fortune 500 already trusting us to secure their organizations. Our ecosystem of thousands of partners are looking to us for the answers on how to secure AI at global scale. This is even bigger than customers and partners. The market's very best AI talent seeks out CrowdStrike to join our mission. I am excited to announce Dr. Bartley Richardson joins my leadership team as chief AI and autonomous system officer. He joins CrowdStrike from longtime strategic partner NVIDIA, where he led Agentic AI and cybersecurity AI. Bartley deepens our Nvidia collaboration and furthers our verticalization of AI into cybersecurity. The best AI talent in the world is choosing to build at CrowdStrike. In this inflection moment, I see CrowdStrike's opportunity larger than ever before. The technology is here. The talent is here. And the market opportunity is here. We are raising our full year net new ARR guidance by more than $50 million. We now expect full year net new ARR growth to accelerate over last year. At $5.5 billion in ending ARR, we are accelerating. We see this as the AI tailwind in action. Given the strength of this quarter, and our confidence in what is ahead, I am announcing CrowdStrike's first stock split as a public company. We will be doing a 4-for-1 stock split making CrowdStrike more accessible for investors to join our mission. Cybersecurity is not a nice to have in the world of AI. it is a need to have. And CrowdStrike is the innovator of choice the partner of choice, and the protector of choice for this new accelerated AI world. Thank you for your trust I will now turn the call over to Burt W. Podbere, our CFO.

Burt W. Podbere: Thank you, George, and good afternoon, everyone. As a quick reminder, unless otherwise noted, all numbers except revenue mentioned during my remarks today are non GAAP. We delivered strong first quarter results to begin the new fiscal year. Exceeding expectations across all guided metrics. We achieved record Q1 net new ARR of $255.8 million up 32% year over year, driving ending ARR to $5.51 billion accelerating growth to more than 24% year over year. As George outlined, the Mythos moment marked an inflection point for the industry. Confirming that cybersecurity is not just foundational to AI adoption, it is critical AI infrastructure. Our Q1 results and f y 27 outlook reflect the very beginnings of this technology wave with broad based momentum fueled by customers consolidating their security needs lowering their total cost of ownership, and accelerating AI adoption with CrowdStrike as their security foundation. This strength is reflected in our continued strong retention rates increased module adoption, third consecutive quarter of ending ARR growth acceleration for the endpoint business, and Q2 record pipeline. Additionally, we closed the acquisitions of Signal and Seraphic in the first quarter, contributing a combined $7.8 million of acquired net new ARR which was within our stated expectations of $5 million to $8 million Moving to the P&L, total revenue exceeded our guidance range and grew 26% over Q1 of last year to reach $1.39 billion, with year over year growth accelerating sequentially for the fourth consecutive quarter. Subscription revenue grew 26% over Q1 of last year, to reach $1.32 billion and professional services revenue remained strong, at $64.8 million up 23% year over year driven by the elevated threat environment. The geographic mix of first quarter revenue consisted of 66% from The US, and 34% from international geographies, with EMEA and overall international year over year revenue growth accelerating compared to Q4. Total non GAAP gross margin was our Q1 record 79% and non GAAP subscription gross margin was a Q1 record 81% of revenue up 90 basis points over the prior year, driven by continued cloud optimization. First quarter non GAAP operating income was a Q1 record $325.7 million and non GAAP operating margin was 24% up 530 basis points over the prior year and exceeding our guidance. The outperformance was driven by our strong top line performance gross margin improvement, and increased operating efficiency underscoring our commitment to durable, profitable growth. We once again delivered positive GAAP net income In Q1, to CrowdStrike of $27.8 million. Non GAAP net income attributable to CrowdStrike was a Q1 record $283.4 million or $1.10 on a diluted per-share basis exceeding our guidance. Moving to cash. Our cash and cash equivalents were $4.55 billion. We generated record cash flow from operations of $590.9 million and record free cash flow of $468.5 million or 34% of revenue. In Q1, we repurchased $176 million of shares outstanding at an average price of $365.63 We now have approximately $1.3 billion remaining under our share repurchase authorization. We will remain opportunistic in returning capital to shareholders as we remain focused on capturing the significant growth opportunities ahead of us. Finally, as George mentioned, we are announcing a 4-for-1 forward stock split. To make ownership of CrowdStrike stock more accessible to investors. Stockholders of record after the close of market on June 25, 2026 we will receive an additional 3 shares of common stock for every 1 share held after the close of market on July 1, 2026 with trading on a split adjusted basis expected to commence at market open on July 2, 2026. Moving to our outlook and modeling notes. Our record Q2 pipeline and strong momentum across competitive display displacements Falcon Flex adoption, and platform consolidation, give us conviction in the durability of CrowdStrike's growth trajectory profitability expansion, and cash flow generation. As George outlined, AI adoption has become an existential imperative and it requires cybersecurity. CrowdStrike provides critical infrastructure that enterprises need to adopt AI safely and at scale. Our broad business momentum and the accelerating AI tailwind we see are reflected in our raised FY27 outlook. We now expect FY27 net new ARR growth to accelerate over FY 2026, with year over year growth of 27.7% at the midpoint a 520 basis point increase in year over year growth from our prior guidance translating to an increase of $52 million to $1.291 billion of net new ARR. Given our Q1 net new ARR outperformance and increased outlook for the full fiscal year, we now expect FY 2027 net new ARR seasonality to be approximately 42% in the first half and 58% in the second half. Moving to cash, at the midpoint of our guidance, we expect free cash flow margin of 24.5% in Q2 our seasonally lowest free cash flow quarter, and continue to expect at least 30% for the full fiscal year on our increased revenue guidance. As a result of our outperformance in Q1, we now expect the seasonal mix of free cash flow dollars between the first and second halves to be 46% in the first half and 54% in the second half. For the second quarter of FY27, we expect annual recurring revenue to be in the range of $5.793 billion to $5.795 billion reflecting a year over year growth rate of 24% translating to net new ARR of $284 million to $286 million reflecting a year over year growth rate of 28 to 29%. We expect total revenue to be in the range of $1.436 billion to $1.442 billion reflecting a year over year growth rate of 23%. We expect non GAAP income from operations to be in the range of $346 million to $349 million and non GAAP net income attributable to CrowdStrike to be in the range of $301 million to $303 million. We expect diluted non GAAP net income per share attributable to CrowdStrike to be approximately $1.16 to $1.17 utilizing a 21% tax rate and weighted average share count of approximately 258 million shares on a diluted basis. Adjusted for the stock split, we expect diluted non GAAP net income per share attributable to CrowdStrike to be approximately $0.29 utilizing a weighted average share count of approximately 1.034 billion shares on a diluted basis. For the full fiscal year 2027, we expect annual recurring revenue to be in the range of $6.532 billion to $6.556 billion reflecting our year over year growth rate of 24 to 25% and translating to net new ARR of $1.279 billion to $1.303 billion reflecting a year over year growth rate of 27 to 29%. We expect total revenue to be in the range of $5.915 billion to $5.959 billion reflecting a growth rate of 23 to 24% over the prior fiscal year. Non GAAP income from operations is expected to be between $1.452 billion and $1.480 billion. We expect non GAAP net income attributable to CrowdStrike to be between $1.263 billion and $1.285 billion. Utilizing a 21% tax rate and approximately 259 million weighted average shares on a diluted basis, we expect non GAAP net income per share attributable to CrowdStrike to be in the range of $4.88 to $4.96. Adjusted for the stock split, we expect diluted non GAAP net income per share attributable to CrowdStrike to be approximately $1.22 to $1.24 utilizing a weighted average share count of approximately 1.036 billion shares on a diluted basis. George and I will now take your questions.

Operator: Thank you. If you would like to ask a question, please click on the raise hand button which can be found on the bar at the bottom of the Zoom window. You may remove yourself from the queue at any time by lowering your hand. When it is your turn, you will hear your name called and receive a message on your screen notifying you that you may unmute yourself. In the interest of time, participants will be limited to 1 question. Our first question comes from Meta Marshall with Morgan Stanley. Please go ahead.

Meta Marshall: Great. Thanks. George and Burt, you noted a lot of tailwinds for the business as customers invest in AI. Can you just unpack which of those are the biggest near term drivers that prompted you to meaningfully raise the net new ARR guidance for both Q2 and the full fiscal year? Thanks.

Burt W. Podbere: Sure. Thanks, Meta. The first speed driver for us in terms of the tailwinds the AI tailwinds that George talked about in his prepared remarks. But then you look into other things that really give us confidence in terms of raising the guide. 1 is basically the strong module adoption rates that we have. The strong gross and net retention rates that we have, and, of course, our, you know, our strong Q2 record Q2, pipeline. Then you can throw in the mythos moment. Which created an inflection point around AI for our business. So you combine all those things that gave us confidence for both the Q2 guide as well as the full year guide. Thanks, Meta. Operator, next question.

Operator: Our next question will come from Saket Kalia with Barclays.

Saket Kalia: Okay. Great. Hey, guys. Thanks for taking my question here. And great to see the raised net new ARR for the year. George, maybe, for you related to that point, can you just give us a little bit of color on when you started to see that inflection in demand related to what I think we called the mythos moment? I am curious how it sort of unfolded here from a timing perspective. Thanks.

George R. Kurtz: Yeah. Thanks, Saket. It actually started, as just at the end of March, which is slightly before Methos. And every meeting that we had with customers was all about protecting AI and providing visibility into things like shadow AI. You know, we talked about the inflection point an endpoint and the acceleration. And, obviously, there is a lot of customers that wanted to deploy more AI but they are actually being held back because they do not have the right visibility, security controls around everything from identity to data protection to DLP-type services. So every meeting was literally the same meeting all over on, help us protect you know, these AI workloads that are running on the end points. And all the developers are running it. Marketing is running it. Accounting is running it. We heard just crazy stories about AI run amok. And the biggest thing for me when I ask what outcome the customer is looking for, it was not a technology outcome per se. It was we need to solve a security issue because we wanna deploy AI faster. Go faster in our business, and our CEO is demanding the adoption of AI. We cannot do it securely. So that was a kind of a light bulb moment, obviously, or an inflection point in at RSA. And then you combine that with Mythos in April, And, I mean, literally, the thousands of interactions that we have had with customers on Mythos briefings and our Project QuiltWorks has been incredible. So you kind of put all that together and, you know, you have got a real inflection point in the market. Thanks, Saket. Operator, next question, please.

Operator: Your next question will come from Brian Essex with JPMorgan.

Brian Essex: Hi. Thanks, everyone. Good afternoon, and thank you for taking the question. Likewise, great to see the pretty impressive net new ARR increasing guide. You know, George, we would love to pick your brain a little bit. You know, we have been hearing that security has been gaining budgets outside of traditional IT and security budgets. Maybe around RSA. And then after Mythos released, was released, it seems as though we have a bit of panic spending. We are seeing a lot in the consulting industry, it sounds like everyone's seeing it in their pipeline. But would love your sense of know, where the money's where do you think the money's coming from? How much of the current AI tailwind might be incremental security spend and how much is maybe reallocation of existing budgets towards vendors perceived as more AI native, and where's the money coming from within know, what I would imagine are relatively set budgets for the year?

George R. Kurtz: Yeah. I think you have to look at just a crazy inflection point in the adoption of, you know, frontier type models right? And we have all seen the revenue curves. With the big players that are out there. So, you know, we are tending to follow the slope of that adoption curve, and, you know, the token spend has been just jaw dropping. And when you have that level of adoption, you know, you are gonna have incremental funding around I think if we look at this, realistically 2 years ago, there was not these big token budgets. Right? All of a sudden, there is, and people are finding money and it is incremental. And they need to adopt more of it. We have plenty of companies that are tracking token usage not only from the spend standpoint of, you know, what are they spending, but they wanna know who is spending it. Are they spending it enough? Are they going fast enough? So we have seen it being incremental. And at the end of the day, it is getting back to something I have said time and time again, you know, if you want to create AI, you need GPUs. If you wanna use AI, you need security. And that is what we are finding. Alright. Thanks, Brian. Operator, next question, please.

Operator: Your next question will come from Gabriela Borges with Goldman Sachs.

Gabriela Borges: Hey. Good afternoon. George and Burt, I wanna ask you a little bit about the modules in your business where you price based on consumption. I think there might be a little bit of that in your next gen SIM business maybe in cloud business as well. What I want to ask you is, are you seeing a change in or a step function change in the amount of ingestion, data ingestion, cloud workloads, that sort of dynamic. Either because of agentic activity or because perhaps the amount of agentic threats that customers have to deal with has gone up in the sock. And I am wondering because of the structural advantages you have on the cost and performance side and next gen SIEM, can that now create an additional motion for you to have in the next gen SIEM product? So much.

George R. Kurtz: Well, when we think about the agentic world, it is all about data, and that is been a foundational element of CrowdStrike since my starting of the company. You know, if you have the right amount of data, you can solve most security use cases. And in today's world, it is all about creating data using that data for training, instrumenting, this via an Agentic SOC. And that is why we have seen a incredible adoption in our next-gen SIEM we have seen workloads increase in the cloud. We have seen companies where in the past, they may not have put as much data into their SIM just because of a legacy provider and sort of their cost model. And given the disruptive nature of our SIEM pricing, it is all part of our platform, and we are really charging for third party ingest, it is been a real win for customers. So we are seeing more and more adoption, broader, and we are able to cover use cases that were not covered in the past just given, I am sure, the economics of how we are going to market with it. So I think there will be more tailwinds And, again, there are a lot of customers now that are using that data with their own AI agents that we provide on the platform, and getting incredible outcomes. So the data gravity and the data moat that we talk about is obviously here. it is been here, and it is only getting bigger given the nature of AI. Thanks, Gabriela. Operator, next question, please.

Operator: Your next question will come from Matthew Hedberg with RBC.

Matthew Hedberg: Great. Thanks for taking my questions. Congrats from me as well. George, you know, you mentioned in your script, cloud security had another strong quarter. I guess I am curious you know, with the rise in AI demand, how is cloud security impacted by AI? And what are you seeing in terms of, you know, other competitive displacements or win rates in that segment?

George R. Kurtz: Well, yeah, it is a good question. And when you think about cloud security for a long time, it was about posture management. In the AI world, it is really about runtime protection and control because you are seeing now these AI workloads being hosted in the cloud. Right? And these containers that have agents that are long running agents. Right? And they are being spun up with a certain level of control, and they need the runtime enforcement that we bring to it, which is a real strategic advantage for us. So that has certainly played into our favor. And then you combine that with the ability to understand sort of SaaS posture for you know, cloud providers. And some of the attack vectors around those SaaS providers. it is been just a very I would say, bright spot for us given the full nature of the cloud stack that we have been building over many years. Thanks, Matthew. Operator, next question, please.

Operator: Your next question comes from Robbie Owens with Piper Sandler.

Robbie Owens: Great. Andy, thanks for the question. George and Burt, good afternoon. George, another seminal cyber event here in our careers, but definitely probably lending to a greater step function than we have seen historically in terms of the opportunity. And so given the events of the last couple months, how are you thinking about your business in general and where you might lean in to take advantage of it. Know, obviously you have been building out the product set, but given the greater sense of urgency, are there things you are contemplating from packaging, pricing, further M&A, you know, to really go after this opportunity since it seemingly is exploding from a demand perspective. Thank you.

George R. Kurtz: Well, I guess I mean, I will start with the flex model itself, and it is something that we put in for a few years now, and we are all seeing the benefits of the flex model in terms of taking advantage of helping customers in these Mythos moments. There are many technologies that are rapidly evolving in an enterprise. And, they all need protection. A lot of them obviously sit around AI. I think we have done a good job from an acquisition perspective. I think we have been very strategic in getting companies that fit within our portfolio. Again, we spend a lot of time on the integration, which is something customers recognize and reward us for, and we will continue to be acquisitive. We are always looking at companies. Again, we tend to buy tech and great teams and spend a lot of time on the integration. But I think there is just a lot of areas in AI that are rapidly emerging, and, we continue to monitor that market, and we will continue to, build it organically as we have and inorganically you know, as we as we round out the entire portfolio specifically in that area. You have got data protection. We continue to invest in those areas. You have got Falcon for IT. We have seen just incredible progress in replacing some of the larger incumbents in that market. So, you know, where we need to, we will augment that with acquisitions, and we continue to be a company that drives innovation organically as well. Thanks, Robbie. Operator, next question, please.

Operator: Your next question will come from Josh Tilton with Wolfe.

Analyst: Hey, guys. Thanks for taking my question. George, maybe for you. I thought it was very interesting how in the prepared remarks you mentioned how things were just moving so fast in the month of April. I am just trying to understand, was there any delayed spending or decision making that maybe changed the net new ARR seasonality relative to what you guys were initially thinking 90 days ago. And I am just asking because I am I am trying to reconcile the incredibly impressive raise and understandably so kinda to the beat that you saw, in the quarter. Thank you.

George R. Kurtz: Well, I will start, and I will turn it over to Burt. But as I as I mentioned earlier, you kind of look at March and RSA as a real inflection point, and you have to look at sort of the adoption of things like Claude Code just exploded. I mean, I think everyone knows the numbers there. Right? So seeing this massive adoption very quickly of AI agents and that really kind of took place, you know, I think in earnest towards the end of March. And then the Mythos moment was in April. And then, obviously, you know, just incredible demand from that standpoint. That we saw. And, obviously, you are you are seeing it in the forward guidance in the race. So, Burt, do you want to add to that?

Burt W. Podbere: Yeah. So for sure. I mean, all the things that George said, it all came down to just our record Q2 pipeline. That gave us the confidence as we looked out into the full year It gave us confidence in terms of how we saw the business, the momentum in the business, And, you know, as I look at Q1 and I remark on Q1, I look at you know, the 32% year over year growth rate for net new ARR. that is an impressive number. Then you go to the cash, you know, our record cash, free cash flow, and you look at our Rule of 59, which is impressive at our scale. So you look at all those things combined, and that gives me confidence in terms of the in terms of the raise that we look at for the year. Thanks, Josh. Operator, next question, please.

Operator: Your next question will come from Joe Gallo with Jeff.

Joe Gallo: Hey, guys, thanks for the question. I have got a 2-parter on Agentic identity. This is clearly a huge need that all CSOs know they have But at the same time, companies are not really deploying security there. yet. What is causing that, and what is the catalyst that can revert that? And then just 2, can you talk a little bit more about your product positioning and identity outside of ITDR? Especially now with Signal in the fold and just the right to win in that agentic identity market? Thanks.

George R. Kurtz: Yeah. I mean, we have been in the identity market in some segments since 2020, and we built a great business there. 1 of the largest you know, pure play security identity businesses around. And what are we seeing? Well, obviously, with what we have built the organic evolution of the products. And now combined with signal, we have got an incredible opportunity in front of us. You know, just signal alone, we have got customers who, you know, are using it for nonhuman identities, and, they are getting incredible results. And I met with a customer at RSA, became a 2-time customer. This particular gentleman left 1 company that was a signal customer. And the first thing he did was to get signal at his at his next company, which we called out in the prepared remarks. And I asked him I said, what do you like? What works? You know, Why are you here so quickly for your second time around? Said it would take him 2 weeks to get an identity up and running, and now it takes him, like, 2 minutes. And the amount of just efficiencies that he was able to provide is incredible. And what we are seeing right now and we are working with customers right now on this, is using Signal as the identity control plane combined with our AIDR. So we see a fantastic opportunity. And remember, we are not saddled with legacy technology and sort of patchwork of things that we have to deal with patchwork with respect to sort of vaulting. Right? Customers want a new, they want a fresh approach of zero standing privileges and we have it, and it works in the agentic world. We feel really good about this acquisition and our identity business. Alright. Thanks, Joe. Operator, next question, please.

Operator: Your next question will come from Roger Boyd with UBS.

Roger Boyd: Great. Thanks, Andy, for the question. George, I wanted to come back to AI response and the pretty impressive pipeline and color you provided on that product. From a high-level perspective relative to that $2.5 trillion forecast AI market, how are you thinking about the TAM for AIDR? And then a few months ago, it felt like this is a pretty early market I guess, can you talk about with these early deals, what you are seeing from a competitive perspective? what is giving you the right to win here? Thanks.

George R. Kurtz: Yeah. So, Roger, I think when you look at this market now and the TAM, I think, is gonna be very large. I called out in my prepared remarks I think it is gonna be larger than EDR. And the reason why I think that is, you know, from an EDR perspective, you know, we are protecting machines and workloads and such. In the agentic world, on average, and it is an industry stat, there will be 90 agents per employee. So when you look at all those agents that need protection, this is what gives me confidence that it is going to be a bigger market than EDR. And why do we have a right to win? Well, we have pretty much created the EDR category. We are the number 1 pure play player in that category, and customers already have what they need. They already have the agent. They already have visibility into what is happening. And we have created some incredible advancements that give like, unparalleled visibility into what is happening at the agentic layer. And, we are working with some of the biggest companies on the planet now in preview mode on some of this technology in addition to what we already have in the market. So as a leader in EDR, it is a natural evolution where customers have said, you know, we need this protect our agents. And we are there to meet them in the market. So for me, it is, you know, 1 of the most exciting times since when I started the company because it really is, just an incredible moment to be in security and given all of the fast moving tailwinds of AI, think we are perfectly positioned. Alright. Thanks, Roger. Operator, next question, please.

Operator: Your next question will come from Eric Heath with KeyBanc.

Eric Heath: Hey, thanks for taking the question. Can you hear me okay? Yes. Hey. Great. George, as the security industry starts to embrace and leverage these frontier models to deliver products and services as you have done. Do the pricing models need to move to more of a token based pricing model? Just how do you see this evolving? Thanks.

George R. Kurtz: Well, it is an evolving market, and the great news is that FalconFlex license already contemplates that. Remember, Flex is a commitment model, but it has the ability to you know, use tokens, use credits, things of that nature. So I think we are in a great spot because we have done the hard work of getting these FalconFlex licenses in place. We have got customers who are already committed massive dollars to it. And then as it evolves, we can easily add token consumption into the model and certainly something that, you know, we may do in the future. But, obviously, it is moving pretty quick, and we want to make sure that we get it right. We wanna make sure we meet customers where they wanna be met where they have got a level of flexibility, but also level of certainty around the spend. And I think as a company, we have done a good job to help provide that to our customers, which is why you have seen the adoption around Flex. Alright. Thanks, Eric. Operator, next question, please.

Operator: Our next question will come from Fatima Boolani with Citi. you may now unmute and ask your question. Fatima, please feel free to unmute your line. Well, we will go to our next caller, and we can check back in with Fatima. Our next question will come from John DiFucci with Guggenheim Securities.

John DiFucci: Thank you. George, a question for you. You said the gap between AI adoption and AI protection is the widest asymmetry in security since the cloud transition. You also talked about an inflection in the quarter, which implies some incremental business, and that is your results look good, and that is reflected. But it seems like more about interest and intent. And it sounds like we are still really early in this journey for enterprises. So my question is, where are we In the actual adoption of AI in the enterprise? Are enterprises still trying to figure out how to harness its power and stepping in lightly, or are they really starting to deploy it broadly? And I guess more importantly, as it pertains to CrowdStrike, because I do not think they are necessarily gonna be aligned where are enterprises in their journey of adoption of security. For AI?

George R. Kurtz: Well, yeah, John, let's start from the top. Yeah. it is still the early innings as you might imagine, in an AI adoption. But you have to look across an enterprise where they have gone deep very quickly. Obviously, around developers first. And then they are moving into other areas. So depending on the industry, depending on the company, But certainly in the developer world, just since January and the evolution of some of the models and the harnesses that they have created to actually get work done. You have just seen incredible adoption very quickly. And that, like many other technology sort of inflection, points, the adoption front runs the security piece of it. And that is why so many CISOs and CIOs CEOs are calling us saying we need something to keep up with the adoption of security. We wanna AI. Wanna go faster, and we need something like CrowdStrike and AIDR. So we are still in the early innings. Other thing that I will point out, even when you look at you know, our pipelines and the things that Burt talked about, is the AI adoption is not all enterprise wide yet. And it is almost like the early days of EDR where someone would adopt it in a division or geography or something. We are still in those early innings. And we are seeing incredible pipeline. So, you know, once it goes really mainstream and companies adopt it across all of their employees and workloads, you know, again, I think you are gonna see just another incremental increase in opportunities there. Alright. Thanks, John. Operator, next question, please.

Operator: Your next question comes from Greg Moskowitz with Mizuho.

Analyst: Great. Thank you for taking the question. George, as you know, the US government just announced an executive order to upgrade systems for advanced AI. Can you talk about the role that you expect CrowdStrike to play here? And then maybe for Burt, how, if at all,, is this being reflected in your guidance?

George R. Kurtz: Yeah. So, I mean, first, let me commend the administration for calling out the need for AI security. And, I think the White House struck an appropriate balance here and we are certainly excited and, we will continue to engage. We have been very active in DC. We work very closely with various groups, administration, etcetera, And, I think this is a good thing. When you look at AI and how important it is for the future of the federal business and the security of the country is something that you really have to get right. And I think the, executive order will create a tailwind ultimately for businesses like CrowdStrike. Because these federal governments are gonna need to expedite and prioritize cyber defenses in a more modern in a more modern way. And you have to keep in mind that when we think about this, cybersecurity is national security. It is it is incredibly important. We are at the epicenter there. We will continue to engage and happy to be part of those efforts as they unfold. Alright. Thanks, Greg. Operator, next question, please.

Operator: Your next question comes from Michael Turrin with Wells Fargo Securities.

Analyst: Hey. Great. Thanks. Appreciate you taking the question. I wanna go back to just the shape of what you are seeing and how it shows up in the model. The 1 q ARR was strong but a bit closer to the guide, especially relative to how the full year numbers went up. So I know, George, you have mentioned post Methos moment multiple times. Maybe speak to the sequence of what you are expecting for the rest of the year in terms of pipeline progression And Bert, maybe you can just also touch on how we should think about the visibility you have into the ARR guide for the rest of the year versus what would drive further upside? Thank you.

George R. Kurtz: Yeah. So I will start. I will turn it over to Burt. But when you look at AI AIDR, I mean, it is 250% quarter-over-quarter up. With a $50 million-plus pipeline. And that is only growing by the day. I mean, the EBC, our executive briefing centers is full with companies that want to be talking about Mythos, how to protect AI. Every conversation, every rep, every you name it, And we have done a tremendous amount of executive and board briefings because Mythos, you know, this is from the backroom to the boardroom. I can tell you, CEO after CEO who called their CISOs on the weekend saying, is this thing really a problem? What does it mean for us? Do we protect ourselves? What does it mean going forward? And it really is a Y2K moment for security. So that is you know, we look at the upcoming year and the guidance, and it reflects that sort of momentum that we have seen in the pipeline. Or Yeah.

Burt W. Podbere: I think that is exactly right. So for us, again, we are getting that confidence from all the fundamentals in the business. We are getting the confidence from all the conversations we are having with customers, what George talked about with the Mythos moment. And there is not a conversation that is not happening, you know, from our large customers down to our smallest customers about how are we gonna protect our AI. Look. I think the world is looking to looking to us to be an accelerant for AI deployment. Because, you know, CSOs all over the world are the ones that have to kind of be the roadblock in terms of, you know, you know, deploying all of the AI but they cannot do it unless they know that the proper guardrails in place, and that is where they look to CrowdStrike. So based on all of that, I have confidence, you know, in the full year guide as well as the Q2 guide. Thank you.

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

George R. Kurtz: Well, I want to thank everyone for their time today. We certainly appreciate your continued support and look forward to seeing you at our upcoming events. Thanks so much. And we will see you soon.