Hello, and thank you for standing by. Welcome to CrowdStrike's fiscal third quarter 2023 results conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. It is now my pleasure to introduce Vice President of Investor Relations, Maria Riley. Good afternoon, thank you for your participation today. With me on the call are George Kurtz, President and 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, growth, and expected performance, including our outlook for the fourth quarter and fiscal year 2023, as well as any assumptions for fiscal periods beyond that, 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 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 quarterly and annual reports. Additionally, unless otherwise stated, excluding revenue, all financial measures disclosed 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 earnings 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. With that, I will now turn the call over to George to begin. Thank you, Maria, and thank you all for joining us. Let me start with a summary of our results. In Q3, we delivered 53% revenue growth year-over-year, 15% non-GAAP operating margin, and record non-GAAP net income, all of which were ahead of our guidance. Additionally, we achieved record free cash flow of $174 million or approximately 30% of revenue. There are many positive trends we see in our business, including strong competitive win rates, consistent ASPs, exceptional retention rates, and the mission-critical nature of cybersecurity. However, I would first like to address the increased macroeconomic headwinds we saw in the quarter, which caused Q3 net new ARR to come in below our expectations. As we discussed on our last earnings call, organizations were starting to respond to macroeconomic conditions by adding extra layers of required approvals and extending the time it took to close some deals. As Q3 progressed and fears of a recession grew, this dynamic became more pronounced. In our smaller, more transactional non-enterprise accounts, we saw customers increasingly delay purchasing decisions, with average days to close lengthening by approximately 11% and net new ARR contribution decreasing $15 million from Q2. This also impacted our net new logo additions in the quarter, even though our quarter-over-quarter POV win rates increased meaningfully over more complex vendors that required more headcount to manage. While sales cycles lengthen, we believe the vast majority of these deals are not lost, just delayed. In the enterprise, sales cycles or average days to close remained consistent with last quarter's modestly higher level. In Q3, these larger customers continued to prioritize their CrowdStrike investments, some also had to manage timing issues related to OpEx budgets and cash flow amidst the rapidly evolving macro. To achieve this, some customers sign contracts that have multi-phase subscription start dates, which pushes their expense and CrowdStrike's ARR recognition into future quarters. While every quarter, we have some deals with multi-phase subscription start dates, in comparison to last quarter, in Q3, we saw approximately $10 million more ARR deferred into future quarters. We expect these macro headwinds to persist through Q4. Additionally, given the increased scrutiny on budgets, we're not going to expect a typical Q4 budget flush, leading us to adjust our Q4 net new ARR expectations, as Burt will discuss in more detail. This caution does not deter our confidence in the long-term market position of CrowdStrike or the resiliency of the cybersecurity market. We see strong inherent demand for our products, and we entered Q4 with a record pipeline. Pipeline expansion is even more important in times of an evolving macro and elongated sales cycles. We are working to stay out in front of pipeline creation. With Jennifer Johnson, our recently appointed CMO, now at the marketing helm. We are realigning our marketing initiatives and increasing our focus on ramping more top-of-funnel initiatives and brand awareness to drive pipeline to even greater heights. We also gained significant leverage from our partner ecosystem, with partner-sourced ARR growing 55% year-over-year. There were many positives in this quarter, highlighted by the record number of customers contributing at least $1 million in net new ARR in the quarter. Ending ARR for the $1 million-plus cohort surpassed the $1 billion milestone in Q3 with a 67% year-over-year growth rate. These larger customers are standardizing on Falcon, consolidating vendors, and prioritizing expansion projects that represent sizable cross-sell and upsell opportunities that are moving forward even under uncertain macro conditions. Marquee brands that are new to our $1 million+ cohort included a Fortune Global 500 manufacturer that landed with 10 modules, providing unprecedented visibility and protection to all areas of their environment and allowing them to consolidate four agents and vendors with their initial deployment of Falcon. Two Fortune Global 500 financial institutions who chose Falcon for its ability to replace multiple legacy security products and bolster their security posture through a single agent. A Global 500 consumer goods manufacturer that is now leveraging Falcon Complete for a fully managed approach to protecting its critical infrastructure, and a Fortune 500 luxury brand leveraging Falcon to protect both its traditional endpoints and cloud workloads. In the third quarter, we also delivered strong results in the public sector, driven by a Falcon Complete land with one of the largest U.S. federal agencies now standardizing on the Falcon platform and a strong quarter for our SLED business, with the U.S. state government standardizing on CrowdStrike in the quarter, as well as wins and expansions across multiple U.S. state and local government agencies and educational institutions. To date, 40 U.S. state governments are CrowdStrike customers, of which 21 and the District of Columbia have standardized on Falcon. Additionally, we secured a win with one of the largest federal systems integrators that will be using Falcon to protect its internal estate as well as integrate it into its MSSP offering. Moving to our expansion and retention performance. Our dollar-based net retention rate was well above Q3 of last year and consistent with our Q2 performance, which was at the highest level in seven quarters. Our best-in-class growth retention rates remained at record levels above 98%. We are also seeing more customers standardize on the Falcon platform and adopt more modules. Q3 subscription customers with five or more, six or more, and seven or more modules were 60%, 36%, and 21%, respectively. This represents a 55%, 66%, and 81% year-over-year increase in these respective module adoption cohorts. It was another record quarter for our emerging product category, which includes our Discover, Spotlight, Identity Protection, and LogScale modules. Our Identity Protection solutions are the largest contributor to ARR within the emerging category, and Q3 was another record quarter. Net new ARR for Identity Protection solutions grew to a new all-time high, and the attach rate on net new logos continued to grow rapidly. With close to 80% of cyber attacks leveraging identity-based tactics to compromise legitimate credentials and use techniques like lateral movement to evade detection, identity protection is core to stopping breaches. Our identity protection capabilities are a game changer in shoring up Active Directory, as well as stopping ransomware and lateral movement. To punctuate the value of our identity protection capabilities, I'd like to share a recent seven-figure expansion with a leading global brand. This customer has a very capable security team that spent years building a dedicated identity and access management team and implementing a Privileged Access Management solution, or PAM. Even with these efforts, shortly after turning on Falcon's Identity Protection in the POV, we identified several misconfigurations, including dozens of domain administrator accounts that were not being managed by their PAM solution, a multitude of accounts without password expirations, thousands of users with compromised passwords, and a potential attack path from unprivileged accounts to privileged ones. With Falcon Identity, this customer is shutting down routes to illegitimate access and significantly hardening their defenses. Q3 also marked another record quarter for LogScale as we secured wins across multiple verticals, including financial services, insurance, technology, retail, energy, and telecommunications. Notable wins included a statewide insurance provider in the U.S. and previously mentioned new Fortune Global 500 financial institution. Where Falcon LogScale is enabling both organizations to log more data, retain it longer, and reduce the cost of their existing log solutions, resulting in better security and more visibility across their environments. During the quarter, we acquired External Attack Surface Management, EASM vendor, Reposify, to help our customers identify and eliminate risk from vulnerable and unknown assets before an attacker can exploit it. The acquisition closed in early October. We expect to launch our External Attack Surface Management module this quarter, which will bring us to 23 modules available across the Falcon platform. On the public cloud front, we continue to build momentum with ending ARR for modules deployed in a public cloud setting growing over 100% year-over-year. Our CNAPP solution continues to gain industry recognition, including winning best cloud security in CRN's 2022 Tech Innovator Awards. Falcon Complete continues to shine with net new ARR growing close to 20% quarter-over-quarter as customers embrace our extended lineup of complete services, including Identity Complete and Cloud Complete. We launched Falcon Complete LogScale during Q3 and already secured several wins. In a more challenging economic environment, there is appeal for a solution like Falcon Complete that allows companies to decrease headcount or hold headcount stable. The significant advantages of CrowdStrike's Falcon Complete offering were showcased in the first MITRE ATT&CK Evaluation for security service providers. Out of 60 participants evaluated, the Falcon platform's integration of industry-leading technology and human expertise enabled us to deliver the highest coverage. This was MITRE's first closed-door test, which means the participants did not have prior knowledge of the adversary and retesting was not allowed. We believe this evaluation demonstrates why CrowdStrike is the clear leader in EDR and XDR, whether our capabilities are delivered as a fully managed service from CrowdStrike or through our network of MSSP partners or operated independently by our customers. The Falcon platform also won SE Labs' EDR ransomware detection and protection test. This well-regarded third-party testing firm involved 270 ransomware variations and deep attack tactics. Falcon achieved 100% ransomware prevention with zero false positives. Let me repeat, zero false positives, which we believe reflects our superior AI and machine learning models and the data mode advantage we derive from our unique graph technology in Threat Graph. Falcon's exceptionally low false positive rate represents a tremendous operational win for our customers as it enables them to significantly increase their speed to triage, investigate, and remediate a verified alert. Based upon our business value assessment and realized analysis, we estimate that on average, enterprise customers observed a 68% increase in operational efficiencies with the Falcon platform, equating to an offset of approximately 3.5 full-time employees. We believe today's macro pressures on businesses and the escalating threat environment make Falcon's value proposition as a consolidator more important today than at any other time in CrowdStrike's history. In order to solve agent bloat and complexity within the security and IT stack, while also protecting the business from cyber adversaries and reducing operating costs, companies need to consolidate on a truly integrated platform, not acquire technology stitched together by an invoice. CrowdStrike Falcon continues to be the gold standard and the security platform of record. While the cybersecurity market is not immune to macro pressures, it is a mission-critical technology. The adversaries don't stop. As detailed in our latest threat hunting report, Overwatch observed a nearly 50% year-over-year increase in interactive intrusion campaigns. We believe cybersecurity investment is resilient and is prioritized, especially among the world's largest organizations, as represented in our million-dollar-plus customer cohort and best-in-class retention rates and module adoption rates. With the escalating threat environment, expanding attack surface, and extensibility of the Falcon platform, it is our belief that we are still in the early innings of CrowdStrike's growth journey. We believe the early and rapid success of our identity protection solutions best demonstrates our ability to leverage our unique and vast threat intelligence to create and dominate new and legacy markets. We intend to continue our disruptive innovation, expand our technology leadership, and bring new modules to market. Even with these investments, we are responding to current macro conditions and plan to balance growth with profitability and free cash flow, as Burt will discuss in more detail. We remain steadfast in our vision to grow ending ARR to $5 billion by the end of fiscal year 2026 and reach our target operating model in fiscal year 2025. With that, I will turn the call over to Burt to discuss our financial results in more detail. Thank you, George. Good afternoon, everyone. As a quick reminder, unless otherwise noted, all numbers except revenue mentioned during my remarks today are non-GAAP. Before we get started, I will note that the results we are reporting today include the acquisition of Reposify, which was de minimis to revenue and ARR, contributing less than $1 million to Q3 ARR. In the quarter, ending ARR grew 54% year-over-year. Net new ARR grew 17% year-over-year to $198.1 million. Given the elongated sales cycles due to macro pressures in smaller non-enterprise accounts that George discussed, the composition of net new ARR in Q3 was weighted more heavily toward our million-dollar-plus customer cohort with no outsized contribution from any one deal. Our dollar-based net retention rate was above our benchmark and consistent with Q2, maintaining the highest level since Q3 in fiscal 2021. Gross retention also maintained its record level, demonstrating our strong commitment to stopping the breach, delivering value to customers, and restoring trust to the security posture of companies worldwide. As George mentioned, we are also seeing more customers standardize on the Falcon platform and adopt more modules. We believe these trends will create an enduring business opportunity for the years to come. Moving to the P&L, total revenue grew 53% over Q3 of last year to reach $580.9 million. Subscription revenue grew 53% over Q3 of last year to reach $547.4 million. Professional services revenue was $33.5 million, setting a new record for the 9th consecutive quarter and representing 46% year-over-year growth. In terms of our geographic performance in Q3, we continued to see strong growth in the U.S. at 46% and international revenue growth at 72% year-over-year. Third quarter total and subscription non-GAAP growth margins remained relatively consistent at 75% and 78% respectively. Total non-GAAP operating expenses in the third quarter were approximately $348.6 million, or 60% of revenue, versus $239.0 million last year, or 63% of revenue. In Q3, our magic number was 1.2, reflecting the continued efficiency of our go-to market engine. We believe a magic number in excess of 1.0 indicates very favorable go-to-market efficiency and supports our current investment plan. As George mentioned, we are focusing marketing investments on specific initiatives with the goal to drive an even bigger pipeline in response to the macroeconomic environment, while at the same time maintaining our disciplined approach to unit economics. Third quarter non-GAAP operating income grew 77% year-over-year to reach a record $89.7 million, and operating margin improved by 2 percentage points year-over-year to reach 15%. Looking at the first 9 months of fiscal year 2023, non-GAAP operating income grew 125% year-over-year to reach $260.1 million and 16% of revenue. Non-GAAP net income attributable to CrowdStrike in Q3 also more than doubled over the prior year, growing to a record $96.1 million, or $0.40 on a diluted per share basis. Our weighted average common shares used to calculate third quarter non-GAAP EPS attributable to CrowdStrike was on a diluted basis and totaled approximately 240 million shares. We ended the third quarter with a strong balance sheet. Cash and cash equivalents increased to approximately $2.47 billion and reflects the approximately $19 million payment net of cash acquired for the acquisition of Reposify. Cash flow from operations grew 53% year-over-year to a record $242.9 million. Free cash flow grew 41% year-over-year to a record $174.1 million, or approximately 30% of revenue. Before I move to our guidance, I'd like to provide a few comments about how we view the ongoing impact of the current macro climate on our business. We are maintaining our revenue guidance for fiscal year 2023 while raising our bottom line guidance. As George mentioned, even though we entered Q4 with a record pipeline, we are expecting the elongated sales cycles due to macro concerns to continue, and we are not expecting to see the typical Q4 budget flush given the increased scrutiny on budgets. While we do not provide net new ARR guidance, given the current macro uncertainty, we believe it is prudent to assume that Q4 net new ARR will be below Q3 by up to 10%. Looking into FY 2024, assuming an approximately 10% year-over-year headwind in the first half of the year on net new ARR, and for the full year, net new ARR would be roughly flat to modestly up year-over-year. This would imply a low 30s ending ARR growth rate and a subscription revenue growth rate in the low to mid-30s for FY 2024. Similar to how we partnered with customers during the height of the COVID-19 pandemic, we are exercising more flexibility with new contract payment terms as organizations navigate macroeconomic conditions. We also expect more multi-year deals converting to one-year renewals than in previous quarters. As a result, we expect free cash flow as a percent of revenue to be in the range of 28% and 30% for FY 2023. Throughout fiscal year 2023 to date, we have taken advantage of market dynamics and brought on superb talent in key functions at an accelerated pace. At the same time, employee retention rates have increased. As of the end of Q3, we have grown our team by 40% in FY 2023, putting us in a really good position to execute on our plan for next year. This allows us to shift our near-term focus to enablement and productivity while significantly slowing the pace of new hires needed to execute our plans. Assuming the macro environment does not materially weaken from current levels, we see a path to free cash flow margin of 30% of revenue in FY 2024, and we plan to generate modest incremental non-GAAP operating margin leverage in FY 2024 as we continue to march toward our target operating model. For the Q4 of FY23, we expect total revenue to be in the range of $619.1 million-$628.2 million, reflecting a year-over-year growth rate of 44%-46%, with subscription revenue being the dominant driver of growth. We expect non-GAAP income from operations to be in the range of $87.2 million-$93.7 million and non-GAAP net income attributable to CrowdStrike to be in the range of $100.9 million-$107.5 million. We expect diluted non-GAAP net income per share attributable to CrowdStrike to be in the range of $0.42-$0.45, utilizing a weighted average share count of 241 million shares on a diluted basis. For the full fiscal year 2023, we currently expect total revenue to be in the range of $2,223.0 million-$2,232.0 million, reflecting a growth rate of 53%-54% over the prior fiscal year. Non-GAAP income from operations is expected to be between $347.2 million and $353.8 million. We expect fiscal 2023 non-GAAP net income attributable to CrowdStrike to be between $357.6 million and $364.4 million. Utilizing 240 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 $1.49-$1.52. George and I will now take your questions. Thank you. Ladies and gentlemen, as a reminder, to ask a question, you will need to press star one one on your telephone. Once again, to ask a question, please press star one one. Due to time constraints, we ask that you please limit yourself to one question. Our first question comes from the line of Saket Kalia with Barclays. Okay, great. Hey, guys. Thanks for taking my questions here. A lot to unpack. George, maybe for you. I was wondering if you could dig just one level deeper into any competitive data that you've reviewed, you know, kinda looking back on the quarter. Do you feel like any big competitors here, like Microsoft or perhaps even smaller next gen competitors, are having an impact? Burt, if I could squeeze a housekeeping question in as well. Clearly, ARR is the metric that you manage to, but maybe for everybody's benefit, can you also talk to how RPO and ARR growth might have different drivers? Yeah. Thanks, Saket. Again, if you look at what we've seen and what we've commented on, the inherent demand for our products remains strong. Obviously, there's an increase in the macro headwinds. We talked about some of the smaller customers, having elongated sales cycles. We saw 11%, increase in days to close. Those are delayed deals, not lost deals. On the enterprise, again, we're seeing consistent win rates. They remain high. In fact, in the smaller customers, we've actually seen them significantly improve quarter-over-quarter. From our standpoint, we look at this very closely, as you might imagine, the landscape remains favorable to us. I really don't see another true consolidator like Falcon. Customers are looking for technologies that reduce costs, reduce complexities, actually work and stop breaches, and that's what we're delivering. Again, when we look at the competitive landscape, it remains favorable to us. As we pointed out, you know, we saw increased macro headwinds, and that's what we talked about. I'll turn it over to Burt. Thanks, Saket. First, big picture, when we think about CRPO, we think that as a noisy metric, and it's really not designed to match or correlate with ARR, given the fact that ARR is a normalized annual number. What do I mean by a noisy metric? Well, what I mean by that is there are several positive trends in our business that can create headwinds on duration relative to prior periods, and as a result, not necessarily fully captured in CRPO. Some examples would include, you know, for us, you know, more one-year deals compared to prior periods. In software, it's typical for multiyear lands to renew as one-year deals. As renewals become a bigger portion of the business, which for us it is, this creates a headwind to CRPO. We, you know, given where we are with respect to our high gross retention rates, you know, one-year deals provide us the opportunity to expand within the customer to drive bigger bundles. Two, with expansion and cross-sell sold coterminous to existing contracts, these are often less than one year in duration, so as our expansion business has been increasing, as evidenced by our net new retention rates, this would have pressure on our CRPO. Finally, on duration, you know, we do have some usage-based deals, could be MSSPs, the vast majority are MSSPs, how our use is based, and those are billed monthly. As MSSPs become a more rapidly growing part of our business, that's gonna impact CRPO as well as non-committed consumption billings in cloud. Finally, just to comment on ARR, you pointed out that's how we run our business. ARR, though, is really an X-ray into the contracts themselves. As we view that as the most important or most transparent metric into the outlook of our business, that's the one we're focused on. Hopefully that gives some more clarity on how we think about CRPO and ARR. Thank you. Our next question comes from the line of Rob Owens with Piper Sandler. Good afternoon, thanks for taking my question. Wondering if you guys could compare and contrast what you saw domestically versus internationally, and a little surprising to see international actually strengthen based on growth rate and the U.S. falloff. If you could provide a little clarity there, that'd be great. Thanks. Hey, Rob. This is Burt. Thanks for the question. In general, you know, we saw the macro hit, you know, all the geos. As we think about our splits between United States and internationally, obviously, the United States is the biggest portion overall of our business. Any impacts to ARR will generally be driven from that sector. Thank you. One moment, please. Our next question comes from the line of Sterling Auty with MoffettNathanson. Yeah, thanks. Hi, guys. Thank you for the extra commentary on macro and next year in particular. My question is really, how do you think about those macro headwinds manifesting themselves in terms of net dollar retention or expansion rates versus the growth rate in new customers? Is one side gonna be more particularly hit versus the other as it unfolds over the next several quarters? Thanks, Sterling. You know, for us, the good news is that we have a very healthy, install base, and we feel that we've got great opportunities in that, traditional land and expand model. There, you know, and we saw that in the, you know, in the, in the ratios that we saw. Having said that, we still feel that there's a tremendous opportunity in new logos. We think that, the, you know, the opportunity for us to go and capture, some of those, new logos, really has that. You know, goes to our model that we started and talked about since day one. Today, we still think about tremendous opportunity in the land and expand model, you know, as evidenced by our dollar-based net retention rates, but also in terms of the net new logos that we have the opportunity to go capture. We talk about, you know, the TAMs that we've seen ever increasing from IDC and the fact that we've just been able to add new modules at a nice clip. We feel that we have a great opportunity to go after those new logos as well. Thank you. Our next question comes from the line of Joel Fishbein with Truist. Hi. Thanks for taking my question. George, at you bought Reposify External Attack Surface Management. A lot of customers were talking about it positively at the analyst day or the user conference. Love to hear. You said it's gonna be launched this year. I wanted to see if there's any initial indication of interest there, and how do you think that'll trail or track in terms of demand? Yeah. We've seen a tremendous interest since the acquisition. We announced that at Fal.Con. Customers are looking to understand their exposures externally, and as they move more and more to the cloud, a lot of their exposures are really configuration and policy driven. It's a fantastic ad for us. It fits very nicely within our platform. It ties into what we're doing on the vulnerability management and risk side. Overall, we're really excited about it, and customers are not only looking at it for themselves, but also looking at it from a third-party risk perspective and leveraging it across their supply chain in terms of making sure that their suppliers are secure and not putting customers at risk. So far, very positive feedback, and we're excited to get the product launched and bring it to market. Thank you. Our next question comes from the line of Hamza Fodderwala with Morgan Stanley. Hi. Good evening. Thanks for taking my question. George, question for you. Now I think it's pretty clear that the macro is gonna impact pretty much every company, security, you know, not excluded from that. I'm curious how you're thinking about balancing sort of growth and profitability, from here, 'cause on the one hand, clearly growth is gonna slow for CrowdStrike and for everybody else. On the other hand, you've got this big market opportunity in front of you as an emerging consolidator in cybersecurity. Do you feel like this is a time to maybe continue to invest as maybe others are gonna struggle more, they don't have that free cash flow generation that you do? Do you feel like this is a time to maybe show a little bit more leverage? Just curious how you're thinking about that. Well, great question, Hamza, it's always been a balanced growth approach, it's never been a growth at all cost, I think we've shown that with our performance and track record. We continue to play the long game. If you put things into perspective, you know, we're a rule of 83 last quarter. I mean, you think about the growth and the cash flow generation at scale at, you know, $2 billion+ ARR, is pretty remarkable. We actually see this as a great opportunity for CrowdStrike as we go forward. As smaller competitors fall by the wayside, as private companies look for exits, we think it's a very attractive opportunity for us with our balance sheet, almost $2.5 billion in cash. You know, at the end of the day, as these macro trends, you know, evolve, you know, we see a great opportunity for us, you know, now into the future to continue to consolidate customers as well as, you know, other technologies that might fit within our platform. That's the way we look at it, balanced investment and, again, a focus on making sure that, we're delivering cash flow, for our shareholders. Thank you. Our next question comes from the line of Andrew Nowinski with Wells Fargo. Great. Thank you for taking the question this afternoon. You know, total ARR of $2.3 billion growing 54% is still absolutely amazing. I was, you know, and it's at scale. But I was wondering, you know, were you surprised that the net new logos that you added were down 9% this quarter? Thanks, Andy. When we think of the net new logos, it really corresponds to what we talked about in terms of what we saw in that, in that SMB space. The SMB space is the one that drives the velocity of our net new logos. As we talked about, we saw, you know, an 11% increase in our sales cycle in the SMB space. It, you know, that that actually equated into, you know, $15 million in terms of deals in that space that got pushed out. When you think about $15 million in that space and what it means in terms of logos, well, you can do the math, it's a pretty big number. That's how we think about net new logos corresponding to what we saw in net new ARR from the SMB space. From that perspective, you know, we weren't surprised at the end of the day when we saw that what happened with respect to the increased sales cycles and the amount of money that got pushed out in the SMB space. Thank you. Our next question comes from the line of Jonathan Ho with William Blair. Jonathan, are you there? Operator, maybe we can move to the next question. Certainly. Our next question comes from the line of Matt Hedberg with RBC Capital Markets. Great. Thanks for taking my question. George, for you've obviously been running, you've been in sort of the security industry for a long time. When you see macro headwinds like this pop up, are there things that you all can do from a sales perspective to accelerate cycles like, you know, going at customers sooner than you'd normally do? Just anything tactically that you do in times like this? Has anything changed competitively in the smaller side of the, of the business that you play in? Sure. Let me take the latter question first. As I mentioned, we actually saw our win rates go up in the downmarket SMB space. I think we continue to do well there. As Burt talked about, you know, deals getting pushed out from that segment, you know, we saw the impact of that. When we think about what we can do and what we continue to focus on, obviously, execution is really important to us and getting ahead of, you know, the lengthy sales cycles that you see, like in the enterprise with all the various approvals and legal that you have to go through compliance, privacy. It just making sure that you have all of those checked off to try to fit the deals in to the kind of a normal cycle that you would expect. It just, it takes more work and effort, and we continue to focus on, you know, full reviews of the pipeline and making sure that we're working with not only our internal sales teams, but also our partners in leveraging that vast partner network that we have. That's been the focus. Again, as you pointed out, I've been through multiple sales cycles, economic cycles, if you will, in security. As I said in an earlier question, I do think it's a great opportunity long-term as we, as we push through the macro headwinds. Thank you. Our next question comes from the line of Tal Liani with Bank of America. Hi. I hope for better news today after the win in soccer, but it's okay, we'll take what you have. I wanna ask about budgets. We're working off 2022 budgets now, and we see lengthening sales cycle in the low end of the market. The question is, as we go into 2023 and the new budgets are set, which is around January, what's the risk that we're gonna see, similar behavior of larger companies work off budgets and are less, sensitive to kind of, quarterly fluctuations? If you don't mind, just to touch on, no one asked about pricing and about quarter linearity, which are two important, Sure. I'll take the first part of that. When we think about budgets, again, all the feedback that we've seen is that, you know, budgets are not in the enterprise getting cut. There's so many mandates around security and just as, you know, customers move to the cloud. What they are looking to do though is optimize that spend and consolidate. They may not be spending as much money with a whole bunch of vendors, and they're looking to consolidate with companies like CrowdStrike. We spend a lot of time on selling the value, and when we think about this, and we talked about this in the past, Tal, is the consolidation of agents. It's a huge pain point for customers, the complexity, the cost. All the conversations that I'm having, CEO all the way down, has been around how do we help consolidate the cost 'cause they're gonna spend the money, they'd rather spend it with fewer vendors, and how do they get a better outcome? That's, I think, where CrowdStrike shines. In some cases, that may take a little extra work because we're upsizing some deals, and we've got to go through more approvals and go through more of the value selling. You know, again, that's what we're focused on. Obviously, you know, we'll monitor the environment and see if there's any changes. In all the conversations that I've had, security remains still top of mind and top of budget for enterprise customers. I'll take the second part, Tal. First on pricing, what I can comment on is that a couple things. One is we see that discounting is consistent with Q2. We didn't see any change there. There were no additional escalations to George and I for outsized discounting on deals. Number two is we've seen ASPs be consistent. You know, and that drives the point home about just our overall platform play and our ability to sell value. I think that, you know, I think that enterprise sales cycles increased a bit in Q2, and Q3 was consistent with that level. I think that when you think about, you know, linearity, to the second part of your question, I think that's how I think about that. You know, we did talk about on... For pricing anyway. When we do talk about, you know, net new ARR, I did talk about in the prepared remarks about how we, how we think about, you know, up to, you know, 10% headwinds going into Q4 from Q3. That's just to coincide with, you know, some of the headwind activity that we saw or accelerated at the end of, at the end of this quarter. That's how we think about that. Thank you. Our next question comes from the line of John DiFucci with Guggenheim. Thanks for taking my question. You said in the prepared remarks, you talked about large customers pursuing multi-phase subscriptions. I just wondering if we can dig into that a little bit. How long do you expect that ramp period to be? Do you have commitments for the ramp parts of the deal or just verbal intentions? Thanks, John. I'll take the second part first. We do have commitments from those deals. They're signed deals. It's just that when we think about structure, we have this phased start date with respect to the subscriptions. That's how we think about, you know, those multi-phase deals. Then I think that when we think about those multi-phase deals and the, you know, the patterns that we've seen, I think that we're gonna see something consistent with what we've seen in Q3. I think that more, more of those larger enterprise deals they're gonna sign those deals, they're gonna look at their budgets, they're gonna look at their OpEx, and they're gonna say, "Okay, well, this makes sense if we turn it on at this point," which could be, you know, a date post the quarter end. The deals then, I think the most important part about your question is that the deals are locked in. That's what we saw in Q3, we anticipate that in Q4. Thank you. Our next question comes from the line of Brad Zelnick with Deutsche Bank. Wow, great. Thanks so much for fitting me in, guys. Burt, your comment saying that you expect no budget flush this Q4 is like telling a kid Santa Claus isn't coming for Christmas. I think you guys are the only ones explicitly saying this, and I'm guessing it's because you're being more prudent, maybe more transparent than others. I'm also wondering how much of it is pipeline versus conversion rate assumptions that inform your perspective. I guess maybe to ask a little bit differently, how is your forecast methodology adapting to the environment and the assumptions that you're inputting into it in Q4? Thanks. Yeah. Really I want to attack that question from the standpoint of, you know, it starts from the fact that we did see record pipeline again going into the quarter. I think it goes back to what we've seen this quarter, both on the SMB and in the enterprise space. I think we're gonna see the consistent themes that the macro is driving. I think we're gonna see the SMB space. We're gonna see deals continue to be, you know, pushed out. On the enterprise, we're gonna see more multi-phase deals. That's how I think about, you know, the quarter. You know, I guess the one thing that I wanna add is that it is important that, you know, we are continuing to drive, top of funnel. We've got, you know, a lot of programs that are focused in on that, and it's just gonna be, you know, one of those things that we have to just overcome the macro. Thank you. Our next question comes from the line of Fatima Boolani with Citi. Good afternoon. Thank you for taking my questions. Burt, to your prepared commentary around some of the flexibility that you're introducing with respect to contract negotiations, particularly on the invoicing front. Wondering if you can share a little bit more detail with respect to how some of those engagements are becoming more flexible and sort of the implications on collections activity? I can appreciate you shared, you know, preliminary fiscal 2024 guidance with us, on a number of those fronts. Just to get a little bit more detail as to how some of these changes in, you know, business activity behavior from customers, is influencing how you're doing negotiations? On a related matter, as the business does become more and more renewal, does some of the leverage in the model start coming from maybe changed incentives to your sales team around, you know, renewal business maybe getting a lower threshold of quota payment versus net new business, which is clearly becoming a little bit more challenging to do in this environment? Thank you. Hi, Fatima. Good questions. I'll take them both. With respect to structure, there are two things that come to mind. One is obviously on the enterprise deals and the phased subscription start dates. That'll obviously impact billings and cash. The second one is, you know, flexibility on when those payments become due. We're working with our customers to meet their budgets, to meet their timelines, and we've been flexible with respect to that. Of course, that'll have an impact on cash as well. Overall, I still see, you know, because of our business model and our strong business model, you know, and consistent, you know, the biz model hasn't changed. I think that we've got this great opportunity to, you know, be comfortable in terms of what I talked about on the prepared remarks. From a, from a cash flow standpoint, you know, we see a path to a 30% free cash flow margin next year, and I think that that just goes back to the strength of the model and the fact that, you know, we've got this business that is really durable. With respect to, you know, how I see the big picture, I think that the things that we're doing with respect to structure really talks to the partnering with respect to our customers. That was well appreciated, well back in the, you know, when the pandemic first hit. It's being appreciated now in a macro with the headwinds that we all have. We're, you know, we're still very excited about the opportunity to be able to partner with our customers. Then second, with respect to, you know, how we think about, you know, compensating our sales team and in light of our renewal business becoming larger and larger. I think that, you know, the good news there is that when you think about renewal business, the actual cost that it is to, you know, to continue to generate net new ARR from an existing client is definitely lower than to go out and with respect to going out and getting a new logo. I think there is some leverage to that. That's why I think that, you know, we're in a really good spot with respect to me talking about leverage for next year. Thanks for the question. Thank you. Our next question comes from the line of Alex Henderson with Needham & Company. Great. Thanks. I was hoping we could talk a little bit about the cloud segment of the market, not necessarily in terms of your rate of growth per se, but rather what you're seeing in terms of companies' willingness to accelerate or decelerate their progression to the cloud of cloud workloads. Within that context, what kind of share do you think you're picking up, or are you gaining share in that in those workloads that are moving? Thanks. Yeah. Thanks. You know, obviously, customers are gonna flex what they put in the cloud and, you know, the sort of the cloud growth is what it is in terms of the macro cloud growth. In terms of what we see in our cloud workload protection, we continue to win in those areas. We win because we've got a combination of both workload protection as well as Cloud Security Posture Management and a full suite of protection capabilities. We have more and more customers that continue to leverage our technologies as they migrate to the cloud. They're still migrating to the cloud. They're leveraging our technologies as it's all integrated. You know, in terms of our cloud workload protection across the board, it's certainly been very, very strong. That's what we've seen in our business. You know, obviously, there's a broader, you know, cloud theme in the environment, and customers are gonna choose, you know, when and how they migrate, but we are there for them, and we continue to win those environments. Thank you. Our next question comes from the line of Roger Boyd with UBS. Great. Thanks for taking my questions. Burt, just to follow up on the multi-phase subscription start dates. I just wanna, like, unpack the behavior there a little bit. It sounds like it's mostly a cash flow consideration by customers, but are there any other factors driving this behavior, whether it's resource constraints, timing of roadmaps, or just practicing more care around aligning the end and then start dates of third-party solutions being consolidated on the Falcon platform? Just to follow up, I think you mentioned that these are confirmed deals, so I just wanna make sure that that is showing up, those deals are showing up in RPO. Thanks. Yeah. Thanks, Roger. To answer the first part of your question. I think the biggest driver is that OpEx. They're looking at, you know, starting those subscription dates at, you know, staggered times what makes sense to them. They've got to align their resources on their end and. Making sure that they have the right folks looking at it. I think, you know, for us, you know, the good news is that those deals are confirmed, they are locked in. We signed the deal. You know, some might be deployed now, some might be later, and they will be in the RPO calculations. Thanks for the question. Thank you. Our next question comes from the line of Joseph Gallo with Jefferies. Hey, guys. Really appreciate the question. George, appreciate your comments on 3Q and 4Q macro. Based on your conversations with customers, what is their view on 2023 cyber budgets as they start to think about them? Are they expecting near term alleviation with a quick Band-Aid rip-off, or is this more of a long-term new normal that we might see for the next year or so? As I, as I mentioned earlier, we haven't seen any customers come back and say, "Hey, our budgets are cut next year." We just haven't seen it. As I mentioned, they're looking to consolidate. They're obviously looking to deploy those resources wisely and do it with fewer vendors and get better outcomes. Again, that's an area where I think we have tremendous strength. Nothing in my conversations, and as you might imagine, I talk to a lot of customers all over the globe, and prospects, nothing has come back that said they're spending less on security next year. They're deploying to the cloud. They're adding capabilities. There's a whole slew of compliance requirements that are coming in around the globe that will drive additional spend. Again, they wanna do it in a way that they get the most bang for their buck in a consolidated fashion, and that's exactly what we've seen, and we haven't seen anything to deviate from that. Thank you. That concludes our question and answer session. I would now like to turn the call back over to George Kurtz for any closing remarks. I wanted to thank all of you today for your time, and we certainly appreciate your interest and look forward to seeing you at our upcoming investor events. Thank you and have a great day. Ladies and gentlemen, this concludes today's conference call. 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