Q2 2027 CrowdStrike Holdings, Inc. Earnings Call Transcript
Key Points
- Record net new ARR of $333 million, accelerating to 51% year-over-year growth, beating guidance by over $45 million.
- Ending ARR growth accelerated for the fourth consecutive quarter, reaching $5.84 billion, up 25% year-over-year.
- Falcon Flex adoption surged, with ending ARR from Flex accounts surpassing $2.29 billion, growing 101% year-over-year.
- Strong product momentum across AI security, with AIDR ending ARR nearly tripling quarter-over-quarter and Next-Gen SIEM ending ARR surpassing $695 million.
- Raised FY27 net new ARR guidance by 630 basis points, now expecting 34% year-over-year growth, reflecting increased confidence in durable demand.
- The acquisition of XM Cyber's technology assets will not contribute any ARR or revenue in FY27, potentially limiting near-term growth from M&A.
- Free cash flow margin in Q3 is expected to be 27.5%, below the full-year target of at least 30%, indicating potential quarterly volatility.
- The company faces intense competition in the cybersecurity market, particularly from legacy vendors and emerging AI-specific security solutions.
- Rapid AI adoption increases the attack surface, requiring continuous innovation and investment to stay ahead of evolving threats.
- Token-based pricing for AIDR may introduce cost uncertainty for customers, potentially impacting adoption if not managed carefully.
Hello, and welcome to CrowdStrike's fiscal second-quarter 2027 financial results conference call. (Operator Instructions) 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.
Good afternoon, and thank you for your participation today. With me on the call are George Kurtz, Chief Executive Officer and 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, including projections, and expected performance, including our outlook for the third-quarter and fiscal year 2027, and any assumptions for fiscal periods beyond that are forward-looking statements within the meaning of the Private Securities
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