{ "docId": "019de515-36b6-72bf-9c40-abb08242f052", "docSlug": "2a0f2d65ce3137f9cc22c878fb7d45a9", "documentTitle": "Crowdstrike | Investor Presentation Deck | 41 slides", "authorId": "crowdstrike", "authorName": "CrowdStrike", "documentKindSlug": "pitchdeck", "documentKindLabel": "Pitch deck", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2023-03-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 38, "pageCount": 41, "prevPage": 37, "nextPage": 39, "slideType": "appendix_data", "function": "appendix", "density": "dense", "nDataPoints": 6, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de515-36b6-72bf-9c40-abb08242f052/38", "deckHref": "/decks/019de515-36b6-72bf-9c40-abb08242f052", "deckJsonHref": "/decks/019de515-36b6-72bf-9c40-abb08242f052.json", "deckAnchorHref": "/decks/019de515-36b6-72bf-9c40-abb08242f052#slide-38", "components": [ { "bbox": { "h": 0.701, "w": 0.934, "x": 0.034, "y": 0.179 }, "kind": "paragraph", "text": "Calculation of metrics\nAnnual Recurring Revenue (ARR).\nARR is calculated as the annualized value of our customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. To the extent that we are negotiating a renewal with a\ncustomer after the expiration of the subscription, we continue to include that revenue in ARR if we are actively in discussion with such an organization for a new subscription or renewal, or until such organization notifies us that it is not renewing its subscription.\nDollar-Based Net Retention Rate.\nOur dollar-based net retention rate compares our ARR from a set of subscription customers against the same metric for those subscription customers from the prior year. Our dollar-based net retention rate reflects customer renewals, expansion, contraction and churn,\nand excludes revenue from our incident response and proactive services. We calculate our dollar-based net retention rate as of period end by starting with the ARR from all subscription customers as of 12 months prior to such period end, or Prior Period ARR. We then\ncalculate the ARR from these same subscription customers as of the current period end, or Current Period ARR. Current Period ARR includes any expansion and is net of contraction or churn over the trailing 12 months but excludes revenue from new subscription\ncustomers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at our dollar-based retention rate.\nDollar-Based Gross Retention Rate.\nWe calculate our dollar-based gross retention rate as of the period end by starting with the ARR from all subscription customers as of 12 months prior to such period, or Prior Period ARR. We then deduct from the Prior Period ARR any ARR from subscription customers\nwho are no longer customers as of the current period end, or Current Period Remaining ARR. We then divide the total Current Period Remaining ARR by the total Prior Period ARR to arrive at our dollar-based gross retention rate, which is the percentage of ARR from all\nsubscription customers as of the year prior that is not lost to customer churn.\nGross Churn.\nOur dollar-based gross churn rate is equal to 1 - Dollar-Based Gross Retention Rate.\nMagic Number.\nMagic number is calculated by performing the following calculation for the most recent four quarters and taking the average: annualizing the difference between a quarter's Subscription Revenue and the prior quarter's Subscription Revenue, and then dividing the\nresulting number by the previous quarter's Non-GAAP Sales & Marketing Expense. Magic Number = Average of previous four quarters: ((Quarter GAAP Subscription Revenue - Prior Quarter GAAP Subscription Revenue) x 4) / Prior Quarter Non-GAAP Sales &\nMarketing Expense.\nNon-GAAP Operating Income Rule of 40.\nNon-GAAP operating income rule of 40 is calculated by taking the Current Quarter Total Revenue YoY Growth Rate + Current Quarter Non-GAAP Operating Margin\nFree Cash Flow Rule of 40.\nFree cash flow rule of 40 is calculated by taking the Current Quarter Total Revenue YoY Growth Rate + Current Quarter Free Cash Flow Margin\nModule Adoption Rates.\nBeginning in the fourth quarter of fiscal 2023, module adoption rates are calculated by taking the total number of customers with five or more, six or more, and seven or more modules, respectively, divided by the total number of subscription customers (excluding Falcon\nGo customers). Falcon Go customers are defined as customers who have subscribed with the Falcon Go bundle, a package designed for organizations with 100 endpoints or less. The below table provides the module adoption rates excluding Falcon Go customers for\nthe second and third quarter of fiscal 2023. There is no impact to periods prior to the second quarter of fiscal 2023. Subscription customers' (excluding Falcon Go customers) adoption rates were as follows:", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e0497d0c-ba01-4c37-84e5-d75a425c88eb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.011, "w": 0.189, "x": 0.034, "y": 0.963 }, "kind": "source-note", "text": "2023 CrowdStrike, Inc. All rights reserved.", "attrs": {}, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "66b25392-f888-42e1-bed4-61b7a69cec8d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.136, "w": 0.259, "x": 0.336, "y": 0.82 }, "kind": "table", "text": "Q2 FY23\nQ3 FY23\nFive or more modules\n61%\n61%\nSix or more modules\n36%\n37%\nSeven or more modules\n20%\n21%", "attrs": { "header_rows": 1, "first_row_as_header": true }, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "77bcf501-18a1-41cc-994a-fb264a4363d4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.036, "w": 0.202, "x": 0.399, "y": 0.101 }, "kind": "title", "text": "Appendix", "attrs": {}, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "00f63566-cc94-4d71-aa02-7bee84e3c713", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Table data", "slug": "table-data", "agent": null, "layer": "slide", "matchId": "b631fa77-0858-4869-b542-98206daf2f3c", "evidence": "table/data: Q2 FY23 Q3 FY23 Five or more modules 61% 61% Six or more modules 36% 37% Seven or more modules 20% 21%", "confidence": 0.9 } ], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }