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  "documentTitle": "Crowdstrike | Investor Presentation Deck | 98 slides",
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      "kind": "paragraph",
      "text": "Magic 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 resulting 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 & Marketing Expense.",
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      "text": "Dollar-Based Net Retention Rate. Our 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, and 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 calculate 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 customers 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.",
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      "text": "Gross Churn. Our dollar-based gross churn rate is equal to 1 - Dollar-Based Gross Retention Rate.",
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      "kind": "paragraph",
      "text": "Free Cash Flow Rule of 40. Free cash flow rule of 40 is calculated by taking the Current Quarter Total Revenue YoY Growth Rate + Current Quarter Free Cash Flow Margin",
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      "text": "Module Adoption Rates. Beginning 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 Go 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 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:",
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      "text": "Non-GAAP Operating Income Rule of 40. Non-GAAP operating income rule of 40 is calculated by taking the Current Quarter Total Revenue YoY Growth Rate + Current Quarter Non-GAAP Operating Margin.",
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      "text": "Dollar-Based Gross Retention Rate. We 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 who 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 subscription customers as of the year prior that is not lost to customer churn.",
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      "text": "Annual Recurring Revenue (ARR). ARR 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 customer 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.",
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      "kind": "source-note",
      "text": "©2023 CrowdStrike, Inc. All rights reserved.",
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      "text": "Q2 FY23 Q3 FY23\nFive or more modules 61% 61%\nSix or more modules 36% 37%\nSeven or more modules 20% 21%",
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      "text": "Appendix",
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      "text": "CALCULATION OF METRICS",
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