Maria Riley : Jonathan, are you there? Operator, maybe we can move to the next question.
Operator: Certainly. And our next question comes from the line of Matt Hedberg with RBC Capital Markets.
Matt Hedberg : Great. Thanks for taking my question. George, for you. 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 going at customers sooner than you’d normally do? Just anything tactically that you do in times like this? And has anything changed competitively in the assets kind of the smaller side of the business that you play in?
George Kurtz : Sure. So let me take the latter question first. As I mentioned, we actually saw our win rates go up in the down-market SMB space. So I think we continue to do well there. And as Burt talked about, deals getting pushed out from that segment, we saw the impact of that. But 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 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, and it’s just making sure that you have all of those checked off to try to fit the deals in the kind of a normal cycle that you would expect. And it just — it takes more work and effort, and we continue to focus on 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.
And that’s been the focus. So again, as you pointed out, I’ve been through multiple sales cycles, economic cycles, if you will, in security. And as I said in an earlier question, I do think it’s a great opportunity long-term as we push through the macro headwinds.
Operator: Thank you. And our next question comes from the line of Tal Liani with Bank of America.
Tal Liani : Hi. I hope for better news today after the win in soccer, but it’s okay. We’ll take what you have. I want to ask about budgets. So 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 going to see similar behavior or larger companies work off budgets and are less sensitive to kind of quarterly fluctuations? And if you don’t mind, just to touch on, no one asked about pricing and about quarter linearity, which are two important trends? Thanks.
George Kurtz : Yes. Sure. I’ll take the first part of that. When we think about budgets, again, all the feedback that we’ve seen is that budgets are not in the enterprise getting cut. There’s so many mandates around security. And just as customers move to the cloud, what they are looking to do, though, is optimize that spend and consolidate. So 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 spent 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 of the cost. So all the conversations that I’m having with CEO, all the way down, has been around how do we help consolidate the cost, because they’re going to spend the money, they’d rather spend it with fewer vendors, and how do they get a better outcome.
And that’s, I think, where CrowdStrike shines. And 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. But again, that’s what we’re focused on. So, obviously, we’ll monitor the environment and see if there’s any changes. But in all the conversations that I’ve had, security remains still top of mind and top of budget for enterprise customers.
