Gray Powell: Okay, great. Thank you for taking the question. Yeah, I was just wondering if you could repeat the commentary on the potential for a year-end budget flush. I think you said that it was not going to be a typical year. And if I remember correctly, last year, the commentary is more like there’s going to be little or no budget flush. So, I guess my question is like how does this year look in comparison? Is it better, same, worse? Just sort of what’s your confidence level on trends?
George Kurtz: I think we’re looking at it saying, it may not happen, right. So, we’re not necessarily counting on that. And if it does happen, fantastic. And you have to again keep in mind that our fiscal year end is the beginning of a new budget cycle as well. So, we have year-end budget if it comes in December and then new budgets in January. But we — the macro environment, I would say has remained steady. As I said earlier, it’s still challenging and we’ll see if a budget flush comes, but that’s not something that we’re counting on.
Operator: Thank you. Our next question comes from the line of Jonathan Ho of William Blair.
Jonathan Ho: Hi. Congratulations on the strong quarter. I just wanted to get a little bit more color around the Charlotte AI revenue potential and maybe what customer use cases are seeing the most interest so far? Thank you.
George Kurtz: Well, we announced our pricing at Fal.Con. That was actually well received with customers. And in terms of the overall used cases, as I’ve talked about in the past, really it’s helping a Tier 1 SOC analyst up level themselves to be a Tier 3, right? It’s really driving SOC automation, which is a big focus for us with things like Charlotte and things like Falcon Foundry, how do you drive automation into organizations to give them better outcomes. At the end of the day, they would be willing to pay for something if it’s going to save them time or money or make their job easier. And what we’ve seen in the customers who are using Charlotte right now in its preview mode is, they’re able to do things way faster than they ever could and they’re able to explore and ask questions that they haven’t been able to do in the past, right?
It just makes it so easy to have Charlotte gather up all the information and then take an action on their behalf. So, A, the pricing has resonated well with customers. We’ll see how it shakes out as we get into full swing of things. But overall, what we’ve put together and the fact that it isn’t an independent chatbot, it’s really a foundational platform service that’s wired into everything that we do and allows automation through all the modules, I think is a home run for us.
Operator: Thank you. Our next question comes from the line of Gregg Moskowitz of Mizuho.
Gregg Moskowitz: Okay, thank you for taking the question. George, in your prepared remarks, you expressed a lot of excitement for Falcon for IT. But in addition to better security, better unification with IT, it also strikes me as having the potential to be a real ROI-driven sale for many customers. Do you agree with that? And if so, is that going to be an angle that you really go after from a go-to-market standpoint?
George Kurtz: Well, it’s exactly what we’re hearing from customers. I was with a customer last night and they were saying, we’re so excited for Falcon for IT, because we’ve got to work. We find the problems, we document them, and then we’ve got to work with the IT teams to get them fixed, and a lot of times their tooling is well behind what we can do with Falcon, and they sort of end up fixing it themselves with IT because we just have the capabilities to do that. So, to be able to carve out a home for IT and seamlessly help them understand their exposures on their assets that matter and then drive the automation to actually remediate those is incredible. And it goes beyond just kind of simple remediation. If you think about all the internal use cases in HR, an employee might have an issue, they might have to investigate it, they might have to do forensics on systems.
Systems are remote all over the world. We’ve got many, many airlines that use our technology. They don’t want to send out an IT person to go fix a kiosk that has a Microsoft blue screen. So what can they do? They can use Falcon for IT to bring it back to health. Tremendous savings in terms of cost and travel and complexity. So this one, I’m really, really excited about. And again, we’re working to get all the components of what customers need, at least for this first release. And then, I think sort of the sky is the limit of what we can build out there.
Operator: Thank you. Our next question comes from the line of Gabriela Borges of Goldman Sachs.
Gabriela Borges: Good evening. Thank you. George and Burt, I have a question for you. As you think about your fiscal year ’25 planning assumptions. You mentioned a couple of times that the macro environment is very consistent. Clearly, the execution on growth and profitability is very consistent. I’d love your observations on what’s incrementally changing. Meaning, as you think about your priorities into next year, what’s new versus this time last year? Thank you.
George Kurtz: Well, I’ll start and then I’ll let Burt jump in. I think from a priority perspective just on go-to-market and product-related. You talk about the fiscal piece, Burt. But we continue to drive innovation. Our focus has been on innovation, not integration. And I think that’s shown in what we’ve been able to deliver in the market, how fast we’ve been able to come out with products. Falcon was our richest release of technology. So, we want to continue to be the innovation leader in security, and I think customers will recognize that. From a go-to-market perspective, there’s a lot of work that we’ve done in terms of really, really making sure we’ve got the right hygiene across the enterprise and making sure that we can compress these, basically, time in sales cycles to get deals done when we need to and vector them in, and then also as we go down market into SMB, creating the right products for that segment and then delivering it through the right channels.
So, what we have is working. So, it’s going to continue to drive innovation, continue to remove friction in go-to-market motion, and continue operational excellence up and down the sales and the partner organization. Burt?
Burt Podbere: Thanks, George. So, in terms of how we think about the macro next year, we’re not going to predict the change in the macro until we actually see it, right? I think that’s going to be the wait-and-see game for most companies and that’s certainly the one that we’re going to take, but that’s how I see it.
Operator: Thank you. Our next question comes from the line of Alex Henderson of Needham.
Alex Henderson: Great. Thank you so much. Thanks for a great print. But I was hoping you could give us some clarity around some of the key metrics that people use to track conditions, closure rates, whether they’re stable, improving or eroding cycle time. I know you’ve said your deal size is up and I think at Fal.Con you talked about a significant increase in pipeline build. I think the comment was made on the stage that your pipeline target that they had tried to build was more than doubled the target. So, I was hoping you could talk about what the pipeline looks like as we go into this quarter and into the new year.
