CrowdStrike Holdings, Inc. Class A Common Stock Fal.con, Las Vegas

Morning, everybody. It's great to see everybody once again. It's always best to see everybody live and in person. Welcome to what is our biggest Fal.Con event ever, and we've never been more excited to host you with so many of our customers here, so many of our partners here. Hopefully, you've had a chance to talk to a few of them. Hopefully, you had a chance to catch some incredible keynotes from George, and Mike, and others. It's been a fantastic start. We've got a really, really exciting lineup for you today. I'm going to go over the quick agenda, and hopefully, you're able to leave here with the same feeling that I have when I came here and how I'm feeling today about the opportunity in front of us. George is going to come up first.

He's going to talk about our next chapter, securing AI. We're going to then have a customer fireside chat with DB. We'll have a customer and partner fireside chat with DB. Then we're going to have a little break for lunch, quick break, maybe about 25 minutes. Then we're going to hear from Mike, the winning platform for the AI era. Then you'll hear from me. I'll come and finish it off. Then we'll have a quick interlude, and then we'll go right into Q&A. I'm excited for today. I hope you guys get a lot out of today. We've extended the Q&A session. That was one of the part of the feedback that we got from last year, where you guys wanted more time with us.

Not only are we going to give you more time for Q&A, but George, Mike, and myself are going to stay extra after so you can have one-on-one conversations with us. All right, so enjoy the day. Let's kick it all off.

Please welcome Chief Executive Officer and founder of CrowdStrike, George Kurtz.

All right. Okay, well, I can't believe what an event that we've been able to pull off. I think one of the premier security conferences now, and obviously we get to spend some time with the financial community. It's important to be able to explain what we're building, the innovation that we're driving at CrowdStrike, and more importantly, how we're solving customer problems. With that, I will jump into the presentation. As Burt said, we're excited for the fact that we've got more time to answer questions, which I know many of you want to get through. What is the state of AI? Some of this should be self-explanatory, but I at least wanted to go through what we've seen and some of the numbers. This McKinsey stat. If you look at organizations that used AI in at least one business unit, it was 55% in 2023, probably like in ChatGPT, and today it's 89%.

ChatGPT messages are up 8x, and reasoning tokens, 320x. That's where we are today. We started with chatbots, then we moved to reasoning, now we moved to agents. That is driving, of course, the spend. I always talk about following the money. There's always this question, I know, in the financial community, is it a boom? Is it a bubble? What's happening? Is it going to last? Because we've been through fits and starts in AI for a long time, if you remember the cycles of AI and machine learning and those sort of things.

I think where we are, to me, it's very clear that this is a mega trend that we've never seen before. It's the fastest growing transformation of spend in the enterprise history. Just look at the stats, $2.67 trillion, with a T, in 2026, going to $5.95 trillion in 2030. Again, a Gartner stat. For me, if we follow the money, it's all going to make sense in what that means in terms of the opportunity from a security perspective. We've seen this movie before, and we've seen it with the cloud adoption and the hyperscalers. What we saw over a period of time is the adoption of hyperscalers. I remember when I started CrowdStrike, we were a very early customer of AWS. I think they had five services at the time. Compare that to today. You can see the slope of the curve over time and the adoption of the cloud.

There was a point, if you remember, in the not so distant past, where you would walk into a financial services company, maybe like yourselves, and you would say, "Hey, let's talk about the cloud." They go, "We're never going to the cloud. That's risky. We're not going to do that." Think about where we are in 2026. If you fast-forward to looking at cloud security, and I say this all the time, security parallels the slope of the curve, the technology curve. If we just take cloud as, again, a tectonic shift in technology, you can see cloud security actually paralleling the slope of that. Now, if we plot frontier labs, it's a much different curve, and it's something that I've never seen before.

I don't think any of us in our lifetimes have seen growth as what we're seeing now in the frontier models. You can just look at the slope of their revenue and what they put out publicly, if you will, even though many of them are private. In general, you can see how fast the adoption is and how fast the spend is. Certainly, I think the adoption now for security is going to parallel that. What's important to realize, there we go. What's important to realize is that's okay, just keep it over there. Security's role is different this time in that security is now the accelerator, not the brake. In many of the technology shifts, it was like, well, security's got to get in the way, and it's going to slow us down.

Now, you have to have security in order to go fast, and that's one of the defining changes that I've seen in security and AI. Adoption is a necessity. It's larger net new opportunity, and it's immediate and rapid spin. What I would say specific to this is, again, just sizing the opportunity. If it's $2.6 today, going to $3.6, and you took a simple example, just a simple one, now you can put your own filter on this, but if it was 1% of the AI spend going to 8% of the AI spend, it's a $36 billion to $291 billion opportunity for security. Let that sink in. Again, apply whatever filter you want on it. What I can tell you, it's big.

I'm a simple math guy, and I look at this and I look at AI, and my simple math is, do I think there is going to be more AI in a year, in 3 years, in 5 years than there is today? If you can say yes to that, then the natural corollary is then by definition, you're going to have more security for all of that AI that's created. Where we are today, I was talking to Jensen in the green room. We were just talking about the future and where things are going and what we're seeing today, we're probably going to laugh in 5 years when we come back. We're going to remember these kind of simple concepts and what it was able to do. The more complexity that you have, the more security challenges that we're going to have to face.

Massive opportunity, it's a sustained opportunity, and it's certainly not just a peak of what we're seeing. I've said this, you've heard me on the conference calls, we've talked about it on many of the one-on-ones. I see AI security being bigger than EDR. Obviously, when we started the company, we redefined the market. There wasn't even a term called EDR, but we redefined it, and we knew we built a big business, and obviously now have built a big platform company on EDR, and then obviously in additional technologies. When we think about the velocity of the initial launch, just to put it in perspective, I'm not going to move around a lot because of my mic here, so I'll just kind of stay here. If we think about the velocity, when we launched EDR, we saw a 10x increase 3 quarters from launch.

Now, different time, it was a lot earlier in the life cycle. What we have seen with AI DR is a 79x increase in uptake just after 3 months. Okay, massive adoption. Yes, we are a bigger company. It is a different period of time. I like 79, and I can do math pretty quick, and to me, that is escape velocity. What is driving this? Why is it happening? AI has evolved. If we think about the non-agentic adversary that we have been fighting for many years when I started the company, dwell times were in the months. Expertise, you needed a nation state. You needed to have high expertise. The cost was high. The success framework was a 1/10/60 in terms of minutes. Now, the agentic adversary has really changed everything. Talking about seconds, minimal expertise, cost is negligible, and it is in real-time.

The speed of inference, if you saw my keynote yesterday. It just dramatically shifted in a very short period of time, and this is what customers are facing. From nation state to agent state. I went through the pyramid of pain, as I call it, which is hacktivists at the bottom, e-crime in the middle, nation state at the top, but now it is the agent state. That agent state now is powering and enabling everyone to act as if they were a nation state and really flattening this curve of expertise. Whether it is a hacktivist or an e-crime group or an agent, they are all in the same category. They all have the same level of expertise. Let us talk about cyber's next frontier. Where is it actually going? For us, we made an announcement yesterday. We talked about the Cyber Superintelligence Lab.