Wells Fargo: CrowdStrike's growth will reaccelerate next year once they mitigate customer churn

there certainly a risk so like the customer churn is the main is the main area of concern for us and so what they're doing and putting in place to minimize turn and I I'll say right now they they had very minimal customer turn in Q2 their gross retention rate was 98% that's the single best metric to measure whether they're losing customers or not um and the outage was an IT outage it was not a breach it didn't take away anything from the security efficacy of the solution so it's still the single best way to protect your organization a breach yet the risk there is still some risk that customers may leave over the course of the next 6 months um and and that's something that you know could could certainly impact our estimates but what management said is they're they're putting in place they're spending about 60 million on these customer commitment packages where that gives them increased flexibility to offer higher discounting Etc and they're really focusing on this Falcon Flex platform where the customer commits to uh to crowd strike and then they they burn off credits and they get they get access to all the products in the portfolio so they're using these customer commitment commitment packages over the next uh you know call it six months through the end of the year uh to to mitigate that customer turn we think once they get past this you're going to see uh growth re accelerating next year