Crowdstrike Investor Day Presentation Deck
APPENDIX
CALCULATION OF METRICS
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.
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.
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.
Gross Churn. Our dollar-based gross churn rate is equal to 1 - Dollar-Based Gross Retention Rate.
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