CrowdStrike Reports Fourth Quarter and Fiscal Year 2024 Financial Results

Rhea-AI Summary

CrowdStrike Holdings, Inc. (CRWD) reports strong financial performance in Q4 and fiscal year 2024, with record net new ARR growth, reaching $3.44 billion. Revenue increased by 33% to $845.3 million in Q4. GAAP income from operations was $29.7 million. Full-year revenue reached $3.06 billion, a 36% increase. Non-GAAP income from operations was $660.3 million. Net cash generated from operations was $1,166.2 million for the year.

Insights

Financial Analyst

The reported financial results of CrowdStrike Holdings, Inc. demonstrate a robust year-over-year growth in both revenue and profitability metrics which are critical indicators of the company's financial health and operational efficiency. The 34% increase in Annual Recurring Revenue (ARR) to $3.44 billion is particularly notable as ARR is a key metric for software-as-a-service (SaaS) companies like CrowdStrike, reflecting the predictable and sustainable revenue stream from subscription-based services. The acceleration of net new ARR growth to 27% signifies a strong market demand for CrowdStrike's cybersecurity solutions.

The company's achievement of a 31% free cash flow margin, which exceeds their target, alongside four consecutive quarters of GAAP net income, indicates effective cost management and the ability to generate cash while scaling operations. The substantial improvement from a GAAP net loss in fiscal 2023 to a GAAP net income in fiscal 2024 suggests that the company has reached a pivotal point in its growth trajectory, transitioning from a phase of heavy investment towards profitability.

Investors may view these results favorably as they suggest that CrowdStrike is not only growing its customer base but also increasing its operational efficiency. However, it is important to monitor the company's future investments in innovation and market expansion to ensure that these do not adversely affect its newfound profitability.

Market Research Analyst

The cybersecurity landscape is rapidly evolving, with increasing threats and a growing need for comprehensive security solutions. CrowdStrike's financial results indicate that the company is effectively capitalizing on this market demand. The record figures reported for revenue, ARR and net income reflect CrowdStrike's competitive positioning in the cybersecurity industry. Their single platform approach to cloud security, identity protection and next-gen SIEM solutions, accounting for over $850 million of ending ARR, suggests a successful strategy in cross-selling and up-selling to their existing customer base.

Additionally, CrowdStrike's strategic acquisitions, such as Flow Security and partnerships, like the one with Dell for Managed Detection and Response (MDR) services, demonstrate the company's commitment to expanding its product offerings and market reach. The recognition by Gartner and Forrester further solidifies CrowdStrike's reputation as a leader in the cybersecurity space. This diverse approach to growth through innovation, strategic acquisitions and partnerships may contribute to sustained growth and resilience against competitive pressures.

For stakeholders, the positive financial outlook for the first quarter and full year of fiscal 2025 suggests continued confidence in the company's ability to grow and scale profitably. However, it is important to consider the broader economic conditions and potential market saturation as cybersecurity becomes an increasingly crowded space.

Cybersecurity Expert

CrowdStrike's robust performance, as indicated by the reported financial results, is a testament to the increasing importance of cybersecurity solutions in protecting endpoints, cloud workloads, identity and data. The company's module adoption rates, with 64% for five or more modules, suggest that customers are not only choosing CrowdStrike as their security provider but are also leveraging multiple solutions within their platform. This level of integration is indicative of customer trust in CrowdStrike's comprehensive security offerings and suggests a deepening reliance on their ecosystem.

The company's focus on cloud data runtime security through the acquisition of Flow Security aligns with the industry trend towards securing cloud environments, which are becoming more prevalent as businesses continue their digital transformation journeys. The successful completion of IRAP and TISAX assessments further demonstrates CrowdStrike's commitment to meeting rigorous security standards, which can be a differentiating factor in winning business from security-conscious enterprises and government entities.

While the financial results and strategic moves are promising, it is critical for CrowdStrike to maintain its innovative edge and adapt to emerging threats. The cybersecurity industry is highly dynamic and continuous investment in research and development is crucial to stay ahead of sophisticated cyber adversaries.

• Ending ARR grows 34% year-over-year to reach $3.44 billion
• Net new ARR growth accelerates to 27% year-over-year and reaches a record $282 million
• Achieves fourth consecutive quarter of both record GAAP and non-GAAP net income
• Delivers record operating and free cash flow

AUSTIN, Texas--(BUSINESS WIRE)-- CrowdStrike Holdings, Inc. (Nasdaq: CRWD), a global cybersecurity leader that provides cloud-delivered protection of endpoints, cloud workloads, identity and data, today announced financial results for the fourth quarter and fiscal year 2024, ended January 31, 2024.

"CrowdStrike delivered an exceptionally strong and record fourth quarter with net new ARR growth accelerating to 27% year-over-year, reaching a new high of $282 million and ending ARR growing 34% year-over-year to reach $3.44 billion,” said George Kurtz, CrowdStrike's president, chief executive officer and co-founder. “Customers favor our single platform approach, standardizing on CrowdStrike for cloud security, identity protection, and LogScale next-gen SIEM solutions, together representing more than $850 million of ending ARR. CrowdStrike is cybersecurity’s consolidator of choice, innovator of choice, and platform of choice to stop breaches.”

Commenting on the company's financial results, Burt Podbere, CrowdStrike's chief financial officer, added, “Highlights of the fiscal year included, ending ARR growing 34%, four consecutive quarters of GAAP net income, 104% non-GAAP net income growth and free cash flow margin of 31%, exceeding our target for the year. Our achievements in fiscal 2024 represent another high-water mark for CrowdStrike and we remain relentlessly focused on profitably scaling the business to $10 billion ARR and beyond."

Fourth Quarter Fiscal 2024 Financial Highlights

• Revenue: Total revenue was $845.3 million, a 33% increase, compared to $637.4 million in the fourth quarter of fiscal 2023. Subscription revenue was $795.9 million, a 33% increase, compared to $598.3 million in the fourth quarter of fiscal 2023.
• Annual Recurring Revenue (ARR) increased 34% year-over-year and grew to $3.44 billion as of January 31, 2024, of which $281.9 million was net new ARR added in the quarter.
• Subscription Gross Margin: GAAP subscription gross margin was 78%, compared to 75% in the fourth quarter of fiscal 2023. Non-GAAP subscription gross margin was 80%, compared to 77% in the fourth quarter of fiscal 2023.
• Income/Loss from Operations: GAAP income from operations was $29.7 million, compared to a loss of $61.5 million in the fourth quarter of fiscal 2023. Non-GAAP income from operations was $213.1 million, compared to $95.6 million in the fourth quarter of fiscal 2023.
• Net Income/Loss Attributable to CrowdStrike: GAAP net income attributable to CrowdStrike was $53.7 million, compared to a loss of $47.5 million in the fourth quarter of fiscal 2023. GAAP net income per share attributable to CrowdStrike, diluted was $0.22, compared to a loss of $0.20 in the fourth quarter of fiscal 2023. Non-GAAP net income attributable to CrowdStrike was $236.2 million, compared to $111.6 million in the fourth quarter of fiscal 2023. Non-GAAP net income attributable to CrowdStrike per share, diluted, was $0.95, compared to $0.47 in the fourth quarter of fiscal 2023.
• Cash Flow: Net cash generated from operations was $347.0 million, compared to $273.3 million in the fourth quarter of fiscal 2023. Free cash flow was $283.0 million, compared to $209.5 million in the fourth quarter of fiscal 2023.
• Cash, Cash Equivalents and Short-term Investments was $3.47 billion as of January 31, 2024.

Full Year Fiscal 2024 Financial Highlights

• Revenue: Total revenue was $3.06 billion, a 36% increase, compared to $2.24 billion in fiscal 2023. Subscription revenue was $2.87 billion, a 36% increase, compared to $2.11 billion in fiscal 2023.
• Subscription Gross Margin: GAAP subscription gross margin was 78% in fiscal 2024, compared to 76% in fiscal 2023. Non-GAAP subscription gross margin was 80%, compared to 78% in fiscal 2023.
• Income/Loss from Operations: GAAP loss from operations was $2.0 million, compared to a loss of $190.1 million in fiscal 2023. Non-GAAP income from operations was $660.3 million, compared to $355.6 million in fiscal 2023.
• Net Income/Loss Attributable to CrowdStrike: GAAP net income attributable to CrowdStrike was $89.3 million, compared to a loss of $183.2 million in fiscal 2023. GAAP net income per share attributable to CrowdStrike, diluted, was $0.37, compared to a loss of $0.79 in fiscal 2023. Non-GAAP net income attributable to CrowdStrike was $751.8 million, compared to $368.4 million in fiscal 2023. Non-GAAP net income attributable to CrowdStrike per share, diluted, was $3.09, compared to $1.54 in fiscal 2023.
• Cash Flow: Net cash generated from operations was $1,166.2 million, compared to $941.0 million in fiscal 2023. Free cash flow was $938.2 million, compared to $676.8 million in fiscal 2023.

Recent Highlights

• CrowdStrike’s module adoption rates were 64%, 43% and 27% for five or more, six or more, and seven or more modules, respectively, as of January 31, 2024¹.
• Named a Leader in the 2023 Gartner® Magic Quadrant™ for Endpoint Protection Platforms, positioned furthest for Completeness of Vision for the fourth consecutive time and highest for Ability to Execute among 15 vendors evaluated in the report².
• Recognized as Overall Customers’ Choice in 2024 Gartner Peer Insights™ Voice of the Customer for Vulnerability Assessment Report³.
• Received the highest score of all vendors in the Strategy category and highest scores possible in the Vision and Innovation criteria in The Forrester Wave™: Cloud Workload Security, Q1 2024 report⁴ and named a leader in The Forrester Wave™: Managed Detection And Response Services In Europe, Q4 2023 report⁴.
• Agreed to acquire Flow Security, the industry's first and only cloud data runtime security solution.
• Expanded strategic partnership to deliver Dell’s Managed Detection and Response (MDR) services with the industry-leading AI-native CrowdStrike Falcon® XDR platform.
• Announced the general availability of CrowdStrike Falcon Data Protection, Charlotte AI and Falcon for IT.
• Released the 2024 CrowdStrike Global Threat Report, which highlighted a surge in adversaries leveraging stolen identity credentials.
• Completed the IRAP and TISAX assessments, the latest in a series of certifications of governments and industry associations around the world that expand access and accelerate the adoption of the AI-native CrowdStrike Falcon platform.
• Announced that Optiv, the cyber advisory and solutions leader, surpassed the $1 billion milestone in sales of CrowdStrike's AI-native Falcon platform.
• Ranked #3 in 2023 Fortune Future 50 List.

Financial Outlook

CrowdStrike is providing the following guidance for the first quarter of fiscal 2025 (ending April 30, 2024) and guidance for fiscal year 2025 (ending January 31, 2025).

Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization expense of acquired intangible assets (including purchased patents), amortization of debt issuance costs and discount, mark-to-market adjustments on deferred compensation liabilities, legal reserve and settlement charges or benefits, acquisition-related provision (benefit) for income taxes, losses (gains) and other income from strategic investments, acquisition-related expenses (credits), and losses (gains) from deferred compensation assets. The company has not provided the most directly comparable GAAP measures because certain items are out of the company's control or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP income from operations, non-GAAP net income attributable to CrowdStrike, and non-GAAP net income per share attributable to CrowdStrike common stockholders is not available without unreasonable effort.

	Q1 FY25 Guidance		Full Year FY25 Guidance
Total revenue	$902.2 - $905.8 million		$3,924.9 - $3,989.0 million
Non-GAAP income from operations	$188.1 - $190.8 million		$863.6 - $913.0 million
Non-GAAP net income attributable to CrowdStrike	$220.4 - $223.1 million		$940.3 - $989.7 million
Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted	$0.89 - $0.90		$3.77 - $3.97
Weighted average shares used in computing Non-GAAP net income per share attributable to common stockholders, diluted	248 million		250 million

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause the company's actual results to differ materially from these forward-looking statements.

Conference Call Information

CrowdStrike will host a conference call for analysts and investors to discuss its earnings results for the fourth quarter of fiscal 2024 and outlook for its fiscal first quarter and fiscal year 2025 today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). A recorded webcast of the event will also be available for one year on the CrowdStrike Investor Relations website ir.crowdstrike.com.

Date:			March 5, 2024
Time:			2:00 p.m. Pacific time / 5:00 p.m. Eastern time
Pre-registration link for dial-in access:			register.vevent.com/register/BIdbe3c03664f8419b8b69111638e9c60b
Webcast:			ir.crowdstrike.com

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding CrowdStrike’s future growth, and future financial and operating performance, including CrowdStrike’s financial outlook for the fiscal first quarter and fiscal year 2025, and beyond. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: risks associated with managing CrowdStrike’s rapid growth; CrowdStrike’s ability to identify and effectively implement necessary changes to address execution challenges; risks associated with new products and subscription and support offerings, including the risk of defects, errors, or vulnerabilities; CrowdStrike's ability to respond to an intensely competitive market; length and unpredictability of sales cycles; CrowdStrike’s ability to attract new and retain existing customers; CrowdStrike’s ability to successfully integrate acquisitions; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscriptions and support; CrowdStrike’s ability to collaborate and integrate its products with offerings from other parties to deliver benefits to customers; industry trends; rapidly evolving technological developments in the market for security products and subscription and support offerings; and general market, political, economic, and business conditions, including those related to a deterioration in macroeconomic conditions, inflation, geopolitical uncertainty and conflicts, public health crises and volatility in the banking and financial services sector.

Additional risks and uncertainties that could affect CrowdStrike’s financial results are included in the filings CrowdStrike makes with the Securities and Exchange Commission (“SEC”) from time to time, particularly under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including CrowdStrike’s most recently filed Annual Report on Form 10-K, most recently filed Quarterly Report on Form 10-Q, and subsequent filings.

You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to CrowdStrike as of the date hereof, and CrowdStrike does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Use of Non-GAAP Financial Information

CrowdStrike believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to CrowdStrike’s financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below, as well as the “Explanation of Non-GAAP Financial Measures” section of this press release.

Channels for Disclosure of Information

CrowdStrike intends to announce material information to the public through the CrowdStrike Investor Relations website ir.crowdstrike.com, SEC filings, press releases, public conference calls, and public webcasts. CrowdStrike uses these channels, as well as social media and its blog, to communicate with its investors, customers, and the public about the company, its offerings, and other issues. It is possible that the information CrowdStrike posts on social media and its blog could be deemed to be material information. As such, CrowdStrike encourages investors, the media, and others to follow the channels listed above, including the social media channels listed on CrowdStrike’s investor relations website, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which CrowdStrike will announce information will be posted on the investor relations page on CrowdStrike’s website.

Definition of Module Adoption Rates

1. Beginning in the fourth quarter of fiscal 2023, module adoption rates are calculated by taking the total number of customers with five or more, six or more, and seven or more modules, respectively, divided by the total number of subscription customers (excluding Falcon Go customers). Falcon Go customers are defined as customers who have subscribed with the Falcon Go bundle, a package designed for organizations with 100 endpoints or less.

Reports Referenced and Disclaimers

2. Gartner, Magic Quadrant for Endpoint Protection Platforms, 31 December 2023, Evgeny Mirolyubov, Max Taggett, Franz Hinner, Nikul Patel.

3. Gartner, Voice of the Customer for Vulnerability Assessment, 30 January 2024, Peer Contributors

4. The Forrester Wave™: Cloud Workload Security, Q1 2024

The Forrester Wave™: Managed Detection And Response Services In Europe, Q4 2023

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Gartner is a registered trademark and service mark and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

Gartner and Peer Insights™ are trademarks of Gartner, Inc. and/or its affiliates. All rights reserved.

Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose.

The Gartner content described herein, (the "Gartner Content") represents(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this press release) and the opinions expressed in the Gartner Content are subject to change without notice.

About CrowdStrike Holdings

CrowdStrike Holdings, Inc. is a global cybersecurity leader that provides cloud-delivered protection of endpoints, cloud workloads, identity and data.

Powered by the CrowdStrike Security Cloud and advanced artificial intelligence, the CrowdStrike Falcon® platform delivers better outcomes to customers through rapid and scalable deployment, superior protection and performance, reduced complexity and immediate time-to-value.

CrowdStrike Falcon leverages a single lightweight-agent architecture with integrated cloud modules spanning multiple security markets, including corporate workload security, managed security services, security and vulnerability management, IT operations management, threat intelligence services, identity protection and log management.

For more information, please visit: ir.crowdstrike.com

CrowdStrike, the CrowdStrike logo, and other CrowdStrike marks are trademarks and/or registered trademarks of CrowdStrike, Inc., or its affiliates or licensors. Other words, symbols, and company product names may be trademarks of the respective companies with which they are associated.

CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
	Three Months Ended January 31,								Year Ended January 31,
	2024				2023				2024				2023
Revenue
Subscription	$	795,947			$	598,263			$	2,870,557			$	2,111,660
Professional services		49,388				39,104				184,998				129,576
Total revenue		845,335				637,367				3,055,555				2,241,236
Cost of revenue
Subscription (1)(2)		175,509				149,426				630,745				511,684
Professional services (1)		33,063				26,178				124,978				89,547
Total cost of revenue		208,572				175,604				755,723				601,231
Gross profit		636,763				461,763				2,299,832				1,640,005
Operating expenses
Sales and marketing (1)(2)(4)		290,357				246,439				1,140,566				904,409
Research and development (1)(2)(3)(4)		213,998				191,845				768,497				608,364
General and administrative (1)(2)(3)(4)(5)		102,737				84,979				392,764				317,344
Total operating expenses		607,092				523,263				2,301,827				1,830,117
Income (loss) from operations		29,671				(61,500	)			(1,995	)			(190,112	)
Interest expense(6)		(6,422	)			(6,352	)			(25,756	)			(25,319	)
Interest income		41,685				27,016				148,930				52,495
Other income (expense),net(7)(8)		3,616				(2,782	)			1,638				3,053
Income (loss) before provision for income taxes		68,550				(43,618	)			122,817				(159,883	)
Provision for income taxes(9)		13,609				5,314				32,232				22,402
Net income (loss)		54,941				(48,932	)			90,585				(182,285	)
Net income (loss) attributable to non-controlling interest		1,242				(1,451	)			1,258				960
Net income (loss) attributable to CrowdStrike	$	53,699			$	(47,481	)		$	89,327			$	(183,245	)
Net income (loss) per share attributable to CrowdStrike common stockholders:
Basic	$	0.22			$	(0.20	)		$	0.37			$	(0.79	)
Diluted	$	0.22			$	(0.20	)		$	0.37			$	(0.79	)
Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders:
Basic		240,856				235,027				238,637				233,139
Diluted		247,936				235,027				243,635				233,139

(1) Includes stock-based compensation expense as follows (in thousands):
	Three Months Ended January 31,						Year Ended January 31,
	2024			2023			2024			2023
Subscription cost of revenue	$	13,311		$	10,134		$	43,886		$	32,091
Professional services cost of revenue		6,282			5,096			22,302			15,692
Sales and marketing		46,083			42,747			175,808			151,919
Research and development		62,142			54,364			205,896			174,711
General and administrative		48,454			40,006			183,627			152,091
Total stock-based compensation expense	$	176,272		$	152,347		$	631,519		$	526,504

(2) Includes amortization of acquired intangible assets, including purchased patents, as follows (in thousands):
	Three Months Ended January 31,						Year Ended January 31,
	2024			2023			2024			2023
Subscription cost of revenue	$	4,819		$	3,571		$	15,560		$	13,907
Sales and marketing		602			619			2,085			2,557
Research and development		—			—			468			—
General and administrative		82			36			303			101
Total amortization of acquired intangible assets	$	5,503		$	4,226		$	18,416		$	16,565

(3) Includes acquisition-related expenses as follows (in thousands):
	Three Months Ended January 31,						Year Ended January 31,
	2024			2023			2024			2023
Research and development	$	—		$	—		$	750		$	—
General and administrative		428			477			3,632			2,664
Total acquisition-related expenses	$	428		$	477		$	4,382		$	2,664

(4) Includes mark-to-market adjustments on deferred compensation liabilities as follows (in thousands):
	Three Months Ended January 31,						Year Ended January 31,
	2024			2023			2024			2023
Sales and marketing	$	125		$	—		$	92		$	—
Research and development		81			—			61			—
General and administrative		31			1			23			1
Total mark-to-market adjustments on deferred compensation liabilities	$	237		$	1		$	176		$	1

(5) Includes legal reserve and settlement charges as follows (in thousands):
	Three Months Ended January 31,						Year Ended January 31,
	2024			2023			2024			2023
General and administrative	$	1,000		$	—		$	7,797		$	—
Total legal reserve and settlement charges	$	1,000		$	—		$	7,797		$	—

(6) Includes amortization of debt issuance costs and discount as follows (in thousands):
	Three Months Ended January 31,						Year Ended January 31,
	2024			2023			2024			2023
Interest expense	$	546		$	548		$	2,186		$	2,187
Total amortization of debt issuance costs and discount	$	546		$	548		$	2,186		$	2,187

(7) Includes gains (losses) and other income from strategic investments as follows (in thousands):
	Three Months Ended January 31,							Year Ended January 31,
	2024			2023				2024			2023
Other income (expense), net	$	2,485		$	(2,904	)		$	2,516		$	1,920
Total gains (losses) and other income from strategic investments	$	2,485		$	(2,904	)		$	2,516		$	1,920

(8) Includes gains on deferred compensation assets as follows (in thousands):
	Three Months Ended January 31,						Year Ended January 31,
	2024			2023			2024			2023
Other income, net	$	237		$	1		$	176		$	1
Total gains on deferred compensation assets	$	237		$	1		$	176		$	1

(9) Includes provision (benefit) for income taxes related to acquisitions as follows (in thousands):
	Three Months Ended January 31,						Year Ended January 31,
	2024			2023			2024				2023
Provision (benefit) for income taxes	$	—		$	—		$	(615	)		$	4,658
Total provision (benefit) for income taxes	$	—		$	—		$	(615	)		$	4,658

CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
	January 31,				January 31,
	2024				2023
Assets
Current assets:
Cash and cash equivalents	$	3,375,069			$	2,455,369
Short-term investments		99,591				250,000
Accounts receivable, net of allowance for credit losses		853,105				626,181
Deferred contract acquisition costs, current		246,370				186,855
Prepaid expenses and other current assets		183,172				121,862
Total current assets		4,757,307				3,640,267
Strategic investments		56,244				47,270
Property and equipment, net		620,172				492,335
Operating lease right-of-use assets		48,211				39,936
Deferred contract acquisition costs, noncurrent		335,933				260,233
Goodwill		638,041				430,645
Intangible assets, net		114,518				86,889
Other long-term assets		76,094				28,965
Total assets	$	6,646,520			$	5,026,540
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	28,180			$	45,372
Accrued expenses		125,896				137,884
Accrued payroll and benefits		234,624				168,767
Operating lease liabilities, current		14,150				13,046
Deferred revenue		2,270,757				1,727,484
Other current liabilities		23,672				16,519
Total current liabilities		2,697,279				2,109,072
Long-term debt		742,494				741,005
Deferred revenue, noncurrent		783,342				627,629
Operating lease liabilities, noncurrent		36,230				29,567
Other liabilities, noncurrent		50,086				31,833
Total liabilities		4,309,431				3,539,106
Commitments and contingencies
Stockholders’ Equity
Common stock, Class A and Class B		121				118
Additional paid-in capital		3,364,328				2,612,705
Accumulated deficit		(1,058,836	)			(1,148,163	)
Accumulated other comprehensive loss		(1,663	)			(1,019	)
Total CrowdStrike Holdings, Inc. stockholders’ equity		2,303,950				1,463,641
Non-controlling interest		33,139				23,793
Total stockholders’ equity		2,337,089				1,487,434
Total liabilities and stockholders’ equity	$	6,646,520			$	5,026,540

CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Year Ended January 31,
	2024				2023
Operating activities
Net income (loss)	$	90,585			$	(182,285	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		126,838				77,245
Amortization of intangible assets		18,416				16,565
Amortization of deferred contract acquisition costs		238,901				170,808
Non-cash operating lease costs		13,398				9,440
Stock-based compensation expense		631,519				526,504
Deferred income taxes		(3,387	)			1,306
Realized gains on strategic investments		(3,936	)			—
Accretion of short-term investments purchased at a discount		(2,285	)			—
Non-cash interest expense		3,173				2,813
Change in fair value of strategic investments		1,459				(1,830	)
Changes in operating assets and liabilities, net of impact of acquisitions
Accounts receivable, net		(217,699	)			(258,109	)
Deferred contract acquisition costs		(371,649	)			(298,716	)
Prepaid expenses and other assets		(102,520	)			(46,807	)
Accounts payable		(18,898	)			(15,463	)
Accrued expenses and other liabilities		14,586				58,923
Accrued payroll and benefits		65,102				65,226
Operating lease liabilities		(14,035	)			(10,364	)
Deferred revenue		696,639				825,751
Net cash provided by operating activities		1,166,207				941,007
Investing activities
Purchases of property and equipment		(176,529	)			(235,019	)
Capitalized internal-use software and website development costs		(49,457	)			(29,095	)
Purchases of strategic investments		(17,177	)			(21,808	)
Proceeds from sales of strategic investments		2,000				—
Business acquisitions, net of cash acquired		(239,030	)			(18,349	)
Purchases of intangible assets		(11,126	)			(2,323	)
Purchases of short-term investments		(195,581	)			(250,000	)
Proceeds from maturities and sales of short-term investments		348,281				—
Purchases of deferred compensation investments		(2,031	)			(64	)
Net cash used in investing activities		(340,650	)			(556,658	)
Financing activities
Repayment of loan payable		—				(1,591	)
Proceeds from issuance of common stock upon exercise of stock options		8,695				8,655
Proceeds from issuance of common stock under the employee stock purchase plan		76,375				59,419
Capital contributions from non-controlling interest holders		8,088				10,954
Net cash provided by financing activities		93,158				77,437
Effect of foreign exchange rates on cash, cash equivalents and restricted cash		1,958				(1,495	)
Net increase in cash, cash equivalents and restricted cash		920,673				460,291
Cash, cash equivalents and restricted cash, beginning of period		2,456,924				1,996,633
Cash, cash equivalents and restricted cash, end of period	$	3,377,597			$	2,456,924

CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages)
(unaudited)
	Three Months Ended January 31,								Year Ended January 31,
	2024				2023				2024				2023
GAAP subscription revenue	$	795,947			$	598,263			$	2,870,557			$	2,111,660
GAAP professional services revenue		49,388				39,104				184,998				129,576
GAAP total revenue	$	845,335			$	637,367			$	3,055,555			$	2,241,236
GAAP subscription gross profit	$	620,438			$	448,837			$	2,239,812			$	1,599,976
Stock based compensation expense		13,311				10,134				43,886				32,091
Amortization of acquired intangible assets		4,819				3,571				15,560				13,907
Non-GAAP subscription gross profit	$	638,568			$	462,542			$	2,299,258			$	1,645,974
GAAP subscription gross margin		78	%			75	%			78	%			76	%
Non-GAAP subscription gross margin		80	%			77	%			80	%			78	%
GAAP professional services gross profit	$	16,325			$	12,926			$	60,020			$	40,029
Stock based compensation expense		6,282				5,096				22,302				15,692
Non-GAAP professional services gross profit	$	22,607			$	18,022			$	82,322			$	55,721
GAAP professional services gross margin		33	%			33	%			32	%			31	%
Non-GAAP professional services gross margin		46	%			46	%			44	%			43	%
Total GAAP gross margin		75	%			72	%			75	%			73	%
Total Non-GAAP gross margin		78	%			75	%			78	%			76	%
GAAP sales and marketing operating expenses	$	290,357			$	246,439			$	1,140,566			$	904,409
Stock based compensation expense		(46,083	)			(42,747	)			(175,808	)			(151,919	)
Amortization of acquired intangible assets		(602	)			(619	)			(2,085	)			(2,557	)
Mark-to-market adjustments on deferred compensation liabilities		(125	)			—				(92	)			—
Non-GAAP sales and marketing operating expenses	$	243,547			$	203,073			$	962,581			$	749,933
GAAP sales and marketing operating expenses as a percentage of revenue		34	%			39	%			37	%			40	%
Non-GAAP sales and marketing operating expenses as a percentage of revenue		29	%			32	%			32	%			33	%
GAAP research and development operating expenses	$	213,998			$	191,845			$	768,497			$	608,364
Stock based compensation expense		(62,142	)			(54,364	)			(205,896	)			(174,711	)
Amortization of acquired intangible assets		—				—				(468	)			—
Acquisition-related expenses, net		—				—				(750	)			—
Mark-to-market adjustments on deferred compensation liabilities		(81	)			—				(61	)			—
Non-GAAP research and development operating expenses	$	151,775			$	137,481			$	561,322			$	433,653
GAAP research and development operating expenses as a percentage of revenue		25	%			30	%			25	%			27	%
Non-GAAP research and development operating expenses as a percentage of revenue		18	%			22	%			18	%			19	%
GAAP general and administrative operating expenses	$	102,737			$	84,979			$	392,764			$	317,344
Stock based compensation expense		(48,454	)			(40,006	)			(183,627	)			(152,091	)
Acquisition-related expenses, net		(428	)			(477	)			(3,632	)			(2,664	)
Amortization of acquired intangible assets		(82	)			(36	)			(303	)			(101	)
Mark-to-market adjustments on deferred compensation liabilities		(31	)			(1	)			(23	)			(1	)
Legal reserve and settlement charges		(1,000	)			—				(7,797	)			—
Non-GAAP general and administrative operating expenses	$	52,742			$	44,459			$	197,382			$	162,487
GAAP general and administrative operating expenses as a percentage of revenue		12	%			13	%			13	%			14	%
Non-GAAP general and administrative operating expenses as a percentage of revenue		6	%			7	%			6	%			7	%

CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued)
(in thousands, except per share amounts)
(unaudited)
	Three Months Ended January 31,								Year Ended January 31,
	2024				2023				2024				2023
GAAP income (loss) from operations	$	29,671			$	(61,500	)		$	(1,995	)		$	(190,112	)
Stock based compensation expense		176,272				152,347				631,519				526,504
Amortization of acquired intangible assets		5,503				4,226				18,416				16,565
Acquisition-related expenses, net		428				477				4,382				2,664
Mark-to-market adjustments on deferred compensation liabilities		237				1				176				1
Legal reserve and settlement charges		1,000				—				7,797				—
Non-GAAP income from operations	$	213,111			$	95,551			$	660,295			$	355,622
GAAP operating margin		4	%			(10	)%			—	%			(8	)%
Non-GAAP operating margin		25	%			15	%			22	%			16	%
GAAP net income (loss) attributable to CrowdStrike	$	53,699			$	(47,481	)		$	89,327			$	(183,245	)
Stock based compensation expense		176,272				152,347				631,519				526,504
Amortization of acquired intangible assets		5,503				4,226				18,416				16,565
Acquisition-related expenses, net		428				477				4,382				2,664
Amortization of debt issuance costs and discount		546				548				2,186				2,187
Mark-to-market adjustments on deferred compensation liabilities		237				1				176				1
Legal reserve and settlement charges		1,000				—				7,797				—
Provision (benefit) for income taxes(1)		—				—				(615	)			4,658
Losses (gains) and other income from strategic investments attributable to CrowdStrike		(1,242	)			1,451				(1,258	)			(960	)
Gains on deferred compensation assets		(237	)			(1	)			(176	)			(1	)
Non-GAAP net income attributable to CrowdStrike	$	236,206			$	111,568			$	751,754			$	368,373
Weighted-average shares used in computing basic net income (loss) per share attributable to CrowdStrike common stockholders (GAAP)		240,856				235,027				238,637				233,139
GAAP basic net income (loss) per share attributable to CrowdStrike common stockholders	$	0.22			$	(0.20	)		$	0.37			$	(0.79	)
GAAP diluted net income (loss) per share attributable to CrowdStrike common stockholders	$	0.22			$	(0.20	)		$	0.37			$	(0.79	)
Stock-based compensation		0.71				0.64				2.59				2.20
Amortization of acquired intangible assets		0.02				0.02				0.08				0.07
Acquisition-related expenses, net		—				—				0.02				0.01
Amortization of debt issuance costs and discount		—				—				0.01				0.01
Mark-to-market adjustments on deferred compensation liabilities		—				—				—				—
Legal reserve and settlement charges		—				—				0.03				—
Provision (benefit) for income taxes (1)		—				—				—				0.02
Adjustment to fully diluted earnings per share (2)		0.01				—				—				0.02
Losses (gains) and other income from strategic investments attributable to CrowdStrike		(0.01	)			0.01				(0.01	)			—
Gains on deferred compensation assets		—				—				—				—
Non-GAAP diluted net income per share attributable to CrowdStrike common stockholders	$	0.95			$	0.47			$	3.09			$	1.54
Weighted-average shares used in diluted net income (loss) per share attributable to CrowdStrike common stockholders calculation:
GAAP		240,856				235,027				238,637				233,139
Non-GAAP		247,936				239,501				243,635				239,098

____________________________
(1)		CrowdStrike uses its GAAP provision for income taxes for the purpose of determining its non-GAAP income tax expense. The tax costs for intellectual property integration relating to acquisitions are included in the GAAP provision for income taxes. The income tax benefits related to stock-based compensation, amortization of acquired intangibles assets, including purchased patents, acquisition related expenses, amortization of debt issuance costs and discount, gains and other income from strategic investments attributable to CrowdStrike and legal reserve and settlement charges or benefits included in the GAAP provision for income taxes were not material for all periods presented.
(2)		For periods in which we had diluted non-GAAP net income per share attributable to CrowdStrike common stockholders, the sum of the impact of individual reconciling items may not total to diluted Non-GAAP net income per share attributable to CrowdStrike common stockholders because of rounding differences or because the basic share counts used to calculate GAAP net loss per share attributable to CrowdStrike common stockholders differ from the diluted share counts used to calculate non-GAAP net income per share attributable to CrowdStrike common stockholders. The GAAP net loss per share attributable to CrowdStrike common stockholders calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share attributable to CrowdStrike common stockholders.

CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued)
(in thousands, except percentages)
(unaudited)
	Three Months Ended January 31,								Year Ended January 31,
	2024				2023				2024				2023
GAAP net cash provided by operating activities	$	347,016			$	273,293			$	1,166,207			$	941,007
Purchases of property and equipment		(52,584	)			(55,410	)			(176,529	)			(235,019	)
Capitalized internal-use software and website development costs		(10,852	)			(8,356	)			(49,457	)			(29,095	)
Purchases of deferred compensation investments		(569	)			(64	)			(2,031	)			(64	)
Free cash flow	$	283,011			$	209,463			$	938,190			$	676,829
GAAP net cash provided by (used in) investing activities	$	20,395			$	(319,140	)		$	(340,650	)		$	(556,658	)
GAAP net cash provided by financing activities	$	33,460			$	29,134			$	93,158			$	77,437
GAAP net cash provided by operating activities as a percentage of revenue		41	%			43	%			38	%			42	%
Purchases of property and equipment as a percentage of revenue		(6	)%			(9	)%			(6	)%			(10	)%
Capitalized internal-use software and website development costs as a percentage of revenue		(1	)%			(1	)%			(2	)%			(1	)%
Purchases of deferred compensation investments as a percentage of revenue		—	%			—	%			—	%			—	%
Free cash flow margin		33	%			33	%			31	%			30	%

Explanation of Non-GAAP Financial Measures

In addition to determining results in accordance with U.S. generally accepted accounting principles (“GAAP”), CrowdStrike believes the following non-GAAP measures are useful in evaluating its operating performance. CrowdStrike uses the following non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. CrowdStrike believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and facilitates period-to-period comparisons of operations, as these measures eliminate the effects of certain variables unrelated to CrowdStrike’s overall operating performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Other companies, including companies in CrowdStrike’s industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of CrowdStrike’s non-GAAP financial measures as tools for comparison.

Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate CrowdStrike’s business.

Non-GAAP Subscription Gross Profit and Non-GAAP Subscription Gross Margin

CrowdStrike defines non-GAAP subscription gross profit and non-GAAP subscription gross margin as GAAP subscription gross profit and GAAP subscription gross margin, respectively, excluding stock-based compensation expense, and amortization of acquired intangible assets.

Non-GAAP Income from Operations

CrowdStrike defines non-GAAP income from operations as GAAP income (loss) from operations excluding stock-based compensation expense, amortization of acquired intangible assets (including purchased patents), acquisition-related expenses (credits), mark-to-market adjustments on deferred compensation liabilities, and legal reserve and settlement charges.

Non-GAAP Net Income Attributable to CrowdStrike

The company defines non-GAAP net income attributable to CrowdStrike as GAAP net income (loss) attributable to CrowdStrike excluding stock-based compensation expense, amortization of acquired intangible assets (including purchased patents), acquisition-related expenses (credits), net, amortization of debt issuance costs and discount, mark-to-market adjustments on deferred compensation liabilities, legal reserve and settlement charges or benefits, acquisition-related provision (benefit) for income taxes, losses (gains) and other income from strategic investments, and losses (gains) on deferred compensation assets.

Non-GAAP Net Income per Share Attributable to CrowdStrike Common Stockholders, Diluted

CrowdStrike defines non-GAAP net income per share attributable to CrowdStrike common stockholders, as non-GAAP net income attributable to CrowdStrike divided by the weighted-average shares outstanding, which includes the dilutive effect of potentially dilutive common stock equivalents outstanding during the period.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that CrowdStrike defines as net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software and website development costs, and purchases of deferred compensation investments. CrowdStrike monitors free cash flow as one measure of its overall business performance, which enables CrowdStrike to analyze its future performance without the effects of non-cash items and allow CrowdStrike to better understand the cash needs of its business. While CrowdStrike believes that free cash flow is useful in evaluating its business, free cash flow is a non-GAAP financial measure that has limitations as an analytical tool, and free cash flow should not be considered as an alternative to, or substitute for, net cash provided by operating activities in accordance with GAAP. The utility of free cash flow as a measure of CrowdStrike’s liquidity is further limited as it does not represent the total increase or decrease in CrowdStrike’s cash balance for any given period. In addition, other companies, including companies in our industry, may calculate free cash flow differently or not at all, which reduces the usefulness of free cash flow as a tool for comparison.

Explanation of Operational Measures

Annual Recurring Revenue

ARR is calculated as the annualized value of CrowdStrike’s 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 CrowdStrike is negotiating a renewal with a customer after the expiration of the subscription, CrowdStrike continues to include that revenue in ARR if CrowdStrike is actively in discussion with such an organization for a new subscription or renewal, or until such organization notifies CrowdStrike that it is not renewing its subscription.

Magic Number

Magic Number is calculated by performing the following calculation for the most recent four quarters and taking the average: annualizing the difference between a quarter’s Subscription Revenue and the prior quarter’s Subscription Revenue, and then dividing the resulting number by the previous quarter’s Non-GAAP Sales & Marketing Expense. Magic Number = Average of previous four quarters: ((Quarter Subscription Revenue – Prior Quarter Subscription Revenue) x 4) / Prior Quarter Non-GAAP Sales & Marketing Expense.

Free Cash Flow Rule of 40

Free cash flow rule of 40 is calculated by taking the current quarter total revenue year-over-year growth rate percentage and summing it with the current quarter free cash flow margin percentage.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240305166829/en/

Investor Relations Contact

CrowdStrike Holdings, Inc.

Maria Riley, Vice President of Investor Relations

investors@crowdstrike.com

669-721-0742



Press Contact

CrowdStrike Holdings, Inc.

Kevin Benacci, Sr. Director, Corporate Communications

press@crowdstrike.com

216-409-5055

Source: CrowdStrike Holdings, Inc.

FAQ

What was CrowdStrike's total revenue in Q4 2024?

CrowdStrike's total revenue in Q4 2024 was $845.3 million, a 33% increase from the previous year.

What was CrowdStrike's ending ARR in fiscal year 2024?

CrowdStrike's ending ARR in fiscal year 2024 was $3.44 billion, with net new ARR growth accelerating to 27% year-over-year.

What was CrowdStrike's GAAP income from operations in Q4 2024?

CrowdStrike's GAAP income from operations in Q4 2024 was $29.7 million, a significant improvement from the previous year.

What was CrowdStrike's full-year revenue in fiscal year 2024?

CrowdStrike's full-year revenue in fiscal year 2024 was $3.06 billion, a 36% increase from the previous year.

How much net cash did CrowdStrike generate from operations in fiscal year 2024?

CrowdStrike generated $1,166.2 million in net cash from operations in fiscal year 2024, showcasing strong financial performance.