CrowdStrike Reports Second Quarter Fiscal Year 2025 Financial Results
CrowdStrike (CRWD) reported strong Q2 fiscal 2025 results, with total revenue up 32% year-over-year to $963.9 million. The company's Annual Recurring Revenue (ARR) grew 32% to $3.86 billion, adding $217.6 million in net new ARR. CrowdStrike's GAAP net income increased more than 5x year-over-year to $47 million, while non-GAAP net income grew 45% to $260.8 million. The company generated record Q2 operating cash flow of $326.6 million and free cash flow of $272.2 million. CrowdStrike's CEO highlighted the resilience of their business and platform, with LogScale Next-Gen SIEM, Identity Protection, and Cloud Security surpassing $1 billion in combined ending ARR. The company provided guidance for Q3 and full fiscal year 2025, expecting continued growth in revenue and non-GAAP income.
CrowdStrike (CRWD) ha riportato risultati solidi per il secondo trimestre dell'anno fiscale 2025, con entrate totali aumentate del 32% rispetto all'anno precedente, raggiungendo $963,9 milioni. Le entrate annuali ricorrenti (ARR) dell'azienda sono cresciute del 32% fino a $3,86 miliardi, aggiungendo $217,6 milioni di ARR netto nuovo. Il reddito netto GAAP di CrowdStrike è aumentato di oltre 5 volte rispetto all'anno precedente, raggiungendo i $47 milioni, mentre il reddito netto non GAAP è cresciuto del 45% fino a $260,8 milioni. L'azienda ha generato un flusso di cassa operativo record per il secondo trimestre di $326,6 milioni e un flusso di cassa libero di $272,2 milioni. Il CEO di CrowdStrike ha evidenziato la resilienza del loro business e della piattaforma, con LogScale Next-Gen SIEM, Protezione dell'Identità e Sicurezza Cloud che hanno superato $1 miliardo di ARR combinato finale. L'azienda ha fornito previsioni per il terzo trimestre e per l'intero anno fiscale 2025, prevedendo una continua crescita delle entrate e del reddito non GAAP.
CrowdStrike (CRWD) reportó sólidos resultados para el segundo trimestre del año fiscal 2025, con ingresos totales que aumentaron un 32% interanual, alcanzando los $963.9 millones. Los ingresos anuales recurrentes (ARR) de la empresa crecieron un 32% hasta los $3.86 mil millones, añadiendo $217.6 millones en ARR neto nuevo. La ganancia neta GAAP de CrowdStrike se incrementó más de 5 veces en comparación con el año anterior, alcanzando los $47 millones, mientras que la ganancia neta no GAAP creció un 45% hasta los $260.8 millones. La empresa generó un flujo de efectivo operativo récord en el segundo trimestre de $326.6 millones y un flujo de efectivo libre de $272.2 millones. El CEO de CrowdStrike destacó la resiliencia de su negocio y plataforma, con LogScale Next-Gen SIEM, Protección de Identidad y Seguridad en la Nube superando los $1 mil millones en ARR combinado final. La empresa proporcionó orientación para el tercer trimestre y para todo el año fiscal 2025, esperando un crecimiento continuo en ingresos y ganancias no GAAP.
CrowdStrike (CRWD)는 2025 회계연도 2분기에 총 수익이 전년 대비 32% 증가한 $963.9백만 달러를 기록하며 강력한 실적을 발표했습니다. 회사의 연간 반복 수익(ARR)은 32% 성장하여 $3.86억 달러에 이르렀고, $217.6백만 달러의 순 신규 ARR을 추가했습니다. CrowdStrike의 GAAP 순이익은 전년 대비 5배 이상 증가하여 $47백만 달러에 도달하였으며, 비GAAP 순이익은 45% 증가하여 $260.8백만 달러에 도달하였습니다. 이 회사는 2분기에 기록적인 운영 현금 흐름인 $326.6백만 달러와 자유 현금 흐름 $272.2백만 달러를 생성하였습니다. CrowdStrike의 CEO는 비즈니스와 플랫폼의 회복력을 강조하며, LogScale Next-Gen SIEM, 신원 보호 및 클라우드 보안이 결합한 ARR 최종 금액에서 $10억 달러를 초과했다고 밝혔습니다. 회사는 2025 회계연도 3분기 및 전체 연도에 대한 가이드를 제공하며, 수익과 비GAAP 소득의 지속적인 성장을 기대하고 있습니다.
CrowdStrike (CRWD) a annoncé de solides résultats pour le deuxième trimestre de l'exercice fiscal 2025, avec un chiffre d'affaires total en hausse de 32 % d'une année sur l'autre, atteignant 963,9 millions de dollars. Les revenus récurrents annuels (ARR) de l'entreprise ont augmenté de 32 % pour atteindre 3,86 milliards de dollars, ajoutant 217,6 millions de dollars de nouveaux ARR nets. Le bénéfice net GAAP de CrowdStrike a augmenté de plus de 5 fois d'une année sur l'autre, atteignant 47 millions de dollars, tandis que le bénéfice net non GAAP a augmenté de 45 % pour atteindre 260,8 millions de dollars. L'entreprise a généré un flux de trésorerie opérationnel record pour le deuxième trimestre de 326,6 millions de dollars et un flux de trésorerie libre de 272,2 millions de dollars. Le PDG de CrowdStrike a souligné la résilience de leur entreprise et de leur plateforme, avec LogScale Next-Gen SIEM, Protection de l'identité et Sécurité Cloud dépassant 1 milliard de dollars en ARR combiné. L'entreprise a fourni des prévisions pour le troisième trimestre et l'ensemble de l'exercice fiscal 2025, s'attendant à une croissance continue des revenus et des bénéfices non GAAP.
CrowdStrike (CRWD) hat starke Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 gemeldet, mit einem Anstieg der Gesamteinnahmen um 32% im Jahresvergleich auf 963,9 Millionen US-Dollar. Der jährliche wiederkehrende Umsatz (ARR) des Unternehmens wuchs um 32% auf 3,86 Milliarden US-Dollar und fügte 217,6 Millionen US-Dollar an neuem ARR hinzu. Der GAAP-Nettoertrag von CrowdStrike erhöhte sich um mehr als das Fünffache im Jahresvergleich auf 47 Millionen US-Dollar, während der Non-GAAP-Nettoertrag um 45% auf 260,8 Millionen US-Dollar stieg. Das Unternehmen generierte einen Rekord-Betriebs-Cashflow im 2. Quartal von 326,6 Millionen US-Dollar und einen freien Cashflow von 272,2 Millionen US-Dollar. Der CEO von CrowdStrike hob die Widerstandsfähigkeit ihres Geschäfts und der Plattform hervor, wobei LogScale Next-Gen SIEM, Identitätsschutz und Cloud-Sicherheit zusammen mehr als 1 Milliarde US-Dollar an kumuliertem ARR überstiegen. Das Unternehmen gab eine Prognose für das 3. Quartal und das gesamte Geschäftsjahr 2025 ab und erwartet ein weiteres Wachstum bei den Einnahmen und dem Non-GAAP-Ertrag.
- Total revenue increased 32% year-over-year to $963.9 million
- Annual Recurring Revenue (ARR) grew 32% to $3.86 billion
- GAAP net income increased more than 5x year-over-year to $47 million
- Non-GAAP net income grew 45% to $260.8 million
- Record Q2 operating cash flow of $326.6 million and free cash flow of $272.2 million
- LogScale Next-Gen SIEM, Identity Protection, and Cloud Security surpassed $1 billion in combined ending ARR
- Estimated $30 million subscription revenue impact in each remaining fiscal quarter due to customer commitment package incentives
- Estimated high-single digit millions impact to professional services revenue in second half of fiscal year 2025
Insights
CrowdStrike's Q2 FY2025 results demonstrate robust growth and financial strength. Revenue increased 32% YoY to
The company's cash flow generation is impressive, with record Q2 operating cash flow of
Despite customer incentives impacting revenue by
CrowdStrike's Q2 results reflect the growing demand for comprehensive cybersecurity solutions. The company's success in consolidating multiple security functions into a single platform is evident from the $1 billion+ combined ARR for LogScale Next-Gen SIEM, Identity Protection and Cloud Security. This aligns with the industry trend of organizations seeking to streamline their security stack for better efficiency and protection.
The company's performance in the MITRE Engenuity ATT&CK Evaluations, identifying a threat in just four minutes, underscores its technical prowess. This capability is important in an era of increasingly sophisticated cyber threats. The strategic partnership with HPE to secure AI innovation, including large language models, positions CrowdStrike at the forefront of emerging cybersecurity challenges.
CrowdStrike's expansion in Latin America through partnerships with major distributors indicates a focus on global market penetration, potentially opening new growth avenues in regions facing escalating cyber threats.
CrowdStrike's Q2 results and market positioning reveal several key trends in the cybersecurity industry. The company's success in cross-selling and upselling, with 65% of customers adopting 5 or more modules, indicates a strong demand for integrated security platforms. This trend towards consolidation is driven by organizations seeking to reduce complexity and improve security outcomes.
The partnership with HPE to secure AI innovation, particularly in large language models, highlights the growing intersection of AI and cybersecurity. This move positions CrowdStrike to capitalize on the burgeoning market for AI security solutions, which is expected to see significant growth as AI adoption accelerates across industries.
CrowdStrike's expansion in Latin America through strategic partnerships suggests an increasing focus on emerging markets. As these regions digitize rapidly, they present substantial growth opportunities for cybersecurity providers. The company's ability to adapt its go-to-market strategy for different regions will be important for sustained global growth.
-
Ending ARR grows
32% year-over-year to reach$3.86 billion $218 million -
Grows GAAP net income more than 5x year-over-year and record non-GAAP net income grows
45% year-over-year -
Delivers record Q2 operating cash flow of
$327 million $272 million
“Working with customers to recover from the July 19th incident, we emerge as an even more resilient and even more customer-obsessed CrowdStrike, continuing to aggressively invest in innovation. Our second quarter demonstrates the resilience of our business and platform – with LogScale Next-Gen SIEM, Identity Protection, and Cloud Security eclipsing
Commenting on the company’s financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “For the second quarter we delivered strong growth in revenue, operating profit and net income demonstrating our focused execution. Our market opportunity remains unchanged, and we believe our continued commitment to customers and innovation will drive even more Falcon platform adoption, protecting our customers from rapidly evolving cyber threats and enabling us to achieve our long-term targets.”
Second Quarter Fiscal 2025 Financial Highlights
-
Revenue: Total revenue was
$963.9 million 32% increase, compared to$731.6 million $918.3 million 33% increase, compared to$690.0 million -
Annual Recurring Revenue (ARR) grew
32% year-over-year to$3.86 billion $217.6 million -
Subscription Gross Margin: GAAP subscription gross margin was
78% in the second quarter of fiscal 2025 and fiscal 2024. Non-GAAP subscription gross margin was81% , compared to80% in the second quarter of fiscal 2024. -
Income/Loss from Operations: GAAP income from operations was
$13.7 million $15.4 million $226.8 million $155.7 million -
Net Income Attributable to CrowdStrike: GAAP net income attributable to CrowdStrike was
$47.0 million $8.5 million $0.19 $0.03 $260.8 million $180.0 million $1.04 $0.74 -
Cash Flow: Net cash generated from operations was
$326.6 million $244.8 million $272.2 million $188.7 million -
Cash and Cash Equivalents was
$4.04 billion
Recent Highlights
-
CrowdStrike’s module adoption rates were
65% ,45% and29% for five or more, six or more and seven or more modules, respectively, as of July 31, 20241. -
Exceeded
$1 billion - Set a new speed benchmark for cybersecurity threat detection, identifying and alerting on a sophisticated eCrime adversary attack in just four minutes during the closed-book MITRE Engenuity's ATT&CK Evaluations: Managed Services-Round 2.
- Named a Leader in The Forrester Wave: Cybersecurity Incident Response Services, Q2 2024 report2.
- Announced a strategic partnership with Hewlett Packard Enterprise to secure end-to-end AI innovation, including large language models, accelerated by NVIDIA.
-
Partnered with technology distributors Ingram Micro, M3Corp and Tecnología Especializada Asociada de México to accelerate adoption of the AI-native CrowdStrike Falcon platform across
Latin America . - Won five awards in the SC Awards Europe 2024, the most of any vendor in this year’s competition; Won for Best Cloud Security Solution, Best Endpoint Solution, Best AI Solution, Best Threat Intelligence Technology and Best Incident Response Solution.
Financial Outlook
CrowdStrike is providing the following guidance for the fiscal third quarter of fiscal 2025 (ending October 31, 2024) and full fiscal year 2025 (ending January 31, 2025). CrowdStrike’s revenue guidance for the fiscal year 2025 includes an estimated
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, Channel File 291 Incident related costs, acquisition-related provision (benefit) for income taxes, losses (gains) and other income from strategic investments, acquisition-related expenses (credits), net, 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.
|
Q3 FY25 Guidance |
|
Full Year FY25 Guidance |
Total revenue |
|
|
|
Non-GAAP income from operations |
|
|
|
Non-GAAP net income attributable to CrowdStrike |
|
|
|
Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted |
|
|
|
Weighted average shares used in computing non-GAAP net income per share attributable to common stockholders, diluted |
252 million |
|
252 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 second quarter of fiscal 2025 and outlook for its fiscal third 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: |
August 28, 2024 |
Time: |
2:00 p.m. Pacific time / 5:00 p.m. Eastern time |
Webcast link: |
crowdstrike-fiscal-second-quarter-2025-results-conference-call.open-exchange.net/registration |
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 third quarter fiscal 2025, 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 the Channel File 291 Incident, which occurred on July 19, 2024; 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. | 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
| 2. | The Forrester Wave™: Cybersecurity Incident Response Services, Q2 2024 |
About CrowdStrike Holdings
CrowdStrike (Nasdaq: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.
Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting and prioritized observability of vulnerabilities.
Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity and immediate time-to-value.
CrowdStrike: We stop breaches.
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 July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
Subscription |
$ |
918,257 |
|
|
$ |
689,972 |
|
|
$ |
1,790,429 |
|
|
$ |
1,341,147 |
|
Professional services |
|
45,615 |
|
|
|
41,654 |
|
|
|
94,479 |
|
|
|
83,059 |
|
Total revenue |
|
963,872 |
|
|
|
731,626 |
|
|
|
1,884,908 |
|
|
|
1,424,206 |
|
Cost of revenue |
|
|
|
|
|
|
|
||||||||
Subscription (1)(2) |
|
199,910 |
|
|
|
153,306 |
|
|
|
389,567 |
|
|
|
295,406 |
|
Professional services (1) |
|
37,491 |
|
|
|
29,611 |
|
|
|
72,837 |
|
|
|
56,741 |
|
Total cost of revenue |
|
237,401 |
|
|
|
182,917 |
|
|
|
462,404 |
|
|
|
352,147 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
726,471 |
|
|
|
548,709 |
|
|
|
1,422,504 |
|
|
|
1,072,059 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing (1)(2)(4)(6) |
|
355,471 |
|
|
|
282,916 |
|
|
|
705,585 |
|
|
|
564,023 |
|
Research and development (1)(3)(4)(6) |
|
250,908 |
|
|
|
179,362 |
|
|
|
486,157 |
|
|
|
358,427 |
|
General and administrative (1)(2)(3)(4)(5)(6) |
|
106,434 |
|
|
|
101,804 |
|
|
|
210,168 |
|
|
|
184,438 |
|
Total operating expenses |
|
712,813 |
|
|
|
564,082 |
|
|
|
1,401,910 |
|
|
|
1,106,888 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
13,658 |
|
|
|
(15,373 |
) |
|
|
20,594 |
|
|
|
(34,829 |
) |
Interest expense(7) |
|
(6,549 |
) |
|
|
(6,444 |
) |
|
|
(13,060 |
) |
|
|
(12,831 |
) |
Interest income |
|
51,526 |
|
|
|
36,638 |
|
|
|
97,376 |
|
|
|
67,159 |
|
Other income (expense), net(8)(9) |
|
(1,031 |
) |
|
|
(1,734 |
) |
|
|
6,625 |
|
|
|
(1,504 |
) |
Income before provision for income taxes |
|
57,604 |
|
|
|
13,087 |
|
|
|
111,535 |
|
|
|
17,995 |
|
Provision for income taxes |
|
10,914 |
|
|
|
4,611 |
|
|
|
18,581 |
|
|
|
9,020 |
|
Net income |
|
46,690 |
|
|
|
8,476 |
|
|
|
92,954 |
|
|
|
8,975 |
|
Net income (loss) attributable to non-controlling interest |
|
(323 |
) |
|
|
4 |
|
|
|
3,121 |
|
|
|
12 |
|
Net income attributable to CrowdStrike |
$ |
47,013 |
|
|
$ |
8,472 |
|
|
$ |
89,833 |
|
|
$ |
8,963 |
|
Net income per share attributable to CrowdStrike common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.19 |
|
|
$ |
0.04 |
|
|
$ |
0.37 |
|
|
$ |
0.04 |
|
Diluted |
$ |
0.19 |
|
|
$ |
0.03 |
|
|
$ |
0.36 |
|
|
$ |
0.04 |
|
Weighted-average shares used in computing net income per share attributable to CrowdStrike common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
|
244,091 |
|
|
|
237,911 |
|
|
|
243,249 |
|
|
|
237,174 |
|
Diluted |
|
251,265 |
|
|
|
242,144 |
|
|
|
250,724 |
|
|
|
241,383 |
|
____________________________
(1) Includes stock-based compensation expense as follows (in thousands):
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Subscription cost of revenue |
$ |
16,732 |
|
$ |
10,132 |
|
$ |
30,648 |
|
$ |
19,098 |
Professional services cost of revenue |
|
7,344 |
|
|
5,745 |
|
|
13,617 |
|
|
10,375 |
Sales and marketing |
|
57,405 |
|
|
51,442 |
|
|
109,663 |
|
|
87,181 |
Research and development |
|
75,851 |
|
|
46,985 |
|
|
142,593 |
|
|
91,366 |
General and administrative |
|
43,545 |
|
|
50,473 |
|
|
87,481 |
|
|
87,613 |
Total stock-based compensation expense |
$ |
200,877 |
|
$ |
164,777 |
|
$ |
384,002 |
|
$ |
295,633 |
(2) Includes amortization of acquired intangible assets, including purchased patents, as follows (in thousands):
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Subscription cost of revenue |
$ |
5,389 |
|
$ |
3,581 |
|
$ |
10,434 |
|
$ |
7,161 |
Sales and marketing |
|
602 |
|
|
446 |
|
|
1,205 |
|
|
977 |
General and administrative |
|
346 |
|
|
75 |
|
|
693 |
|
|
138 |
Total amortization of acquired intangible assets |
$ |
6,337 |
|
$ |
4,102 |
|
$ |
12,332 |
|
$ |
8,276 |
(3) Includes acquisition-related expenses (credit), net as follows (in thousands):
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Research and development |
$ |
— |
|
$ |
— |
|
|
$ |
477 |
|
$ |
371 |
|
General and administrative |
|
535 |
|
|
(3 |
) |
|
|
2,682 |
|
|
(73 |
) |
Total acquisition-related expenses (credits), net |
$ |
535 |
|
$ |
(3 |
) |
|
$ |
3,159 |
|
$ |
298 |
|
(4) Includes mark-to-market adjustments on deferred compensation liabilities as follows (in thousands):
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Sales and marketing |
$ |
108 |
|
$ |
32 |
|
$ |
143 |
|
$ |
35 |
Research and development |
|
134 |
|
|
13 |
|
|
146 |
|
|
14 |
General and administrative |
|
8 |
|
|
7 |
|
|
21 |
|
|
7 |
Total mark-to-market adjustments on deferred compensation liabilities |
$ |
250 |
|
$ |
52 |
|
$ |
310 |
|
$ |
56 |
(5) Includes legal reserve and settlement charges as follows (in thousands):
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
General and administrative |
$ |
— |
|
$ |
2,097 |
|
$ |
— |
|
$ |
2,097 |
Total legal reserve and settlement charges |
$ |
— |
|
$ |
2,097 |
|
$ |
— |
|
$ |
2,097 |
(6) Includes Channel File 291 Incident related costs such as legal fees, remediation costs, and sensor testing costs, among others, as follows (in thousands):
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Sales and marketing |
$ |
3,093 |
|
$ |
— |
|
$ |
3,093 |
|
$ |
— |
Research and development |
|
1,001 |
|
|
— |
|
|
1,001 |
|
|
— |
General and administrative |
|
1,038 |
|
|
— |
|
|
1,038 |
|
|
— |
Total Channel File 291 Incident related costs |
$ |
5,132 |
|
$ |
— |
|
$ |
5,132 |
|
$ |
— |
(7) Includes amortization of debt issuance costs and discount as follows (in thousands):
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Interest expense |
$ |
547 |
|
$ |
547 |
|
$ |
1,093 |
|
$ |
1,093 |
Total amortization of debt issuance costs and discount |
$ |
547 |
|
$ |
547 |
|
$ |
1,093 |
|
$ |
1,093 |
(8) Includes gains (losses) and other income from strategic investments as follows (in thousands):
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|||||||||
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
2023 |
Other income (expense), net |
$ |
(646 |
) |
|
$ |
8 |
|
$ |
6,242 |
|
$ |
24 |
Total gains (losses) and other income from strategic investments |
$ |
(646 |
) |
|
$ |
8 |
|
$ |
6,242 |
|
$ |
24 |
(9) Includes gains on deferred compensation assets as follows (in thousands):
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Other income, net |
$ |
250 |
|
$ |
52 |
|
$ |
310 |
|
$ |
56 |
Total gains on deferred compensation assets |
$ |
250 |
|
$ |
52 |
|
$ |
310 |
|
$ |
56 |
CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
|||||||
|
July 31, 2024 |
|
January 31, 2024 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
4,038,536 |
|
|
$ |
3,375,069 |
|
Short-term investments |
|
— |
|
|
|
99,591 |
|
Accounts receivable, net of allowance for credit losses |
|
661,045 |
|
|
|
853,105 |
|
Deferred contract acquisition costs, current |
|
251,246 |
|
|
|
246,370 |
|
Prepaid expenses and other current assets |
|
230,821 |
|
|
|
183,172 |
|
Total current assets |
|
5,181,648 |
|
|
|
4,757,307 |
|
Strategic investments |
|
58,246 |
|
|
|
56,244 |
|
Property and equipment, net |
|
648,474 |
|
|
|
620,172 |
|
Operating lease right-of-use assets |
|
45,897 |
|
|
|
48,211 |
|
Deferred contract acquisition costs, noncurrent |
|
341,539 |
|
|
|
335,933 |
|
Goodwill |
|
721,996 |
|
|
|
638,041 |
|
Intangible assets, net |
|
115,686 |
|
|
|
114,518 |
|
Other long-term assets |
|
88,988 |
|
|
|
76,094 |
|
Total assets |
$ |
7,202,474 |
|
|
$ |
6,646,520 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
21,067 |
|
|
$ |
28,180 |
|
Accrued expenses |
|
101,300 |
|
|
|
125,896 |
|
Accrued payroll and benefits |
|
205,429 |
|
|
|
234,624 |
|
Operating lease liabilities, current |
|
17,031 |
|
|
|
14,150 |
|
Deferred revenue |
|
2,348,464 |
|
|
|
2,270,757 |
|
Other current liabilities |
|
35,028 |
|
|
|
23,672 |
|
Total current liabilities |
|
2,728,319 |
|
|
|
2,697,279 |
|
Long-term debt |
|
743,238 |
|
|
|
742,494 |
|
Deferred revenue, noncurrent |
|
744,733 |
|
|
|
783,342 |
|
Operating lease liabilities, noncurrent |
|
31,704 |
|
|
|
36,230 |
|
Other liabilities, noncurrent |
|
63,890 |
|
|
|
50,086 |
|
Total liabilities |
|
4,311,884 |
|
|
|
4,309,431 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ Equity |
|
|
|
||||
Common stock, Class A and Class B |
|
123 |
|
|
|
121 |
|
Additional paid-in capital |
|
3,824,897 |
|
|
|
3,364,328 |
|
Accumulated deficit |
|
(969,003 |
) |
|
|
(1,058,836 |
) |
Accumulated other comprehensive loss |
|
(3,102 |
) |
|
|
(1,663 |
) |
Total CrowdStrike Holdings, Inc. stockholders’ equity |
|
2,852,915 |
|
|
|
2,303,950 |
|
Non-controlling interest |
|
37,675 |
|
|
|
33,139 |
|
Total stockholders’ equity |
|
2,890,590 |
|
|
|
2,337,089 |
|
Total liabilities and stockholders’ equity |
$ |
7,202,474 |
|
|
$ |
6,646,520 |
|
CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||||
|
Six Months Ended July 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities |
|
|
|
||||
Net income |
$ |
92,954 |
|
|
$ |
8,975 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
88,936 |
|
|
|
56,184 |
|
Amortization of intangible assets |
|
12,332 |
|
|
|
8,276 |
|
Amortization of deferred contract acquisition costs |
|
147,851 |
|
|
|
112,877 |
|
Non-cash operating lease cost |
|
7,167 |
|
|
|
6,331 |
|
Stock-based compensation expense |
|
384,002 |
|
|
|
295,633 |
|
Deferred income taxes |
|
(1,929 |
) |
|
|
(352 |
) |
Realized gains on strategic investments |
|
(6,227 |
) |
|
|
— |
|
Non-cash interest expense |
|
1,785 |
|
|
|
1,531 |
|
Accretion of short-term investments purchased at a discount |
|
2,285 |
|
|
|
— |
|
Changes in operating assets and liabilities, net of impact of acquisitions |
|
|
|
||||
Accounts receivable, net |
|
192,060 |
|
|
|
86,718 |
|
Deferred contract acquisition costs |
|
(158,333 |
) |
|
|
(122,007 |
) |
Prepaid expenses and other assets |
|
(63,224 |
) |
|
|
(26,338 |
) |
Accounts payable |
|
(72 |
) |
|
|
(2,982 |
) |
Accrued expenses and other liabilities |
|
7,968 |
|
|
|
4,935 |
|
Accrued payroll and benefits |
|
(29,432 |
) |
|
|
(30,161 |
) |
Operating lease liabilities |
|
(7,113 |
) |
|
|
(6,475 |
) |
Deferred revenue |
|
38,859 |
|
|
|
152,528 |
|
Net cash provided by operating activities |
|
709,869 |
|
|
|
545,673 |
|
Investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(88,937 |
) |
|
|
(102,681 |
) |
Capitalized internal-use software and website development costs |
|
(24,995 |
) |
|
|
(25,975 |
) |
Purchases of strategic investments |
|
(2,702 |
) |
|
|
(12,177 |
) |
Proceeds from sales of strategic investments |
|
10,895 |
|
|
|
— |
|
Business acquisitions, net of cash acquired |
|
(96,381 |
) |
|
|
— |
|
Purchases of intangible assets |
|
— |
|
|
|
(500 |
) |
Proceeds from maturities and sales of short-term investments |
|
97,300 |
|
|
|
250,000 |
|
Purchases of deferred compensation investments |
|
(1,209 |
) |
|
|
(876 |
) |
Proceeds from sales of deferred compensation investments |
|
41 |
|
|
|
— |
|
Net cash (used in) provided by investing activities |
|
(105,988 |
) |
|
|
107,791 |
|
Financing activities |
|
|
|
||||
Proceeds from issuance of common stock upon exercise of stock options |
|
2,464 |
|
|
|
4,125 |
|
Proceeds from issuance of common stock under the employee stock purchase plan |
|
56,099 |
|
|
|
45,432 |
|
Distributions to non-controlling interest holders |
|
(4,085 |
) |
|
|
— |
|
Capital contributions from non-controlling interest holders |
|
5,500 |
|
|
|
8,088 |
|
Net cash provided by financing activities |
|
59,978 |
|
|
|
57,645 |
|
|
|
|
|
||||
Effect of foreign exchange rates on cash, cash equivalents and restricted cash |
|
(1,040 |
) |
|
|
1,083 |
|
|
|
|
|
||||
Net increase in cash, cash equivalents and restricted cash |
|
662,819 |
|
|
|
712,192 |
|
|
|
|
|
||||
Cash, cash equivalents and restricted cash, at beginning of period |
|
3,377,597 |
|
|
|
2,456,924 |
|
Cash, cash equivalents and restricted cash, at end of period |
$ |
4,040,416 |
|
|
$ |
3,169,116 |
|
CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (in thousands, except percentages) (unaudited) |
|||||||||||||||
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP subscription revenue |
$ |
918,257 |
|
|
$ |
689,972 |
|
|
$ |
1,790,429 |
|
|
$ |
1,341,147 |
|
GAAP professional services revenue |
|
45,615 |
|
|
|
41,654 |
|
|
|
94,479 |
|
|
|
83,059 |
|
GAAP total revenue |
$ |
963,872 |
|
|
$ |
731,626 |
|
|
$ |
1,884,908 |
|
|
$ |
1,424,206 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP subscription gross profit |
$ |
718,347 |
|
|
$ |
536,666 |
|
|
$ |
1,400,862 |
|
|
$ |
1,045,741 |
|
Stock based compensation expense |
|
16,732 |
|
|
|
10,132 |
|
|
|
30,648 |
|
|
|
19,098 |
|
Amortization of acquired intangible assets |
|
5,389 |
|
|
|
3,581 |
|
|
|
10,434 |
|
|
|
7,161 |
|
Non-GAAP subscription gross profit |
$ |
740,468 |
|
|
$ |
550,379 |
|
|
$ |
1,441,944 |
|
|
$ |
1,072,000 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP subscription gross margin |
|
78 |
% |
|
|
78 |
% |
|
|
78 |
% |
|
|
78 |
% |
Non-GAAP subscription gross margin |
|
81 |
% |
|
|
80 |
% |
|
|
81 |
% |
|
|
80 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP professional services gross profit |
$ |
8,124 |
|
|
$ |
12,043 |
|
|
$ |
21,642 |
|
|
$ |
26,318 |
|
Stock based compensation expense |
|
7,344 |
|
|
|
5,745 |
|
|
|
13,617 |
|
|
|
10,375 |
|
Non-GAAP professional services gross profit |
$ |
15,468 |
|
|
$ |
17,788 |
|
|
$ |
35,259 |
|
|
$ |
36,693 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP professional services gross margin |
|
18 |
% |
|
|
29 |
% |
|
|
23 |
% |
|
|
32 |
% |
Non-GAAP professional services gross margin |
|
34 |
% |
|
|
43 |
% |
|
|
37 |
% |
|
|
44 |
% |
|
|
|
|
|
|
|
|
||||||||
Total GAAP gross margin |
|
75 |
% |
|
|
75 |
% |
|
|
75 |
% |
|
|
75 |
% |
Total Non-GAAP gross margin |
|
78 |
% |
|
|
78 |
% |
|
|
78 |
% |
|
|
78 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing operating expenses |
$ |
355,471 |
|
|
$ |
282,916 |
|
|
$ |
705,585 |
|
|
$ |
564,023 |
|
Stock based compensation expense |
|
(57,405 |
) |
|
|
(51,442 |
) |
|
|
(109,663 |
) |
|
|
(87,181 |
) |
Amortization of acquired intangible assets |
|
(602 |
) |
|
|
(446 |
) |
|
|
(1,205 |
) |
|
|
(977 |
) |
Mark-to-market adjustments on deferred compensation liabilities |
|
(108 |
) |
|
|
(32 |
) |
|
|
(143 |
) |
|
|
(35 |
) |
Channel File 291 Incident related costs |
|
(3,093 |
) |
|
|
— |
|
|
|
(3,093 |
) |
|
|
— |
|
Non-GAAP sales and marketing operating expenses |
$ |
294,263 |
|
|
$ |
230,996 |
|
|
$ |
591,481 |
|
|
$ |
475,830 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing operating expenses as a percentage of revenue |
|
37 |
% |
|
|
39 |
% |
|
|
37 |
% |
|
|
40 |
% |
Non-GAAP sales and marketing operating expenses as a percentage of revenue |
|
31 |
% |
|
|
32 |
% |
|
|
31 |
% |
|
|
33 |
% |
|
|
|
|
|
|
|
|
||||||||
CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued) (in thousands, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP research and development operating expenses |
$ |
250,908 |
|
|
$ |
179,362 |
|
|
$ |
486,157 |
|
|
$ |
358,427 |
|
Stock based compensation expense |
|
(75,851 |
) |
|
|
(46,985 |
) |
|
|
(142,593 |
) |
|
|
(91,366 |
) |
Acquisition-related expenses, net |
|
— |
|
|
|
— |
|
|
|
(477 |
) |
|
|
(371 |
) |
Mark-to-market adjustments on deferred compensation liabilities |
|
(134 |
) |
|
|
(13 |
) |
|
|
(146 |
) |
|
|
(14 |
) |
Channel File 291 Incident related costs |
|
(1,001 |
) |
|
|
— |
|
|
|
(1,001 |
) |
|
|
— |
|
Non-GAAP research and development operating expenses |
$ |
173,922 |
|
|
$ |
132,364 |
|
|
$ |
341,940 |
|
|
$ |
266,676 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP research and development operating expenses as a percentage of revenue |
|
26 |
% |
|
|
25 |
% |
|
|
26 |
% |
|
|
25 |
% |
Non-GAAP research and development operating expenses as a percentage of revenue |
|
18 |
% |
|
|
18 |
% |
|
|
18 |
% |
|
|
19 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative operating expenses |
$ |
106,434 |
|
|
$ |
101,804 |
|
|
$ |
210,168 |
|
|
$ |
184,438 |
|
Stock based compensation expense |
|
(43,545 |
) |
|
|
(50,473 |
) |
|
|
(87,481 |
) |
|
|
(87,613 |
) |
Acquisition-related credits (expenses), net |
|
(535 |
) |
|
|
3 |
|
|
|
(2,682 |
) |
|
|
73 |
|
Amortization of acquired intangible assets |
|
(346 |
) |
|
|
(75 |
) |
|
|
(693 |
) |
|
|
(138 |
) |
Mark-to-market adjustments on deferred compensation liabilities |
|
(8 |
) |
|
|
(7 |
) |
|
|
(21 |
) |
|
|
(7 |
) |
Legal reserve and settlement charges |
|
— |
|
|
|
(2,097 |
) |
|
|
— |
|
|
|
(2,097 |
) |
Channel File 291 Incident related costs |
|
(1,038 |
) |
|
|
— |
|
|
|
(1,038 |
) |
|
|
— |
|
Non-GAAP general and administrative operating expenses |
$ |
60,962 |
|
|
$ |
49,155 |
|
|
$ |
118,253 |
|
|
$ |
94,656 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative operating expenses as a percentage of revenue |
|
11 |
% |
|
|
14 |
% |
|
|
11 |
% |
|
|
13 |
% |
Non-GAAP general and administrative operating expenses as a percentage of revenue |
|
6 |
% |
|
|
7 |
% |
|
|
6 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP income (loss) from operations |
$ |
13,658 |
|
|
$ |
(15,373 |
) |
|
$ |
20,594 |
|
|
$ |
(34,829 |
) |
Stock based compensation expense |
|
200,877 |
|
|
|
164,777 |
|
|
|
384,002 |
|
|
|
295,633 |
|
Amortization of acquired intangible assets |
|
6,337 |
|
|
|
4,102 |
|
|
|
12,332 |
|
|
|
8,276 |
|
Acquisition-related expenses (credits), net |
|
535 |
|
|
|
(3 |
) |
|
|
3,159 |
|
|
|
298 |
|
Mark-to-market adjustments on deferred compensation liabilities |
|
250 |
|
|
|
52 |
|
|
|
310 |
|
|
|
56 |
|
Legal reserve and settlement charges |
|
— |
|
|
|
2,097 |
|
|
|
— |
|
|
|
2,097 |
|
Channel File 291 Incident related costs |
|
5,132 |
|
|
|
— |
|
|
|
5,132 |
|
|
|
— |
|
Non-GAAP income from operations |
$ |
226,789 |
|
|
$ |
155,652 |
|
|
$ |
425,529 |
|
|
$ |
271,531 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP operating margin |
|
1 |
% |
|
|
(2 |
)% |
|
|
1 |
% |
|
|
(2 |
)% |
Non-GAAP operating margin |
|
24 |
% |
|
|
21 |
% |
|
|
23 |
% |
|
|
19 |
% |
|
|
|
|
|
|
|
|
||||||||
CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued) (in thousands, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net income attributable to CrowdStrike |
$ |
47,013 |
|
|
$ |
8,472 |
|
|
$ |
89,833 |
|
|
$ |
8,963 |
|
Stock based compensation expense |
|
200,877 |
|
|
|
164,777 |
|
|
|
384,002 |
|
|
|
295,633 |
|
Amortization of acquired intangible assets |
|
6,337 |
|
|
|
4,102 |
|
|
|
12,332 |
|
|
|
8,276 |
|
Acquisition-related expenses (credits), net |
|
535 |
|
|
|
(3 |
) |
|
|
3,159 |
|
|
|
298 |
|
Amortization of debt issuance costs and discount |
|
547 |
|
|
|
547 |
|
|
|
1,093 |
|
|
|
1,093 |
|
Mark-to-market adjustments on deferred compensation liabilities |
|
250 |
|
|
|
52 |
|
|
|
310 |
|
|
|
56 |
|
Legal reserve and settlement charges |
|
— |
|
|
|
2,097 |
|
|
|
— |
|
|
|
2,097 |
|
Channel File 291 Incident related costs |
|
5,132 |
|
|
|
— |
|
|
|
5,132 |
|
|
|
— |
|
Gains (losses) and other income from strategic investments attributable to CrowdStrike |
|
323 |
|
|
|
(4 |
) |
|
|
(3,121 |
) |
|
|
(12 |
) |
Gains on deferred compensation assets |
|
(250 |
) |
|
|
(52 |
) |
|
|
(310 |
) |
|
|
(56 |
) |
Non-GAAP net income attributable to CrowdStrike |
$ |
260,764 |
|
|
$ |
179,988 |
|
|
$ |
492,430 |
|
|
$ |
316,348 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in computing GAAP basic net income per share attributable to CrowdStrike common stockholders |
|
244,091 |
|
|
|
237,911 |
|
|
|
243,249 |
|
|
|
237,174 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP basic net income per share attributable to CrowdStrike common stockholders |
$ |
0.19 |
|
|
$ |
0.04 |
|
|
$ |
0.37 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted net income per share attributable to CrowdStrike common stockholders |
$ |
0.19 |
|
|
$ |
0.03 |
|
|
$ |
0.36 |
|
|
$ |
0.04 |
|
Stock-based compensation |
|
0.80 |
|
|
|
0.68 |
|
|
|
1.53 |
|
|
|
1.22 |
|
Amortization of acquired intangible assets |
|
0.03 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.03 |
|
Acquisition-related expenses (credits), net |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
Amortization of debt issuance costs and discount |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Mark-to-market adjustments on deferred compensation liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Legal reserve and settlement charges |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
Channel File 291 Incident related costs |
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Gains (losses) and other income from strategic investments attributable to CrowdStrike |
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
Gains on deferred compensation assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other1 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Non-GAAP diluted net income per share attributable to CrowdStrike common stockholders |
$ |
1.04 |
|
|
$ |
0.74 |
|
|
$ |
1.96 |
|
|
$ |
1.31 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used to calculate Non-GAAP diluted net income per share attributable to CrowdStrike common stockholders |
|
251,265 |
|
|
|
242,144 |
|
|
|
250,724 |
|
|
|
241,383 |
|
__________________________ 1. For periods in which the Company 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. |
|||||||||||||||
CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued) (in thousands, except percentages) (unaudited) |
|||||||||||||||
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net cash provided by operating activities |
$ |
326,641 |
|
|
$ |
244,781 |
|
|
$ |
709,869 |
|
|
$ |
545,673 |
|
Purchases of property and equipment |
|
(39,254 |
) |
|
|
(40,417 |
) |
|
|
(88,937 |
) |
|
|
(102,681 |
) |
Capitalized internal-use software and website development costs |
|
(14,516 |
) |
|
|
(15,073 |
) |
|
|
(24,995 |
) |
|
|
(25,975 |
) |
Purchases of deferred compensation investments |
|
(600 |
) |
|
|
(586 |
) |
|
|
(1,209 |
) |
|
|
(876 |
) |
Proceeds from sales of deferred compensation investments |
|
(41 |
) |
|
|
— |
|
|
|
(41 |
) |
|
|
— |
|
Free cash flow |
$ |
272,230 |
|
|
$ |
188,705 |
|
|
$ |
594,687 |
|
|
$ |
416,141 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net cash (used in) provided by investing activities |
$ |
(54,890 |
) |
|
$ |
41,760 |
|
|
$ |
(105,988 |
) |
|
$ |
107,791 |
|
GAAP net cash provided by financing activities |
$ |
62,496 |
|
|
$ |
49,737 |
|
|
$ |
59,978 |
|
|
$ |
57,645 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net cash provided by operating activities as a percentage of revenue |
|
34 |
% |
|
|
33 |
% |
|
|
38 |
% |
|
|
38 |
% |
Purchases of property and equipment as a percentage of revenue |
|
(4 |
)% |
|
|
(6 |
)% |
|
|
(5 |
)% |
|
|
(7 |
)% |
Capitalized internal-use software and website development costs as a percentage of revenue |
|
(2 |
)% |
|
|
(2 |
)% |
|
|
(1 |
)% |
|
|
(2 |
)% |
Purchases of deferred compensation investments as a percentage of revenue |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Proceeds from sale of deferred compensation investments |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Free cash flow margin |
|
28 |
% |
|
|
26 |
% |
|
|
32 |
% |
|
|
29 |
% |
Explanation of Non-GAAP Financial Measures
In addition to determining results in accordance with
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), net, mark-to-market adjustments on deferred compensation liabilities, legal reserve and settlement charges or benefits, and Channel File 291 Incident related costs.
Non-GAAP Net Income Attributable to CrowdStrike
The company defines non-GAAP net income attributable to CrowdStrike as GAAP net income 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, Channel File 291 Incident related costs, 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, purchases of deferred compensation investments, and proceeds from sale 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 CrowdStrike's 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 GAAP Subscription Revenue – Prior Quarter GAAP 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/20240828420412/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.
Jake Schuster, Senior Director, Public Relations & Media Strategy
press@crowdstrike.com
Source: CrowdStrike Holdings, Inc.
FAQ
What was CrowdStrike's (CRWD) revenue growth in Q2 fiscal 2025?
How much did CrowdStrike's (CRWD) Annual Recurring Revenue (ARR) grow in Q2 fiscal 2025?
What was CrowdStrike's (CRWD) GAAP net income in Q2 fiscal 2025?
How much free cash flow did CrowdStrike (CRWD) generate in Q2 fiscal 2025?
What is CrowdStrike's (CRWD) revenue guidance for fiscal year 2025?
