- Surpasses $4 billion ending ARR milestone, grows 27%
year-over-year to reach $4.02 billion
- Exceeds $1 billion quarterly total revenue milestone, grows 29%
year-over-year to reach $1.01 billion
- Delivers cash flow from operations of $326 million and free
cash flow of $231 million, achieving a free cash flow rule of
51
CrowdStrike Holdings, Inc. (Nasdaq: CRWD) today announced
financial results for the third quarter fiscal year 2025, ended
October 31, 2024.
“CrowdStrike surpassed $4 billion in ending ARR in the quarter -
the fastest and only pure play cybersecurity software company to
reach this reported milestone - as our single platform approach and
trailblazing innovation continue to resonate at-scale,” said George
Kurtz, Founder and CEO. “With over 97% gross retention, customers
remain committed to the technological superiority of the Falcon
platform and the benefits of cybersecurity consolidation.
Accelerating module adoption and customers embracing our
transformational Falcon Flex subscription model give us confidence
in CrowdStrike’s bright future as cybersecurity’s AI platform of
record.”
Commenting on the company’s financial results, Burt Podbere,
CrowdStrike’s chief financial officer, added, “Our third quarter
results reflect our focused execution and financial discipline,
which drove a strong finish and quarter-over-quarter increase in
pipeline, despite expected headwinds from the July 19th incident.
We saw incredible success with our customer commitment packages as
customers embraced the program and chose to deepen their
relationship with CrowdStrike.”
Third Quarter Fiscal 2025 Financial Highlights
- Revenue: Total revenue was $1,010.2 million, a 29%
increase, compared to $786.0 million in the third quarter of fiscal
2024. Subscription revenue was $962.7 million, a 31% increase,
compared to $733.5 million in the third quarter of fiscal
2024.
- Annual Recurring Revenue (ARR) grew 27% year-over-year
to $4.02 billion as of October 31, 2024, of which $153.0 million
was net new ARR added in the quarter.
- Subscription Gross Margin: GAAP subscription gross
margin was 78% for the third quarter of both fiscal 2025 and 2024.
Non-GAAP subscription gross margin was 80% for the third quarter of
both fiscal 2025 and 2024.
- Income/Loss from Operations: GAAP loss from operations
was $55.7 million, compared to income of $3.2 million in the third
quarter of fiscal 2024. Non-GAAP income from operations was $194.9
million, compared to $175.7 million in the third quarter of fiscal
2024.
- Net Income/Loss Attributable to CrowdStrike: GAAP net
loss attributable to CrowdStrike was $16.8 million, compared to
income of $26.7 million in the third quarter of fiscal 2024. GAAP
net loss per share attributable to CrowdStrike, diluted, was $0.07,
compared to income of $0.11 in the third quarter of fiscal 2024.
Non-GAAP net income attributable to CrowdStrike was $234.3 million,
compared to $199.2 million in the third quarter of fiscal 2024.
Non-GAAP net income attributable to CrowdStrike per share, diluted,
was $0.93, compared to $0.82 in the third quarter of fiscal
2024.
- Cash Flow: Net cash generated from operations was $326.1
million, compared to $273.5 million in the third quarter of fiscal
2024. Free cash flow was $230.6 million, compared to $239.0 million
in the third quarter of fiscal 2024.
- Cash and Cash Equivalents was $4.26 billion as of
October 31, 2024.
Recent Highlights
- CrowdStrike’s module adoption rates grew to 66%, 47%, 31%, and
20% for five or more, six or more, seven or more, and eight or more
modules, respectively, as of October 31, 20241.
- Named a Leader in the 2024 Gartner Magic Quadrant™ for Endpoint
Protection Platforms2 for the fifth consecutive time, positioned
furthest right for Completeness of Vision and highest for Ability
to Execute among all vendors evaluated.
- Received the highest scores among evaluated vendors for Core
Endpoint Protection and Managed Security Services Use Cases in the
2024 Gartner® Critical Capabilities for Endpoint Protection
Platforms (EPP) report3, for the second consecutive time.
- Recognized as a Frost Radar™ Leader in Cloud Workload
Protection Platforms4 for the Second Consecutive Year.
- Acknowledged as a Leader in the 2024 GigaOm Radar Report for
Cloud-Native Application Protection Platforms (CNAPPs)5.
- Positioned as a Leader in The Forrester Wave™: Attack Surface
Management Solutions, Q3 20246.
- Named a Major Player in the IDC MarketScape: Worldwide Security
Information and Event Management (SIEM) for Enterprise 2024 Vendor
Assessment report7.
- Unveiled a series of new and enhanced offerings during the
eighth annual Fal.Con cybersecurity conference. Announcements
included Endpoint Security; Cloud Security; Identity Protection;
Next-Gen SIEM; Exposure Management; Charlotte AI and Falcon for IT
innovations; Project Kestrel, a revolutionary new user experience
and CrowdStrike Financial Services.
- Acquired Adaptive Shield, a leader in SaaS security, making
CrowdStrike the only cybersecurity vendor to provide unified,
end-to-end protection against identity-based attacks across the
entire modern cloud ecosystem.
- Received new ISO/IEC 27001:2022 certification for newer
products made generally available, including Falcon Next-Gen SIEM,
Charlotte AI and Falcon for IT.
- Expanded Cybersecurity Startup Accelerator with AWS and NVIDIA
to support the next generation of global cloud security
companies.
- Announced a strategic partnership with Fortinet to unify
best-in-class endpoint and firewall protection.
- Partnered with Omnissa to deliver real-time threat detection
and automated remediation for Virtual Desktop Infrastructure (VDI)
and physical desktop environments while improving customers’
digital work experience and productivity.
- Established new strategic partnerships with CardinalOps, Nagomi
and Veriti to deliver intelligence-led threat defense across the
enterprise.
- Extended partnership with 1Password to simplify security for
150,000 customers, with a focus on small and midsize businesses
(SMBs).
- Announced the expansion of the CrowdStrike Marketplace, a
one-stop destination for the world-class ecosystem of
CrowdStrike-compatible security products.
Financial Outlook
CrowdStrike is providing the following guidance for the fiscal
fourth quarter of fiscal 2025 (ending January 31, 2025) and full
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, July 19 Incident related costs and (recoveries), net,
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.
Q4 FY25
Full Year FY25
Guidance
Guidance
Total revenue
$1,028.7 - $1,035.4 million
$3,923.8 - $3,930.5 million
Non-GAAP income from operations
$184.0 - $189.0 million
$804.4 - $809.4 million
Non-GAAP net income attributable to
CrowdStrike
$210.9 - $215.8 million
$937.5 - $942.6 million
Non-GAAP net income per share attributable
to CrowdStrike common stockholders, diluted
$0.84 - $0.86
$3.74 - $3.76
Weighted average shares used in computing
non-GAAP net income per share attributable to common stockholders,
diluted
252 million
251 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 third quarter of
fiscal 2025 and outlook for its fiscal fourth 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:
November 26, 2024
Time:
2:00 p.m. Pacific time / 5:00 p.m. Eastern
time
Webcast link:
crowdstrike-fiscal-third-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
fourth 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 content configuration update
CrowdStrike released on July 19, 2024 for its Falcon sensor that
resulted in system crashes for certain Windows systems (the “July
19 Incident”); 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, seven or more, and eight 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, Evgeny Mirolyubov, Franz Hinner, 23 September
2024
3.
Gartner, Critical Capabilities for
Endpoint Protection Platforms, Evgeny Mirolyubov, Franz Hinner,
Satarupa Patnaik, Deepak Mishra, Chris Silva, 28 October 2024
4.
2024 Frost Radar™: Global Cloud Workload
Protection Platform (CWPP)
5.
GigaOm Radar for Cloud-Native Application
Protection Platforms (CNAPPs), 29 October 2024
6.
The Forrester Wave™: Attack Surface
Management Solutions, Q3 2024
7.
IDC MarketScape: Worldwide Security
Information and Event Management (SIEM) for Enterprise 2024 Vendor
Assessment, September 2024, IDC #US51541324
GARTNER is a registered trademark and service mark of Gartner
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 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.
The Gartner content described herein (the “Gartner Content”)
represents research opinion or viewpoints published, as part of a
syndicated subscription service, by Gartner, Inc. ("Gartner"), and
is not a representation of fact. Gartner Content speaks as of its
original publication date (and not as of the date of this earnings
presentation), and the opinions expressed in the Gartner Content
are subject to change without notice.
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
© 2024 CrowdStrike, Inc. All rights reserved. CrowdStrike and
CrowdStrike Falcon are marks owned by CrowdStrike, Inc. and are
registered in the United States and other countries. CrowdStrike
owns other trademarks and service marks and may use the brands of
third parties to identify their products and services.
CROWDSTRIKE HOLDINGS,
INC.
Condensed Consolidated
Statements of Operations
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Revenue
Subscription
$
962,735
$
733,463
$
2,753,164
$
2,074,610
Professional services
47,443
52,551
141,922
135,610
Total revenue
1,010,178
786,014
2,895,086
2,210,220
Cost of revenue
Subscription (1)(2)
216,301
159,830
605,868
455,236
Professional services (1)
38,786
35,174
111,623
91,915
Total cost of revenue
255,087
195,004
717,491
547,151
Gross profit
755,091
591,010
2,177,595
1,663,069
Operating expenses
Sales and marketing (1)(2)(4)(6)
408,267
286,186
1,113,852
850,209
Research and development
(1)(2)(3)(4)(6)
275,602
196,072
761,759
554,499
General and administrative
(1)(2)(3)(4)(5)(6)
126,945
105,589
337,113
290,027
Total operating expenses
810,814
587,847
2,212,724
1,694,735
Income (loss) from operations
(55,723
)
3,163
(35,129
)
(31,666
)
Interest expense(7)
(6,587
)
(6,503
)
(19,647
)
(19,334
)
Interest income
52,201
40,086
149,577
107,245
Other income (expense), net(8)(9)
(429
)
(474
)
6,196
(1,978
)
Income (loss) before provision for income
taxes
(10,538
)
36,272
100,997
54,267
Provision for income taxes(10)
6,281
9,603
24,862
18,623
Net income (loss)
(16,819
)
26,669
76,135
35,644
Net income attributable to non-controlling
interest
3
4
3,124
16
Net income (loss) attributable to
CrowdStrike
$
(16,822
)
$
26,665
$
73,011
$
35,628
Net income (loss) per share attributable
to CrowdStrike common stockholders:
Basic
$
(0.07
)
$
0.11
$
0.30
$
0.15
Diluted
$
(0.07
)
$
0.11
$
0.29
$
0.15
Weighted-average shares used in computing
net income (loss) per share attributable to CrowdStrike common
stockholders:
Basic
245,536
239,297
244,017
237,890
Diluted
245,536
243,799
250,747
242,196
____________________________
(1) Includes stock-based compensation expense as follows (in
thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Subscription cost of revenue
$
18,613
$
11,477
$
49,261
$
30,575
Professional services cost of revenue
7,498
5,645
21,115
16,020
Sales and marketing
56,251
42,544
165,914
129,725
Research and development
81,874
52,388
224,467
143,754
General and administrative
44,652
47,560
132,133
135,173
Total stock-based compensation expense
$
208,888
$
159,614
$
592,890
$
455,247
(2) Includes amortization of acquired intangible assets,
including purchased patents, as follows (in thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Subscription cost of revenue
$
5,389
$
3,580
$
15,823
$
10,741
Sales and marketing
603
506
1,808
1,483
Research and development
—
468
—
468
General and administrative
341
83
1,034
221
Total amortization of acquired intangible
assets
$
6,333
$
4,637
$
18,665
$
12,913
(3) Includes acquisition-related expenses, net as follows (in
thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Research and development
$
—
$
379
$
477
$
750
General and administrative
1,393
3,277
4,075
3,204
Total acquisition-related expenses,
net
$
1,393
$
3,656
$
4,552
$
3,954
(4) Includes mark-to-market adjustments on deferred compensation
liabilities as follows (in thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Sales and marketing
$
41
$
(68
)
$
184
$
(33
)
Research and development
56
(34
)
202
(20
)
General and administrative
6
(15
)
27
(8
)
Total mark-to-market adjustments on
deferred compensation liabilities
$
103
$
(117
)
$
413
$
(61
)
(5) Includes legal reserve and settlement charges as follows (in
thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
General and administrative
$
—
$
4,700
$
—
$
6,797
Total legal reserve and settlement
charges
$
—
$
4,700
$
—
$
6,797
(6) Includes July 19 Incident related costs, net such as legal
fees, remediation costs, sensor testing costs, and insurance
receivables among others, as follows (in thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Sales and marketing
$
15,089
$
—
$
18,182
$
—
Research and development
3,549
—
4,550
—
General and administrative
15,284
—
16,322
—
Total July 19 Incident related costs,
net
$
33,922
$
—
$
39,054
$
—
(7) Includes amortization of debt issuance costs and discount as
follows (in thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Interest expense
$
547
$
547
$
1,640
$
1,640
Total amortization of debt issuance costs
and discount
$
547
$
547
$
1,640
$
1,640
(8) Includes gains and other income from strategic investments
as follows (in thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Other income, net
$
6
$
7
$
6,248
$
31
Total gains and other income from
strategic investments
$
6
$
7
$
6,248
$
31
(9) Includes gains (losses) on deferred compensation assets as
follows (in thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Other income (expenses), net
$
103
$
(117
)
$
413
$
(61
)
Total gains (losses) on deferred
compensation assets
$
103
$
(117
)
$
413
$
(61
)
(10) Includes benefit for income taxes related to acquisitions
as follows (in thousands):
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Benefit for income taxes
$
—
$
(615
)
$
—
$
(615
)
Total benefit for income taxes
$
—
$
(615
)
$
—
$
(615
)
CROWDSTRIKE HOLDINGS,
INC.
Condensed Consolidated Balance
Sheets
(in thousands)
(unaudited)
October 31, 2024
January 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
4,260,324
$
3,375,069
Short-term investments
—
99,591
Accounts receivable, net of allowance for
credit losses
813,922
853,105
Deferred contract acquisition costs,
current
294,229
246,370
Prepaid expenses and other current
assets
203,852
183,172
Total current assets
5,572,327
4,757,307
Strategic investments
68,246
56,244
Property and equipment, net
746,567
620,172
Operating lease right-of-use assets
46,289
48,211
Deferred contract acquisition costs,
noncurrent
421,773
335,933
Goodwill
722,016
638,041
Intangible assets, net
109,354
114,518
Other long-term assets
96,386
76,094
Total assets
$
7,782,958
$
6,646,520
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
79,214
$
28,180
Accrued expenses
176,598
125,896
Accrued payroll and benefits
324,889
234,624
Operating lease liabilities, current
15,658
14,150
Deferred revenue
2,363,258
2,270,757
Other current liabilities
40,763
23,672
Total current liabilities
3,000,380
2,697,279
Long-term debt
743,610
742,494
Deferred revenue, noncurrent
833,260
783,342
Operating lease liabilities,
noncurrent
32,683
36,230
Other liabilities, noncurrent
77,414
50,086
Total liabilities
4,687,347
4,309,431
Commitments and contingencies
Stockholders’ Equity
Common stock, Class A and Class B
124
121
Additional paid-in capital
4,045,660
3,364,328
Accumulated deficit
(985,825
)
(1,058,836
)
Accumulated other comprehensive loss
(2,026
)
(1,663
)
Total CrowdStrike Holdings, Inc.
stockholders’ equity
3,057,933
2,303,950
Non-controlling interest
37,678
33,139
Total stockholders’ equity
3,095,611
2,337,089
Total liabilities and stockholders’
equity
$
7,782,958
$
6,646,520
CROWDSTRIKE HOLDINGS,
INC.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended October
31,
2024
2023
Operating activities
Net income
$
76,135
$
35,644
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
137,851
89,972
Amortization of intangible assets
18,665
12,913
Amortization of deferred contract
acquisition costs
227,713
173,158
Non-cash operating lease cost
11,100
9,725
Stock-based compensation expense
592,890
455,247
Deferred income taxes
(2,122
)
(2,355
)
Realized gains on strategic
investments
(6,227
)
—
Non-cash interest expense
2,748
2,337
Accretion of short-term investments
purchased at a discount
2,285
(1,934
)
Changes in operating assets and
liabilities, net of impact of acquisitions
Accounts receivable, net
39,184
65,858
Deferred contract acquisition costs
(361,412
)
(206,678
)
Prepaid expenses and other assets
(42,832
)
(21,972
)
Accounts payable
34,096
2,361
Accrued expenses and other liabilities
85,667
33,597
Accrued payroll and benefits
89,896
1,810
Operating lease liabilities
(11,812
)
(16,147
)
Deferred revenue
142,180
185,655
Net cash provided by operating
activities
1,036,005
819,191
Investing activities
Purchases of property and equipment
(167,641
)
(123,945
)
Capitalized internal-use software and
website development costs
(41,266
)
(38,605
)
Purchases of strategic investments
(12,702
)
(12,177
)
Proceeds from sales of strategic
investments
10,895
—
Business acquisitions, net of cash
acquired
(96,381
)
(238,749
)
Purchases of intangible assets
—
(526
)
Purchases of short-term investments
—
(195,581
)
Proceeds from maturities and sales of
short-term investments
97,300
250,000
Purchases of deferred compensation
investments
(1,815
)
(1,462
)
Proceeds from sales of deferred
compensation investments
41
—
Net cash used in investing activities
(211,569
)
(361,045
)
Financing activities
Proceeds from issuance of common stock
upon exercise of stock options
3,308
6,178
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
60,822
59,698
Effect of foreign exchange rates on cash,
cash equivalents and restricted cash
(641
)
(3,411
)
Net increase in cash, cash equivalents and
restricted cash
884,617
514,433
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
$
4,262,214
$
2,971,357
CROWDSTRIKE HOLDINGS,
INC.
GAAP to Non-GAAP
Reconciliations
(in thousands, except
percentages)
(unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
GAAP subscription revenue
$
962,735
$
733,463
$
2,753,164
$
2,074,610
GAAP professional services revenue
47,443
52,551
141,922
135,610
GAAP total revenue
$
1,010,178
$
786,014
$
2,895,086
$
2,210,220
GAAP subscription gross profit
$
746,434
$
573,633
$
2,147,296
$
1,619,374
Stock based compensation expense
18,613
11,477
49,261
30,575
Amortization of acquired intangible
assets
5,389
3,580
15,823
10,741
Non-GAAP subscription gross profit
$
770,436
$
588,690
$
2,212,380
$
1,660,690
GAAP subscription gross margin
78
%
78
%
78
%
78
%
Non-GAAP subscription gross margin
80
%
80
%
80
%
80
%
GAAP professional services gross
profit
$
8,657
$
17,377
$
30,299
$
43,695
Stock based compensation expense
7,498
5,645
21,115
16,020
Non-GAAP professional services gross
profit
$
16,155
$
23,022
$
51,414
$
59,715
GAAP professional services gross
margin
18
%
33
%
21
%
32
%
Non-GAAP professional services gross
margin
34
%
44
%
36
%
44
%
Total GAAP gross margin
75
%
75
%
75
%
75
%
Total Non-GAAP gross margin
78
%
78
%
78
%
78
%
GAAP sales and marketing operating
expenses
$
408,267
$
286,186
$
1,113,852
$
850,209
Stock based compensation expense
(56,251
)
(42,544
)
(165,914
)
(129,725
)
Amortization of acquired intangible
assets
(603
)
(506
)
(1,808
)
(1,483
)
Mark-to-market adjustments on deferred
compensation liabilities
(41
)
68
(184
)
33
July 19 Incident related costs, net
(15,089
)
—
(18,182
)
—
Non-GAAP sales and marketing operating
expenses
$
336,283
$
243,204
$
927,764
$
719,034
GAAP sales and marketing operating
expenses as a percentage of revenue
40
%
36
%
38
%
38
%
Non-GAAP sales and marketing operating
expenses as a percentage of revenue
33
%
31
%
32
%
33
%
CROWDSTRIKE HOLDINGS,
INC.
GAAP to Non-GAAP
Reconciliations (continued)
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
GAAP research and development operating
expenses
$
275,602
$
196,072
$
761,759
$
554,499
Stock based compensation expense
(81,874
)
(52,388
)
(224,467
)
(143,754
)
Amortization of acquired intangible
assets
—
(468
)
—
(468
)
Acquisition-related expenses, net
—
(379
)
(477
)
(750
)
Mark-to-market adjustments on deferred
compensation liabilities
(56
)
34
(202
)
20
July 19 Incident related costs, net
(3,549
)
—
(4,550
)
—
Non-GAAP research and development
operating expenses
$
190,123
$
142,871
$
532,063
$
409,547
GAAP research and development operating
expenses as a percentage of revenue
27
%
25
%
26
%
25
%
Non-GAAP research and development
operating expenses as a percentage of revenue
19
%
18
%
18
%
19
%
GAAP general and administrative operating
expenses
$
126,945
$
105,589
$
337,113
$
290,027
Stock based compensation expense
(44,652
)
(47,560
)
(132,133
)
(135,173
)
Acquisition-related expenses, net
(1,393
)
(3,277
)
(4,075
)
(3,204
)
Amortization of acquired intangible
assets
(341
)
(83
)
(1,034
)
(221
)
Mark-to-market adjustments on deferred
compensation liabilities
(6
)
15
(27
)
8
Legal reserve and settlement charges
—
(4,700
)
—
(6,797
)
July 19 Incident related costs, net
(15,284
)
—
(16,322
)
—
Non-GAAP general and administrative
operating expenses
$
65,269
$
49,984
$
183,522
$
144,640
GAAP general and administrative operating
expenses as a percentage of revenue
13
%
13
%
12
%
13
%
Non-GAAP general and administrative
operating expenses as a percentage of revenue
6
%
6
%
6
%
7
%
GAAP income (loss) from operations
$
(55,723
)
$
3,163
$
(35,129
)
$
(31,666
)
Stock based compensation expense
208,888
159,614
592,890
455,247
Amortization of acquired intangible
assets
6,333
4,637
18,665
12,913
Acquisition-related expenses, net
1,393
3,656
4,552
3,954
Mark-to-market adjustments on deferred
compensation liabilities
103
(117
)
413
(61
)
Legal reserve and settlement charges
—
4,700
—
6,797
July 19 Incident related costs, net
33,922
—
39,054
—
Non-GAAP income from operations
$
194,916
$
175,653
$
620,445
$
447,184
GAAP operating margin
(6
)%
—
%
(1
)%
(1
)%
Non-GAAP operating margin
19
%
22
%
21
%
20
%
CROWDSTRIKE HOLDINGS,
INC.
GAAP to Non-GAAP
Reconciliations (continued)
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
GAAP net income (loss) attributable to
CrowdStrike
$
(16,822
)
$
26,665
$
73,011
$
35,628
Stock based compensation expense
208,888
159,614
592,890
455,247
Amortization of acquired intangible
assets
6,333
4,637
18,665
12,913
Acquisition-related expenses, net
1,393
3,656
4,552
3,954
Amortization of debt issuance costs and
discount
547
547
1,640
1,640
Mark-to-market adjustments on deferred
compensation liabilities
103
(117
)
413
(61
)
Legal reserve and settlement charges
—
4,700
—
6,797
July 19 Incident related costs, net
33,922
—
39,054
—
Benefit for income taxes1
—
(615
)
—
(615
)
Gains and other income from strategic
investments attributable to CrowdStrike
(3
)
(4
)
(3,124
)
(16
)
Losses (gains) on deferred compensation
assets
(103
)
117
(413
)
61
Non-GAAP net income attributable to
CrowdStrike
$
234,258
$
199,200
$
726,688
$
515,548
Weighted-average shares used in computing
GAAP basic net income (loss) per share attributable to CrowdStrike
common stockholders
245,536
239,297
244,017
237,890
GAAP basic net income (loss) per share
attributable to CrowdStrike common stockholders
$
(0.07
)
$
0.11
$
0.30
$
0.15
GAAP diluted net income (loss) per share
attributable to CrowdStrike common stockholders
$
(0.07
)
$
0.11
$
0.29
$
0.15
Stock-based compensation
0.83
0.65
2.36
1.88
Amortization of acquired intangible
assets
0.03
0.02
0.07
0.05
Acquisition-related expenses, net
0.01
0.01
0.02
0.02
Amortization of debt issuance costs and
discount
—
—
0.01
0.01
Mark-to-market adjustments on deferred
compensation liabilities
—
—
—
—
Legal reserve and settlement charges
—
0.02
—
0.03
July 19 Incident related costs, net
0.14
—
0.16
—
Benefit for income taxes1
—
—
—
—
Gains and other income from strategic
investments attributable to CrowdStrike
—
—
(0.01
)
—
Losses (gains) on deferred compensation
assets
—
—
—
—
Other2
(0.01
)
0.01
—
(0.01
)
Non-GAAP diluted net income per share
attributable to CrowdStrike common stockholders
$
0.93
$
0.82
$
2.90
$
2.13
Weighted-average shares used to calculate
Non-GAAP diluted net income per share attributable to CrowdStrike
common stockholders
250,777
243,799
250,747
242,196
__________________________
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, July
19 Incident related costs and (recoveries), net, 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 CrowdStrike 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 October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
GAAP net cash provided by operating
activities
$
326,136
$
273,518
$
1,036,005
$
819,191
Purchases of property and equipment
(78,704
)
(21,264
)
(167,641
)
(123,945
)
Capitalized internal-use software and
website development costs
(16,271
)
(12,630
)
(41,266
)
(38,605
)
Purchases of deferred compensation
investments
(606
)
(586
)
(1,815
)
(1,462
)
Proceeds from sales of deferred
compensation investments
—
—
(41
)
—
Free cash flow
$
230,555
$
239,038
$
825,242
$
655,179
GAAP net cash used in investing
activities
$
(105,581
)
$
(468,836
)
$
(211,569
)
$
(361,045
)
GAAP net cash provided by financing
activities
$
844
$
2,053
$
60,822
$
59,698
GAAP net cash provided by operating
activities as a percentage of revenue
32
%
35
%
36
%
37
%
Purchases of property and equipment as a
percentage of revenue
(8
)%
(3
)%
(6
)%
(6
)%
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
23
%
30
%
29
%
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), net,
mark-to-market adjustments on deferred compensation liabilities,
legal reserve and settlement charges or benefits, and July 19
Incident related costs and (recoveries), net.
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, July 19 Incident related costs and (recoveries), net,
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.
Dollar-Based Gross Retention Rate
Dollar-based gross retention rate as of the period end is
calculated by starting with the ARR from all subscription customers
as of 12 months prior to such period, or Prior Period ARR. Then
deduct from the Prior Period ARR any ARR from subscription
customers who are no longer customers as of the current period end,
or Current Period Remaining ARR. Then divide the total Current
Period Remaining ARR by the total Prior Period ARR to arrive at our
dollar-based gross retention rate, which is the percentage of ARR
from all subscription customers as of the year prior that is not
lost to customer churn.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241126970319/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
CrowdStrike (NASDAQ:CRWD)
Historical Stock Chart
From Nov 2024 to Dec 2024
CrowdStrike (NASDAQ:CRWD)
Historical Stock Chart
From Dec 2023 to Dec 2024
