CrowdStrike Reports First Quarter Fiscal Year 2025 Financial Results
- Ending ARR grows 33% year-over-year to reach
$3.65 billion - Net new ARR grows 22% year-over-year to
$212 million - Delivers record operating cash flow of
$383 million and record free cash flow of$322 million , 35% of revenue
“CrowdStrike started the fiscal year from a position of momentum and exceptional strength, with net new ARR of
Commenting on the company's financial results,
First Quarter Fiscal 2025 Financial Highlights
- Revenue: Total revenue was
$921.0 million , a 33% increase, compared to$692.6 million in the first quarter of fiscal 2024. Subscription revenue was$872.2 million , a 34% increase, compared to$651.2 million in the first quarter of fiscal 2024.
- Annual Recurring Revenue (ARR) grew 33% year-over-year to
$3.65 billion as ofApril 30, 2024 , of which$211.7 million was net new ARR added in the quarter.
- Subscription Gross Margin: GAAP subscription gross margin was 78% for the first quarter of both fiscal 2025 and 2024. Non-GAAP subscription gross margin was 80% for the first quarter of both fiscal 2025 and 2024.
- Income/Loss from Operations: GAAP income from operations was
$6.9 million , compared to a loss of$19.5 million in the first quarter of fiscal 2024. Non-GAAP income from operations was$198.7 million , compared to$115.9 million in the first quarter of fiscal 2024.
- Net Income Attributable to
CrowdStrike : GAAP net income attributable toCrowdStrike was$42.8 million , compared to$0.5 million in the first quarter of fiscal 2024. GAAP net income per share attributable toCrowdStrike , diluted, was$0.17 , compared to$0.00 in the first quarter of fiscal 2024. Non-GAAP net income attributable toCrowdStrike was$231.7 million , compared to$136.4 million in the first quarter of fiscal 2024. Non-GAAP net income attributable toCrowdStrike per share, diluted, was$0.93 , compared to$0.57 in the first quarter of fiscal 2024.
- Cash Flow: Net cash generated from operations was
$383.2 million , compared to$300.9 million in the first quarter of fiscal 2024. Free cash flow was$322.5 million , compared to$227.4 million in the first quarter of fiscal 2024.
- Cash and Cash Equivalents was
$3.70 billion as ofApril 30, 2024 .
Recent Highlights
- CrowdStrike’s module adoption rates were 65%, 44% and 28% for five or more, six or more and seven or more modules, respectively, as of
April 30, 2024 1.
- Delivered the next generation of SIEM to power the AI-native SOC with Falcon Next-Gen SIEM. Falcon Next-Gen SIEM supports the largest ecosystem of ISV data sources of any pure-play cybersecurity vendor as well as expanded partnerships and alliances with global system integrators (GSIs), managed service providers (MSPs) and managed security service providers (MSSPs).
- Announced the general availability of Falcon Application Security Posture Management (ASPM) as an integrated part of Falcon Cloud Security and unveiled new Cloud Detection and Response (CDR) innovations.
- Launched Falcon for Defender augmenting Microsoft Defender deployments to stop missed attacks.
- Expanded partnership with
Amazon Web Services (AWS) to accelerate cybersecurity consolidation and cloud transformation.
- Expanded strategic partnership with
Google Cloud to stop breaches across multi-cloud and multi-vendor environments and to power Mandiant’s Incident Response (IR) and Managed Detection and Response (MDR) services.
- Announced a strategic collaboration with NVIDIA to deliver NVIDIA’s AI computing services on the CrowdStrike Falcon XDR platform.
- Partnered with Tata Consultancy Services (TCS) to power TCS’ extended managed detection and response (XMDR) services with the Falcon platform.
- Launched a partnership to power HCLTech’s managed detection and response (MDR) solutions with the AI-native CrowdStrike Falcon XDR platform.
- Named a leader in The Forrester Wave™: Extended Detection And Response Platforms, Q2 2024 report2.
- Positioned as a Leader in the IDC MarketScape: Worldwide Managed Detection and Response Services (MDR) 2024 Vendor Assessment3.
- Recognized as an Overall Leader in the KuppingerCole Leadership Compass, Identity Threat Detection and Response (ITDR) 2024: IAM Meets the SOC4.
- Recognized by
Frost & Sullivan with its 2024 Global Customer Value Leadership Award for Best Practices in Cloud Security5.
Financial Outlook
Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization expense of acquired intangible assets (including purchased patents), amortization of debt issuance costs and discount, mark-to-market adjustments on deferred compensation liabilities, legal reserve and settlement charges or benefits, acquisition-related provision (benefit) for income taxes, losses (gains) and other income from strategic investments, acquisition-related expenses (credits), 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
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Q2 FY25 Guidance |
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Full Year FY25 Guidance |
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Total revenue |
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Non-GAAP income from operations |
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|
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Non-GAAP net income attributable to |
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Non-GAAP net income per share attributable to |
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|
|
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Weighted average shares used in computing Non-GAAP net income per share attributable to common stockholders, diluted |
250 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
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Date: |
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Time: |
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Pre-registration link for dial-in access: |
register.vevent.com/register/BI4e800a230c5444d690ced92841e6b072 |
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Webcast: |
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 second 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 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;
Additional risks and uncertainties that could affect CrowdStrike’s financial results are included in the 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
Use of Non-GAAP Financial Information
Channels for Disclosure of Information
Definition of Module Adoption Rates
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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
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2. |
The Forrester Wave(TM): Extended Detection And Response Platforms, Q2 2024. |
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3. |
IDC MarketScape: Worldwide Managed Detection and Response Services (MDR) 2024 Vendor Assessment (Doc #US49006922, |
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4. |
KuppingerCole Leadership Compass, Identity Threat Detection and Response (ITDR) 2024: IAM Meets the SOC ( |
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5. |
2024 Frost & Sullivan Global Customer Value Leadership Award: The Global Cloud Security Industry Excellence In Best Practices in Cloud Security ( |
About
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.
For more information, please visit: ir.crowdstrike.com
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Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
|
|
|
||||
|
Subscription |
$ |
872,172 |
|
|
$ |
651,175 |
|
|
Professional services |
|
48,864 |
|
|
|
41,405 |
|
|
Total revenue |
|
921,036 |
|
|
|
692,580 |
|
|
Cost of revenue |
|
|
|
||||
|
Subscription (1)(2) |
|
189,657 |
|
|
|
142,100 |
|
|
Professional services (1) |
|
35,346 |
|
|
|
27,130 |
|
|
Total cost of revenue |
|
225,003 |
|
|
|
169,230 |
|
|
|
|
|
|
||||
|
Gross profit |
|
696,033 |
|
|
|
523,350 |
|
|
|
|
|
|
||||
|
Operating expenses |
|
|
|
||||
|
Sales and marketing (1)(2)(4) |
|
350,114 |
|
|
|
281,107 |
|
|
Research and development (1)(3)(4) |
|
235,249 |
|
|
|
179,065 |
|
|
General and administrative (1)(2)(3)(4) |
|
103,734 |
|
|
|
82,634 |
|
|
Total operating expenses |
|
689,097 |
|
|
|
542,806 |
|
|
|
|
|
|
||||
|
Income (loss) from operations |
|
6,936 |
|
|
|
(19,456 |
) |
|
Interest expense(5) |
|
(6,511 |
) |
|
|
(6,387 |
) |
|
Interest income |
|
45,850 |
|
|
|
30,521 |
|
|
Other income, net(6)(7) |
|
7,656 |
|
|
|
230 |
|
|
Income before provision for income taxes |
|
53,931 |
|
|
|
4,908 |
|
|
Provision for income taxes |
|
7,667 |
|
|
|
4,409 |
|
|
Net income |
|
46,264 |
|
|
|
499 |
|
|
Net income attributable to non-controlling interest |
|
3,444 |
|
|
|
8 |
|
|
Net income attributable to |
$ |
42,820 |
|
|
$ |
491 |
|
|
Net income per share attributable to |
|
|
|
||||
|
Basic |
$ |
0.18 |
|
|
$ |
0.00 |
|
|
Diluted |
$ |
0.17 |
|
|
$ |
0.00 |
|
|
Weighted-average shares used in computing net income per share attributable to |
|
|
|
||||
|
Basic |
|
242,389 |
|
|
|
236,414 |
|
|
Diluted |
|
250,164 |
|
|
|
240,598 |
|
____________________________
(1) Includes stock-based compensation expense as follows (in thousands):
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Subscription cost of revenue |
$ |
13,916 |
|
$ |
8,966 |
||
|
Professional services cost of revenue |
|
6,273 |
|
|
|
4,630 |
|
|
Sales and marketing |
|
52,258 |
|
|
|
35,739 |
|
|
Research and development |
|
66,742 |
|
|
|
44,381 |
|
|
General and administrative |
|
43,936 |
|
|
|
37,140 |
|
|
Total stock-based compensation expense |
$ |
183,125 |
|
|
$ |
130,856 |
|
(2) Includes amortization of acquired intangible assets, including purchased patents, as follows (in thousands):
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Subscription cost of revenue |
$ |
5,045 |
|
$ |
3,580 |
||
|
Sales and marketing |
|
603 |
|
|
|
531 |
|
|
General and administrative |
|
347 |
|
|
|
63 |
|
|
Total amortization of acquired intangible assets |
$ |
5,995 |
|
|
$ |
4,174 |
|
(3) Includes acquisition-related expenses (credit), net as follows (in thousands):
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Research and development |
$ |
477 |
|
$ |
371 |
|
|
|
General and administrative |
|
2,147 |
|
|
|
(70 |
) |
|
Total acquisition-related expenses, net |
$ |
2,624 |
|
|
$ |
301 |
|
(4) Includes mark-to-market adjustments on deferred compensation liabilities as follows (in thousands):
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Sales and marketing |
$ |
35 |
|
$ |
3 |
||
|
Research and development |
|
12 |
|
|
|
1 |
|
|
General and administrative |
|
13 |
|
|
|
— |
|
|
Total mark-to-market adjustments on deferred compensation liabilities |
$ |
60 |
|
|
$ |
4 |
|
(5) Includes amortization of debt issuance costs and discount as follows (in thousands):
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Interest expense |
$ |
546 |
|
$ |
546 |
||
|
Total amortization of debt issuance costs and discount |
$ |
546 |
|
|
$ |
546 |
|
(6) Includes gains and other income from strategic investments as follows (in thousands):
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Other income, net |
$ |
6,888 |
|
$ |
16 |
||
|
Total gains and other income from strategic investments |
$ |
6,888 |
|
|
$ |
16 |
|
(7) Includes gains on deferred compensation assets as follows (in thousands):
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Other income, net |
$ |
60 |
|
$ |
4 |
||
|
Total gains on deferred compensation assets |
$ |
60 |
|
|
$ |
4 |
|
|
Condensed Consolidated Balance Sheets (in thousands) (unaudited)
|
|||||||
|
|
|
|
|
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
3,702,437 |
|
|
$ |
3,375,069 |
|
|
Short-term investments |
|
— |
|
|
|
99,591 |
|
|
Accounts receivable, net of allowance for credit losses |
|
702,856 |
|
|
|
853,105 |
|
|
Deferred contract acquisition costs, current |
|
244,651 |
|
|
|
246,370 |
|
|
Prepaid expenses and other current assets |
|
191,678 |
|
|
|
183,172 |
|
|
Total current assets |
|
4,841,622 |
|
|
|
4,757,307 |
|
|
Strategic investments |
|
58,419 |
|
|
|
56,244 |
|
|
Property and equipment, net |
|
627,381 |
|
|
|
620,172 |
|
|
Operating lease right-of-use assets |
|
48,598 |
|
|
|
48,211 |
|
|
Deferred contract acquisition costs, noncurrent |
|
330,004 |
|
|
|
335,933 |
|
|
|
|
721,973 |
|
|
|
638,041 |
|
|
Intangible assets, net |
|
122,024 |
|
|
|
114,518 |
|
|
Other long-term assets |
|
91,964 |
|
|
|
76,094 |
|
|
Total assets |
$ |
6,841,985 |
|
|
$ |
6,646,520 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
21,299 |
|
|
$ |
28,180 |
|
|
Accrued expenses |
|
102,116 |
|
|
|
125,896 |
|
|
Accrued payroll and benefits |
|
216,695 |
|
|
|
234,624 |
|
|
Operating lease liabilities, current |
|
16,020 |
|
|
|
14,150 |
|
|
Deferred revenue |
|
2,309,329 |
|
|
|
2,270,757 |
|
|
Other current liabilities |
|
18,227 |
|
|
|
23,672 |
|
|
Total current liabilities |
|
2,683,686 |
|
|
|
2,697,279 |
|
|
Long-term debt |
|
742,866 |
|
|
|
742,494 |
|
|
Deferred revenue, noncurrent |
|
760,050 |
|
|
|
783,342 |
|
|
Operating lease liabilities, noncurrent |
|
34,090 |
|
|
|
36,230 |
|
|
Other liabilities, noncurrent |
|
52,511 |
|
|
|
50,086 |
|
|
Total liabilities |
|
4,273,203 |
|
|
|
4,309,431 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Stockholders’ Equity |
|
|
|
||||
|
Common stock, Class A and Class B |
|
122 |
|
|
|
121 |
|
|
Additional paid-in capital |
|
3,556,194 |
|
|
|
3,364,328 |
|
|
Accumulated deficit |
|
(1,016,016 |
) |
|
|
(1,058,836 |
) |
|
Accumulated other comprehensive loss |
|
(4,760 |
) |
|
|
(1,663 |
) |
|
|
|
2,535,540 |
|
|
|
2,303,950 |
|
|
Non-controlling interest |
|
33,242 |
|
|
|
33,139 |
|
|
Total stockholders’ equity |
|
2,568,782 |
|
|
|
2,337,089 |
|
|
Total liabilities and stockholders’ equity |
$ |
6,841,985 |
|
|
$ |
6,646,520 |
|
|
Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Operating activities |
|
|
|
||||
|
Net income |
$ |
46,264 |
|
|
$ |
499 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
42,689 |
|
|
|
26,409 |
|
|
Amortization of intangible assets |
|
5,995 |
|
|
|
4,174 |
|
|
Amortization of deferred contract acquisition costs |
|
74,128 |
|
|
|
55,322 |
|
|
Non-cash operating lease cost |
|
3,372 |
|
|
|
3,092 |
|
|
Stock-based compensation expense |
|
183,125 |
|
|
|
130,856 |
|
|
Deferred income taxes |
|
(255 |
) |
|
|
(255 |
) |
|
Realized gains on strategic investments |
|
(6,881 |
) |
|
|
— |
|
|
Non-cash interest expense |
|
874 |
|
|
|
754 |
|
|
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 |
|
150,249 |
|
|
|
165,089 |
|
|
Deferred contract acquisition costs |
|
(66,480 |
) |
|
|
(49,532 |
) |
|
Prepaid expenses and other assets |
|
(28,602 |
) |
|
|
(8,542 |
) |
|
Accounts payable |
|
276 |
|
|
|
(18,596 |
) |
|
Accrued expenses and other liabilities |
|
(16,629 |
) |
|
|
(36,576 |
) |
|
Accrued payroll and benefits |
|
(17,692 |
) |
|
|
(17,281 |
) |
|
Operating lease liabilities |
|
(4,531 |
) |
|
|
(3,199 |
) |
|
Deferred revenue |
|
15,041 |
|
|
|
48,678 |
|
|
Net cash provided by operating activities |
|
383,228 |
|
|
|
300,892 |
|
|
Investing activities |
|
|
|
||||
|
Purchases of property and equipment |
|
(49,683 |
) |
|
|
(62,264 |
) |
|
Capitalized internal-use software and website development costs |
|
(10,479 |
) |
|
|
(10,902 |
) |
|
Purchases of strategic investments |
|
(1,658 |
) |
|
|
(10,513 |
) |
|
Proceeds from sales of strategic investments |
|
10,407 |
|
|
|
— |
|
|
Business acquisitions, net of cash acquired |
|
(96,376 |
) |
|
|
— |
|
|
Proceeds from maturities and sales of short-term investments |
|
97,300 |
|
|
|
150,000 |
|
|
Purchases of deferred compensation investments |
|
(609 |
) |
|
|
(290 |
) |
|
Net cash (used in) provided by investing activities |
|
(51,098 |
) |
|
|
66,031 |
|
|
Financing activities |
|
|
|
||||
|
Proceeds from issuance of common stock upon exercise of stock options |
|
823 |
|
|
|
2,651 |
|
|
Distributions to non-controlling interest holders |
|
(3,841 |
) |
|
|
— |
|
|
Capital contributions from non-controlling interest holders |
|
500 |
|
|
|
5,257 |
|
|
Net cash (used in) provided by financing activities |
|
(2,518 |
) |
|
|
7,908 |
|
|
|
|
|
|
||||
|
Effect of foreign exchange rates on cash, cash equivalents and restricted cash |
|
(1,917 |
) |
|
|
(190 |
) |
|
|
|
|
|
||||
|
Net increase in cash, cash equivalents and restricted cash |
|
327,695 |
|
|
|
374,641 |
|
|
|
|
|
|
||||
|
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 |
$ |
3,705,292 |
|
|
$ |
2,831,565 |
|
|
GAAP to Non-GAAP Reconciliations (in thousands, except percentages) (unaudited)
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP subscription revenue |
$ |
872,172 |
|
|
$ |
651,175 |
|
|
GAAP professional services revenue |
|
48,864 |
|
|
|
41,405 |
|
|
GAAP total revenue |
$ |
921,036 |
|
|
$ |
692,580 |
|
|
|
|
|
|
||||
|
GAAP subscription gross profit |
$ |
682,515 |
|
|
$ |
509,075 |
|
|
Stock based compensation expense |
|
13,916 |
|
|
|
8,966 |
|
|
Amortization of acquired intangible assets |
|
5,045 |
|
|
|
3,580 |
|
|
Non-GAAP subscription gross profit |
$ |
701,476 |
|
|
$ |
521,621 |
|
|
|
|
|
|
||||
|
GAAP subscription gross margin |
|
78 |
% |
|
|
78 |
% |
|
Non-GAAP subscription gross margin |
|
80 |
% |
|
|
80 |
% |
|
|
|
|
|
||||
|
GAAP professional services gross profit |
$ |
13,518 |
|
|
$ |
14,275 |
|
|
Stock based compensation expense |
|
6,273 |
|
|
|
4,630 |
|
|
Non-GAAP professional services gross profit |
$ |
19,791 |
|
|
$ |
18,905 |
|
|
|
|
|
|
||||
|
GAAP professional services gross margin |
|
28 |
% |
|
|
34 |
% |
|
Non-GAAP professional services gross margin |
|
41 |
% |
|
|
46 |
% |
|
|
|
|
|
||||
|
Total GAAP gross margin |
|
76 |
% |
|
|
76 |
% |
|
Total Non-GAAP gross margin |
|
78 |
% |
|
|
78 |
% |
|
|
|
|
|
||||
|
GAAP sales and marketing operating expenses |
$ |
350,114 |
|
|
$ |
281,107 |
|
|
Stock based compensation expense |
|
(52,258 |
) |
|
|
(35,739 |
) |
|
Amortization of acquired intangible assets |
|
(603 |
) |
|
|
(531 |
) |
|
Mark-to-market adjustments on deferred compensation liabilities |
|
(35 |
) |
|
|
(3 |
) |
|
Non-GAAP sales and marketing operating expenses |
$ |
297,218 |
|
|
$ |
244,834 |
|
|
|
|
|
|
||||
|
GAAP sales and marketing operating expenses as a percentage of revenue |
|
38 |
% |
|
|
41 |
% |
|
Non-GAAP sales and marketing operating expenses as a percentage of revenue |
|
32 |
% |
|
|
35 |
% |
|
|
|
|
|
||||
|
GAAP research and development operating expenses |
$ |
235,249 |
|
|
$ |
179,065 |
|
|
Stock based compensation expense |
|
(66,742 |
) |
|
|
(44,381 |
) |
|
Acquisition-related expenses, net |
|
(477 |
) |
|
|
(371 |
) |
|
Mark-to-market adjustments on deferred compensation liabilities |
|
(12 |
) |
|
|
(1 |
) |
|
Non-GAAP research and development operating expenses |
$ |
168,018 |
|
|
$ |
134,312 |
|
|
|
|
|
|
||||
|
GAAP research and development operating expenses as a percentage of revenue |
|
26 |
% |
|
|
26 |
% |
|
Non-GAAP research and development operating expenses as a percentage of revenue |
|
18 |
% |
|
|
19 |
% |
|
GAAP to Non-GAAP Reconciliations (continued) (in thousands, except per share amounts) (unaudited)
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP general and administrative operating expenses |
$ |
103,734 |
|
|
$ |
82,634 |
|
|
Stock based compensation expense |
|
(43,936 |
) |
|
|
(37,140 |
) |
|
Acquisition-related credits (expenses), net |
|
(2,147 |
) |
|
|
70 |
|
|
Amortization of acquired intangible assets |
|
(347 |
) |
|
|
(63 |
) |
|
Mark-to-market adjustments on deferred compensation liabilities |
|
(13 |
) |
|
|
— |
|
|
Non-GAAP general and administrative operating expenses |
$ |
57,291 |
|
|
$ |
45,501 |
|
|
|
|
|
|
||||
|
GAAP general and administrative operating expenses as a percentage of revenue |
|
11 |
% |
|
|
12 |
% |
|
Non-GAAP general and administrative operating expenses as a percentage of revenue |
|
6 |
% |
|
|
7 |
% |
|
|
|
|
|
||||
|
GAAP income (loss) from operations |
$ |
6,936 |
|
|
$ |
(19,456 |
) |
|
Stock based compensation expense |
|
183,125 |
|
|
|
130,856 |
|
|
Amortization of acquired intangible assets |
|
5,995 |
|
|
|
4,174 |
|
|
Acquisition-related expenses, net |
|
2,624 |
|
|
|
301 |
|
|
Mark-to-market adjustments on deferred compensation liabilities |
|
60 |
|
|
|
4 |
|
|
Non-GAAP income from operations |
$ |
198,740 |
|
|
$ |
115,879 |
|
|
|
|
|
|
||||
|
GAAP operating margin |
|
1 |
% |
|
|
(3 |
)% |
|
Non-GAAP operating margin |
|
22 |
% |
|
|
17 |
% |
|
|
|
|
|
||||
|
GAAP net income attributable to |
$ |
42,820 |
|
|
$ |
491 |
|
|
Stock based compensation expense |
|
183,125 |
|
|
|
130,856 |
|
|
Amortization of acquired intangible assets |
|
5,995 |
|
|
|
4,174 |
|
|
Acquisition-related expenses, net |
|
2,624 |
|
|
|
301 |
|
|
Amortization of debt issuance costs and discount |
|
546 |
|
|
|
546 |
|
|
Mark-to-market adjustments on deferred compensation liabilities |
|
60 |
|
|
|
4 |
|
|
Gains and other income from strategic investments attributable to |
|
(3,444 |
) |
|
|
(8 |
) |
|
Gains on deferred compensation assets |
|
(60 |
) |
|
|
(4 |
) |
|
Non-GAAP net income attributable to |
$ |
231,666 |
|
|
$ |
136,360 |
|
|
Weighted-average shares used in computing GAAP basic net income per share attributable to |
|
242,389 |
|
|
|
236,414 |
|
|
GAAP to Non-GAAP Reconciliations (continued) (in thousands, except per share amounts) (unaudited)
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP basic net income per share attributable to |
$ |
0.18 |
|
|
$ |
0.00 |
|
|
|
|
|
|
||||
|
GAAP diluted net income per share attributable to |
$ |
0.17 |
|
|
$ |
0.00 |
|
|
Stock-based compensation |
|
0.73 |
|
|
|
0.54 |
|
|
Amortization of acquired intangible assets |
|
0.02 |
|
|
|
0.02 |
|
|
Acquisition-related expenses, net |
|
0.01 |
|
|
|
— |
|
|
Amortization of debt issuance costs and discount |
|
— |
|
|
|
— |
|
|
Mark-to-market adjustments on deferred compensation liabilities |
|
— |
|
|
|
— |
|
|
Gains and other income from strategic investments attributable to |
|
(0.01 |
) |
|
|
— |
|
|
Gains on deferred compensation assets |
|
— |
|
|
|
— |
|
|
Other (1) |
|
0.01 |
|
|
|
0.01 |
|
|
Non-GAAP diluted net income per share attributable to |
$ |
0.93 |
|
|
$ |
0.57 |
|
|
|
|
|
|
||||
|
Weighted-average shares used to calculate Non-GAAP diluted net income per share attributable to |
|
250,164 |
|
|
|
240,598 |
|
|
__________________________ |
|
(1) For periods in which we had diluted non-GAAP net income per share attributable to |
|
GAAP to Non-GAAP Reconciliations (continued) (in thousands, except percentages) (unaudited)
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP net cash provided by operating activities |
$ |
383,228 |
|
|
$ |
300,892 |
|
|
Purchases of property and equipment |
|
(49,683 |
) |
|
|
(62,264 |
) |
|
Capitalized internal-use software and website development costs |
|
(10,479 |
) |
|
|
(10,902 |
) |
|
Purchases of deferred compensation investments |
|
(609 |
) |
|
|
(290 |
) |
|
Free cash flow |
$ |
322,457 |
|
|
$ |
227,436 |
|
|
|
|
|
|
||||
|
GAAP net cash (used in) provided by investing activities |
$ |
(51,098 |
) |
|
$ |
66,031 |
|
|
GAAP net cash (used in) provided by financing activities |
$ |
(2,518 |
) |
|
$ |
7,908 |
|
|
|
|
|
|
||||
|
GAAP net cash provided by operating activities as a percentage of revenue |
|
42 |
% |
|
|
43 |
% |
|
Purchases of property and equipment as a percentage of revenue |
|
(5 |
)% |
|
|
(9 |
)% |
|
Capitalized internal-use software and website development costs as a percentage of revenue |
|
(1 |
)% |
|
|
(2 |
)% |
|
Purchases of deferred compensation investments as a percentage of revenue |
|
— |
% |
|
|
— |
% |
|
Free cash flow margin |
|
35 |
% |
|
|
33 |
% |
###
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
Non-GAAP Income from Operations
Non-GAAP Net Income Attributable to
The company defines non-GAAP net income attributable to
Non-GAAP Net Income per Share Attributable to CrowdStrike Common Stockholders, Diluted
Free Cash Flow
Free cash flow is a non-GAAP financial measure that
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
Magic Number
Magic Number is calculated by performing the following calculation for the most recent four quarters and taking the average: annualizing the difference between a quarter’s Subscription Revenue and the prior quarter’s Subscription Revenue, and then dividing the resulting number by the previous quarter’s Non-GAAP Sales & Marketing Expense. Magic Number = Average of previous four quarters: ((Quarter Subscription Revenue – Prior Quarter Subscription Revenue) x 4) / Prior Quarter Non-GAAP Sales & Marketing Expense.
Free Cash Flow Rule of 40
Free cash flow rule of 40 is calculated by taking the current quarter total revenue year over year growth rate percentage and summing it with the current quarter free cash flow margin percentage.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240604686291/en/
Investor Relations Contact
investors@crowdstrike.com
669-721-0742
Press Contact
press@crowdstrike.com
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