- 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 Holdings, Inc. (Nasdaq: CRWD), today announced
financial results for the first quarter fiscal year 2025, ended
April 30, 2024.
“CrowdStrike started the fiscal year from a position of momentum
and exceptional strength, with net new ARR of $212 million growing
22% year-over-year and ending ARR growing 33% year-over-year to
reach $3.65 billion,” said George Kurtz, CrowdStrike's president,
chief executive officer and co-founder. “The Falcon platform’s
differentiated architecture creates a wide competitive moat and
uniquely enables CrowdStrike to solve the industry’s biggest
cybersecurity, IT and data problems. Customers of all sizes are
standardizing on the Falcon platform to achieve better security
outcomes and lower their TCO.”
Commenting on the company's financial results, Burt Podbere,
CrowdStrike’s chief financial officer, added, “The CrowdStrike team
delivered another exceptional quarter driven by strong execution
and platform adoption as customers increasingly consolidate on the
Falcon platform. In addition to our strong top-line performance,
financial highlights included record gross margin, significant
year-over-year operating leverage, record free cash flow of $322
million or 35% of revenue and a rule of 68 on a free cash flow
basis, showcasing our focus on profitably scaling the business to
$10 billion ending ARR and beyond.”
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 of April 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 to CrowdStrike was $42.8 million, compared to $0.5
million in the first quarter of fiscal 2024. GAAP net income per
share attributable to CrowdStrike, diluted, was $0.17, compared to
$0.00 in the first quarter of fiscal 2024. Non-GAAP net income
attributable to CrowdStrike was $231.7 million, compared to $136.4
million in the first quarter of fiscal 2024. Non-GAAP net income
attributable to CrowdStrike 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 of April
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, 20241.
- 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
CrowdStrike is providing the following guidance for the second
quarter of fiscal 2025 (ending July 31, 2024) and increasing its
guidance for fiscal year 2025 (ending January 31, 2025).
Guidance for non-GAAP financial measures excludes stock-based
compensation expense, amortization expense of acquired intangible
assets (including purchased patents), amortization of debt issuance
costs and discount, mark-to-market adjustments on deferred
compensation liabilities, legal reserve and settlement charges or
benefits, acquisition-related provision (benefit) for income taxes,
losses (gains) and other income from strategic investments,
acquisition-related expenses (credits), 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.
Q2 FY25
Guidance
Full Year FY25
Guidance
Total revenue
$958.3 - $961.2 million
$3,976.3 - $4,010.7 million
Non-GAAP income from operations
$208.3 - $210.5 million
$890.1 - $916.5 million
Non-GAAP net income attributable to
CrowdStrike
$245.7 - $247.8 million
$985.6 - $1,012.0 million
Non-GAAP net income per share attributable
to CrowdStrike common stockholders, diluted
$0.98 - $0.99
$3.93 - $4.03
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
CrowdStrike will host a conference call for analysts and
investors to discuss its earnings results for the first quarter of
fiscal 2025 and outlook for its fiscal second 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:
June 4, 2024
Time:
2:00 p.m. Pacific time / 5:00 p.m. Eastern
time
Pre-registration link for dial-in
access:
register.vevent.com/register/BI4e800a230c5444d690ced92841e6b072
Webcast:
ir.crowdstrike.com
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties, including statements regarding
CrowdStrike’s future growth, and future financial and operating
performance, including CrowdStrike’s financial outlook for the
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; 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(TM): Extended Detection
And Response Platforms, Q2 2024.
3.
IDC MarketScape: Worldwide Managed
Detection and Response Services (MDR) 2024 Vendor Assessment (Doc
#US49006922, April 2024).
4.
KuppingerCole Leadership Compass, Identity
Threat Detection and Response (ITDR) 2024: IAM Meets the SOC (April
2024).
5.
2024 Frost & Sullivan Global Customer
Value Leadership Award: The Global Cloud Security Industry
Excellence In Best Practices in Cloud Security (May 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 April
30,
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 CrowdStrike
$
42,820
$
491
Net income per share attributable to
CrowdStrike common stockholders:
Basic
$
0.18
$
0.00
Diluted
$
0.17
$
0.00
Weighted-average shares used in computing
net income per share attributable to CrowdStrike common
stockholders:
Basic
242,389
236,414
Diluted
250,164
240,598
____________________________
(1) Includes stock-based compensation expense as follows (in
thousands):
Three Months Ended April
30,
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 April
30,
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 April
30,
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 April
30,
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 April
30,
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 April
30,
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 April
30,
2024
2023
Other income, net
$
60
$
4
Total gains on deferred compensation
assets
$
60
$
4
CROWDSTRIKE HOLDINGS,
INC.
Condensed Consolidated Balance
Sheets
(in thousands)
(unaudited)
April 30, 2024
January 31, 2024
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
Goodwill
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
)
Total CrowdStrike Holdings, Inc.
stockholders’ equity
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
CROWDSTRIKE HOLDINGS,
INC.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended April
30,
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
CROWDSTRIKE HOLDINGS,
INC.
GAAP to Non-GAAP
Reconciliations
(in thousands, except
percentages)
(unaudited)
Three Months Ended April
30,
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
%
CROWDSTRIKE HOLDINGS,
INC.
GAAP to Non-GAAP
Reconciliations (continued)
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended April
30,
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
CrowdStrike
$
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 CrowdStrike
(3,444
)
(8
)
Gains on deferred compensation assets
(60
)
(4
)
Non-GAAP net income attributable to
CrowdStrike
$
231,666
$
136,360
Weighted-average shares used in computing
GAAP basic net income per share attributable to CrowdStrike common
stockholders
242,389
236,414
CROWDSTRIKE HOLDINGS,
INC.
GAAP to Non-GAAP
Reconciliations (continued)
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended April
30,
2024
2023
GAAP basic net income per share
attributable to CrowdStrike common stockholders
$
0.18
$
0.00
GAAP diluted net income per share
attributable to CrowdStrike common stockholders
$
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 CrowdStrike
(0.01
)
—
Gains on deferred compensation assets
—
—
Other (1)
0.01
0.01
Non-GAAP diluted net income per share
attributable to CrowdStrike common stockholders
$
0.93
$
0.57
Weighted-average shares used to calculate
Non-GAAP diluted net income per share attributable to CrowdStrike
common stockholders
250,164
240,598
__________________________
(1) For periods in which we had diluted
non-GAAP net income per share attributable to CrowdStrike common
stockholders, the sum of the impact of individual reconciling items
may not total to diluted Non-GAAP net income per share attributable
to CrowdStrike common stockholders because of rounding
differences.
CROWDSTRIKE HOLDINGS,
INC.
GAAP to Non-GAAP
Reconciliations (continued)
(in thousands, except
percentages)
(unaudited)
Three Months Ended April
30,
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 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,
and legal reserve and settlement charges or benefits.
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, acquisition-related provision (benefit) for income taxes,
losses (gains) and other income from strategic investments, and
losses (gains) on deferred compensation assets.
Non-GAAP Net Income per Share Attributable to CrowdStrike
Common Stockholders, Diluted
CrowdStrike defines non-GAAP net income per share attributable
to CrowdStrike common stockholders, as non-GAAP net income
attributable to CrowdStrike divided by the weighted-average shares
outstanding, which includes the dilutive effect of potentially
dilutive common stock equivalents outstanding during the
period.
Free Cash Flow
Free cash flow is a non-GAAP financial measure that CrowdStrike
defines as net cash provided by operating activities less purchases
of property and equipment, capitalized internal-use software and
website development costs, and purchases of deferred compensation
investments. CrowdStrike monitors free cash flow as one measure of
its overall business performance, which enables CrowdStrike to
analyze its future performance without the effects of non-cash
items and allow CrowdStrike to better understand the cash needs of
its business. While CrowdStrike believes that free cash flow is
useful in evaluating its business, free cash flow is a non-GAAP
financial measure that has limitations as an analytical tool, and
free cash flow should not be considered as an alternative to, or
substitute for, net cash provided by operating activities in
accordance with GAAP. The utility of free cash flow as a measure of
CrowdStrike’s liquidity is further limited as it does not represent
the total increase or decrease in CrowdStrike’s cash balance for
any given period. In addition, other companies, including companies
in 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 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 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
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