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CrowdStrike Reports Fourth Quarter and Fiscal Year 2024 Financial Results

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

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

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

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

Fourth Quarter Fiscal 2024 Financial Highlights

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

Full Year Fiscal 2024 Financial Highlights

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

Recent Highlights

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

Financial Outlook

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

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

 

 

Q1 FY25

Guidance

 

Full Year FY25

Guidance

Total revenue

$902.2 - $905.8 million

 

$3,924.9 - $3,989.0 million

Non-GAAP income from operations

$188.1 - $190.8 million

 

$863.6 - $913.0 million

Non-GAAP net income attributable to CrowdStrike

$220.4 - $223.1 million

 

$940.3 - $989.7 million

Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted

$0.89 - $0.90

 

$3.77 - $3.97

Weighted average shares used in computing Non-GAAP net income per share attributable to common stockholders, diluted

248 million

 

250 million

 

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

Conference Call Information

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

 

Date:

March 5, 2024

Time:

2:00 p.m. Pacific time / 5:00 p.m. Eastern time

Pre-registration link for dial-in access:

register.vevent.com/register/BIdbe3c03664f8419b8b69111638e9c60b

Webcast:

ir.crowdstrike.com

 

Forward-Looking Statements

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

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

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

Use of Non-GAAP Financial Information

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

Channels for Disclosure of Information

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

Definition of Module Adoption Rates

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

Reports Referenced and Disclaimers

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

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

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

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

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

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

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

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

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

About CrowdStrike Holdings

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

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

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

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

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

 

CROWDSTRIKE HOLDINGS, INC.

 

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

Revenue

 

 

 

 

 

 

 

Subscription

$

795,947

 

 

$

598,263

 

 

$

2,870,557

 

 

$

2,111,660

 

Professional services

 

49,388

 

 

 

39,104

 

 

 

184,998

 

 

 

129,576

 

Total revenue

 

845,335

 

 

 

637,367

 

 

 

3,055,555

 

 

 

2,241,236

 

Cost of revenue

 

 

 

 

 

 

 

Subscription (1)(2)

 

175,509

 

 

 

149,426

 

 

 

630,745

 

 

 

511,684

 

Professional services (1)

 

33,063

 

 

 

26,178

 

 

 

124,978

 

 

 

89,547

 

Total cost of revenue

 

208,572

 

 

 

175,604

 

 

 

755,723

 

 

 

601,231

 

Gross profit

 

636,763

 

 

 

461,763

 

 

 

2,299,832

 

 

 

1,640,005

 

Operating expenses

 

 

 

 

 

 

 

Sales and marketing (1)(2)(4)

 

290,357

 

 

 

246,439

 

 

 

1,140,566

 

 

 

904,409

 

Research and development (1)(2)(3)(4)

 

213,998

 

 

 

191,845

 

 

 

768,497

 

 

 

608,364

 

General and administrative (1)(2)(3)(4)(5)

 

102,737

 

 

 

84,979

 

 

 

392,764

 

 

 

317,344

 

Total operating expenses

 

607,092

 

 

 

523,263

 

 

 

2,301,827

 

 

 

1,830,117

 

Income (loss) from operations

 

29,671

 

 

 

(61,500

)

 

 

(1,995

)

 

 

(190,112

)

Interest expense(6)

 

(6,422

)

 

 

(6,352

)

 

 

(25,756

)

 

 

(25,319

)

Interest income

 

41,685

 

 

 

27,016

 

 

 

148,930

 

 

 

52,495

 

Other income (expense),net(7)(8)

 

3,616

 

 

 

(2,782

)

 

 

1,638

 

 

 

3,053

 

Income (loss) before provision for income taxes

 

68,550

 

 

 

(43,618

)

 

 

122,817

 

 

 

(159,883

)

Provision for income taxes(9)

 

13,609

 

 

 

5,314

 

 

 

32,232

 

 

 

22,402

 

Net income (loss)

 

54,941

 

 

 

(48,932

)

 

 

90,585

 

 

 

(182,285

)

Net income (loss) attributable to non-controlling interest

 

1,242

 

 

 

(1,451

)

 

 

1,258

 

 

 

960

 

Net income (loss) attributable to CrowdStrike

$

53,699

 

 

$

(47,481

)

 

$

89,327

 

 

$

(183,245

)

Net income (loss) per share attributable to CrowdStrike common stockholders:

 

 

 

 

 

 

 

Basic

$

0.22

 

 

$

(0.20

)

 

$

0.37

 

 

$

(0.79

)

Diluted

$

0.22

 

 

$

(0.20

)

 

$

0.37

 

 

$

(0.79

)

Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders:

 

 

 

 

 

 

 

Basic

 

240,856

 

 

 

235,027

 

 

 

238,637

 

 

 

233,139

 

Diluted

 

247,936

 

 

 

235,027

 

 

 

243,635

 

 

 

233,139

 

 

(1) Includes stock-based compensation expense as follows (in thousands):
 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

Subscription cost of revenue

$

13,311

 

$

10,134

 

$

43,886

 

$

32,091

Professional services cost of revenue

 

6,282

 

 

5,096

 

 

22,302

 

 

15,692

Sales and marketing

 

46,083

 

 

42,747

 

 

175,808

 

 

151,919

Research and development

 

62,142

 

 

54,364

 

 

205,896

 

 

174,711

General and administrative

 

48,454

 

 

40,006

 

 

183,627

 

 

152,091

Total stock-based compensation expense

$

176,272

 

$

152,347

 

$

631,519

 

$

526,504

 

(2) Includes amortization of acquired intangible assets, including purchased patents, as follows (in thousands):

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

Subscription cost of revenue

$

4,819

 

$

3,571

 

$

15,560

 

$

13,907

Sales and marketing

 

602

 

 

619

 

 

2,085

 

 

2,557

Research and development

 

 

 

 

 

468

 

 

General and administrative

 

82

 

 

36

 

 

303

 

 

101

Total amortization of acquired intangible assets

$

5,503

 

$

4,226

 

$

18,416

 

$

16,565

 

(3) Includes acquisition-related expenses as follows (in thousands):

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

Research and development

$

 

$

 

$

750

 

$

General and administrative

 

428

 

 

477

 

 

3,632

 

 

2,664

Total acquisition-related expenses

$

428

 

$

477

 

$

4,382

 

$

2,664

 

(4) Includes mark-to-market adjustments on deferred compensation liabilities as follows (in thousands):

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

Sales and marketing

$

125

 

$

 

$

92

 

$

Research and development

 

81

 

 

 

 

61

 

 

General and administrative

 

31

 

 

1

 

 

23

 

 

1

Total mark-to-market adjustments on deferred compensation liabilities

$

237

 

$

1

 

$

176

 

$

1

 

(5) Includes legal reserve and settlement charges as follows (in thousands):

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

General and administrative

$

1,000

 

$

 

$

7,797

 

$

Total legal reserve and settlement charges

$

1,000

 

$

 

$

7,797

 

$

 

(6) Includes amortization of debt issuance costs and discount as follows (in thousands):

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

Interest expense

$

546

 

$

548

 

$

2,186

 

$

2,187

Total amortization of debt issuance costs and discount

$

546

 

$

548

 

$

2,186

 

$

2,187

 

(7) Includes gains (losses) and other income from strategic investments as follows (in thousands):

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

Other income (expense), net

$

2,485

 

$

(2,904

)

 

$

2,516

 

$

1,920

Total gains (losses) and other income from strategic investments

$

2,485

 

$

(2,904

)

 

$

2,516

 

$

1,920

 

(8) Includes gains on deferred compensation assets as follows (in thousands):

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

Other income, net

$

237

 

$

1

 

$

176

 

$

1

Total gains on deferred compensation assets

$

237

 

$

1

 

$

176

 

$

1

 

(9) Includes provision (benefit) for income taxes related to acquisitions as follows (in thousands):

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

Provision (benefit) for income taxes

$

 

$

 

$

(615

)

 

$

4,658

Total provision (benefit) for income taxes

$

 

$

 

$

(615

)

 

$

4,658

 

CROWDSTRIKE HOLDINGS, INC.

 

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

January 31,

 

January 31,

 

2024

 

2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

3,375,069

 

 

$

2,455,369

 

Short-term investments

 

99,591

 

 

 

250,000

 

Accounts receivable, net of allowance for credit losses

 

853,105

 

 

 

626,181

 

Deferred contract acquisition costs, current

 

246,370

 

 

 

186,855

 

Prepaid expenses and other current assets

 

183,172

 

 

 

121,862

 

Total current assets

 

4,757,307

 

 

 

3,640,267

 

Strategic investments

 

56,244

 

 

 

47,270

 

Property and equipment, net

 

620,172

 

 

 

492,335

 

Operating lease right-of-use assets

 

48,211

 

 

 

39,936

 

Deferred contract acquisition costs, noncurrent

 

335,933

 

 

 

260,233

 

Goodwill

 

638,041

 

 

 

430,645

 

Intangible assets, net

 

114,518

 

 

 

86,889

 

Other long-term assets

 

76,094

 

 

 

28,965

 

Total assets

$

6,646,520

 

 

$

5,026,540

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

28,180

 

 

$

45,372

 

Accrued expenses

 

125,896

 

 

 

137,884

 

Accrued payroll and benefits

 

234,624

 

 

 

168,767

 

Operating lease liabilities, current

 

14,150

 

 

 

13,046

 

Deferred revenue

 

2,270,757

 

 

 

1,727,484

 

Other current liabilities

 

23,672

 

 

 

16,519

 

Total current liabilities

 

2,697,279

 

 

 

2,109,072

 

Long-term debt

 

742,494

 

 

 

741,005

 

Deferred revenue, noncurrent

 

783,342

 

 

 

627,629

 

Operating lease liabilities, noncurrent

 

36,230

 

 

 

29,567

 

Other liabilities, noncurrent

 

50,086

 

 

 

31,833

 

Total liabilities

 

4,309,431

 

 

 

3,539,106

 

Commitments and contingencies

 

 

 

Stockholders’ Equity

 

 

 

Common stock, Class A and Class B

 

121

 

 

 

118

 

Additional paid-in capital

 

3,364,328

 

 

 

2,612,705

 

Accumulated deficit

 

(1,058,836

)

 

 

(1,148,163

)

Accumulated other comprehensive loss

 

(1,663

)

 

 

(1,019

)

Total CrowdStrike Holdings, Inc. stockholders’ equity

 

2,303,950

 

 

 

1,463,641

 

Non-controlling interest

 

33,139

 

 

 

23,793

 

Total stockholders’ equity

 

2,337,089

 

 

 

1,487,434

 

Total liabilities and stockholders’ equity

$

6,646,520

 

 

$

5,026,540

 

 

CROWDSTRIKE HOLDINGS, INC.

 

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Year Ended January 31,

 

2024

 

2023

Operating activities

 

 

 

Net income (loss)

$

90,585

 

 

$

(182,285

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

126,838

 

 

 

77,245

 

Amortization of intangible assets

 

18,416

 

 

 

16,565

 

Amortization of deferred contract acquisition costs

 

238,901

 

 

 

170,808

 

Non-cash operating lease costs

 

13,398

 

 

 

9,440

 

Stock-based compensation expense

 

631,519

 

 

 

526,504

 

Deferred income taxes

 

(3,387

)

 

 

1,306

 

Realized gains on strategic investments

 

(3,936

)

 

 

 

Accretion of short-term investments purchased at a discount

 

(2,285

)

 

 

 

Non-cash interest expense

 

3,173

 

 

 

2,813

 

Change in fair value of strategic investments

 

1,459

 

 

 

(1,830

)

Changes in operating assets and liabilities, net of impact of acquisitions

 

 

 

Accounts receivable, net

 

(217,699

)

 

 

(258,109

)

Deferred contract acquisition costs

 

(371,649

)

 

 

(298,716

)

Prepaid expenses and other assets

 

(102,520

)

 

 

(46,807

)

Accounts payable

 

(18,898

)

 

 

(15,463

)

Accrued expenses and other liabilities

 

14,586

 

 

 

58,923

 

Accrued payroll and benefits

 

65,102

 

 

 

65,226

 

Operating lease liabilities

 

(14,035

)

 

 

(10,364

)

Deferred revenue

 

696,639

 

 

 

825,751

 

Net cash provided by operating activities

 

1,166,207

 

 

 

941,007

 

Investing activities

 

 

 

Purchases of property and equipment

 

(176,529

)

 

 

(235,019

)

Capitalized internal-use software and website development costs

 

(49,457

)

 

 

(29,095

)

Purchases of strategic investments

 

(17,177

)

 

 

(21,808

)

Proceeds from sales of strategic investments

 

2,000

 

 

 

 

Business acquisitions, net of cash acquired

 

(239,030

)

 

 

(18,349

)

Purchases of intangible assets

 

(11,126

)

 

 

(2,323

)

Purchases of short-term investments

 

(195,581

)

 

 

(250,000

)

Proceeds from maturities and sales of short-term investments

 

348,281

 

 

 

 

Purchases of deferred compensation investments

 

(2,031

)

 

 

(64

)

Net cash used in investing activities

 

(340,650

)

 

 

(556,658

)

Financing activities

 

 

 

Repayment of loan payable

 

 

 

 

(1,591

)

Proceeds from issuance of common stock upon exercise of stock options

 

8,695

 

 

 

8,655

 

Proceeds from issuance of common stock under the employee stock purchase plan

 

76,375

 

 

 

59,419

 

Capital contributions from non-controlling interest holders

 

8,088

 

 

 

10,954

 

Net cash provided by financing activities

 

93,158

 

 

 

77,437

 

 

 

 

 

Effect of foreign exchange rates on cash, cash equivalents and restricted cash

 

1,958

 

 

 

(1,495

)

 

 

 

 

Net increase in cash, cash equivalents and restricted cash

 

920,673

 

 

 

460,291

 

 

 

 

 

Cash, cash equivalents and restricted cash, beginning of period

 

2,456,924

 

 

 

1,996,633

 

Cash, cash equivalents and restricted cash, end of period

$

3,377,597

 

 

$

2,456,924

 

 

CROWDSTRIKE HOLDINGS, INC.

 

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

 

 

 

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

GAAP subscription revenue

$

795,947

 

 

$

598,263

 

 

$

2,870,557

 

 

$

2,111,660

 

GAAP professional services revenue

 

49,388

 

 

 

39,104

 

 

 

184,998

 

 

 

129,576

 

GAAP total revenue

$

845,335

 

 

$

637,367

 

 

$

3,055,555

 

 

$

2,241,236

 

 

 

 

 

 

 

 

 

GAAP subscription gross profit

$

620,438

 

 

$

448,837

 

 

$

2,239,812

 

 

$

1,599,976

 

Stock based compensation expense

 

13,311

 

 

 

10,134

 

 

 

43,886

 

 

 

32,091

 

Amortization of acquired intangible assets

 

4,819

 

 

 

3,571

 

 

 

15,560

 

 

 

13,907

 

Non-GAAP subscription gross profit

$

638,568

 

 

$

462,542

 

 

$

2,299,258

 

 

$

1,645,974

 

 

 

 

 

 

 

 

 

GAAP subscription gross margin

 

78

%

 

 

75

%

 

 

78

%

 

 

76

%

Non-GAAP subscription gross margin

 

80

%

 

 

77

%

 

 

80

%

 

 

78

%

 

 

 

 

 

 

 

 

GAAP professional services gross profit

$

16,325

 

 

$

12,926

 

 

$

60,020

 

 

$

40,029

 

Stock based compensation expense

 

6,282

 

 

 

5,096

 

 

 

22,302

 

 

 

15,692

 

Non-GAAP professional services gross profit

$

22,607

 

 

$

18,022

 

 

$

82,322

 

 

$

55,721

 

 

 

 

 

 

 

 

 

GAAP professional services gross margin

 

33

%

 

 

33

%

 

 

32

%

 

 

31

%

Non-GAAP professional services gross margin

 

46

%

 

 

46

%

 

 

44

%

 

 

43

%

 

 

 

 

 

 

 

 

Total GAAP gross margin

 

75

%

 

 

72

%

 

 

75

%

 

 

73

%

Total Non-GAAP gross margin

 

78

%

 

 

75

%

 

 

78

%

 

 

76

%

 

 

 

 

 

 

 

 

GAAP sales and marketing operating expenses

$

290,357

 

 

$

246,439

 

 

$

1,140,566

 

 

$

904,409

 

Stock based compensation expense

 

(46,083

)

 

 

(42,747

)

 

 

(175,808

)

 

 

(151,919

)

Amortization of acquired intangible assets

 

(602

)

 

 

(619

)

 

 

(2,085

)

 

 

(2,557

)

Mark-to-market adjustments on deferred compensation liabilities

 

(125

)

 

 

 

 

 

(92

)

 

 

 

Non-GAAP sales and marketing operating expenses

$

243,547

 

 

$

203,073

 

 

$

962,581

 

 

$

749,933

 

 

 

 

 

 

 

 

 

GAAP sales and marketing operating expenses as a percentage of revenue

 

34

%

 

 

39

%

 

 

37

%

 

 

40

%

Non-GAAP sales and marketing operating expenses as a percentage of revenue

 

29

%

 

 

32

%

 

 

32

%

 

 

33

%

 

 

 

 

 

 

 

 

GAAP research and development operating expenses

$

213,998

 

 

$

191,845

 

 

$

768,497

 

 

$

608,364

 

Stock based compensation expense

 

(62,142

)

 

 

(54,364

)

 

 

(205,896

)

 

 

(174,711

)

Amortization of acquired intangible assets

 

 

 

 

 

 

 

(468

)

 

 

 

Acquisition-related expenses, net

 

 

 

 

 

 

 

(750

)

 

 

 

Mark-to-market adjustments on deferred compensation liabilities

 

(81

)

 

 

 

 

 

(61

)

 

 

 

Non-GAAP research and development operating expenses

$

151,775

 

 

$

137,481

 

 

$

561,322

 

 

$

433,653

 

 

 

 

 

 

 

 

 

GAAP research and development operating expenses as a percentage of revenue

 

25

%

 

 

30

%

 

 

25

%

 

 

27

%

Non-GAAP research and development operating expenses as a percentage of revenue

 

18

%

 

 

22

%

 

 

18

%

 

 

19

%

 

 

 

 

 

 

 

 

GAAP general and administrative operating expenses

$

102,737

 

 

$

84,979

 

 

$

392,764

 

 

$

317,344

 

Stock based compensation expense

 

(48,454

)

 

 

(40,006

)

 

 

(183,627

)

 

 

(152,091

)

Acquisition-related expenses, net

 

(428

)

 

 

(477

)

 

 

(3,632

)

 

 

(2,664

)

Amortization of acquired intangible assets

 

(82

)

 

 

(36

)

 

 

(303

)

 

 

(101

)

Mark-to-market adjustments on deferred compensation liabilities

 

(31

)

 

 

(1

)

 

 

(23

)

 

 

(1

)

Legal reserve and settlement charges

 

(1,000

)

 

 

 

 

 

(7,797

)

 

 

 

Non-GAAP general and administrative operating expenses

$

52,742

 

 

$

44,459

 

 

$

197,382

 

 

$

162,487

 

 

 

 

 

 

 

 

 

GAAP general and administrative operating expenses as a percentage of revenue

 

12

%

 

 

13

%

 

 

13

%

 

 

14

%

Non-GAAP general and administrative operating expenses as a percentage of revenue

 

6

%

 

 

7

%

 

 

6

%

 

 

7

%

 

CROWDSTRIKE HOLDINGS, INC.

 

GAAP to Non-GAAP Reconciliations (continued)

(in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

GAAP income (loss) from operations

$

29,671

 

 

$

(61,500

)

 

$

(1,995

)

 

$

(190,112

)

Stock based compensation expense

 

176,272

 

 

 

152,347

 

 

 

631,519

 

 

 

526,504

 

Amortization of acquired intangible assets

 

5,503

 

 

 

4,226

 

 

 

18,416

 

 

 

16,565

 

Acquisition-related expenses, net

 

428

 

 

 

477

 

 

 

4,382

 

 

 

2,664

 

Mark-to-market adjustments on deferred compensation liabilities

 

237

 

 

 

1

 

 

 

176

 

 

 

1

 

Legal reserve and settlement charges

 

1,000

 

 

 

 

 

 

7,797

 

 

 

 

Non-GAAP income from operations

$

213,111

 

 

$

95,551

 

 

$

660,295

 

 

$

355,622

 

 

 

 

 

 

 

 

 

GAAP operating margin

 

4

%

 

 

(10

)%

 

 

%

 

 

(8

)%

Non-GAAP operating margin

 

25

%

 

 

15

%

 

 

22

%

 

 

16

%

 

 

 

 

 

 

 

 

GAAP net income (loss) attributable to CrowdStrike

$

53,699

 

 

$

(47,481

)

 

$

89,327

 

 

$

(183,245

)

Stock based compensation expense

 

176,272

 

 

 

152,347

 

 

 

631,519

 

 

 

526,504

 

Amortization of acquired intangible assets

 

5,503

 

 

 

4,226

 

 

 

18,416

 

 

 

16,565

 

Acquisition-related expenses, net

 

428

 

 

 

477

 

 

 

4,382

 

 

 

2,664

 

Amortization of debt issuance costs and discount

 

546

 

 

 

548

 

 

 

2,186

 

 

 

2,187

 

Mark-to-market adjustments on deferred compensation liabilities

 

237

 

 

 

1

 

 

 

176

 

 

 

1

 

Legal reserve and settlement charges

 

1,000

 

 

 

 

 

 

7,797

 

 

 

 

Provision (benefit) for income taxes(1)

 

 

 

 

 

 

 

(615

)

 

 

4,658

 

Losses (gains) and other income from strategic investments attributable to CrowdStrike

 

(1,242

)

 

 

1,451

 

 

 

(1,258

)

 

 

(960

)

Gains on deferred compensation assets

 

(237

)

 

 

(1

)

 

 

(176

)

 

 

(1

)

Non-GAAP net income attributable to CrowdStrike

$

236,206

 

 

$

111,568

 

 

$

751,754

 

 

$

368,373

 

Weighted-average shares used in computing basic net income (loss) per share attributable to CrowdStrike common stockholders (GAAP)

 

240,856

 

 

 

235,027

 

 

 

238,637

 

 

 

233,139

 

 

 

 

 

 

 

 

 

GAAP basic net income (loss) per share attributable to CrowdStrike common stockholders

$

0.22

 

 

$

(0.20

)

 

$

0.37

 

 

$

(0.79

)

 

 

 

 

 

 

 

 

GAAP diluted net income (loss) per share attributable to CrowdStrike common stockholders

$

0.22

 

 

$

(0.20

)

 

$

0.37

 

 

$

(0.79

)

Stock-based compensation

 

0.71

 

 

 

0.64

 

 

 

2.59

 

 

 

2.20

 

Amortization of acquired intangible assets

 

0.02

 

 

 

0.02

 

 

 

0.08

 

 

 

0.07

 

Acquisition-related expenses, net

 

 

 

 

 

 

 

0.02

 

 

 

0.01

 

Amortization of debt issuance costs and discount

 

 

 

 

 

 

 

0.01

 

 

 

0.01

 

Mark-to-market adjustments on deferred compensation liabilities

 

 

 

 

 

 

 

 

 

 

 

Legal reserve and settlement charges

 

 

 

 

 

 

 

0.03

 

 

 

 

Provision (benefit) for income taxes (1)

 

 

 

 

 

 

 

 

 

 

0.02

 

Adjustment to fully diluted earnings per share (2)

 

0.01

 

 

 

 

 

 

 

 

 

0.02

 

Losses (gains) and other income from strategic investments attributable to CrowdStrike

 

(0.01

)

 

 

0.01

 

 

 

(0.01

)

 

 

 

Gains on deferred compensation assets

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted net income per share attributable to CrowdStrike common stockholders

$

0.95

 

 

$

0.47

 

 

$

3.09

 

 

$

1.54

 

Weighted-average shares used in diluted net income (loss) per share attributable to CrowdStrike common stockholders calculation:

 

 

 

 

 

 

 

GAAP

 

240,856

 

 

 

235,027

 

 

 

238,637

 

 

 

233,139

 

Non-GAAP

 

247,936

 

 

 

239,501

 

 

 

243,635

 

 

 

239,098

 

____________________________

(1)

CrowdStrike uses its GAAP provision for income taxes for the purpose of determining its non-GAAP income tax expense. The tax costs for intellectual property integration relating to acquisitions are included in the GAAP provision for income taxes. The income tax benefits related to stock-based compensation, amortization of acquired intangibles assets, including purchased patents, acquisition related expenses, amortization of debt issuance costs and discount, gains and other income from strategic investments attributable to CrowdStrike and legal reserve and settlement charges or benefits included in the GAAP provision for income taxes were not material for all periods presented.

 

(2)

For periods in which we had diluted non-GAAP net income per share attributable to CrowdStrike common stockholders, the sum of the impact of individual reconciling items may not total to diluted Non-GAAP net income per share attributable to CrowdStrike common stockholders because of rounding differences or because the basic share counts used to calculate GAAP net loss per share attributable to CrowdStrike common stockholders differ from the diluted share counts used to calculate non-GAAP net income per share attributable to CrowdStrike common stockholders. The GAAP net loss per share attributable to CrowdStrike common stockholders calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share attributable to CrowdStrike common stockholders.

 

CROWDSTRIKE HOLDINGS, INC.

 

GAAP to Non-GAAP Reconciliations (continued)

(in thousands, except percentages)

(unaudited)

 

 

 

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2024

 

2023

 

2024

 

2023

GAAP net cash provided by operating activities

$

347,016

 

 

$

273,293

 

 

$

1,166,207

 

 

$

941,007

 

Purchases of property and equipment

 

(52,584

)

 

 

(55,410

)

 

 

(176,529

)

 

 

(235,019

)

Capitalized internal-use software and website development costs

 

(10,852

)

 

 

(8,356

)

 

 

(49,457

)

 

 

(29,095

)

Purchases of deferred compensation investments

 

(569

)

 

 

(64

)

 

 

(2,031

)

 

 

(64

)

Free cash flow

$

283,011

 

 

$

209,463

 

 

$

938,190

 

 

$

676,829

 

 

 

 

 

 

 

 

 

GAAP net cash provided by (used in) investing activities

$

20,395

 

 

$

(319,140

)

 

$

(340,650

)

 

$

(556,658

)

GAAP net cash provided by financing activities

$

33,460

 

 

$

29,134

 

 

$

93,158

 

 

$

77,437

 

 

 

 

 

 

 

 

 

GAAP net cash provided by operating activities as a percentage of revenue

 

41

%

 

 

43

%

 

 

38

%

 

 

42

%

Purchases of property and equipment as a percentage of revenue

 

(6

)%

 

 

(9

)%

 

 

(6

)%

 

 

(10

)%

Capitalized internal-use software and website development costs as a percentage of revenue

 

(1

)%

 

 

(1

)%

 

 

(2

)%

 

 

(1

)%

Purchases of deferred compensation investments as a percentage of revenue

 

%

 

 

%

 

 

%

 

 

%

Free cash flow margin

 

33

%

 

 

33

%

 

 

31

%

 

 

30

%

 

Explanation of Non-GAAP Financial Measures

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

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

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

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

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

Non-GAAP Income from Operations

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

Non-GAAP Net Income Attributable to CrowdStrike

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

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

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

Free Cash Flow

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

Explanation of Operational Measures

Annual Recurring Revenue

ARR is calculated as the annualized value of CrowdStrike’s customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. To the extent that CrowdStrike is negotiating a renewal with a customer after the expiration of the subscription, CrowdStrike continues to include that revenue in ARR if CrowdStrike is actively in discussion with such an organization for a new subscription or renewal, or until such organization notifies CrowdStrike that it is not renewing its subscription.

Magic Number

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

Free Cash Flow Rule of 40

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

Contacts

Investor Relations Contact

CrowdStrike Holdings, Inc.

Maria Riley, Vice President of Investor Relations

investors@crowdstrike.com

669-721-0742



Press Contact

CrowdStrike Holdings, Inc.

Kevin Benacci, Sr. Director, Corporate Communications

press@crowdstrike.com

216-409-5055

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