- 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240305166829/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. Kevin Benacci, Sr. Director, Corporate
Communications press@crowdstrike.com 216-409-5055
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