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CrowdStrike Holdings, Inc. Annual Report, Year Ended Jan 31, 2020

Filing Date
Filed March 23, 2020
Period End
January 31, 2020
Security
CRWD
In the record · 2019–202610-K710-Q238-K64

CRWD filed 7 annual reports (10-K), 23 quarterly reports (10-Q) and 64 current reports (8-K) between 2019 and 2026.

  1. Material agreement8-K · Jan ’21Jan ’21
  2. Leadership change8-K · Mar ’23Mar ’23
  3. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 10-K filed March 23, 2020. Cited figures are marked; the original filing is the authoritative source.

CrowdStrike Holdings, Inc. reported strong growth in its fiscal year ending January 31, 2020, with total revenue nearly doubling to $481.4 milliona, primarily driven by a 99% increase in subscription revenue.

The company significantly expanded its customer base, growing subscription customers by 116% to 5,431. This growth was fueled by substantial investments in sales and marketing, which increased by 54%, and research and development, also up 54%, to enhance its cloud-native security platform. Despite the rapid expansion and improved gross margins (71% overall, up from 65%), the company continued to operate at a loss, with a net loss of $141.8 millionb.

However, CrowdStrike achieved positive operating cash flow of $99.9 millionc for the year, a significant turnaround from the prior year, and ended the period with a strong cash position of $912.1 million, bolstered by its June 2019 IPO which raised $665.1 million net proceeds. The company is focused on its 'land-and-expand' strategy, which has proven effective in driving customer acquisition and increasing revenue from existing clients through the adoption of additional cloud modules.

The increase in operational costs, particularly in stock-based compensation and headcount, reflects the company's investment in growth and its transition to a public company. The core business model, driven by SaaS subscriptions, shows robust demand, indicated by a dollar-based net retention rate exceeding 100%d historically and ARR growth of 92%.

02—Key points

Key Highlights

  1. Total revenue surged by 93% to $481.4 million for the fiscal year ending January 31, 2020.
  2. Subscription revenue grew by 99% to $436.3 million, forming the dominant 91% of total revenue.
  3. The number of subscription customers more than doubled, increasing by 116% to 5,431.
  4. Annual Recurring Revenue (ARR) grew by 92% to $600.5 million.
  5. The company achieved positive operating cash flow of $99.9 million, a significant improvement from the prior year's negative cash flow.
  6. CrowdStrike's gross margin improved to 71% from 65% in the prior year, driven by subscription revenue efficiency.
  7. The company ended the fiscal year with a strong cash and cash equivalents and marketable securities balance of $912.1 million, primarily due to its IPO.

03—One dollar

Follow one dollar

For each $1.00 of revenue in FY2020, CrowdStrike Holdings, Inc. lost $0.29.

  1. Revenue$481.4M100.0%
  2. Cost of revenue−$141.6M29.4%
  3. Gross profit$339.8M70.6%
  4. Operating costs−$485.9M100.9%
  5. Operating income−$146.1M30.3%
  6. Interest, other & tax$4.3M0.9%
  7. Net income−$141.8M29.5%
Computed from 10-KFY2020filed March 23, 2020Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

04—Financials

Financial Highlights

Figures from 10-KFY2020filed March 23, 2020
Revenue$481.41M70.6% Gross MarginNet Income-$141.78M-29.5% Net MarginEPS (Diluted)$-0.24Total Assets$1.40BCash & Equivalents$264.80MFree Cash Flow$19.75M

Financial Statements

FY2020 against FY2019

Line itemFY2020FY2019Change
Revenue$481.41M$249.82M+92.7%
Cost of Revenue$141.63M$87.24M+62.3%
Gross Profit$339.79M$162.59M+109.0%
R&D Expenses$130.19M$84.55M+54.0%
Operating Expenses$485.85M$299.45M+62.2%
Operating Income-$146.06M-$136.86M−6.7%
Interest Expense$442K$428K+3.3%
Net Income-$141.78M-$140.08M−1.2%
EPS (Basic)$-0.24$-0.78+69.2%
EPS (Diluted)$-0.24——
Shares Outstanding (Basic)592.25M179.45M+230.0%
Shares Outstanding (Diluted)592.25M——

05—Questions

Frequently Asked Questions

  1. What is CrowdStrike's primary revenue driver?

    CrowdStrike's primary revenue driver is its subscription-based Falcon platform and its associated cloud modules. Subscription revenue accounted for 91% of total revenue in the fiscal year ending January 31, 2020.

  2. How has CrowdStrike's customer base evolved?

    CrowdStrike has seen significant customer growth, with the number of subscription customers increasing by 116% to 5,431 in the fiscal year ending January 31, 2020, up from 2,516 in the prior year. This growth is attributed to its 'land-and-expand' sales strategy and its ability to serve organizations of all sizes.

  3. Is CrowdStrike profitable?

    While CrowdStrike experienced substantial revenue growth and improved its gross margin, it continued to operate at a net loss. The net loss for the fiscal year ending January 31, 2020, was $141.8 million. However, the company did achieve positive cash flow from operations for the year, indicating improving financial health.

  4. How has the company's cash position changed?

    CrowdStrike's cash position significantly strengthened, ending the fiscal year with $912.1 million in cash, cash equivalents, and marketable securities. This was largely due to the net proceeds of $665.1 million raised from its Initial Public Offering (IPO) in June 2019.

06—Continue

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