01—Abstract
Summary
Summary of the 10-K filed March 18, 2021. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. reported strong revenue growth for the fiscal year ended January 31, 2021, driven by its cloud-native endpoint and cloud workload protection platform.
Total revenue increased significantly year-over-year, reflecting substantial expansion in subscription revenue. Despite the revenue growth, the company continued to operate at a net loss, although the loss narrowed compared to the previous year. This loss is primarily attributed to significant investments in sales and marketing, and research and development to fuel further expansion and product innovation.
The company ended the fiscal year with a robust cash position, bolstered by strong operating cash flow and proceeds from debt financing. The balance sheet shows a substantial increase in cash and cash equivalents, indicating healthy liquidity. CrowdStrike's focus on expanding its market reach and enhancing its platform capabilities is evident through continued investment in growth initiatives, which is expected to drive future revenue and profitability.
02—Key points
Key Highlights
- Total revenue for the fiscal year ended January 31, 2021, was $874.4 million, a significant increase from $481.4 million in the prior year.
- Subscription revenue, the primary driver of growth, reached $804.7 million, up from $436.3 million in the previous year.
- The company reported a net loss of $92.6 million for the fiscal year ended January 31, 2021, an improvement from a net loss of $141.8 million in the prior year.
- Cash and cash equivalents significantly increased to $1.9 billion as of January 31, 2021, compared to $264.8 million at the end of the prior fiscal year.
- Operating cash flow was positive at $356.6 million for the fiscal year, a substantial improvement from $100.0 million in the previous year.
- Deferred revenue increased to $911.9 million from $571.2 million, indicating strong future revenue potential.
- The company issued $750.0 million in Senior Notes in January 2021 to further strengthen its financial position.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2021, CrowdStrike Holdings, Inc. lost $0.11.
- Revenue$874.4M100.0%
- Cost of revenue−$229.5M26.3%
- Gross profit$644.9M73.7%
- Operating costs−$737.4M84.3%
- Operating income−$92.5M10.6%
- Interest, other & tax−$100,0000.0%
- Net income−$92.6M10.6%
04—Financials
Financial Highlights
Figures from 10-KFY2021filed March 18, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $874.44M$481.41M | +81.6% |
| Cost of Revenue | $229.54M$141.63M | +62.1% |
| Gross Profit | $644.89M$339.79M | +89.8% |
| R&D Expenses | $214.67M$130.19M | +64.9% |
| Operating Expenses | $737.42M$485.85M | +51.8% |
| Operating Income | -$92.53M-$146.06M | +36.7% |
| Interest Expense | $1.56M$442K | +252.7% |
| Net Income | -$92.63M-$141.78M | +34.7% |
| EPS (Basic) | $-0.11$-0.24 | +55.2% |
| EPS (Diluted) | $-0.11$-0.24 | +55.2% |
| Shares Outstanding (Basic) | 871.02M592.25M | +47.1% |
| Shares Outstanding (Diluted) | 871.02M592.25M | +47.1% |
05—Questions
Frequently Asked Questions
What is CrowdStrike's primary source of revenue?
CrowdStrike's primary source of revenue is from subscription-based fees for its cloud-delivered endpoint and cloud workload protection platform, known as the Falcon platform. Professional services also contribute to revenue, but at a much smaller scale.
Is CrowdStrike profitable?
For the fiscal year ended January 31, 2021, CrowdStrike reported a net loss. While the net loss narrowed compared to the previous year, the company is still investing heavily in growth, which has resulted in an overall loss. Profitability is a key target as the company continues to scale.
How has CrowdStrike's cash position changed?
CrowdStrike's cash position has significantly strengthened. As of January 31, 2021, the company held $1.9 billion in cash and cash equivalents, a substantial increase from $264.8 million at the end of the prior fiscal year. This increase was supported by strong operating cash flow and recent debt financing.
What is the significance of the increase in 'Deferred Revenue'?
The increase in deferred revenue to $911.9 million signifies a strong pipeline of future revenue. Deferred revenue represents payments received from customers for services that have not yet been rendered. This balance indicates a significant amount of future revenue that CrowdStrike has already secured through customer contracts.
06—Continue