10-KPeriod: FY2023

CrowdStrike Holdings, Inc. Annual Report, Year Ended Jan 31, 2023

Filed March 9, 2023For Securities:CRWD

Summary

CrowdStrike Holdings, Inc. reported strong year-over-year revenue growth of 54% for the fiscal year ending January 31, 2023, reaching $2.24 billion. Subscription revenue remains the dominant contributor, growing 55% to $2.11 billion. The company continues to expand its customer base, with a 41% increase in subscription customers, reaching over 23,000. Annual Recurring Revenue (ARR) also saw robust growth, up 48% to $2.6 billion. Despite significant revenue growth, CrowdStrike reported a net loss of $183.2 million for the fiscal year, reflecting continued investment in sales and research and development to capitalize on the large market opportunity. The company maintains a strong liquidity position with $2.5 billion in cash and cash equivalents.

Financial Highlights

53 data points
Beta

Revenue

$2.24B

73.2% Gross Margin

Net Income

-$182.28M

-8.1% Net Margin

EPS (Diluted)

$-0.20

Total Assets

$5.03B

Cash & Equivalents

$2.46B

Free Cash Flow

$705.99M

Financial Statements
Beta
Revenue$2.24B
Cost of Revenue$601.23M
Gross Profit$1.64B
R&D Expenses$608.36M
Operating Expenses$1.83B
Operating Income-$190.11M
Interest Expense$25.32M
Net Income-$182.28M
EPS (Basic)$-0.20
EPS (Diluted)$-0.20
Shares Outstanding (Basic)932.56M
Shares Outstanding (Diluted)932.56M

Key Highlights

  • 1Total revenue increased by 54% to $2.24 billion in FY23, driven by a 55% rise in subscription revenue to $2.11 billion.
  • 2Subscription customers grew by 41% year-over-year, reaching 23,019.
  • 3Annual Recurring Revenue (ARR) increased by 48% to $2.6 billion.
  • 4Dollar-based net retention rate remained strong, at 125.3% as of January 31, 2023.
  • 5The company reported a net loss of $183.2 million for FY23, continuing its investment-driven growth strategy.
  • 6Cash and cash equivalents stood at $2.5 billion as of January 31, 2023, indicating a strong liquidity position.
  • 7Cloud-native architecture and a single lightweight agent are highlighted as key competitive differentiators.

Frequently Asked Questions

CrowdStrike is a cybersecurity company that provides cloud-delivered endpoint protection and other security solutions through a SaaS subscription-based model. Its primary revenue driver is subscription fees for its Falcon platform and various cloud modules. The company also generates revenue from professional services, such as incident response and forensic investigations.

For the fiscal year ending January 31, 2023, CrowdStrike reported a total revenue of $2.24 billion, a 54% increase year-over-year. Subscription revenue grew by 55% to $2.11 billion. Despite this growth, the company incurred a net loss of $183.2 million, which it attributes to ongoing investments in sales and research and development.

CrowdStrike emphasizes its cloud-native architecture, a single lightweight agent, and its Security Cloud powered by AI. This approach allows for the collection and analysis of vast amounts of security data, creating a network effect that enhances the platform's intelligence and efficacy. Other advantages include high efficacy rates with low false positives, consolidation of multiple security products into a single platform, rapid time-to-value for customers, and the expertise of its security teams.

CrowdStrike anticipates continued growth by acquiring new customers, further penetrating existing customer accounts with additional modules, expanding into new markets and customer segments, and broadening its international footprint. The company plans to continue investing heavily in sales and marketing and research and development to capitalize on the significant market opportunity in cybersecurity.