01—Abstract
Summary
Summary of the 10-K filed March 9, 2023. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. reported strong year-over-year revenue growth of 54% for the fiscal year ending January 31, 2023, reaching $2.24 billiona.
Subscription revenue remains the dominant contributor, growing 55% to $2.11 billionb. 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 millionc 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.
02—Key points
Key Highlights
- Total revenue increased by 54% to $2.24 billion in FY23, driven by a 55% rise in subscription revenue to $2.11 billion.
- Subscription customers grew by 41% year-over-year, reaching 23,019.
- Annual Recurring Revenue (ARR) increased by 48% to $2.6 billion.
- Dollar-based net retention rate remained strong, at 125.3% as of January 31, 2023.
- The company reported a net loss of $183.2 million for FY23, continuing its investment-driven growth strategy.
- Cash and cash equivalents stood at $2.5 billion as of January 31, 2023, indicating a strong liquidity position.
- Cloud-native architecture and a single lightweight agent are highlighted as key competitive differentiators.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2023, CrowdStrike Holdings, Inc. lost $0.08.
- Revenue$2.24B100.0%
- Cost of revenue−$601.2M26.8%
- Gross profit$1.64B73.2%
- Operating costs−$1.83B81.7%
- Operating income−$190.1M8.5%
- Interest, other & tax$7.8M0.3%
- Net income−$182.3M8.1%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed March 9, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $2.24B$1.45B | +54.4% |
| Cost of Revenue | $601.23M$383.22M | +56.9% |
| Gross Profit | $1.64B$1.07B | +53.5% |
| R&D Expenses | $608.36M$371.28M | +63.9% |
| Operating Expenses | $1.83B$1.21B | +51.1% |
| Operating Income | -$190.11M-$142.55M | −33.4% |
| Interest Expense | $25.32M$25.23M | +0.3% |
| Net Income | -$182.28M-$232.38M | +21.6% |
| EPS (Basic) | $-0.20$-0.26 | +23.3% |
| EPS (Diluted) | $-0.20$-0.26 | +23.3% |
| Shares Outstanding (Basic) | 932.56M908.57M | +2.6% |
| Shares Outstanding (Diluted) | 932.56M908.57M | +2.6% |
05—Questions
Frequently Asked Questions
What is CrowdStrike's primary business and how does it generate revenue?
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.
How did CrowdStrike perform financially in the fiscal year ending January 31, 2023?
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.
What are CrowdStrike's key competitive advantages?
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.
What is CrowdStrike's outlook for future growth?
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.
06—Continue