01—Abstract
Summary
Summary of the 10-K filed March 10, 2025. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. (CRWD) reported significant revenue growth in its fiscal year ending January 31, 2025, with total revenue increasing by 29% year-over-year to $3.95 billiona, primarily driven by a 31% increase in subscription revenue.
The company's Annual Recurring Revenue (ARR) reached $4.24 billionb, a 23% increase, and its dollar-based net retention rate remained strong at 112%. Despite achieving profitability in fiscal year 2024, the company reported a net loss of $19.3 million for fiscal year 2025. A significant event impacting the company was the July 19 Incident, where a Falcon sensor update caused system crashes for certain Windows systems.
This incident led to increased legal, professional services, and general administrative expenses, and is expected to continue to impact sales cycles and customer acquisition. CrowdStrike continues to emphasize its AI-native platform and its "Security Cloud" approach, highlighting its single lightweight agent and the power of its Threat, Intel, and Asset Graphs. The company is expanding its module offerings to cover new areas like generative AI security and IT operations management.
Strategic investments in acquisitions, such as Flow Security and Adaptive Shield, demonstrate a commitment to broadening its platform capabilities. The company also noted a 31%c increase in international revenue, signaling global expansion efforts.
02—Key points
Key Highlights
- Total revenue grew 29% year-over-year to $3.95 billion for the fiscal year ended January 31, 2025.
- Annual Recurring Revenue (ARR) reached $4.24 billion, a 23% increase year-over-year.
- Dollar-based net retention rate remained strong at 112%.
- The company reported a net loss of $19.3 million for fiscal year 2025, following profitability in fiscal year 2024.
- The July 19 Incident, a Falcon sensor update issue, caused system crashes and is expected to continue impacting sales cycles and operations, incurring significant expenses.
- CrowdStrike is expanding its platform with new modules for generative AI security and IT operations management.
- International revenue increased by 31%, indicating successful global expansion.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2025, CrowdStrike Holdings, Inc. lost $0.00.
- Revenue$3.95B100.0%
- Cost of revenue−$990.2M25.0%
- Gross profit$2.96B75.0%
- Operating costs−$3.08B77.9%
- Operating income−$116.4M2.9%
- Interest, other & tax$103.8M2.6%
- Net income−$12.6M0.3%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed March 10, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $3.95B$3.06B | +29.4% |
| Cost of Revenue | $990.17M$758.93M | +30.5% |
| Gross Profit | $2.96B$2.30B | +29.0% |
| R&D Expenses | $1.08B$780.32M | +37.8% |
| Operating Expenses | $3.08B$2.32B | +33.0% |
| Operating Income | -$116.40M-$19.14M | −508.1% |
| Net Income | -$12.57M$73.44M | −117.1% |
| EPS (Basic) | $-0.01$0.07 | −120.0% |
| EPS (Diluted) | $-0.01$0.07 | −120.0% |
| Shares Outstanding (Basic) | 979.00M954.55M | +2.6% |
| Shares Outstanding (Diluted) | 979.00M974.54M | +0.5% |
05—Questions
Frequently Asked Questions
What was the financial performance of CrowdStrike in the fiscal year ending January 31, 2025?
CrowdStrike reported total revenue of $3.95 billion, a 29% increase year-over-year, driven primarily by a 31% rise in subscription revenue. Annual Recurring Revenue (ARR) grew to $4.24 billion, a 23% increase. However, the company incurred a net loss of $19.3 million for the fiscal year, a reversal from the net income reported in the prior fiscal year.
What impact did the July 19 Incident have on CrowdStrike's operations and financials?
The July 19 Incident, which involved system crashes due to a Falcon sensor update, resulted in significant legal, professional services, and administrative expenses. The company noted that this incident has adversely affected its results and is expected to continue to impact sales cycles, customer acquisition, and potentially customer churn in future periods. The company has also incurred costs related to customer commitment packages to mitigate the impact.
How is CrowdStrike expanding its platform and market reach?
CrowdStrike is continuously enhancing its AI-native Falcon platform and "Security Cloud" approach, adding new modules for areas like generative AI security and IT operations management. The company also made strategic acquisitions, including Flow Security and Adaptive Shield, to broaden its capabilities. Furthermore, CrowdStrike is expanding its international presence, with international revenue growing by 31%.
What is CrowdStrike's approach to customer retention and growth?
CrowdStrike employs a "land-and-expand" sales strategy, focusing on acquiring new customers and then growing relationships by selling additional cloud modules and expanding deployments to more endpoints. The company's dollar-based net retention rate of 112% demonstrates its success in retaining and expanding revenue from existing customers.
06—Continue