Summary
CrowdStrike Holdings, Inc. (CRWD) reported its third-quarter fiscal year 2020 results for the period ending October 30, 2019. The company demonstrated substantial year-over-year revenue growth, with total revenue increasing by 88% to $125.1 million for the quarter and by 94% to $329.3 million for the nine-month period. This growth was primarily driven by a significant surge in subscription revenue, which rose by 98% year-over-year for the quarter and 103% for the nine months, reflecting strong customer acquisition and expansion. The company's customer base more than doubled year-over-year, reaching 4,561 subscription customers by October 31, 2019. Despite robust top-line growth and an improvement in subscription gross margin to 74% for the quarter, CrowdStrike continued to operate at a loss, with a net loss of $35.5 million for the third quarter and $113.4 million for the nine months, reflecting continued significant investments in sales and marketing, research and development, and general administrative expenses, compounded by increased stock-based compensation. The company successfully closed its initial public offering (IPO) in June 2019, raising substantial capital. Financially, CrowdStrike's balance sheet shows significant growth in deferred revenue, reaching $447.6 million as of October 31, 2019, indicating strong future revenue potential. The company also reported a positive cash flow from operations of $33.8 million for the nine months ended October 31, 2019, a significant improvement from the prior year's negative cash flow. However, investing activities show a substantial use of cash for purchases of marketable securities and property and equipment. The company ended the period with a strong liquidity position, with over $743 million in cash and cash equivalents and $90 million in marketable securities. The company's focus remains on expanding its Security Cloud platform and acquiring new customers, which is driving its substantial revenue growth but also incurring significant operating expenses.
Financial Highlights
50 data points| Revenue | $125.12M |
| Cost of Revenue | $37.35M |
| Gross Profit | $87.76M |
| R&D Expenses | $35.99M |
| Operating Expenses | $126.28M |
| Operating Income | -$38.52M |
| Interest Expense | $132K |
| Net Income | -$35.51M |
| EPS (Basic) | $-0.17 |
| Shares Outstanding (Basic) | 204.10M |
Key Highlights
- 1Total revenue surged 88% year-over-year to $125.1 million for Q3 FY2020.
- 2Subscription revenue increased by 98% year-over-year to $114.2 million for Q3 FY2020, driven by customer growth and expansion.
- 3The subscription customer base grew by 112% year-over-year to 4,561 as of October 31, 2019.
- 4Subscription gross margin improved to 74% from 70% in the prior year's quarter.
- 5The company completed its Initial Public Offering (IPO) in June 2019, significantly strengthening its liquidity.
- 6Cash flow from operations turned positive at $33.8 million for the first nine months of FY2020, a substantial improvement from the previous year.
- 7Deferred revenue grew to $447.6 million, indicating strong future revenue potential.