01—Abstract
Summary
Summary of the 10-Q filed June 3, 2022. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. reported strong revenue growth for the first quarter of fiscal year 2023, with total revenue increasing by 61% year-over-year to $487.8 milliona.
This growth was primarily driven by its subscription-based offerings, which saw a 64% increase. Despite the robust top-line performance, the company reported a net loss of $30.4 millionb for the quarter, an improvement from the $82.9 million net loss in the same period last year. This indicates continued investment in growth initiatives, such as sales and marketing, and research and development, which are essential for maintaining its competitive edge in the cybersecurity market.
The company also demonstrated solid operational cash flow generation, with net cash provided by operating activities of $215.0 millionc, a significant increase from the prior year. This strong cash flow, coupled with a substantial cash balance of $2.2 billion, provides ample liquidity for future operations and strategic investments. Key growth metrics remain positive, with subscription customers growing by 57% year-over-year to 17,945 and Annual Recurring Revenue (ARR) reaching $1.9 billion, a 61% increase.
02—Key points
Key Highlights
- Total revenue surged 61% year-over-year to $487.8 million, driven by a 64% increase in subscription revenue.
- Net loss narrowed significantly to $30.4 million from $82.9 million in the prior year's quarter, reflecting improved operational efficiency.
- Operating cash flow was strong at $215.0 million, demonstrating effective cash generation from core operations.
- Ending cash and cash equivalents stood at a healthy $2.2 billion, providing substantial liquidity.
- Subscription customers grew 57% year-over-year to 17,945, indicating strong market adoption.
- Annual Recurring Revenue (ARR) increased by 61% to $1.9 billion, underscoring the recurring nature and growth of the business.
- Dollar-Based Net Retention Rate remained strong, exceeding 120%, signifying robust customer loyalty and expansion.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2023, CrowdStrike Holdings, Inc. lost $0.06.
- Revenue$487.8M100.0%
- Cost of revenue−$126.8M26.0%
- Gross profit$361.0M74.0%
- Operating costs−$384.9M78.9%
- Operating income−$23.9M4.9%
- Interest, other & tax−$7.6M1.6%
- Net income−$31.5M6.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2023filed June 3, 2022Financial Statements
Q1 FY2023 against Q1 FY2022
| Line item | Q1 FY2023Q1 FY2022 | Change |
|---|---|---|
| Revenue | $487.83M$302.84M | +61.1% |
| Cost of Revenue | $126.83M$78.50M | +61.6% |
| Gross Profit | $361.00M$224.34M | +60.9% |
| R&D Expenses | $123.40M$78.18M | +57.8% |
| Operating Expenses | $384.88M$255.69M | +50.5% |
| Operating Income | -$23.88M-$31.35M | +23.8% |
| Interest Expense | $6.30M$6.23M | +1.1% |
| Net Income | -$31.52M-$85.05M | +62.9% |
| EPS (Basic) | $-0.04$-0.10 | +63.2% |
| EPS (Diluted) | $-0.04$-0.10 | +63.2% |
| Shares Outstanding (Basic) | 924.72M896.61M | +3.1% |
| Shares Outstanding (Diluted) | 924.72M896.61M | +3.1% |
05—Questions
Frequently Asked Questions
What was CrowdStrike's revenue growth in the reported quarter?
CrowdStrike reported a 61% year-over-year increase in total revenue, reaching $487.8 million for the quarter ended April 30, 2022. Subscription revenue, the primary driver, grew by 64%.
Did CrowdStrike achieve profitability in this quarter?
No, CrowdStrike reported a net loss of $30.4 million for the quarter. However, this represents a significant improvement compared to the net loss of $82.9 million in the same quarter last year. The company continues to invest heavily in growth, which impacts short-term profitability.
How is CrowdStrike's cash position and cash flow generation?
The company maintains a strong liquidity position with $2.2 billion in cash and cash equivalents as of April 30, 2022. Net cash provided by operating activities was $215.0 million, indicating healthy cash generation from its operations.
What are the key metrics for customer growth and retention?
CrowdStrike added 1,620 net new subscription customers during the quarter, bringing the total to 17,945, a 57% year-over-year increase. Annual Recurring Revenue (ARR) grew 61% to $1.9 billion, and the Dollar-Based Net Retention Rate remained strong, exceeding 120%, demonstrating effective customer expansion and retention.
06—Continue