01—Abstract
Summary
Summary of the 10-Q filed August 31, 2022. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc.'s 10-Q filing for the period ending July 30, 2022, shows a strong top-line performance with total revenue increasing by 58% year-over-year to $535.2 milliona for the second quarter.
This growth was primarily driven by a 60% increase in subscription revenue, reflecting the company's successful land-and-expand strategy and continued customer acquisition, with subscription customers growing 51% year-over-year to 19,686. Despite robust revenue growth, the company reported a net loss of $49.3 millionb for the quarter, an improvement from a net loss of $57.3 million in the prior year's comparable quarter.
This improved profitability was driven by a 60%c increase in gross profit, outpacing the 50% rise in total operating expenses. The company continues to invest heavily in sales and marketing, and research and development to support its rapid growth and maintain its competitive position in the cybersecurity market.
02—Key points
Key Highlights
- Total revenue for the three months ended July 31, 2022, was $535.2 million, an increase of 58% compared to $337.7 million for the three months ended July 31, 2021.
- Subscription revenue increased by 60% to $506.2 million for the three months ended July 31, 2022, compared to $315.8 million for the three months ended July 31, 2021.
- The company ended the second quarter with 19,686 subscription customers, representing a 51% year-over-year increase.
- Annual Recurring Revenue (ARR) reached $2.1 billion as of July 31, 2022, a 59% increase year-over-year.
- Dollar-based net retention rate was above 120% as of July 31, 2022.
- Net loss for the three months ended July 31, 2022, was $49.3 million, an improvement from a net loss of $57.3 million in the same period last year.
- Cash and cash equivalents totaled $2.3 billion as of July 31, 2022.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2023, CrowdStrike Holdings, Inc. lost $0.09.
- Revenue$535.2M100.0%
- Cost of revenue−$140.6M26.3%
- Gross profit$394.6M73.7%
- Operating costs−$442.9M82.8%
- Operating income−$48.3M9.0%
- Interest, other & tax−$978,0000.2%
- Net income−$49.3M9.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2023filed August 31, 2022Financial Statements
Q2 FY2023 against Q2 FY2022
| Line item | Q2 FY2023Q2 FY2022 | Change |
|---|---|---|
| Revenue | $535.15M$337.69M | +58.5% |
| Cost of Revenue | $140.57M$90.43M | +55.4% |
| Gross Profit | $394.59M$247.26M | +59.6% |
| R&D Expenses | $137.86M$90.45M | +52.4% |
| Operating Expenses | $442.89M$294.66M | +50.3% |
| Operating Income | -$48.31M-$47.40M | −1.9% |
| Interest Expense | $6.33M$6.30M | +0.6% |
| Net Income | -$49.28M-$57.32M | +14.0% |
| EPS (Basic) | $-0.05$-0.06 | +16.0% |
| EPS (Diluted) | $-0.05$-0.06 | +16.0% |
| Shares Outstanding (Basic) | 930.22M905.45M | +2.7% |
| Shares Outstanding (Diluted) | 930.22M905.45M | +2.7% |
05—Questions
Frequently Asked Questions
What is CrowdStrike's revenue growth for the quarter?
CrowdStrike reported a 58% increase in total revenue for the three months ended July 31, 2022, reaching $535.2 million. Subscription revenue, the primary driver, grew by 60% year-over-year to $506.2 million.
Is CrowdStrike profitable?
CrowdStrike reported a net loss of $49.3 million for the three months ended July 31, 2022. While this represents an improvement from the $57.3 million net loss in the same period last year, the company is not yet profitable. The company continues to invest heavily in growth, which contributes to the ongoing net loss.
How many customers does CrowdStrike have, and how is that growing?
As of July 31, 2022, CrowdStrike had 19,686 subscription customers, marking a 51% increase compared to the prior year. This indicates strong customer acquisition and market penetration.
What is CrowdStrike's Annual Recurring Revenue (ARR) and net retention rate?
CrowdStrike's ARR reached $2.1 billion as of July 31, 2022, representing a 59% year-over-year increase. The dollar-based net retention rate was over 120%, signifying that existing customers are not only renewing but also expanding their spend, a positive sign of customer satisfaction and product value.
06—Continue