01—Abstract
Summary
Summary of the 10-Q filed June 1, 2023. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. reported strong revenue growth in its first quarter of fiscal year 2024, with total revenue increasing by 42% year-over-year to $692.6 milliona.
This growth was primarily driven by a 42% increase in subscription revenue, highlighting the continued demand for its cloud-native cybersecurity solutions. The company also demonstrated improved profitability, moving from a net loss of $30.4 millionb in the prior year's quarter to a net income of $0.5 million. This turnaround, coupled with robust operating cash flow of $300.9 million, signals positive financial momentum.
Key operational metrics remain strong, with Annual Recurring Revenue (ARR) reaching $2.7 billionc, a 42% increase year-over-year. The dollar-based net retention rate exceeded 120%, indicating strong customer loyalty and expansion.
Despite increased operating expenses, particularly in sales and marketing and research and development to fuel future growth, the company's gross profit margin improved to 76%, driven by efficiencies in its subscription services. CrowdStrike's solid balance sheet, with $2.8 billiond in cash and cash equivalents, provides ample liquidity for continued investment and strategic initiatives.
02—Key points
Key Highlights
- Total revenue grew 42% year-over-year to $692.6 million.
- Subscription revenue increased 42% year-over-year to $651.2 million, underscoring strong demand for core offerings.
- Achieved net income of $0.5 million, a significant improvement from a net loss of $30.4 million in the prior year's quarter.
- Annual Recurring Revenue (ARR) reached $2.7 billion, up 42% year-over-year.
- Dollar-based net retention rate exceeded 120%, indicating healthy customer expansion and loyalty.
- Operating cash flow was strong at $300.9 million for the quarter.
- Gross profit margin improved to 76%, driven by subscription cost efficiencies.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, CrowdStrike Holdings, Inc. kept $0.00.
- Revenue$692.6M100.0%
- Cost of revenue−$169.2M24.4%
- Gross profit$523.4M75.6%
- Operating costs−$542.8M78.4%
- Operating income−$19.5M2.8%
- Interest, other & tax$19.9M2.9%
- Net income$491,0000.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed June 1, 2023Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $692.58M$487.83M | +42.0% |
| Cost of Revenue | $169.23M$126.83M | +33.4% |
| Gross Profit | $523.35M$361.00M | +45.0% |
| R&D Expenses | $179.06M$123.40M | +45.1% |
| Operating Expenses | $542.81M$384.88M | +41.0% |
| Operating Income | -$19.46M-$23.88M | +18.5% |
| Interest Expense | $6.39M$6.30M | +1.4% |
| Net Income | $491K-$31.52M | +101.6% |
| Shares Outstanding (Basic) | 945.66M924.72M | +2.3% |
| Shares Outstanding (Diluted) | 962.39M924.72M | +4.1% |
05—Questions
Frequently Asked Questions
What was CrowdStrike's revenue performance in the first quarter of fiscal year 2024?
CrowdStrike reported a 42% year-over-year increase in total revenue, reaching $692.6 million. Subscription revenue, the primary driver of growth, also increased by 42% to $651.2 million.
How did CrowdStrike's profitability change in this quarter compared to the previous year?
The company achieved a net income of $0.5 million for the quarter ended April 30, 2023, a significant improvement from a net loss of $30.4 million in the same quarter of the prior fiscal year. This indicates a positive trend towards profitability.
What is the status of CrowdStrike's Annual Recurring Revenue (ARR) and customer retention?
CrowdStrike's ARR reached $2.7 billion, representing a 42% year-over-year increase. The dollar-based net retention rate remained strong, exceeding 120%, which suggests that the company is effectively retaining and expanding revenue from its existing customer base.
How is CrowdStrike managing its expenses, and what is the impact on its gross margin?
Operating expenses, particularly in sales and marketing and research and development, increased to support growth. However, improved efficiencies in subscription services led to an expansion of the gross profit margin to 76% from 74% in the prior year's quarter.
06—Continue