10-QPeriod: Q1 FY2024

CrowdStrike Holdings, Inc. Quarterly Report for Q1 Ended Apr 30, 2023

Filed June 1, 2023For Securities:CRWD

Summary

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 million. 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 million 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 billion, 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 billion in cash and cash equivalents, provides ample liquidity for continued investment and strategic initiatives.

Financial Highlights

52 data points
Beta

Revenue

$692.58M

75.6% Gross Margin

Net Income

$491K

0.1% Net Margin

EPS (Diluted)

$0.00

Total Assets

$5.14B

Cash & Equivalents

$2.83B

Free Cash Flow

$238.63M

Financial Statements
Beta
Revenue$692.58M
Cost of Revenue$169.23M
Gross Profit$523.35M
R&D Expenses$179.06M
Operating Expenses$542.81M
Operating Income-$19.46M
Interest Expense$6.39M
Net Income$491K
Shares Outstanding (Basic)945.66M
Shares Outstanding (Diluted)962.39M

Key Highlights

  • 1Total revenue grew 42% year-over-year to $692.6 million.
  • 2Subscription revenue increased 42% year-over-year to $651.2 million, underscoring strong demand for core offerings.
  • 3Achieved net income of $0.5 million, a significant improvement from a net loss of $30.4 million in the prior year's quarter.
  • 4Annual Recurring Revenue (ARR) reached $2.7 billion, up 42% year-over-year.
  • 5Dollar-based net retention rate exceeded 120%, indicating healthy customer expansion and loyalty.
  • 6Operating cash flow was strong at $300.9 million for the quarter.
  • 7Gross profit margin improved to 76%, driven by subscription cost efficiencies.

Frequently Asked Questions

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.

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.

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.

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.