01—Abstract
Summary
Summary of the 10-Q filed November 29, 2023. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. reported strong financial results for the third quarter of fiscal year 2024, showcasing robust year-over-year growth.
Total revenue reached $786.0 milliona, a 35% increase compared to the prior year's third quarter, driven primarily by subscription revenue which grew 34% to $733.5 million. The company demonstrated improved profitability, moving from a net loss of $55.0 million in the prior year's third quarter to a net income of $26.7 million in the current quarter. This turnaround was supported by a significant improvement in gross margin, which increased to 75% from 73% year-over-year, indicating effective cost management and economies of scale.
The company also saw a substantial increase in cash flow from operations, highlighting strong cash generation capabilities. Key operational highlights include continued expansion of Annual Recurring Revenue (ARR) to $3.15 billionb, a 35% increase year-over-year, reflecting sustained customer demand and expansion.
The company also completed the acquisition of Bionic Technology for $238.7 millionc in cash, which is expected to enhance its Application Security Posture Management capabilities. Despite investments in growth, including increased sales and marketing and research and development expenses, CrowdStrike is demonstrating a clear path to profitability and strong operational execution, positioning it well for future growth in the cybersecurity market.
02—Key points
Key Highlights
- Total revenue increased by 35% year-over-year to $786.0 million in Q3 FY24.
- Subscription revenue grew 34% year-over-year to $733.5 million, representing 93% of total revenue.
- The company achieved profitability with a net income of $26.7 million in Q3 FY24, a significant improvement from a net loss of $55.0 million in the prior year's quarter.
- Gross margin improved to 75% in Q3 FY24, up from 73% in Q3 FY23, driven by subscription cost efficiencies.
- Annual Recurring Revenue (ARR) reached $3.15 billion, a 35% increase year-over-year.
- Net cash provided by operating activities increased significantly, indicating strong operational cash generation.
- Acquisition of Bionic Technology for $238.7 million to enhance Application Security Posture Management.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, CrowdStrike Holdings, Inc. kept $0.03.
- Revenue$786.0M100.0%
- Cost of revenue−$195.0M24.8%
- Gross profit$591.0M75.2%
- Operating costs−$587.8M74.8%
- Operating income$3.2M0.4%
- Interest, other & tax$23.5M3.0%
- Net income$26.7M3.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 29, 2023Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $786.01M$580.88M | +35.3% |
| Cost of Revenue | $195.00M$158.23M | +23.2% |
| Gross Profit | $591.01M$422.65M | +39.8% |
| R&D Expenses | $196.07M$155.26M | +26.3% |
| Operating Expenses | $587.85M$479.08M | +22.7% |
| Operating Income | $3.16M-$56.42M | +105.6% |
| Interest Expense | $6.50M$6.33M | +2.7% |
| Net Income | $26.66M-$54.96M | +148.5% |
| EPS (Basic) | $0.03$-0.06 | +145.8% |
| EPS (Diluted) | $0.03$-0.06 | +145.8% |
| Shares Outstanding (Basic) | 957.19M935.14M | +2.4% |
| Shares Outstanding (Diluted) | 975.20M935.14M | +4.3% |
05—Questions
Frequently Asked Questions
What is CrowdStrike's revenue growth for the quarter?
CrowdStrike reported a 35% year-over-year increase in total revenue for the third quarter of fiscal year 2024, reaching $786.0 million. Subscription revenue, the primary driver, grew by 34% year-over-year to $733.5 million.
Did CrowdStrike achieve profitability this quarter?
Yes, CrowdStrike achieved profitability in the third quarter of fiscal year 2024, reporting a net income of $26.7 million. This is a significant improvement compared to the net loss of $55.0 million reported in the same quarter of the previous fiscal year.
How is CrowdStrike managing its expenses while growing?
CrowdStrike's gross margin improved to 75% in the third quarter of fiscal year 2024, up from 73% in the prior year's quarter. While operating expenses (sales & marketing, R&D, G&A) increased in absolute dollars to support growth, they as a percentage of revenue decreased, demonstrating improved operational leverage and cost management.
What is the status of CrowdStrike's Annual Recurring Revenue (ARR)?
CrowdStrike's Annual Recurring Revenue (ARR) reached $3.15 billion as of October 31, 2023, representing a 35% year-over-year increase. This metric reflects the strong demand for CrowdStrike's subscription-based services.
06—Continue