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10-QPeriod: Q3 FY2024

CrowdStrike Holdings, Inc. Quarterly Report for Q3 Ended Oct 31, 2023

Filed November 29, 2023For Securities:CRWD

Summary

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 million, 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 billion, a 35% increase year-over-year, reflecting sustained customer demand and expansion. The company also completed the acquisition of Bionic Technology for $238.7 million 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.

Financial Statements
Beta
Revenue$786.01M
Cost of Revenue$195.00M
Gross Profit$591.01M
R&D Expenses$196.07M
Operating Expenses$587.85M
Operating Income$3.16M
Interest Expense$6.50M
Net Income$26.66M
EPS (Basic)$0.11
EPS (Diluted)$0.11
Shares Outstanding (Basic)239.30M
Shares Outstanding (Diluted)243.80M

Key Highlights

  • 1Total revenue increased by 35% year-over-year to $786.0 million in Q3 FY24.
  • 2Subscription revenue grew 34% year-over-year to $733.5 million, representing 93% of total revenue.
  • 3The 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.
  • 4Gross margin improved to 75% in Q3 FY24, up from 73% in Q3 FY23, driven by subscription cost efficiencies.
  • 5Annual Recurring Revenue (ARR) reached $3.15 billion, a 35% increase year-over-year.
  • 6Net cash provided by operating activities increased significantly, indicating strong operational cash generation.
  • 7Acquisition of Bionic Technology for $238.7 million to enhance Application Security Posture Management.

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