01—Abstract
Summary
Summary of the 10-Q filed June 5, 2024. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. reported a strong first quarter for fiscal year 2025, demonstrating significant top-line growth and a return to profitability.
Total revenue surged by 33% year-over-year to $921.0 milliona, primarily driven by a robust 34% increase in subscription revenue. The company also saw a positive shift to profitability, reporting a net income of $46.3 million for the quarter, a substantial increase from a net income of $0.5 million in the prior year period. This financial performance underscores CrowdStrike's continued execution and market traction in the cybersecurity sector, supported by consistent demand for its cloud-native platform.
The company also highlighted its growing Annual Recurring Revenue (ARR), which reached $3.6 billionb, reflecting a 33% year-over-year increase and indicating strong customer retention and expansion. Despite increased operating expenses related to growth investments, particularly in sales and marketing and research and development, CrowdStrike managed to improve its operating income significantly, signaling efficient scaling and strong operational leverage.
02—Key points
Key Highlights
- Total revenue increased by 33% to $921.0 million, driven by a 34% rise in subscription revenue.
- Net income improved dramatically to $46.3 million, compared to $0.5 million in the prior year's quarter, demonstrating a strong return to profitability.
- Annual Recurring Revenue (ARR) grew 33% year-over-year to $3.6 billion, indicating sustained customer value and expansion.
- Operating income turned positive at $6.9 million, a significant improvement from a loss of $19.5 million in the prior year's quarter.
- Gross profit increased by 33% to $696.0 million, maintaining a strong gross margin of 76%.
- The company successfully integrated the acquisition of Flow Security, adding to its goodwill and developed technology portfolio.
- Cash and cash equivalents increased to $3.7 billion, providing a strong liquidity position.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, CrowdStrike Holdings, Inc. kept $0.05.
- Revenue$921.0M100.0%
- Cost of revenue−$225.0M24.4%
- Gross profit$696.0M75.6%
- Operating costs−$689.1M74.8%
- Operating income$6.9M0.8%
- Interest, other & tax$35.9M3.9%
- Net income$42.8M4.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed June 5, 2024Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $921.04M$692.58M | +33.0% |
| Cost of Revenue | $225.00M$169.23M | +33.0% |
| Gross Profit | $696.03M$523.35M | +33.0% |
| R&D Expenses | $235.25M$179.06M | +31.4% |
| Operating Expenses | $689.10M$542.81M | +27.0% |
| Operating Income | $6.94M-$19.46M | +135.6% |
| Interest Expense | $6.51M$6.39M | +1.9% |
| Net Income | $42.82M$491K | +8621.0% |
| EPS (Basic) | $0.04— | — |
| EPS (Diluted) | $0.04— | — |
| Shares Outstanding (Basic) | 969.56M945.66M | +2.5% |
| Shares Outstanding (Diluted) | 1.00B962.39M | +4.0% |
05—Questions
Frequently Asked Questions
What was CrowdStrike's revenue growth in the reported quarter?
CrowdStrike's total revenue increased by 33% year-over-year to $921.0 million for the three months ended April 30, 2024. Subscription revenue, the primary driver, grew by 34%.
Did CrowdStrike achieve profitability in this quarter?
Yes, CrowdStrike reported a net income of $46.3 million for the three months ended April 30, 2024, a substantial increase from $0.5 million in the same period last year. This signifies a strong return to profitability.
How is CrowdStrike's Annual Recurring Revenue (ARR) performing?
CrowdStrike's ARR grew by 33% year-over-year to $3.6 billion as of April 30, 2024. This metric reflects the annualized value of subscription contracts and indicates strong ongoing customer commitment and expansion.
What was the impact of the Flow Security acquisition?
CrowdStrike acquired Flow Security on March 26, 2024, for approximately $96.4 million in cash, net of cash acquired, and fair value of replacement equity awards. The acquisition added $84.0 million in goodwill and $13.5 million to developed technology, with results included from the acquisition date. The impact on the consolidated financial statements was not considered material for pro forma disclosures.
06—Continue