CrowdStrike Reports First Quarter Fiscal Year 2024 Financial Results

CrowdStrike Holdings announced financial results for the first quarter fiscal year 2024, ended April 30, 2023.

“CrowdStrike’s first quarter results exceeded our guided metrics and reached new financial milestones, delivering the winning combination of growth, profitability and free cash flow at scale,” said George Kurtz, CrowdStrike’s president, chief executive officer and co-founder. “Our demonstrated leadership in leveraging AI to drive better security outcomes and consolidate security spend strategically positions CrowdStrike to win in our markets.”

Commenting on the company’s financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “Highlights of the quarter included a rule of 75 on a free cash flow basis and records across revenue, gross margin, GAAP and non-GAAP earnings, and cash flow. Through our relentless focus on execution, we achieved these records while remaining capital efficient and increasing module adoption rates.”

First Quarter Fiscal 2024 Financial Highlights

·         Revenue: Total revenue was $692.6 million, a 42% increase, compared to $487.8 million in the first quarter of fiscal 2023. Subscription revenue was $651.2 million, a 42% increase, compared to $459.8 million in the first quarter of fiscal 2023.

·         Annual Recurring Revenue (ARR) increased 42% year-over-year and grew to $2.73 billion as of April 30, 2023, of which $174.2 million was net new ARR added in the quarter.

·         Subscription Gross Margin: GAAP subscription gross margin was 78%, compared to 77% in the first quarter of fiscal 2023. Non-GAAP subscription gross margin was 80%, compared to 79% in the first quarter of fiscal 2023.

·         Income/Loss from Operations: GAAP loss from operations was $19.5 million, compared to $23.9 million in the first quarter of fiscal 2023. Non-GAAP income from operations was $115.9 million, compared to $83.0 million in the first quarter of fiscal 2023.

·         Net Income/Loss Attributable to CrowdStrike: GAAP net income attributable to CrowdStrike was $0.5 million, compared to a loss of $31.5 million in the first quarter of fiscal 2023. GAAP net income per share attributable to CrowdStrike, diluted, was $0.00, compared to a loss of $0.14 in the first quarter of fiscal 2023. Non-GAAP net income attributable to CrowdStrike was $136.4 million, compared to $74.8 million in the first quarter of fiscal 2023. Non-GAAP net income attributable to CrowdStrike per share, diluted, was $0.57, compared to $0.31 in the first quarter of fiscal 2023.

·         Cash Flow: Net cash generated from operations was $300.9 million, compared to $215.0 million in the first quarter of fiscal 2023. Free cash flow was $227.4 million, compared to $157.5 million in the first quarter of fiscal 2023.

·         Cash, Cash Equivalents and Short-term Investments was $2.93 billion as of April 30, 2023.

Recent Highlights

·         CrowdStrike’s module adoption rates were 62%, 40% and 23% for five or more, six or more and seven or more modules, respectively, as of April 30, 20231.

·         Introduced Charlotte AI, a new generative AI security analyst that uses the world’s highest-fidelity security data and is continuously improved through a tight human feedback loop from usage by CrowdStrike’s industry-leading threat hunters, managed detection and response operators, and incident response experts.

·         Announced CrowdStrike and AWS are working together to develop powerful new Generative AI applications that help customers accelerate their cloud, security and AI journeys.

·         Granted an Impact Level 5 Provisional Authorization from the Department of Defense.

·         Named a leader in The Forrester Wave: Managed Detection and Response (MDR), Q2 2023 report.

·         Ranked #1 worldwide for revenue for a second consecutive year in Managed Detection and Response (MDR) in the new Gartner report: “Market Share: Managed Security Services, Worldwide, 2022.”

·         Announced CrowdStrike Falcon Complete XDR, a new Managed eXtended Detection and Response (MXDR) service.

·         Released CrowdStrike Falcon Insight for IoT, the world’s first and only EDR/XDR solution for Extended Internet of Things (XIoT) assets.

·         Launched a new partnership with Abnormal Security, the leading behavioral AI-based email security platform.

·         Introduced CrowdStream, a native platform capability that directly connects any data source into the CrowdStrike Falcon platform using Cribl’s observability pipeline technology.

·         Expanded partnership with Google with industry’s first native EDR/XDR offering for ChromeOS.

·         Named to the 2023 Fortune 100 Best Companies to Work For® list for the third consecutive year.

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