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CrowdStrike Reports Third Quarter Fiscal Year 2022 Financial Results
Analysts had projected CrowdStrike would earn 10 cents a share on revenue of $363.6 million for the period ended Oct. 30.

CrowdStrike Holdings (CRWD) reported third-quarter earnings and revenue that topped estimates amid strong customer growth. CrowdStrike stock rose as guidance came in above expectations.

The cybersecurity firm released its earnings report after the market closed on Wednesday.

“CrowdStrike delivered a robust third quarter with broad-based strength across multiple areas of the business leading to net new ARR growth accelerating and ending ARR growing 67% year-over-year to surpass the $1.5 billion milestone. Our outstanding results this quarter demonstrate the flywheel effect of our platform and reflect continued strong customer adoption for our core products in addition to the growing success of our newer product initiatives including identity protection, log management and cloud. With our leading technology, unmatched platform and approach to stopping breaches, we continue to eclipse our competitors and extend our leadership position,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer.
Crowdstrike

Image: MarketWatch

Third Quarter Fiscal 2022 Financial Highlights

Revenue: Total revenue was $380.1 million, a 63% increase, compared to $232.5 million in the third quarter of fiscal 2021. Subscription revenue was $357.0 million, a 67% increase, compared to $213.5 million in the third quarter of fiscal 2021.

Annual Recurring Revenue (ARR) increased 67% year-over-year and grew to $1.51 billion as of October 31, 2021, of which $170.0 million was net new ARR added in the quarter. Net new ARR year-over-year growth accelerated to 46% on an as-reported basis and 55% on an organic basis.

Subscription Gross Margin: GAAP subscription gross margin was 76%, compared to 77% in the third quarter offiscal2021. The non-GAAP subscription gross margin was 79%, compared to 78% in the third quarter of fiscal 2021.

Income/Loss from Operations: GAAP loss from operations was $40.3 million, compared to $24.2 million in the third quarter of fiscal 2021. Non-GAAP income from operations was $50.7 million, compared to $18.9 million in the third quarter of fiscal 2021.

Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $50.5 million, compared to $24.5 million in the third quarter of fiscal 2021. GAAP net loss per share attributable to CrowdStrike common stockholders was $0.22, compared to $0.11 in the third quarter of fiscal 2021.

Non-GAAP net income attributable to CrowdStrike was $41.1 million, compared to $18.6 million in the third quarter of fiscal 2021. Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted, was $0.17, compared to $0.08 in the third quarter of fiscal 2021.

Cash Flow: Net cash generated from operations was $159.1 million, compared to $88.5 million in the third quarter of fiscal 2021. Free cash flow was $123.5 million, compared to $76.1 million in the third quarter of fiscal 2021.

Cash and Cash Equivalents grew to $1.91 billion as of October 31, 2021.

CrowdStrike stock rose 1.7% to near 205 before the market open on stock market today. Shares fell 7% in Wednesday’s regular session. CRWD stock had lost nearly 5% in 2021, heading into the earnings report.

For the current quarter ending in January, CrowdStrike forecast revenue of $409 million at the midpoint of its outlook. Analysts had projected $400 million.

Financial Statement

 

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Revenue

Subscription

$

357,030

$

213,530

$

954,094

$

560,008

Professional services

23,021

18,930

66,490

49,501

Total revenue

380,051

232,460

1,020,584

609,509

Cost of revenue

Subscription (1)(2)

85,464

49,583

226,360

130,864

Professional services (1)

16,200

11,944

44,241

31,949

The total cost of revenue

101,664

61,527

270,601

162,813

Gross profit

278,387

170,933

749,983

446,696

Operating expenses

Sales and marketing (1)(2)

164,960

105,602

453,952

288,867

Research and development (1)(2)

97,630

57,539

266,265

148,600

General and administrative (1)(2)(3)(4)

56,061

31,951

148,780

85,955

Total operating expenses

318,651

195,092

868,997

523,422

Loss from operations

(40,264)

(24,159)

(119,014)

(76,726)

Interest expense(5)

(6,403)

(193)

(18,929)

(510)

Other income, net(6)

690

272

6,077

5,537

Loss before provision for income taxes

(45,977)

(24,080)

(131,866)

(71,699)

Provision for income taxes(7)

4,473

451

58,773

1,928

Net loss

(50,450)

(24,531)

(190,639)

(73,627)

Net income attributable to noncontrolling interest

5

2,183

Net loss attributable to CrowdStrike

$

(50,455)

$

(24,531)

$

(192,822)

$

(73,627)

Net loss per share attributable to CrowdStrike common stockholders, basic and diluted

$

(0.22)

$

(0.11)

$

(0.85)

$

(0.34)

Weighted-average shares used in computing net loss per share attributable to CrowdStrike common stockholders, basic and diluted

228,293

219,401

226,292

216,432

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