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.
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:Â 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
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CROWDSTRIKE HOLDINGS, INC. |
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Condensed Consolidated Statements of Operations |
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(in thousands, except per share amounts) |
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(unaudited) |
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Three Months Ended October 31, |
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Nine Months Ended October 31, |
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|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
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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 |
|
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|
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 |
|
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|
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) |
|
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|
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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