About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Shares of CrowdStrike (CRWD 14.16%) charged sharply higher on Wednesday, gaining as much as 22.7% in early trading. As of 10:46 a.m. ET, the stock was still up 14.6%. The catalyst that sent the cloud-based cybersecurity specialist higher was quarterly results that far outpaced expectations.Blockbuster resultsCrowdStrike reported the results for its fiscal 2024 second quarter (ended Jan. 31), and investors were taken aback. Revenue of $845 million grew 33% year over year, driven higher by growing customer si ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) CrowdStrike provides a cloud-native, AI-powered cybersecurity platform, the Falcon XDR, operating on a SaaS subscription model to stop breaches - CrowdStrike positions itself as a leader in the **"Security Cloud"** category, leveraging its **AI-native Falcon XDR platform** to provide comprehensive cybersecurity solutions through a single, lightweight agent[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) Fiscal Year 2022-2024 Financial Performance | Metric | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $3.1 billion | $2.2 billion | $1.5 billion | | *YoY Growth* | *36%* | *54%* | - | | **Subscription Revenue** | $2.9 billion | $2.1 billion | $1.4 billion | | *YoY Growth* | *36%* | *55%* | - | | **Net Income (Loss)** | $89.3 million | ($183.2 million) | ($234.8 million) | Annual Recurring Revenue (ARR) Growth | As of | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | | :--- | :--- | :--- | :--- | | **ARR** | $3.4 billion | $2.6 billion | $1.7 billion | | *YoY Growth* | *34%* | *48%* | - | - The company's growth strategy includes acquiring new customers, expanding within the existing customer base (evidenced by a **119% dollar-based net retention rate**), entering new markets with additional cloud modules, and expanding internationally[61](index=61&type=chunk) - As of January 31, 2024, the company had **29,000 subscription customers**, a **26% increase** from the previous year, and employed **7,925 full-time employees**[61](index=61&type=chunk)[76](index=76&type=chunk)[101](index=101&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces various risks including managing rapid growth, market adoption of cloud security, intense competition, operational failures, cyberattacks, and compliance with complex regulations - Business and Industry Risks: The company faces challenges in managing its **rapid growth**, **maintaining profitability** after a history of losses, and depends on the market's adoption of **cloud-based SaaS security solutions**[130](index=130&type=chunk)[132](index=132&type=chunk)[135](index=135&type=chunk) - Competition and Performance Risks: **Intense competition** from legacy and alternative security providers could lead to loss of market share. Any **failure of the Falcon platform** to detect or prevent security incidents could harm the company's brand and reputation[143](index=143&type=chunk)[147](index=147&type=chunk) - Operational and Cybersecurity Risks: CrowdStrike is a **direct target for cyberattacks**. A **breach of its own systems** could severely damage its reputation. The company also relies on **third-party data centers (primarily AWS)**, making it vulnerable to service disruptions beyond its control[150](index=150&type=chunk)[153](index=153&type=chunk) - Legal and Regulatory Risks: The company must comply with **complex and evolving data privacy laws** globally (e.g., GDPR, CCPA), and failure to do so could result in significant fines. It also faces risks from **intellectual property infringement claims** by others[187](index=187&type=chunk)[193](index=193&type=chunk) - Financial and Stock-Related Risks: The **dual-class stock structure** concentrates voting power with pre-IPO stockholders, including executives and directors. The market price of the Class A common stock may be **volatile**, and the company does **not intend to pay dividends** in the foreseeable future[225](index=225&type=chunk)[233](index=233&type=chunk)[237](index=237&type=chunk) [Unresolved Staff Comments](index=56&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are **no unresolved staff comments**[283](index=283&type=chunk) [Cybersecurity](index=57&type=section&id=Item%201C.%20Cybersecurity) CrowdStrike integrates cybersecurity risk management into its enterprise risk program, overseen by the Audit Committee, with no material incidents identified in fiscal 2024 - Cybersecurity risk management is a **core part of the company's enterprise risk program**, with oversight from the **Board's Audit Committee** and daily management by the **CISO**[285](index=285&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk) - The company's strategy includes **regular testing** of its incident response plan, **penetration testing**, **third-party audits**, and **mandatory employee training** to mitigate risks[287](index=287&type=chunk) - In fiscal 2024, the company did not identify any **cybersecurity threats or incidents that had a material effect in fiscal 2024** on its business strategy, results of operations, or financial condition[289](index=289&type=chunk) [Properties](index=58&type=section&id=Item%202.%20Properties) The company's principal executive offices are leased in Austin, Texas, with management deeming current facilities sufficient for present needs - The principal executive office is a leased space of approximately **47,618 square feet** in **Austin, Texas**, with the lease expiring in **2030**[294](index=294&type=chunk) - CrowdStrike believes its existing facilities are **adequate for current operational needs** but may add or expand facilities in the future to support growth[295](index=295&type=chunk) [Legal Proceedings](index=58&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course litigation but believes no pending legal proceedings will have a material adverse effect on its business or financials - The company is subject to various legal claims in the ordinary course of business but does not believe any **no pending proceedings will have a material adverse effect**[296](index=296&type=chunk)[297](index=297&type=chunk) [Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[298](index=298&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=59&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) CrowdStrike's Class A common stock trades on Nasdaq under 'CRWD', with no dividends planned, and has significantly outperformed major indices since its IPO - Class A common stock is traded on the **Nasdaq** under the symbol **"CRWD"**. There is **no public market for Class B common stock**[301](index=301&type=chunk) - The company has **never paid cash dividends** and **does not plan to in the foreseeable future**, intending to reinvest earnings into the business[303](index=303&type=chunk) Stock Performance Comparison (June 12, 2019 - January 31, 2024) | Company/Index | 6/12/19 (Base) | 1/31/24 (End) | Cumulative Return | | :--- | :--- | :--- | :--- | | **CrowdStrike Holdings, Inc.** | $100.00 | $504.31 | **+404.31%** | | S&P 500 | $100.00 | $190.27 | +90.27% | | S&P Information Technology | $100.00 | $294.24 | +194.24% | | Nasdaq 100 | $100.00 | $250.05 | +150.05% | [[Reserved]](index=60&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved - **None**[636](index=636&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) CrowdStrike achieved 36% revenue growth to $3.06 billion in fiscal 2024, shifting to a net income of $89.3 million, driven by subscription growth and strong operating cash flow Key Financial Metrics (Fiscal 2024 vs. 2023) | Metric | Fiscal 2024 (in millions) | Fiscal 2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $3,055.6 | $2,241.2 | 36% | | **Gross Profit** | $2,299.8 | $1,640.0 | 40% | | **Gross Margin** | 75% | 73% | +2 p.p. | | **Net Income (Loss)** | $89.3 | ($183.2) | N/A | | **Net Cash from Operations** | $1,166.2 | $941.0 | 24% | Key Performance Indicators (as of Jan 31, 2024) | Metric | Value (in billions) | YoY Change | | :--- | :--- | :--- | | **Annual Recurring Revenue (ARR)** | $3.44 | +34% | | **Dollar-Based Net Retention Rate** | 119% | -6 p.p. | - Revenue growth was driven by acquiring new customers and expanding sales to existing customers. Subscription revenue increased by **36%** to **$2.87 billion**[340](index=340&type=chunk) - Operating expenses increased across the board, with **Sales and Marketing up 26% to $1.14 billion**, **R&D up 26% to $768.5 million**, and **G&A up 24% to $392.8 million**, primarily due to increased headcount and employee-related costs[346](index=346&type=chunk)[347](index=347&type=chunk)[348](index=348&type=chunk) - The company's liquidity remains strong with **$3.4 billion in cash and cash equivalents**, supported by **$1.2 billion in net cash provided by operating activities** in fiscal 2024[372](index=372&type=chunk)[377](index=377&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=76&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to interest rate, foreign currency, and inflation risks, with foreign currency fluctuations potentially increasing operating loss by $75.8 million in fiscal 2024 - Interest Rate Risk: The company's investments and debt are exposed to interest rate fluctuations. However, a hypothetical **100 basis point change** in rates is **not expected to materially impact** the fair market value of its portfolio[409](index=409&type=chunk)[410](index=410&type=chunk) - Foreign Currency Risk: With nearly all sales in USD but some operating expenses in foreign currencies, the company is exposed to currency fluctuations. A hypothetical **10% adverse change** in the USD exchange rate would have increased the operating loss by an estimated **$75.8 million** in fiscal 2024[411](index=411&type=chunk) - Inflation Risk: Management does **not believe that inflation had a material effect** on the business during the last three fiscal years[412](index=412&type=chunk) [Financial Statements and Supplementary Data](index=77&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2022-2024, along with the independent auditor's report and detailed financial notes - The independent auditor, PricewaterhouseCoopers LLP, issued an **unqualified opinion** on the consolidated financial statements and the **effectiveness of internal control over financial reporting** as of January 31, 2024[418](index=418&type=chunk)[419](index=419&type=chunk) Consolidated Balance Sheet Highlights (as of Jan 31, 2024) | Account | Amount (in thousands) | | :--- | :--- | | **Total Assets** | **$6,646,520** | | Cash and cash equivalents | $3,375,069 | | Accounts receivable, net | $853,105 | | Goodwill | $638,041 | | **Total Liabilities** | **$4,309,431** | | Deferred revenue (current & noncurrent) | $3,054,099 | | Long-term debt | $742,494 | | **Total Stockholders' Equity** | **$2,337,089** | Consolidated Statement of Operations Highlights (FY 2024) | Account | Amount (in thousands) | | :--- | :--- | | **Total Revenue** | **$3,055,555** | | Gross Profit | $2,299,832 | | Total Operating Expenses | $2,301,827 | | **Net Income Attributable to CrowdStrike** | **$89,327** | | **Diluted EPS** | **$0.37** | - The critical audit matter identified by the auditor was related to **Revenue Recognition**, specifically the **identification and evaluation of terms and conditions in customer contracts**, due to the high degree of subjectivity and effort involved[426](index=426&type=chunk)[427](index=427&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=115&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants regarding accounting principles, financial disclosure, or auditing scope - **None reported**[636](index=636&type=chunk) [Controls and Procedures](index=115&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of January 31, 2024, with no material changes in Q4 fiscal 2024 - Management concluded that the company's disclosure controls and procedures were **effective as of January 31, 2024**[638](index=638&type=chunk) - Management's report on internal control over financial reporting concluded that these controls were **effective as of January 31, 2024**, a conclusion **audited and confirmed by PricewaterhouseCoopers LLP**[639](index=639&type=chunk)[640](index=640&type=chunk) - **No material changes** to internal control over financial reporting occurred during the fourth quarter of fiscal 2024[641](index=641&type=chunk) [Other Information](index=116&type=section&id=Item%209B.%20Other%20Information) During Q4 fiscal 2024, one director terminated a Rule 10b5-1 trading plan, while two officers adopted new plans for stock sales Officer and Director Trading Plan Activity (Q4 FY2024) | Name and Title | Action | Date | Plan Type | | :--- | :--- | :--- | :--- | | Godfrey Sullivan, Director | Termination | Dec 12, 2023 | Rule 10b5-1 | | Shawn Henry, CSO | Adoption | Dec 20, 2023 | Rule 10b5-1 | | Burt Podbere, CFO | Adoption | Dec 29, 2023 | Rule 10b5-1 | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=116&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - **Not applicable**[646](index=646&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=117&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[649](index=649&type=chunk) [Executive Compensation](index=117&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[650](index=650&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=117&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners and management is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[651](index=651&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=117&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[652](index=652&type=chunk) [Principal Accountant Fees and Services](index=117&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[653](index=653&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=118&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements from Item 8 and incorporates the Exhibit Index by reference, with schedules omitted as not applicable - This item references the **financial statements in Item 8** and the **Exhibit Index**[656](index=656&type=chunk)[658](index=658&type=chunk) [Form 10-K Summary](index=118&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has indicated that there is no Form 10-K summary - **None**[659](index=659&type=chunk)

CrowdStrike Holdings Inc (NASDAQ:CRWD) last night reported much better-than-expected fourth-quarter earnings of 95 cents per share on revenue of $845.3 million. The cybersecurity name also issued an upbeat 2025 forecast, as businesses spend more on cybersecurity to protect themselves against online threats. Bull notes are coming from every direction, with no fewer than 25 already doled out. The highest comes from BTIG, which raised the stock's price objective $432 from $322. This is made more notable by the ...

Key PointsCrowdStrike had another beat-and-raise quarter, sending shares to another all-time high.Analysts are lifting their price targets and leading the market higher.The technical outlook suggests a $200 to 200% gain over the next few quarters and years. 5 stocks we like better than CrowdStrikeThe price action in CrowdStrike NASDAQ: CRWD stock is up 25% following the Q4 release and 2024 guidance, but the rally is not over yet. The results and outlook confirm the company’s momentum is solid, and analysts ...

CrowdStrike Holdings, Inc. (CRWD) shares jumped nearly 24% on Tuesday’s extended trading session after the cloud-based cybersecurity solution provider reported better-than-expected fourth-quarter fiscal 2024 results. Fourth-quarter revenues and earnings both witnessed a significant improvement on a year-over-year basis as well.CrowdStrike’s fourth-quarter non-GAAP earnings increased more than twofold to 95 cents per share from the year-ago quarter’s earnings of 47 cents. Quarterly earnings also surpassed th ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

In recent months, Nancy Pelosi’s exceptionally well-timed investment in the semiconductor giant Nvidia (NASDAQ; NVDA) has doubtlessly taken the spotlight. This fact hardly comes as a surprise given that Pelosi has made ten times her annual salary in approximately four months by betting on the blue-chip chipmaker.Still, it is far from the Representative’s only savvy investment, and one in particular came back with a vengeance on the night between March 5 and March 6 – Crowdstrike (NASDAQ: CRWD). Nancy Pelosi ...

Key TakeawaysCrowdStrike shares surged nearly 24% in extended-hours trading Tuesday after the company surpassed quarterly estimates and provided better-than-expected current-quarter and full-year guidance.The company also announced it has agreed to acquire Flow Security in a cash and stock deal aimed at bolstering its cloud data protection.An uptrend line on the CrowdStrike chart connecting several swing lows over the past 14 months may help identify key support areas during future retracements. CrowdStrike ...

Financial Data and Key Metrics Changes - The company achieved record net new ARR of $282 million, growing 27% year-over-year, and finished the quarter with $3.44 billion in ending ARR, up 34% over last year [34][51][73] - Operating income grew 86% year-over-year to reach a record $660.3 million, representing 22% of revenue, while net income attributable to the company more than doubled to $751.8 million, or $3.09 per diluted share [73] - Free cash flow reached a record $938.2 million, or 31% of revenue, exceeding the target for the year [73][76] Business Line Data and Key Metrics Changes - The cloud security business saw net new ARR grow nearly 200% year-over-year, reaching over $400 million in ending ARR, positioning the company as one of the largest cloud security businesses in the market [41] - Identity protection surpassed $300 million in ARR, more than doubling year-over-year, with a record quarter of net new identity customer adds [65] - The next-gen SIEM solution achieved record net new ARR growth of over 170% year-over-year, with ending ARR now greater than $150 million [44] Market Data and Key Metrics Changes - The geographic mix of fourth quarter revenue consisted of approximately 68% from the U.S., 16% from Europe, Middle East, and Africa, 10% from the Asia Pacific region, and 6% from all other markets [75] - The company closed more than 250 deals greater than $1 million in deal value, with deal counts growing by more than 30% year-over-year across all deal segments [39][91] Company Strategy and Development Direction - The company emphasizes a platform strategy that integrates multiple cybersecurity solutions into a single data-centric architecture, which is seen as a key differentiator in the competitive landscape [8][10][60] - The acquisition of Flow Security is aimed at enhancing the data protection module, focusing on runtime protection and addressing a market currently dominated by ineffective legacy vendors [16][43] - The company aims to reach $10 billion in ARR over the next five to seven years, continuing to invest in innovation and operational excellence [90][96] Management's Comments on Operating Environment and Future Outlook - The current macro environment remains stable, with expectations of continued deal scrutiny, while the threat landscape is described as elevated, necessitating effective cybersecurity solutions [57][90] - Management expressed confidence in the company's momentum for fiscal year 2025, with expectations for continued growth in net new ARR and revenue [77][90] Other Important Information - The company achieved GAAP profitability for the past four quarters and the full fiscal year in less than five years following its IPO [73] - The company reported a gross retention rate of 98% and a dollar-based net retention rate of 119%, indicating strong customer loyalty and expansion [74] Q&A Session Summary Question: Can you discuss the competitive landscape in cloud security and SIEM? - Management highlighted that customers are looking for integrated solutions that rationalize existing products, with the company's data platform providing a better outcome and lower total cost of ownership [81][82] Question: How do partnerships with Dell and Pax8 contribute to results? - Management expressed excitement about both partnerships, noting they represent additional routes to market and are expected to bring deals, although it is still early days [19][21] Question: What is the impact of the Flow acquisition on the data protection market? - The acquisition is expected to enhance the company's data protection capabilities, addressing customer frustrations with legacy DLP technologies and providing a comprehensive solution [16][43]