CrowdStrike(CRWD) - 2025 Q2 - Quarterly Report

Revenue and Growth - Annual Recurring Revenue (ARR) reached $3.9 billion as of July 31, 2024, with net new ARR of$217.6 million and $429.3 million added for the three and six months ended July 31, 2024, respectively[135]. - Total revenue for the three months ended July 31, 2024, increased by$232.2 million, or 32%, compared to the same period in 2023, reaching $963.9 million[150]. - Subscription revenue accounted for 95$228.3 million, or 33%, compared to the same period in 2023[153][154]. - Total revenue increased by $460.7 million, or 32$712.8 million, an increase of 26% compared to the same period in 2023[150]. - Net income for the three months ended July 31, 2024, was $46.7 million, a significant increase of 451$8.5 million in the same period in 2023[150]. - Interest income increased by $14.9 million, or 41$71.5 million, or 40%, for the three months ended July 31, 2024, compared to the same period in 2023[160]. - Research and development expenses rose by $127.7 million, or 36$486.2 million for the six months ended July 31, 2024, compared to $358.4 million in the same period in 2023[171]. Sales and Marketing - The company expects to continue investing significantly in sales and marketing to grow its customer base domestically and internationally[131]. - Sales and marketing expenses increased by$72.6 million, or 26%, for the three months ended July 31, 2024, compared to the same period in 2023[159]. - Sales and marketing expenses increased by $141.6 million, or 25$705.6 million for the six months ended July 31, 2024, compared to $564.0 million in the same period of 2023[170]. Legal and Administrative Matters - The Channel File 291 Incident has led to lawsuits and inquiries, with expected significant legal and administrative expenses in future periods[132]. - The unrecognized tax benefits amounted to$14.4 million, classified as long-term liabilities due to uncertainty regarding future cash outflows[192]. Cash Flow and Assets - As of July 31, 2024, the company had $4.0 billion in cash and cash equivalents, which is expected to meet anticipated cash needs for at least the next 12 months[176]. - Net cash provided by operating activities was$709.9 million for the six months ended July 31, 2024, compared to $545.7 million in the same period of 2023[181]. - Net cash used in investing activities was$106.0 million, primarily due to business acquisitions and purchases of property and equipment[183]. - Net cash provided by financing activities was $60.0 million, mainly from proceeds of the employee stock purchase plan[184]. - The company reported current assets of$5,008.5 million, an increase from $4,563.5 million[188]. Employee and Organizational Matters - The company employed 9,219 full-time employees as of July 31, 2024, with no labor union representation in the United States[199]. - The company has not experienced any work stoppages and considers its relations with employees to be good[199]. Deferred Revenue and Backlog - Deferred revenue as of July 31, 2024, was$3.1 billion, with $2.3 billion expected to be recognized as revenue in the next 12 months[179]. - The company had a backlog of approximately$1.8 billion as of July 31, 2024, which is subject to change based on customer agreements and renewals[196].