CrowdStrike(CRWD) - 2025 Q2 - Quarterly Results

Revenue Growth and Performance - Ending ARR grew 32% year-over-year to $3.86 billion, with $218 million in net new ARR added[1] - Total revenue increased 32% year-over-year to $963.9 million, with subscription revenue up 33% to $918.3 million[3] - Total revenue for Q2 2024 increased to $963.9 million, up 31.7% from $731.6 million in Q2 2023[17] - Subscription revenue grew to $918.3 million in Q2 2024, a 33.1% increase from $690.0 million in Q2 2023[17] - GAAP subscription revenue for the six months ended July 31, 2024, was $1,790,429 thousand, compared to $1,341,147 thousand in the same period in 2023[30] - Revenue guidance for fiscal year 2025 includes an estimated $30 million subscription revenue impact per quarter due to customer commitment package incentives[7] Profitability and Income - GAAP net income attributable to CrowdStrike was $47.0 million, a significant increase from $8.5 million in the same quarter last year[4] - Non-GAAP net income attributable to CrowdStrike was $260.8 million, compared to $180.0 million in the prior year[4] - Net income attributable to CrowdStrike for Q2 2024 was $47.0 million, compared to $8.5 million in Q2 2023[17] - Net income for the six months ended July 31, 2024, was $92,954 thousand, significantly higher than $8,975 thousand in the same period in 2023[29] - GAAP net income attributable to CrowdStrike for Q3 2024 was $47.0 million, compared to $8.5 million in Q3 2023[33] - Non-GAAP net income attributable to CrowdStrike for Q3 2024 was $260.8 million, compared to $180.0 million in Q3 2023[33] Cash Flow and Financial Position - Operating cash flow reached a record $327 million, with free cash flow at $272 million[1] - Cash and cash equivalents increased to $4,038,536 thousand as of July 31, 2024, up from $3,375,069 thousand as of January 31, 2024[28] - Net cash provided by operating activities for the six months ended July 31, 2024, was $709,869 thousand, up from $545,673 thousand in the same period in 2023[29] - GAAP net cash provided by operating activities for Q2 2024 was $326.6 million, a 33% increase from $244.8 million in Q2 2023[35] - Free cash flow for Q2 2024 was $272.2 million, a 44% increase from $188.7 million in Q2 2023[35] - Free cash flow margin for Q2 2024 was 28%, up from 26% in Q2 2023[35] - GAAP net cash provided by operating activities as a percentage of revenue remained stable at 34% in Q2 2024 compared to 33% in Q2 2023[35] - GAAP net cash used in investing activities was $54.9 million in Q2 2024, compared to $41.8 million provided by investing activities in Q2 2023[35] - GAAP net cash provided by financing activities increased to $62.5 million in Q2 2024 from $49.7 million in Q2 2023[35] Operating Expenses and Margins - Operating expenses for Q2 2024 totaled $712.8 million, up 26.4% from $564.1 million in Q2 2023[17] - Research and development expenses increased to $250.9 million in Q2 2024, up 39.9% from $179.4 million in Q2 2023[17] - Total stock-based compensation expense for Q2 2024 was $200.9 million, compared to $164.8 million in Q2 2023[18] - Channel File 291 Incident related costs for Q2 2024 amounted to $5.1 million, primarily in sales and marketing, R&D, and general administrative expenses[23] - Non-GAAP subscription gross margin for the six months ended July 31, 2024, was 81%, up from 80% in the same period in 2023[30] - Total GAAP gross margin remained steady at 75% for both the six months ended July 31, 2024, and 2023[30] - Non-GAAP sales and marketing operating expenses as a percentage of revenue decreased to 31% for the six months ended July 31, 2024, from 33% in the same period in 2023[30] - GAAP operating margin for Q3 2024 was 1%, compared to -2% in Q3 2023[31] - Non-GAAP operating margin for Q3 2024 was 24%, compared to 21% in Q3 2023[31] - GAAP research and development operating expenses for Q3 2024 were $250.9 million, or 26% of revenue, compared to $179.4 million, or 25% of revenue, in Q3 2023[31] - Non-GAAP research and development operating expenses for Q3 2024 were $173.9 million, or 18% of revenue, compared to $132.4 million, or 18% of revenue, in Q3 2023[31] - GAAP general and administrative operating expenses for Q3 2024 were $106.4 million, or 11% of revenue, compared to $101.8 million, or 14% of revenue, in Q3 2023[31] - Non-GAAP general and administrative operating expenses for Q3 2024 were $61.0 million, or 6% of revenue, compared to $49.2 million, or 7% of revenue, in Q3 2023[31] Partnerships and Business Development - CrowdStrike's module adoption rates were 65%, 45%, and 29% for five or more, six or more, and seven or more modules, respectively[5] - The company exceeded $1 billion in total sales over the lifetime of its partnership with CDW Corporation[5] - CrowdStrike announced a strategic partnership with Hewlett Packard Enterprise to secure end-to-end AI innovation[5] Financial Metrics and Guidance - Non-GAAP income from operations is projected to be between $774.7 million and $783.9 million for fiscal year 2025[9] - Gross profit for Q2 2024 reached $726.5 million, a 32.4% increase from $548.7 million in Q2 2023[17] - Interest income for Q2 2024 was $51.5 million, up 40.6% from $36.6 million in Q2 2023[17] - Diluted net income per share for Q2 2024 was $0.19, compared to $0.03 in Q2 2023[17] - Total current assets rose to $5,181,648 thousand as of July 31, 2024, compared to $4,757,307 thousand as of January 31, 2024[28] - Total liabilities increased slightly to $4,311,884 thousand as of July 31, 2024, from $4,309,431 thousand as of January 31, 2024[28] - Total stockholders' equity grew to $2,890,590 thousand as of July 31, 2024, up from $2,337,089 thousand as of January 31, 2024[28] - GAAP diluted net income per share attributable to CrowdStrike common stockholders for Q3 2024 was $0.19, compared to $0.03 in Q3 2023[34] - Non-GAAP diluted net income per share attributable to CrowdStrike common stockholders for Q3 2024 was $1.04, compared to $0.74 in Q3 2023[34] - Purchases of property and equipment decreased to $39.3 million in Q2 2024 from $40.4 million in Q2 2023, representing 4% of revenue compared to 6% in the prior year[35] - Capitalized internal-use software and website development costs were $14.5 million in Q2 2024, slightly down from $15.1 million in Q2 2023, both representing 2% of revenue[35] - Free cash flow rule of 40 is calculated by summing the current quarter's year-over-year revenue growth rate and free cash flow margin percentage[45] - Annual Recurring Revenue (ARR) is calculated as the annualized value of customer subscription contracts, including those in renewal discussions[43]