CrowdStrike(US:CRWD)2025-12-03 02:47Revenue Growth - Annual Recurring Revenue (ARR) reached $4.9 billion as of October 31, 2025, representing a year-over-year growth of 23% compared to $4.0 billion in 2024, which had a growth of 27%[180] - Total revenue for the three months ended October 31, 2025, increased by $224.1 million, or 22%, compared to the same period in 2024, reaching $1,234.2 million[205] - Total revenue increased by $611.5 million, or 21%, for the nine months ended October 31, 2025, compared to the same period in 2024[218] - Subscription revenue accounted for 95% of total revenue for both the three months ended October 31, 2025, and 2024, with subscription revenue increasing by $206.0 million, or 21%[206] - Professional services revenue increased by $18.1 million, or 38%, for the three months ended October 31, 2025, compared to the same period in 2024[207] - Professional services revenue increased by $42.3 million, or 30%, for the nine months ended October 31, 2025, compared to the same period in 2024[220] Expenses and Losses - Loss from operations for the three months ended October 31, 2025, was $69.4 million, compared to a loss of $55.7 million in 2024, representing a 25% increase in loss[203] - Net income attributable to CrowdStrike for the three months ended October 31, 2025, was $(33.997) million, a 102% increase in loss compared to $(16.822) million in 2024[203] - General and administrative expenses increased by $40.3 million, or 32%, for the three months ended October 31, 2025, compared to the same period in 2024[203] - General and administrative expenses increased by $173.3 million, or 51%, for the nine months ended October 31, 2025, compared to the same period in 2024, primarily due to expenses related to the July 19 Incident and an increase in stock-based compensation[227] - The company reported a net loss of $332.4 million for the nine months ended October 31, 2025, with a loss from operations of $384.9 million[246] Cash Flow and Financial Position - As of October 31, 2025, the company had $4.8 billion in cash and cash equivalents, along with $750 million available under its Revolving Facility, expected to meet cash needs for at least the next 12 months[233] - Net cash provided by operating activities was $1.1 billion for the nine months ended October 31, 2025, despite a net loss of $222.6 million[239] - Net cash used in investing activities totaled $641.5 million, primarily due to business acquisitions of $380.9 million and purchases of property and equipment of $199.6 million[240] - Net cash provided by financing activities was $81.1 million, mainly from the employee stock purchase plan and capital contributions from non-controlling interests[241] Cost of Revenue and Profitability - Total cost of revenue increased by $52.7 million, or 21%, for the three months ended October 31, 2025, reaching $307.8 million[208] - Gross profit for the three months ended October 31, 2025, was $926.4 million, a 23% increase from $755.1 million in 2024[210] - Subscription gross margin remained flat at 78% for the three months ended October 31, 2025, compared to the same period in 2024[210] - Professional services gross margin increased by six percentage points to 24% for the three months ended October 31, 2025, compared to 18% in 2024[211] Sales and Marketing Strategy - The company expects to continue investing significantly in sales and marketing efforts to grow its customer base both domestically and internationally[175] - Following the July 19 Incident, the company has experienced delays in creating sales opportunities and longer sales cycles, which may affect future revenue metrics[176] - The company has a low friction land-and-expand sales strategy, allowing customers to start with any number of cloud modules and easily add more over time[168] - The company views its professional services as a significant lead generator for new subscriptions, indicating a strategic focus on expanding its customer base[190] - Sales and marketing expenses increased by $72.8 million, or 18%, for the three months ended October 31, 2025, compared to the same period in 2024[212] Research and Development - Research and development expenses are expected to increase in dollar amount as the company invests in its technology architecture and software platform[195] - Research and development expenses increased by $72.0 million, or 26%, for the three months ended October 31, 2025, compared to the same period in 2024[213] - Research and development expenses increased by $266.6 million, or 35%, for the nine months ended October 31, 2025, compared to the same period in 2024[226] Deferred Revenue and Backlog - Deferred revenue as of October 31, 2025, was $4.1 billion, with $2.9 billion expected to be recognized as revenue in the next 12 months[236] - The company had a backlog of approximately $3.8 billion, which is subject to change based on customer agreements and renewals[258] - The company does not utilize backlog as a key management metric internally, indicating that it may not be a reliable indicator of future revenue performance[258] Employee and Labor Relations - The company had 10,410 full-time employees as of October 31, 2025, with no employees in the U.S. represented by a labor union[262] - The company has not experienced any work stoppages and considers its relations with employees to be good[262] Tax and Interest - The provision for income taxes increased by $4.4 million, or 71%, for the three months ended October 31, 2025, compared to the same period in 2024[217] - The provision for income taxes increased by $12.9 million, or 52%, during the nine months ended October 31, 2025, primarily due to foreign income taxes and withholding taxes[231] - Interest expense rose by $822,000, or 4%, while interest income decreased by $2.5 million, or 2%, for the nine months ended October 31, 2025, compared to the same period in 2024[228][229] Accounting and Compliance - There have been no significant changes in critical accounting policies and estimates during the nine months ended October 31, 2025, compared to the previous fiscal year[256] - Recent accounting pronouncements have been disclosed in the company's condensed consolidated financial statements, indicating ongoing compliance with accounting standards[266]