CrowdStrike Reports First Quarter Fiscal Year 2022 Financial Results

3 Giugno 2021

Achieves ending ARR of $1.19 billion driven by net new ARR of $144 million
Adds 1,524 net new subscription customers
Delivers record operating and free cash flow for the second consecutive quarter

SUNNYVALE, Calif.–(BUSINESS WIRE)–CrowdStrike Holdings, Inc. (Nasdaq: CRWD), a leader in cloud-delivered endpoint and cloud workload protection, today announced financial results for the first quarter fiscal year 2022, ended April 30, 2021.

“CrowdStrike kicked off the new fiscal year with strong momentum and delivered outstanding first quarter results that exceeded our expectations. We saw strength in multiple areas of the business, added $144 million in net new ARR in the quarter and grew ending ARR 74% year-over-year to exceed $1.19 billion. The CrowdStrike name has become synonymous with best-in-class cybersecurity protection and a platform that just works. Customers of all sizes are increasingly choosing CrowdStrike as their security platform of record with 1,524 net new subscription customers added in the quarter and half of total subscription customers now adopting at least five cloud modules. We believe the robust demand environment driven by secular trends, such as digital and security transformation, cloud adoption and a heightened threat environment, provides a runway for long-term sustainable growth,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer.

Commenting on the company’s financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “In the first quarter, we continued to recognize strong operating leverage in our SaaS model and delivered record operating and free cash flow even as we increased investments in our global reach and cloud platform. We believe the investments we are making today will lead to sustained growth over the long-term and maintain our pole position as the trusted security partner of choice.”

First Quarter Fiscal 2022 Financial Highlights

Revenue: Total revenue was $302.8 million, a 70% increase, compared to $178.1 million in the first quarter of fiscal 2021. Subscription revenue was $281.2 million, a 73% increase, compared to $162.2 million in the first quarter of fiscal 2021.

Annual Recurring Revenue (ARR) increased 74% year-over-year and grew to $1.19 billion as of April 30, 2021, of which $143.8 million was net new ARR added in the quarter, including $3.6 million from the acquisition of Humio.

Subscription Gross Margin: GAAP subscription gross margin was 77% in the first quarter of fiscal 2022 and fiscal 2021. Non-GAAP subscription gross margin was 79%, compared to 78% in the first quarter of fiscal 2021.

Income/Loss from Operations: GAAP loss from operations was $31.3 million, compared to $22.6 million in the first quarter of fiscal 2021. Non-GAAP income from operations was $29.8 million, compared to $1.2 million in the first quarter of fiscal 2021.

Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $85.0 million, including $48.8 million in tax costs related to the intellectual property integration from the Humio acquisition. This compares to $19.2 million in the first quarter of fiscal 2021. GAAP net loss per share attributable to CrowdStrike common stockholders was $0.38, compared to $0.09 in the first quarter of fiscal 2021. Non-GAAP net income attributable to CrowdStrike was $23.3 million, compared to $4.5 million in the first quarter of fiscal 2021. Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted, was $0.10, compared to $0.02 in the first quarter of fiscal 2021.

Cash Flow: Net cash generated from operations was a record $147.5 million, compared to $98.6 million in the first quarter of fiscal 2021. Free cash flow was a record $117.3 million, compared to $87.0 million in the first quarter of fiscal 2021.

Cash and Cash Equivalents was $1.68 billion as of April 30, 2021.

Recent Highlights

Added 1,524 net new subscription customers in the quarter, including 119 from the acquisition of Humio, for a total of 11,420 subscription customers as of April 30, 2021, representing 82% growth year-over-year.

CrowdStrike’s subscription customers that have adopted four or more modules, five or more modules and six or more modules increased to 64%, 50%, and 27%, respectively, as of April 30, 2021.

Recognized by Gartner, Inc. as a Leader for the second time and placed furthest for Completeness of Vision in the 2021 Magic Quadrant for Endpoint Protection Platforms.

Named a Leader in The Forrester Wave™: Managed Detection and Response (MDR), Q1 2021, External Threat Intelligence Services, Q1 2021 and Endpoint Security Software As A Service, Q2 2021 reports.

Announced Falcon Fusion, a unified and extensible framework purpose-built on the CrowdStrike Falcon® platform to orchestrate and automate complex workflows improving security operation center efficiency.

Announced new features for CrowdStrike Falcon Horizon Cloud Security Posture Management including continuous threat detection, monitoring and correlation across cloud and on-premises environments.

Added new unique Zero Trust, macOS and threat hunting updates to the CrowdStrike Falcon platform.

Strengthened the alliance between CrowdStrike and EY and announced that CrowdStrike Falcon was selected as one of the EY preferred cybersecurity technology platforms, introducing new joint offerings and expanding into new geographies.

Announced new product integrations with Zscaler, including cross-platform workflow and data sharing to shorten response times and help combat the increasing volume and sophistication of attacks.

Announced new product integrations with Google Cloud, enabling more seamless sharing of telemetry and data between the two security platforms.

Achieved 100% detection coverage in all 20 steps of the MITRE ATT&CK evaluations and achieved 100% Protection Rate in the AV Comparatives Business Real-World Protection Test for the March-April 2021 period and the highest AAA rating in the Q1 Enterprise Endpoint Protection evaluation from independent testing organization SE Labs.

Awarded Best Cloud Computing Security Solution and Best Managed Security Service at the 2021 SC Awards. Additionally, Shawn Henry, president of CrowdStrike Services and chief security officer, was awarded the inaugural Security Executive of the Year award.

Financial Outlook

CrowdStrike is providing the following guidance for the second quarter of fiscal 2022 (ending July 31, 2021) and increasing its guidance for fiscal year 2022 (ending January 31, 2022):

	Q2 FY22 Guidance	Full Year FY22 Guidance
Total revenue	$318.3 – $324.4 million	$1,347.0 – $1,365.7 million
Non-GAAP income from operations	$26.3 – $30.7 million	$115.7- $129.6 million
Non-GAAP net income attributable to CrowdStrike	$17.7 – $22.1 million	$83.1 – $97.0 million
Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted	$0.07 – $0.09	$0.35 – $0.41
Weighted average shares used in computing non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted	238 million	239 million

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization expense of acquired intangible assets, amortization of debt issuance costs and discount, gain (loss) on strategic investments, acquisition-related expenses, and tax costs for intellectual property integration relating to the Humio acquisition. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP income from operations, non-GAAP net income attributable to CrowdStrike, and non-GAAP net income per share attributable to CrowdStrike common stockholders is not available without unreasonable effort.

Conference Call Information

CrowdStrike will host a conference call for analysts and investors to discuss its earnings results for the first quarter of fiscal 2022 and outlook for its fiscal second quarter and year 2022 today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). A recorded webcast of the event will also be available for one year on the CrowdStrike Investor Relations website ir.crowdstrike.com.

Date:		June 3, 2021
Time:		2:00 p.m. Pacific time / 5:00 p.m. Eastern time
Dial-in number:		409-937-8967, conference ID: 3054026
Webcast:		ir.crowdstrike.com

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our future growth, and future financial and operating performance, including our financial outlook for the fiscal second quarter and fiscal year 2022. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our limited operating history; risks associated with managing our rapid growth; our ability to identify and effectively implement the necessary changes to address execution challenges; the impact of the COVID-19 pandemic on our and our customers’ business; our limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the risk of defects, errors, or vulnerabilities; our ability to attract new and retain existing customers; our ability to successfully integrate acquisitions; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscriptions and support; our ability to collaborate and integrate our products with offerings from other parties to deliver benefits to customers; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and general market, political, economic, and business conditions, including those related to COVID-19.

Further information on risks, uncertainties and other factors that could affect our financial results are included in the filings we make with the Securities and Exchange Commission (“SEC”) from time to time, including our most recently filed Annual Report on Form 10-K and subsequent filings.

You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Use of Non-GAAP Financial Information

We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below, as well as the “Explanation of Non-GAAP Financial Measures” section of this press release.

Channels for Disclosure of Information

We intend to announce material information to the public through the CrowdStrike Investor Relations website ir.crowdstrike.com, SEC filings, press releases, public conference calls, and public webcasts. We use these channels, as well as social media and our blog, to communicate with our investors, customers, and the public about our company, our offerings, and other issues. It is possible that the information we post on social media and our blog could be deemed to be material information. As such, we encourage investors, the media, and others to follow the channels listed above, including the social media channels listed on our investor relations website, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page on our website.

Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Gartner Peer Insights reviews constitute the subjective opinions of individual end users based on their own experiences and do not represent the views of Gartner or its affiliates.

About CrowdStrike Holdings

CrowdStrike provides cloud-delivered endpoint and cloud workload protection. Leveraging artificial intelligence (AI), the CrowdStrike Falcon® platform protects customers against cyberattacks on endpoints on or off the network by offering visibility and protection across the enterprise.

Copyright © 2021 CrowdStrike, Inc. All rights reserved. CrowdStrike and CrowdStrike Falcon® are the registered trademarks of CrowdStrike, Inc. CrowdStrike owns other trademarks and service marks, and may use the brands of third parties to identify their products and services.

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)

	Three Months Ended April 30,
	2021			2020
Revenue
Subscription	$	281,228		$	162,222
Professional services	21,615			15,856
Total revenue	302,843			178,078
Cost of revenue
Subscription ⁽¹⁾⁽²⁾	64,903			37,244
Professional services⁽¹⁾	13,602			9,651
Total cost of revenue	78,505			46,895
Gross profit	224,338			131,183
Operating expenses
Sales and marketing⁽¹⁾⁽²⁾	135,131			88,138
Research and development ⁽¹⁾⁽²⁾	78,180			40,578
General and administrative ⁽¹⁾⁽³⁾	42,374			25,043
Total operating expenses	255,685			153,759
Loss from operations	(31,347		)	(22,576		)
Interest expense⁽⁴⁾	(6,230		)	(143		)
Other income, net⁽⁵⁾	4,768			4,533
Loss before provision for income taxes	(32,809		)	(18,186		)
Provision for income taxes	50,062			1,036
Net loss	(82,871		)	(19,222		)
Net income attributable to noncontrolling interest	2,178			—
Net loss attributable to CrowdStrike	$	(85,049	)	$	(19,222	)
Net loss per share attributable to CrowdStrike common shareholders, basic and diluted	$	(0.38	)	$	(0.09	)
Weighted-average shares used in computing net loss per share attributable to CrowdStrike common shareholders, basic and diluted	224,153			213,129
_____________________________

(1) Includes stock-based compensation expense as follows:

	Three Months Ended April 30,
	2021		2020

	(in thousands)
Subscription cost of revenue	$	4,285	$	1,995
Professional services cost of revenue	2,028		971
Sales and marketing	17,414		8,687
Research and development	17,801		4,900
General and administrative	12,834		7,085
Total stock-based compensation expense	$	54,362	$	23,638


(2) Includes amortization of acquired intangible assets as follows:

	Three Months Ended April 30,
	2021		2020

	(in thousands)
Subscription cost of revenue	$	1,995	$	62
Sales and marketing	422		31
Research and development	—		10
Total amortization of purchased intangibles	$	2,417	$	103

(3) Includes acquisition-related expenses as follows:

	Three Months Ended April 30,
	2021		2020

	(in thousands)
General and administrative	$	4,345	$	—
Total acquisition-related expenses	$	4,345	$	—

(4) Includes amortization of debt issuance costs and discount as follows:

	Three Months Ended April 30,
	2021		2020

	(in thousands)
Interest expense	$	547	$	—
Total amortization of debt issuance costs and discount	$	547	$	—

(5) Includes gain from strategic investment as follows:

	Three Months Ended April 30,
	2021		2020

	(in thousands)
Other income, net	$	4,356	$	—
Total gain from strategic investments	$	4,356	$	—

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

	April 30,			January 31,
	2021			2021
Assets
Current assets:
Cash and cash equivalents	$	1,684,997		$	1,918,608
Accounts receivable, net	211,233			239,199
Deferred contract acquisition costs, current	85,388			80,850
Prepaid expenses and other current assets	56,385			53,617
Total current assets	2,038,003			2,292,274
Strategic investments	8,165			2,500
Property and equipment, net	191,310			167,014
Operating lease right-of-use assets	36,683			36,484
Deferred contract acquisition costs, noncurrent	125,392			117,906
Goodwill	374,581			83,566
Intangible assets, net	88,851			15,677
Other assets	18,186			17,112
Total assets	$	2,881,171		$	2,732,533
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	3,468		$	12,065
Accrued expenses	49,627			51,117
Accrued payroll and benefits	79,099			71,907
Operating lease liabilities, current	9,333			8,977
Deferred revenue	786,793			701,988
Other current liabilities	54,445			17,499
Total current liabilities	982,765			863,553
Long-term debt	738,400			738,029
Deferred revenue, noncurrent	235,198			209,907
Operating lease liabilities, noncurrent	31,458			31,986
Other liabilities, noncurrent	39,953			17,184
Total liabilities	2,027,774			1,860,659
Commitments and contingencies
Stockholders’ Equity
Common stock, Class A and Class B	113			112
Additional paid-in capital	1,662,199			1,598,259
Accumulated deficit	(815,165		)	(730,116		)
Accumulated other comprehensive income	2,117			2,319
Total CrowdStrike Holdings, Inc. stockholders’ equity	849,264			870,574
Non-controlling interest	4,133			1,300
Total stockholders’ equity	853,397			871,874
Total liabilities and stockholders’ equity	$	2,881,171		$	2,732,533

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Three Months Ended April 30,
	2021			2020
Operating activities
Net loss	$	(82,871	)	$	(19,222	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	11,955			8,202
Loss on disposal of fixed assets	19			—
Amortization of intangible assets	2,417			103
Amortization of deferred contract acquisition costs	24,376			13,451
Non-cash operating lease costs	2,180			2,283
Provision for bad debts	274			149
Stock-based compensation expense	54,362			23,638
Gain on sale of debt securities, net	—			(1,347		)
Accretion of marketable securities purchased at a discount	—			578
Non-cash interest expense	595			151
Change in fair value of strategic investments	(4,356		)	—
Changes in operating assets and liabilities
Accounts receivable	31,466			20,651
Deferred contract acquisition costs	(36,400		)	(22,563		)
Prepaid expenses and other assets	(769		)	5,332
Accounts payable	(10,562		)	4,736
Accrued expenses and other current liabilities	29,229			(1,095		)
Accrued payroll and benefits	5,969			648
Operating lease liabilities	(2,555		)	(2,975		)
Deferred revenue	109,376			64,805
Other liabilities	12,828			1,052
Net cash provided by operating activities	147,533			98,577
Investing activities
Purchases of property and equipment	(25,796		)	(9,694		)
Capitalized internal-use software and website development	(4,434		)	(1,882		)
Purchase of strategic investments	(1,309		)	—
Business acquisition, net of cash acquired	(353,407		)	—
Purchases of marketable securities	—			(84,904		)
Proceeds from sales of marketable securities	—			639,586
Maturities of marketable securities	—			91,605
Net cash (used in) provided by investing activities	(384,946		)	634,711
Financing activities
Payment of debt issuance costs related to revolving line of credit	(219		)	—
Payment of debt issuance costs related to Senior Notes	(1,581		)	—
Proceeds from issuance of common stock upon exercise of stock options	3,754			6,393
Capital contributions from non-controlling interest holders	655			500
Net cash provided by financing activities	2,609			6,893

Effect of foreign exchange rates on cash and cash equivalents	1,193			12

Net (decrease) increase in cash and cash equivalents	(233,611		)	740,193

Cash and cash equivalents, beginning of period	1,918,608			264,798
Cash and cash equivalents, end of period	$	1,684,997		$	1,004,991

CROWDSTRIKE HOLDINGS, INC.

Non-GAAP Financial Measures with Reconciliation to GAAP
(in thousands, except percentages)
(unaudited)

	Three Months Ended April 30,
	2021			2020
GAAP subscription revenue	$	281,228		$	162,222

GAAP subscription gross profit	$	216,325		$	124,978
Add: Stock-based compensation expense	4,285			1,995
Add: Amortization of acquired intangible assets	1,995			62
Non-GAAP subscription gross profit	$	222,605		$	127,035

GAAP subscription gross margin	77		%	77		%

Non-GAAP subscription gross margin	79		%	78		%

	Three Months Ended April 30,
	2021			2020
GAAP total revenue	$	302,843		$	178,078

GAAP loss from operations	$	(31,347	)	$	(22,576	)
Add: Stock-based compensation expense	54,362			23,638
Add: Amortization of acquired intangible assets	2,417			103
Add: Acquisition-related expenses	4,345			—
Non-GAAP income from operations	$	29,777		$	1,165

GAAP operating margin	(10		)%	(13		)%

Non-GAAP operating margin	10		%	1		%

CROWDSTRIKE HOLDINGS, INC.

Non-GAAP Financial Measures with Reconciliation to GAAP (Continued)
(in thousands, except percentages and per share amounts)
(unaudited)

	Three Months Ended April 30,
	2021			2020
GAAP net loss attributable to CrowdStrike	$	(85,049	)	$	(19,222	)

Add: Stock-based compensation expense	$	54,362		$	23,638
Add: Amortization of acquired intangible assets	2,417			103
Add: Acquisition-related expenses	4,345			—
Add: Amortization of debt issuance costs and discount	547			—
Add: Provision for income taxes⁽¹⁾	48,824			—
Less: Gain on strategic investments attributable to CrowdStrike	(2,178		)	—

Non-GAAP net income attributable to CrowdStrike	$	23,268		$	4,519

Weighted-average shares used in computing GAAP net loss per share attributable to CrowdStrike common stockholders, basic and diluted	224,153			213,129
Weighted-average shares used in computing Non-GAAP net income per share attributable to CrowdStrike common stockholders, basic	224,153			213,129
Weighted-average shares used in computing Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted	237,363			229,796

GAAP net loss per share attributable to CrowdStrike common stockholders, basic and diluted	$	(0.38	)	$	(0.09	)

Non-GAAP net income per share attributable to CrowdStrike common stockholders, basic	$	0.10		$	0.02
Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted	$	0.10		$	0.02

Contacts

Investor Relations Contact
CrowdStrike Holdings, Inc.

Maria Riley, Vice President of Investor Relations

investors@crowdstrike.com
669-721-0742

Press Contact
CrowdStrike Holdings, Inc.

Craig VerColen, Chief Communications Officer

press@crowdstrike.com
617-599-2180

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CrowdStrike Reports First Quarter Fiscal Year 2022 Financial Results

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CrowdStrike Reports First Quarter Fiscal Year 2022 Financial Results

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