CrowdStrike Reports Second Quarter Fiscal Year 2023 Financial Results

  • Ending ARR grows 59% year-over-year to reach $2.14 billion
  • Achieves record net new ARR of $218 million with accelerating year-over-year growth
  • Adds record 1,741 net new subscription customers
  • Cash flow from operations of $210 million grows 94% year-over-year, free cash flow of $136 million grows 84% year-over-year

August 30, 2022 04:05 PM Eastern Daylight Time

AUSTIN, Texas–(BUSINESS WIRE)–CrowdStrike Holdings, Inc. (Nasdaq: CRWD), a global cybersecurity leader that provides cloud-delivered protection of endpoints, cloud workloads, identity and data, today announced financial results for the second quarter fiscal year 2023, ended July 31, 2022.

“CrowdStrike delivered a strong second quarter with new milestones across the business. Ending ARR surpassed the $2 billion milestone, net new ARR reached a record $218 million and net new subscription customers reached a record 1,741 in the quarter. As organizations respond to macroeconomic conditions, they are prioritizing investments and looking to standardize with a security partner they can trust to achieve better protection with less time, fewer resources and lower total cost of ownership. Our ability to deliver immediate ROI and consolidate the security and IT stack significantly sets us apart from the competition,” 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, “CrowdStrike delivered robust growth at scale and exceptional unit economics with over 80% year-over-year growth in operating and free cash flow. We are raising our guidance for fiscal year 2023, which reflects our technology advantage and strong industry tailwinds combined with a pragmatic view of current macroeconomic conditions. Additionally, we remain committed to delivering increased non-GAAP operating leverage and 30% or more free cash flow margin for the full year.”

Second Quarter Fiscal 2023 Financial Highlights

  • Revenue: Total revenue was $535.2 million, a 58% increase, compared to $337.7 million in the second quarter of fiscal 2022. Subscription revenue was $506.2 million, a 60% increase, compared to $315.8 million in the second quarter of fiscal 2022.
  • Annual Recurring Revenue (ARR) increased 59% year-over-year and grew to $2.14 billion as of July 31, 2022, of which $218.1 million was net new ARR added in the quarter.
  • Subscription Gross Margin: GAAP subscription gross margin was approximately 76% in both the second quarter offiscal 2023 and2022. Non-GAAP subscription gross margin was approximately 78% in both the second quarter of fiscal 2023 and 2022.
  • Income/Loss from Operations: GAAP loss from operations was $48.3 million, compared to $47.4 million in the second quarter of fiscal 2022. Non-GAAP income from operations was $87.3 million, compared to $35.3 million in the second quarter of fiscal 2022.
  • Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $49.3 million, compared to $57.3 million in the second quarter of fiscal 2022. GAAP net loss per share attributable to CrowdStrike, basic and diluted was $0.21, compared to $0.25 in the second quarter of fiscal 2022. Non-GAAP net income attributable to CrowdStrike was $85.9 million, compared to $25.9 million in the second quarter of fiscal 2022. Non-GAAP net income attributable to CrowdStrike per share, diluted, was $0.36, compared to $0.11 in the second quarter of fiscal 2022.
  • Cash Flow: Net cash generated from operations was $209.9 million, compared to $108.5 million in the second quarter of fiscal 2022. Free cash flow was $135.8 million, compared to $73.6 million in the second quarter of fiscal 2022.
  • Cash and Cash Equivalents was $2.32 billion as of July 31, 2022.

Recent Highlights

  • Added 1,741 net new subscription customers in the quarter for a total of 19,686 subscription customers as of July 31, 2022, representing 51% growth year-over-year.
  • CrowdStrike’s subscription customers that have adopted five or more, six or more and seven or more modules was 59%, 36% and 20%, respectively, as of July 31, 2022.
  • Achieved the highest Mac malware protection score in AV-Comparatives Mac Security Test and Review 2022 and won the Approved Security Product award for the fifth consecutive time.
  • Named Best Security Company by 2022 SC Awards US and received the Best Emerging Technology Award at SC Awards Europe 2022 for Falcon XDR.
  • Earned Frost & Sullivan’s 2022 Global Technology Innovation Leadership Award in Endpoint Security.
  • Announced the general availability of the Falcon Identity Threat Protection module for its GovCloud-1 environment. This makes Falcon Identity Threat Protection available to U.S. public sector organizations that require Federal Risk and Authorization Management Program (FedRAMP) Moderate or Impact Level 4 (IL-4) authorization.
  • Unveiled CrowdStrike Asset Graph, a new graph database powered by the CrowdStrike Security Cloud that provides visibility into IT assets alongside visibility into attack surfaces to simplify IT operations and stop breaches.
  • Launched Falcon OverWatch Cloud Threat Hunting, the first standalone cloud threat hunting service for threats originating, operating or persisting in cloud environments.
  • Introduced the first AI-powered Indicators of Attack (IoA), new innovations for fileless attack prevention and enhanced visibility for stealthy cloud intrusions.
  • Added new Cloud Native Application Protection Platform (CNAPP) capabilities, including support for Amazon Elastic Container Service (ECS) within AWS Fargate to enable Software Composition Analysis (SCA) for open source software and expand image registry scanning for eight new container registries.
  • Announced the release of the Open Cybersecurity Schema Framework (OCSF) project, a collaborative open-source effort among cybersecurity and technology leaders to break down silos that impede cybersecurity teams’ abilities to quickly and effectively detect, investigate and stop breaches.

Financial Outlook

CrowdStrike is providing the following guidance for the third quarter of fiscal 2023 (ending October 31, 2022) and increasing its guidance for fiscal year 2023 (ending January 31, 2023): Read further guidance here: Source Businesswire

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