Crowdstrike $CRWD (-1.86%) Q3 2024

Financial performance

• RevenueTotal revenue in the third quarter of financial year 2025 amounted to USD 1.01 billion, an increase of 29 % compared to USD 786.0 million in the third quarter of financial year 2024. Subscription revenue increased by 31 % to USD 962.7 million.
• Annual Recurring Revenue (ARR)Grew by 27% to USD 4.02 billion as at October 31, 2024.

Balance sheet overview

• Cash and cash equivalentsUSD 4.26 billion as of October 31, 2024, providing solid financial flexibility.
• Total assetsUSD 7.78 billion.
• Total liabilitiesUSD 4.69 billion.

Details of the profit and loss account

• GAAP loss from operating activitiesUSD 55.7 million, compared to a profit of USD 3.2 million in the previous year.
• Non-GAAP income from operationsUSD 194.9 million, an increase from USD 175.7 million in the previous year.
• GAAP net lossUSD 16.8 million, compared to a profit of USD 26.7 million in the previous year.

Cash flow overview

• Net cash from operating activitiesUSD 326.1 million, an increase compared to USD 273.5 million in the previous year.
• Free cash flowUSD 230.6 million, a decrease compared to USD 239.0 million in the previous year.

Key figures and profitability metrics

• Subscription gross margin:
• GAAP: 78% for the third quarter in financial years 2025 and 2024.
• Non-GAAP: 80% for the third quarter in financial years 2025 and 2024.

Segment information

• Module adoption rates: Adoption rates increased to 66 % (five or more modules), 47 % (six or more), 31 % (seven or more) and 20 % (eight or more modules).

Competitive position

CrowdStrike has been recognized as a leader in several industry reports, including the Gartner Magic Quadrant for Endpoint Protection Platforms, underscoring its strong market position.

Management forecasts and comments

• Forecast Q4 FY25:
• Total revenue is expected to be between USD 1,028.7 million and USD 1,035.4 million.
• Non-GAAP net income per share is forecast to be between USD 0.84 and USD 0.86.

Risks and opportunities

• Risks:
• Challenges due to rapid growth.
• Competitive pressure in a highly competitive market.
• Possible impact of the security incident of July 19, 2024.
• Opportunities:
• Further expansion of market leadership through technological innovations.
• Rising customer demand for cybersecurity solutions.

Positive aspects

Strong sales growth and reaching the USD 1 billion quarterly mark.

High ARR growth rate of 27%, demonstrating solid customer retention and expansion.

Recognized as an industry leader in several key reports.

Ample cash and cash equivalents providing financial flexibility.

Positive non-GAAP income from operations.

Negative aspects

GAAP loss from operating activities and net loss.

Decrease in free cash flow compared to previous year.

Impact of the July 19, 2024 incident on the company.

High share-based remuneration burdening GAAP profitability.

Competitive pressure and market risks that could jeopardize future growth.