CrowdStrike Reports Fiscal Second Quarter 2021 Financial Results
Achieves $791 million in ARR with record net new ARR of $104 million and 969 net new subscription customers
SUNNYVALE, Calif.–(BUSINESS WIRE)–CrowdStrike Holdings, Inc., (Nasdaq: CRWD), a leader in cloud-delivered endpoint protection, today announced financial results for the second quarter of its fiscal 2021, ended July 31, 2020.
“CrowdStrike’s strong momentum continued into the second quarter with net new ARR reaching a new record and exceeding $100 million. A favorable competitive environment and strong secular tailwinds are fueling our growth. Organizations are shedding outdated systems and accelerating their move to modern cloud-native technologies to meet the demands of today’s threat landscape. Furthermore, as organizations adapt to the new distributed workforce paradigm, it has become clear that the endpoint is the new security perimeter and the complex patchwork of legacy solutions is inadequate in this new environment,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer.
“CrowdStrike’s cloud-native Falcon platform enables this shift by offering rapid and seamless deployment and providing unparalleled protection and visibility through a single lightweight agent and unified user interface all powered by the intelligence of our proprietary Threat Graph. Our true cloud-native platform, combined with our frictionless go-to-market engine, strengthens our leadership in the Security Cloud category we pioneered and positions us to capture the long-term opportunity driven by this fundamental shift occurring in the market today,” concluded Kurtz.
Commenting on the company’s financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “Our continued strong execution and focus on unit economics drove substantial operating leverage in the quarter. As a result, we reduced GAAP operating loss year-over-year, achieved non-GAAP operating profitability for the second consecutive quarter and generated positive operating and free cash flow for the fourth consecutive quarter. Given our strong performance and growing momentum in the market, we are raising our guidance for fiscal year 2021 and now expect to deliver non-GAAP operating income for the fiscal year, while at the same time continuing to aggressively invest in our market opportunity.”
Second Quarter Fiscal 2021 Financial Highlights
- Revenue: Total revenue was $199.0 million, an 84% increase, compared to $108.1 million in the second quarter of fiscal 2020. Subscription revenue was $184.3 million, an 89% increase, compared to $97.6 million in the second quarter of fiscal 2020.
- Annual Recurring Revenue (ARR) increased 87% year-over-year and grew to $790.6 million as of July 31, 2020, of which $104.5 million was net new ARR added in the quarter.
- Subscription Gross Margin: GAAP subscription gross margin was 76%, compared to 74% in the second quarter of fiscal 2020. Non-GAAP subscription gross margin was 78%, compared to 76% in the second quarter of fiscal 2020.
- Income/Loss from Operations: GAAP loss from operations was $30.0 million, compared to $50.6 million in the second quarter of fiscal 2020. Non-GAAP income from operations was $7.8 million, compared to a loss of $20.6 million in the second quarter of fiscal 2020.
- Net Income/Loss: GAAP net loss was $29.9 million, compared to $51.9 million in the second quarter of fiscal 2020. GAAP net loss per share, basic and diluted, was $0.14, compared to $0.40 in the second quarter of fiscal 2020. Non-GAAP net income was $7.9 million, compared to a loss of $23.1 million in the second quarter of fiscal 2020. Non-GAAP net income per share, diluted, was $0.03, compared to a loss of $0.18 in the second quarter of fiscal 2020.
- Cash Flow: Net cash generated from operations was $55.0 million, compared to negative $6.2 million in the second quarter of fiscal 2020. Free cash flow was $32.4 million, compared to negative $29.2 million in the second quarter of fiscal 2020.
- Cash and Cash Equivalents increased to $1,065 million as of July 31, 2020.
Recent Highlights
- Added 969 net new subscription customers in the quarter for a total of 7,230 subscription customers as of July 31, 2020, representing 91% growth year-over-year.
- CrowdStrike’s subscription customers that have adopted four or more cloud modules increased to 57% and those with five or more cloud modules increased to 39% as of July 31, 2020.
- CrowdStrike was identified as the fastest-growing endpoint security software vendor in the IDC Worldwide Endpoint Security Software Market Shares, 2019 report.
- CrowdStrike, Netskope, Okta, Inc., and Proofpoint, Inc. announced they are coordinating to help organizations implement an integrated, zero trust security strategy. The companies will offer integrated solutions, advanced insights, and reference architectures, in addition to implementation best practices, accounting for end-user, device, network, and data security.
- Announced the addition of applications from Illumio, Obsidian Security, and SecurityAdvisor to the CrowdStrike Store.
Financial Outlook
CrowdStrike is providing the following guidance for the third quarter of fiscal 2021 (ending October 31, 2020) and increasing its guidance for fiscal year 2021 (ending January 31, 2021):
|
|
Q3 FY21 |
|
Full Year FY21 |
|
Total revenue |
$210.6 – $215.0 million |
|
$809.1 – $826.7 million |
|
Non-GAAP income (loss) from operations |
$(1.4) – $1.6 million |
|
$3.6 – $16.4 million |
|
Non-GAAP net income (loss) |
$(2.2) – $0.9 million |
|
$5.6 – $18.4 million |
|
Non-GAAP net income (loss) per share, diluted |
$(0.01) – $0.00 |
|
$0.02 – $0.08 |
|
Weighted average shares used in computing Non-GAAP net loss per share attributable to common stockholders, diluted |
219 million |
|
218 million |
|
Weighted average shares used in computing Non-GAAP net income per share attributable to common stockholders, diluted |
235 million |
|
234 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 and amortization expense of acquired intangible assets. 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 loss from operations, non-GAAP net loss, and non-GAAP net loss per share 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 second quarter of fiscal 2021 and outlook for its fiscal third quarter and year 2021 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: |
September 2, 2020 |
|
Time: |
2:00 p.m. Pacific time / 5:00 p.m. Eastern time |
|
Dial-in number: |
409-937-8967, conference ID: 4357766 |
|
Webcast: |
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our future financial and operating performance, including our financial outlook for the fiscal third quarter and year 2021. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: the impact of the COVID-19 pandemic on our and our customers’ business; our limited operating history; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth; 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; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscriptions and support; 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.
Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in our filings and reports with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the fiscal year ended January 31, 2020 filed with the SEC, in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2020 filed with the SEC, and in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2020, that will be filed with the SEC following this earnings release.
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.
About CrowdStrike Holdings
CrowdStrike® provides cloud-delivered endpoint 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 © 2020 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 July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
Revenue |
|
|
|
|
|
|
|
||||||||
|
Subscription |
$ |
184,256 |
|
|
$ |
97,575 |
|
|
$ |
346,478 |
|
|
$ |
183,566 |
|
|
Professional services |
14,715 |
|
|
10,533 |
|
|
30,571 |
|
|
20,619 |
|
||||
|
Total revenue |
198,971 |
|
|
108,108 |
|
|
377,049 |
|
|
204,185 |
|
||||
|
Cost of revenue |
|
|
|
|
|
|
|
||||||||
|
Subscription (1)(2) |
44,037 |
|
|
24,946 |
|
|
81,281 |
|
|
48,637 |
|
||||
|
Professional services (1) |
10,354 |
|
|
6,636 |
|
|
20,005 |
|
|
12,219 |
|
||||
|
Total cost of revenue |
54,391 |
|
|
31,582 |
|
|
101,286 |
|
|
60,856 |
|
||||
|
Gross profit |
144,580 |
|
|
76,526 |
|
|
275,763 |
|
|
143,329 |
|
||||
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
|
Sales and marketing (1)(2) |
95,127 |
|
|
65,274 |
|
|
183,265 |
|
|
122,117 |
|
||||
|
Research and development (1)(2) |
50,483 |
|
|
31,630 |
|
|
91,061 |
|
|
55,505 |
|
||||
|
General and administrative (1) |
28,961 |
|
|
30,261 |
|
|
54,004 |
|
|
42,122 |
|
||||
|
Total operating expenses |
174,571 |
|
|
127,165 |
|
|
328,330 |
|
|
219,744 |
|
||||
|
Loss from operations |
(29,991) |
|
|
(50,639) |
|
|
(52,567) |
|
|
(76,415) |
|
||||
|
Interest expense |
(174) |
|
|
(164) |
|
|
(317) |
|
|
(165) |
|
||||
|
Other income, net |
732 |
|
|
(451) |
|
|
5,265 |
|
|
(56) |
|
||||
|
Loss before provision for income taxes |
(29,433) |
|
|
(51,254) |
|
|
(47,619) |
|
|
(76,636) |
|
||||
|
Provision for income taxes |
(441) |
|
|
(635) |
|
|
(1,477) |
|
|
(1,230) |
|
||||
|
Net loss |
$ |
(29,874) |
|
|
$ |
(51,889) |
|
|
$ |
(49,096) |
|
|
$ |
(77,866) |
|
|
Net loss per share attributable to Class A and Class B common |
$ |
(0.14) |
|
|
$ |
(0.40) |
|
|
$ |
(0.23) |
|
|
$ |
(0.87) |
|
|
Weighted-average shares used in computing net loss per share |
216,695 |
|
|
130,091 |
|
|
214,932 |
|
|
89,335 |
|
||||
_____________________________
(1) Includes stock-based compensation expense as follows:
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
|
(in thousands) |
|
(in thousands) |
||||||||||||
|
Subscription cost of revenue |
$ |
2,635 |
|
|
$ |
1,233 |
|
|
$ |
4,630 |
|
|
$ |
1,498 |
|
|
Professional services cost of revenue |
1,425 |
|
|
644 |
|
|
2,396 |
|
|
747 |
|
||||
|
Sales and marketing |
13,603 |
|
|
6,638 |
|
|
22,290 |
|
|
8,156 |
|
||||
|
Research and development |
9,029 |
|
|
4,976 |
|
|
13,929 |
|
|
5,657 |
|
||||
|
General and administrative |
11,021 |
|
|
16,368 |
|
|
18,106 |
|
|
17,553 |
|
||||
|
Total stock-based compensation expense |
$ |
37,713 |
|
|
$ |
29,859 |
|
|
$ |
61,351 |
|
|
$ |
33,611 |
|
(2) Includes amortization of acquired intangible assets as follows:
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
|
(in thousands) |
|
(in thousands) |
||||||||||||
|
Subscription cost of revenue |
$ |
63 |
|
|
$ |
97 |
|
|
$ |
125 |
|
|
$ |
201 |
|
|
Sales and marketing |
31 |
|
|
32 |
|
|
62 |
|
|
63 |
|
||||
|
Research and development |
10 |
|
|
10 |
|
|
20 |
|
|
21 |
|
||||
|
Total amortization of purchased intangibles |
$ |
104 |
|
|
$ |
139 |
|
|
$ |
207 |
|
|
$ |
285 |
|
|
CROWDSTRIKE HOLDINGS, INC. Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
|||||||
|
|
July 31, |
|
January 31, |
||||
|
|
2020 |
|
2020 |
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
1,064,734 |
|
|
$ |
264,798 |
|
|
Marketable securities |
— |
|
|
647,266 |
|
||
|
Accounts receivable, net |
149,236 |
|
|
164,987 |
|
||
|
Deferred contract acquisition costs, current |
53,837 |
|
|
42,971 |
|
||
|
Prepaid expenses and other current assets |
48,174 |
|
|
51,614 |
|
||
|
Total current assets |
1,315,981 |
|
|
1,171,636 |
|
||
|
Strategic investments |
2,000 |
|
|
1,000 |
|
||
|
Property and equipment, net |
153,303 |
|
|
136,078 |
|
||
|
Operating lease right-of-use assets |
40,454 |
|
|
— |
|
||
|
Deferred contract acquisition costs, noncurrent |
81,186 |
|
|
71,235 |
|
||
|
Goodwill |
8,131 |
|
|
7,722 |
|
||
|
Intangible assets, net |
347 |
|
|
527 |
|
||
|
Other assets |
15,550 |
|
|
16,708 |
|
||
|
Total assets |
$ |
1,616,952 |
|
|
$ |
1,404,906 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
10,118 |
|
|
$ |
1,345 |
|
|
Accrued expenses |
19,211 |
|
|
30,355 |
|
||
|
Accrued payroll and benefits |
36,099 |
|
|
36,810 |
|
||
|
Operating lease liabilities, current |
8,643 |
|
|
— |
|
||
|
Deferred revenue |
515,081 |
|
|
412,985 |
|
||
|
Other current liabilities |
14,140 |
|
|
11,601 |
|
||
|
Total current liabilities |
603,292 |
|
|
493,096 |
|
||
|
Deferred revenue, noncurrent |
174,759 |
|
|
158,183 |
|
||
|
Operating lease liabilities, noncurrent |
36,134 |
|
|
— |
|
||
|
Other liabilities, noncurrent |
10,752 |
|
|
11,020 |
|
||
|
Total liabilities |
824,937 |
|
|
662,299 |
|
||
|
Commitments and contingencies |
|
|
|
||||
|
Stockholders’ Equity |
|
|
|
||||
|
Common stock, Class A and Class B |
110 |
|
|
106 |
|
||
|
Additional paid-in capital |
1,476,323 |
|
|
1,378,479 |
|
||
|
Accumulated deficit |
(686,583) |
|
|
(637,487) |
|
||
|
Accumulated other comprehensive income |
1,115 |
|
|
1,009 |
|
||
|
Total CrowdStrike Holdings, Inc. stockholders’ equity |
790,965 |
|
|
742,107 |
|
||
|
Non-controlling interest |
1,050 |
|
|
500 |
|
||
|
Total stockholders’ equity |
792,015 |
|
|
742,607 |
|
||
|
Total liabilities and stockholders’ equity |
$ |
1,616,952 |
|
|
$ |
1,404,906 |
|
|
CROWDSTRIKE HOLDINGS, INC. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||||
|
|
Six Months Ended July 31, |
||||||
|
|
2020 |
|
2019 |
||||
|
Operating activities |
|
|
|
||||
|
Net loss |
$ |
(49,096) |
|
|
$ |
(77,866) |
|
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
||||
|
Depreciation and amortization |
17,621 |
|
|
10,193 |
|
||
|
Amortization of intangible assets |
207 |
|
|
285 |
|
||
|
Amortization of deferred contract acquisition costs |
28,171 |
|
|
15,076 |
|
||
|
Non-cash operating lease cost |
4,939 |
|
|
— |
|
||
|
Change in fair value of redeemable convertible preferred stock warrant liability |
— |
|
|
6,022 |
|
||
|
Provision for bad debts |
(269) |
|
|
22 |
|
||
|
Stock-based compensation expense |
61,351 |
|
|
33,611 |
|
||
|
Gain on sale of debt securities, net |
(1,347) |
|
|
— |
|
||
|
Accretion (amortization) of marketable securities purchased at a discount |
578 |
|
|
(960) |
|
||
|
Non-cash interest expense |
320 |
|
|
163 |
|
||
|
Changes in operating assets and liabilities |
|
|
|
||||
|
Accounts receivable |
16,020 |
|
|
(22,802) |
|
||
|
Deferred contract acquisition costs |
(48,988) |
|
|
(27,788) |
|
||
|
Prepaid expenses and other assets |
(1,953) |
|
|
(12,505) |
|
||
|
Accounts payable |
9,634 |
|
|
(5,897) |
|
||
|
Accrued expenses and other current liabilities |
(8,112) |
|
|
(2,095) |
|
||
|
Accrued payroll and benefits |
(711) |
|
|
773 |
|
||
|
Operating lease liabilities |
1,315 |
|
|
— |
|
||
|
Deferred revenue |
118,672 |
|
|
79,362 |
|
||
|
Other liabilities |
5,250 |
|
|
(393) |
|
||
|
Net cash provided by (used in) operating activities |
153,602 |
|
|
(4,799) |
|
||
|
Investing activities |
|
|
|
||||
|
Purchases of property and equipment |
(30,334) |
|
|
(37,159) |
|
||
|
Capitalized internal-use software |
(3,850) |
|
|
(3,310) |
|
||
|
Purchase of strategic investments |
(1,000) |
|
|
— |
|
||
|
Purchases of marketable securities |
(84,904) |
|
|
(117,572) |
|
||
|
Proceeds from sales of marketable securities |
639,586 |
|
|
4,473 |
|
||
|
Maturities of marketable securities |
91,605 |
|
|
123,314 |
|
||
|
Net cash provided by (used in) investing activities |
611,103 |
|
|
(30,254) |
|
||
|
Financing activities |
|
|
|
||||
|
Proceeds from the issuance of common stock upon initial public offering, net of underwriting discounts |
— |
|
|
665,092 |
|
||
|
Payments of deferred offering costs |
— |
|
|
(4,080) |
|
||
|
Proceeds from issuance of common stock upon exercise of stock options |
16,601 |
|
|
8,526 |
|
||
|
Proceeds from the issuance of common stock upon exercise of early exercisable stock options |
— |
|
|
10,264 |
|
||
|
Proceeds from issuance of common stock under the employee stock purchase plan |
17,284 |
|
|
— |
|
||
|
Capital contributions from non-controlling interest holders |
550 |
|
|
— |
|
||
|
Net cash provided by financing activities |
34,435 |
|
|
679,802 |
|
||
|
|
|
|
|
||||
|
Effect of foreign exchange rates on cash and cash equivalents |
796 |
|
|
(349) |
|
||
|
|
|
|
|
||||
|
Net increase in cash and cash equivalents |
799,936 |
|
|
644,400 |
|
||
|
|
|
|
|
||||
|
Cash and cash equivalents, beginning of period |
264,798 |
|
|
88,408 |
|
||
|
Cash and cash equivalents, end of period |
$ |
1,064,734 |
|
|
$ |
732,808 |
|
|
CROWDSTRIKE HOLDINGS, INC. Non-GAAP Financial Measures with Reconciliation to GAAP (in thousands, except percentages) (unaudited) |
|||||||||||||||
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
GAAP subscription revenue |
$ |
184,256 |
|
|
$ |
97,575 |
|
|
$ |
346,478 |
|
|
$ |
183,566 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP subscription gross profit |
$ |
140,219 |
|
|
$ |
72,629 |
|
|
$ |
265,197 |
|
|
$ |
134,929 |
|
|
Add: Stock-based compensation expense |
2,635 |
|
|
1,233 |
|
|
4,630 |
|
|
1,498 |
|
||||
|
Add: Amortization of acquired intangible assets |
63 |
|
|
97 |
|
|
125 |
|
|
201 |
|
||||
|
Non-GAAP subscription gross profit |
$ |
142,917 |
|
|
$ |
73,959 |
|
|
$ |
269,952 |
|
|
$ |
136,628 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP subscription gross margin |
76 |
% |
|
74 |
% |
|
77 |
% |
|
74 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Non-GAAP subscription gross margin |
78 |
% |
|
76 |
% |
|
78 |
% |
|
74 |
% |
||||
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
GAAP total revenue |
$ |
198,971 |
|
|
$ |
108,108 |
|
|
$ |
377,049 |
|
|
$ |
204,185 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP loss from operations |
$ |
(29,991) |
|
|
$ |
(50,639) |
|
|
$ |
(52,567) |
|
|
$ |
(76,415) |
|
|
Add: Stock-based compensation expense |
37,713 |
|
|
29,859 |
|
|
61,351 |
|
|
33,611 |
|
||||
|
Add: Amortization of acquired intangible assets |
104 |
|
|
139 |
|
|
207 |
|
|
285 |
|
||||
|
Non-GAAP income (loss) from operations |
$ |
7,826 |
|
|
$ |
(20,641) |
|
|
$ |
8,991 |
|
|
$ |
(42,519) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP operating margin |
(15) |
% |
|
(47) |
% |
|
(14) |
% |
|
(37) |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Non-GAAP operating margin |
4 |
% |
|
(19) |
% |
|
2 |
% |
|
(21) |
% |
||||
|
CROWDSTRIKE HOLDINGS, INC. Non-GAAP Financial Measures with Reconciliation to GAAP (Continued) (in thousands, except percentages and per share amounts) (unaudited) |
|||||||||||||||
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
GAAP net loss |
$ |
(29,874) |
|
|
$ |
(51,889) |
|
|
$ |
(49,096) |
|
|
$ |
(77,866) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Add: Stock-based compensation expense |
$ |
37,713 |
|
|
$ |
29,859 |
|
|
$ |
61,351 |
|
|
$ |
33,611 |
|
|
Add: Amortization of acquired intangible assets |
104 |
|
|
139 |
|
|
207 |
|
|
285 |
|
||||
|
Less: Gain on settlement of lawsuit |
— |
|
|
(1,250) |
|
|
— |
|
|
(1,250) |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Non-GAAP net income (loss) |
$ |
7,943 |
|
|
$ |
(23,141) |
|
|
$ |
12,462 |
|
|
$ |
(45,220) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-average shares used in computing GAAP net loss per share |
216,695 |
|
|
130,091 |
|
|
214,932 |
|
|
89,335 |
|
||||
|
Weighted-average shares used in computing Non-GAAP net loss per |
216,695 |
|
|
130,091 |
|
|
214,932 |
|
|
89,335 |
|
||||
|
Weighted-average shares used in computing Non-GAAP net loss per share |
233,169 |
|
|
130,091 |
|
|
231,720 |
|
|
89,335 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP net loss per share attributable to common stockholders, basic |
$ |
(0.14) |
|
|
$ |
(0.40) |
|
|
$ |
(0.23) |
|
|
$ |
(0.87) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non-GAAP net income (loss) per share attributable to common |
$ |
0.04 |
|
|
$ |
(0.18) |
|
|
$ |
0.06 |
|
|
$ |
(0.51) |
|
|
Non-GAAP net income (loss) per share attributable to common |
$ |
0.03 |
|
|
$ |
(0.18) |
|
|
$ |
0.05 |
|
|
$ |
(0.51) |
|
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
GAAP total revenue |
$ |
198,971 |
|
|
$ |
108,108 |
|
|
$ |
377,049 |
|
|
$ |
204,185 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP net cash provided by (used in) operating activities |
55,025 |
|
|
(6,214) |
|
|
153,602 |
|
|
(4,799) |
|
||||
|
Less: Purchases of property and equipment |
(20,640) |
|
|
(21,618) |
|
|
(30,334) |
|
|
(37,159) |
|
||||
|
Less: Capitalized internal-use software |
(1,968) |
|
|
(1,326) |
|
|
(3,850) |
|
|
(3,310) |
|
||||
|
Free cash flow |
$ |
32,417 |
|
|
$ |
(29,158) |
|
|
$ |
119,418 |
|
|
$ |
(45,268) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP net cash provided by (used in) investing activities |
$ |
(23,608) |
|
|
$ |
(34,392) |
|
|
$ |
611,103 |
|
|
$ |
(30,254) |
|
|
GAAP net cash provided by financing activities |
$ |
27,542 |
|
|
$ |
680,684 |
|
|
$ |
34,435 |
|
|
$ |
679,802 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP net cash used in operating activities as a percentage of revenue |
28 |
% |
|
(6) |
% |
|
41 |
% |
|
(2) |
% |
||||
|
Less: Purchases of property and equipment as a percentage of revenue |
(10) |
% |
|
(20) |
% |
|
(8) |
% |
|
(18) |
% |
||||
|
Less: Capitalized internal-use software as a percentage of revenue |
(1) |
% |
|
(1) |
% |
|
(1) |
% |
|
(2) |
% |
||||
|
Free cash flow margin |
16 |
% |
|
(27) |
% |
|
32 |
% |
|
(22) |
% |
||||
|
CROWDSTRIKE HOLDINGS, INC. Statements of Operations: GAAP to Non-GAAP Reconciliations (in thousands) (unaudited) |
|||||||||||||||
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
GAAP cost of revenue |
$ |
54,391 |
|
|
$ |
31,582 |
|
|
$ |
101,286 |
|
|
$ |
60,856 |
|
|
Less: |
|
|
|
|
|
|
|
||||||||
|
Stock based compensation expense |
4,060 |
|
|
1,877 |
|
|
7,026 |
|
|
2,245 |
|
||||
|
Amortization of acquired intangible assets |
63 |
|
|
97 |
|
|
125 |
|
|
201 |
|
||||
|
Non-GAAP cost of revenue |
$ |
50,268 |
|
|
$ |
29,608 |
|
|
$ |
94,135 |
|
|
$ |
58,410 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP subscription gross profit |
$ |
140,219 |
|
|
$ |
72,629 |
|
|
$ |
265,197 |
|
|
$ |
134,929 |
|
|
Add: |
|
|
|
|
|
|
|
||||||||
|
Stock based compensation expense |
2,635 |
|
|
1,233 |
|
|
4,630 |
|
|
1,498 |
|
||||
|
Amortization of acquired intangible assets |
63 |
|
|
97 |
|
|
125 |
|
|
201 |
|
||||
|
Non-GAAP subscription gross profit |
$ |
142,917 |
|
|
$ |
73,959 |
|
|
$ |
269,952 |
|
|
$ |
136,628 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP professional services gross profit |
$ |
4,361 |
|
|
$ |
3,897 |
|
|
$ |
10,566 |
|
|
$ |
8,400 |
|
|
Add: |
|
|
|
|
|
|
|
||||||||
|
Stock based compensation expense |
1,425 |
|
|
644 |
|
|
2,396 |
|
|
747 |
|
||||
|
Non-GAAP professional services gross profit |
$ |
5,786 |
|
|
$ |
4,541 |
|
|
$ |
12,962 |
|
|
$ |
9,147 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP sales and marketing operating expenses |
$ |
95,127 |
|
|
$ |
65,274 |
|
|
$ |
183,265 |
|
|
$ |
122,117 |
|
|
Less: |
|
|
|
|
|
|
|
||||||||
|
Stock based compensation expense |
13,603 |
|
|
6,638 |
|
|
22,290 |
|
|
8,156 |
|
||||
|
Amortization of acquired intangible assets |
31 |
|
|
32 |
|
|
62 |
|
|
63 |
|
||||
|
Non-GAAP sales and marketing operating expenses |
$ |
81,493 |
|
|
$ |
58,604 |
|
|
$ |
160,913 |
|
|
$ |
113,898 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP research and development operating expenses |
$ |
50,483 |
|
|
$ |
31,630 |
|
|
$ |
91,061 |
|
|
$ |
55,505 |
|
|
Less: |
|
|
|
|
|
|
|
||||||||
|
Stock based compensation expense |
9,029 |
|
|
4,976 |
|
|
13,929 |
|
|
5,657 |
|
||||
|
Amortization of acquired intangible assets |
10 |
|
|
10 |
|
|
20 |
|
|
21 |
|
||||
|
Non-GAAP research and development operating expenses |
$ |
41,444 |
|
|
$ |
26,644 |
|
|
$ |
77,112 |
|
|
$ |
49,827 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP general and administrative operating expenses |
$ |
28,961 |
|
|
$ |
30,261 |
|
|
$ |
54,004 |
|
|
$ |
42,122 |
|
|
Less: |
|
|
|
|
|
|
|
||||||||
|
Stock based compensation expense |
11,021 |
|
|
16,368 |
|
|
18,106 |
|
|
17,553 |
|
||||
|
Non-GAAP general and administrative operating expenses |
$ |
17,940 |
|
|
$ |
13,893 |
|
|
$ |
35,898 |
|
|
$ |
24,569 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP loss from operations |
$ |
(29,991) |
|
|
$ |
(50,639) |
|
|
$ |
(52,567) |
|
|
$ |
(76,415) |
|
|
Add: |
|
|
|
|
|
|
|
||||||||
|
Stock based compensation expense |
37,713 |
|
|
29,859 |
|
|
61,351 |
|
|
33,611 |
|
||||
|
Amortization of acquired intangible assets |
104 |
|
|
139 |
|
|
207 |
|
|
285 |
|
||||
|
Non-GAAP income (loss) from operations |
$ |
7,826 |
|
|
$ |
(20,641) |
|
|
$ |
8,991 |
|
|
$ |
(42,519) |
|
|
|
|
|
|
|
|
|
|
||||||||
Contacts
Investor Relations
CrowdStrike Holdings, Inc.
Maria Riley, Senior Director of Investor Relations
investors@crowdstrike.com
669-721-0742
Press
CrowdStrike Holdings, Inc.
Ilina Cashiola, Director of Public Relations
ilina.cashiola@crowdstrike.com
202-340-0517