CrowdStrike Holdings Inc. Q1 Fiscal Year 2025 Financial Results

Executive Summary

Welcome to the financial report for CrowdStrike Holdings Inc. (ticker: CRWD) for the first fiscal quarter of FY 2025. Despite the challenging macroeconomic environment, CrowdStrike has shown remarkable resilience and growth, driven by increased platform adoption, larger deal sizes, and a robust product portfolio.

Revenue and Profitability

CrowdStrike reported total revenue of $921.04M for Q1 FY 2025, demonstrating a 33% year-over-year growth. The subscription revenue was notably strong at $872.2M, marking 34% growth over the previous year.

The company's gross profit stood at $696.03M with a gross profit margin of 75.57%. The operating income reported was $6.94M, resulting in an operating income ratio of 0.75%. Net income was recorded at $42.82M, translating to a net income ratio of 4.65%. Earnings per share (EPS) were $0.18, and EPS on a diluted basis was $0.17.

Cash Flow

Operating cash flow was robust at $383.23M. The capital expenditure for the quarter was $49.68M, while free cash flow stood at a strong $333.55M. The company reported a net change in cash of $327.70M for the quarter, ending with cash and cash equivalents of $3.70B.

Balance Sheet

On the balance sheet front, CrowdStrike had total assets of $6.84B. Total current assets amounted to $4.84B, including cash and cash equivalents. The company reported total liabilities of $4.27B. CrowdStrike maintained a healthy total stockholders’ equity of $2.54B, providing a strong financial foundation for future growth.

Notable Achievements and Key Metrics

CrowdStrike continues to excel in its sector, achieving several key milestones:

• Record Q1 net new Annual Recurring Revenue (ARR) of $212M, growing 22% year-over-year.
• Record ending ARR of $3.65B, growing 33% year-over-year.
• Subscription gross margin reached a new high of 80%.
• Free cash flow of $322M, equivalent to 35% of revenue, and achieving a free cash flow Rule of 68.
• Strong track record of GAAP profitability for the fifth consecutive quarter.

Strategic Initiatives and Future Outlook

CrowdStrike has clear strategic priorities to propel future growth:

• Consolidation on the Falcon platform, promoting the adoption of multiple modules.
• Expansion in high-growth solution areas such as cloud security, identity protection, and LogScale next-gen SIEM.
• Focus on innovative technologies such as data protection and Falcon for IT, coupled with advancements in AI with tools like Charlotte AI.

Looking forward to Q2 FY 2025, CrowdStrike expects total revenue to be between $958.3M and $961.2M, reflecting a 31% year-over-year growth. For the full fiscal year 2025, the revenue forecast is set between $3.976B and $4.010B, translating to 30%-31% growth over the prior fiscal year.

Comparative Performance Analysis

In comparison to its peers within the Software—Infrastructure industry, CrowdStrike holds a competitive edge with a gross profit margin of 75.27%, outperforming the average of 74.00%. Additionally, the company’s operating profit margin and net profit margin stand at 0.79% and 4.01% respectively, compared to industry averages.