In This Article:
-
CrowdStrike Holdings Inc (NASDAQ:CRWD) achieves a milestone with over $3 billion in Annual Recurring Revenue (ARR).
-
Record net new ARR of $223 million and a 35% year-over-year increase in total revenue.
-
GAAP net income reaches $26.7 million, a significant turnaround from a loss of $55.0 million in Q3 FY2023.
-
Strong operational cash flow and free cash flow underscore CrowdStrike's financial health.
On November 28, 2023, CrowdStrike Holdings Inc (NASDAQ:CRWD) released its 8-K filing, announcing financial results for the third quarter of fiscal year 2024, which ended on October 31, 2023. The company reported significant growth, with total revenue increasing by 35% year-over-year to $786.0 million, driven by a robust subscription revenue of $733.5 million. The company's focus on operational excellence has led to record profitability, with GAAP net income attributable to CrowdStrike reaching $26.7 million, a substantial improvement from a net loss of $55.0 million in the same quarter of the previous fiscal year.
Financial Performance Highlights
CrowdStrike's financial achievements in the third quarter of FY2024 reflect the company's strong market position and operational efficiency. The company's ARR grew to $3.15 billion, marking a 35% increase year-over-year, with $223.1 million in net new ARR added during the quarter. Subscription gross margin improved, with GAAP and non-GAAP subscription gross margins at 78% and 80%, respectively. Income from operations also saw a dramatic shift from a loss of $56.4 million in Q3 FY2023 to a GAAP income of $3.2 million in Q3 FY2024. Non-GAAP income from operations more than doubled to $175.7 million.
Operational and Strategic Achievements
CrowdStrike's operational success is further underscored by its cash flow performance. Net cash generated from operations was $273.5 million, and free cash flow was $239.0 million, both setting records for the company in the third quarter. The company's cash, cash equivalents, and short-term investments stood at $3.17 billion as of October 31, 2023.
Strategically, CrowdStrike has continued to innovate and expand its offerings. The company's module adoption rates demonstrate strong customer engagement, with 63%, 42%, and 26% of customers adopting five or more, six or more, and seven or more modules, respectively. CrowdStrike also made significant strides in the industry, achieving perfect scores in MITRE Engenuity ATT&CK Evaluations and becoming the first cloud-founded cybersecurity ISV to exceed $1 billion in sales through AWS Marketplace.