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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 Organizations are shedding outdated systems and accelerating their move to modern cloud-native technologies to meet the demands of today’s threat landscape.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

Guidance

 

Full Year FY21

Guidance

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:

ir.crowdstrike.com

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

stockholders, basic and diluted

$

(0.14)

 

 

$

(0.40)

 

 

$

(0.23)

 

 

$

(0.87)

 

Weighted-average shares used in computing net loss per share

attributable to Class A and Class B common stockholders, basic and

diluted

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

attributable to Class A and Class B common stockholders, basic and diluted

216,695

 

 

130,091

 

 

214,932

 

 

89,335

 

Weighted-average shares used in computing Non-GAAP net loss per

share attributable to Class A and Class B common stockholders, basic

216,695

 

 

130,091

 

 

214,932

 

 

89,335

 

Weighted-average shares used in computing Non-GAAP net loss per share

attributable to Class A and Class B common stockholders, diluted

233,169

 

 

130,091

 

 

231,720

 

 

89,335

 

 

 

 

 

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic

and diluted

$

(0.14)

 

 

$

(0.40)

 

 

$

(0.23)

 

 

$

(0.87)

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss) per share attributable to common

stockholders, basic

$

0.04

 

 

$

(0.18)

 

 

$

0.06

 

 

$

(0.51)

 

Non-GAAP net income (loss) per share attributable to common

stockholders, diluted

$

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

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