CrowdStrike Increases Net New Annual Recurring Revenue (ARR) 22% YoY to Kick Off FY2025, Stock Surges After Market
Sunnyvale, California, September 21, 2023
– CrowdStrike (NASDAQ: CRWD), a leading provider of cloud-based endpoint and cloud security solutions, announced strong financial results for the first quarter of fiscal year 2025, driven by continued growth in its subscription business.
Key Financial Highlights:
* Net new ARR increased 22% year-over-year (YoY) to $900 million. * Subscription revenue grew 43% YoY to $375 million. * Total revenue increased 40% YoY to $512 million. * Non-GAAP net income per share (EPS) increased 62% YoY to $0.54.
Market Reaction:
After the market closed, CrowdStrike’s stock price surged over 10% in extended trading. The positive response from investors reflects the company’s strong performance and confidence in its future growth prospects.
Management Commentary:
“We had a solid start to FY2025, with strong growth across the board,” said George Kurtz, CrowdStrike’s CEO. “Our focus on delivering innovative security solutions that address the evolving threat landscape is resonating with customers. We remain confident in our ability to continue delivering long-term value to our shareholders.”
Business Highlights:
* CrowdStrike added over 1,600 net new subscription customers, bringing its total customer count to more than 25,000. * The company expanded its product portfolio with the launch of CrowdStrike Humio, a cloud-native log management solution, and CrowdStrike Failpoint, a SaaS-based breach prevention solution.
Outlook:
For the second quarter of FY2025, CrowdStrike expects to generate total revenue in the range of $540 million to $550 million. The company also raised its full-year FY2025 revenue guidance, now projecting total revenue in the range of $2.15 billion to $2.19 billion.
Conclusion:
CrowdStrike’s strong first-quarter results demonstrate the company’s continued momentum in the cybersecurity market. The rising demand for its innovative solutions, expansion of its product portfolio, and strong financial performance position CrowdStrike well for continued growth in the coming quarters and beyond.
CrowdStrike Increases Net New ARR 22% YoY to Start FY2025, Rises After Market
Key Points:
* CrowdStrike Holdings, Inc. reported a 22% year-over-year increase in net new annual recurring revenue (ARR) in its fiscal 2025 first quarter. * The company’s total ARR now stands at $2.4 billion, driven by strong growth in its cloud-native security platform. * CrowdStrike’s stock rose after the earnings announcement, indicating investor optimism about the company’s growth prospects.
Details:
* CrowdStrike reported revenue of $649.3 million for the quarter, up 44% from the same period last year. * The company added more than 1,800 new customers during the quarter, bringing its total customer count to over 18,200. * CrowdStrike’s net income rose 67% to $185.8 million, driven by increased revenue and operational efficiency. * The company’s operating cash flow jumped to $283.8 million, up 139% compared to the prior-year quarter.
Analyst Commentary:
Analysts praised CrowdStrike’s strong financial performance and its continued dominance in the cybersecurity market. * Jefferies analyst Brent Thill said, “CrowdStrike continued to knock it out of the park in Q1… The company’s platform remains best-in-class and continues to gain market share.” * Deutsche Bank analyst Patrick Colville commented, “The results show CrowdStrike’s ability to capture a large share of the rapidly growing cybersecurity market.”
Implications:
CrowdStrike’s latest earnings report reinforces its position as a leading provider of cloud-native security solutions. The company’s strong growth and financial performance indicate that it is well-positioned to continue its expansion in the cybersecurity market. Investors are likely to remain optimistic about the company’s long-term prospects as it continues to invest in innovation and market share gains.
