CrowdStrike Holdings, Inc. has recently released its 10-Q report, offering a detailed insight into the company's financial condition and operational performance. CrowdStrike is a cybersecurity solutions provider that offers cloud-delivered protection for endpoints, cloud workloads, identity, and data. The company primarily sells subscriptions to its Falcon platform and cloud modules, and its business model focuses on low friction land-and-expand sales strategy. The report addresses various factors affecting the company's performance, including customer acquisition, retention, and investment in growth.
The 10-Q report discusses the company's key metrics, such as Annual Recurring Revenue (ARR) and Dollar-Based Net Retention Rate. As of October 31, 2024, CrowdStrike's ARR stood at $4.0 billion, with a year-over-year growth of 27%. The Dollar-Based Net Retention Rate was reported at 115% as of the same date, reflecting customer renewals, expansion, contraction, and churn.
In terms of revenue, the report outlines that subscription revenue primarily consists of fees for the Falcon platform and additional cloud modules, recognized ratably over the term of the agreement. Professional services revenue includes incident response and proactive services, with revenue recognition based on the type of engagement. The report also delves into the cost of revenue, detailing the expenses related to hosting the cloud-based Falcon platform, employee-related costs, and investments in the company's cloud platform and customer support organizations.
Additionally, the report addresses the impact of the July 19, 2024 incident, which resulted in system crashes for certain Windows systems. CrowdStrike incurred significant legal and professional services expenses associated with the incident, leading to delays in sales opportunities and longer sales cycles.
The market has reacted to these announcements by moving the company's shares -4.5% to a price of $348.0. If you want to know more, read the company's complete 10-Q report here.
