CrowdStrike Holdings, Inc. has recently released its 10-K report, offering a comprehensive view of its financial performance and operations. The company, incorporated in 2011 and headquartered in Austin, Texas, provides cybersecurity solutions globally, focusing on cloud-delivered protection of endpoints, cloud workloads, identity, and data. CrowdStrike primarily sells subscriptions to its Falcon platform and cloud modules, and its business model is built on a low friction land-and-expand sales strategy.
In its 10-K report, CrowdStrike discusses the management’s discussion and analysis of financial condition and results of operations. The report covers fiscal years 2025, 2024, and 2023, and highlights various factors affecting the company's performance, including the July 19 Incident, which resulted in system crashes for certain Windows systems and led to lawsuits, claims, and inquiries. The incident has impacted the company's results of operations, causing delays in sales opportunities and longer sales cycles.
Key metrics outlined in the report include Annual Recurring Revenue (ARR) and Dollar-Based Net Retention Rate. The ARR increased by 23% year-over-year, reaching $4.2 billion as of January 31, 2025, with $806.7 million in net new ARR added during fiscal 2025. The Dollar-Based Net Retention Rate stood at 112% as of January 31, 2025, compared to 119% in the previous year.
The report also delves into the components of the company's results of operations, such as subscription revenue and professional services revenue. Subscription revenue, driven by the number of subscription customers, endpoints per customer, and cloud modules, is recognized ratably over the agreement term. Professional services revenue includes incident response and proactive services, forensic and malware analysis, and operationalizing the Falcon Platform.
As a result of these announcements, the company's shares have moved -5.5% on the market, and are now trading at a price of $315.0. Check out the company's full 10-K submission here.
