CrowdStrike Holdings, Inc. has recently released its 10-K report, providing a detailed insight into its financial performance and operations. The company, founded in 2011 and headquartered in Austin, Texas, offers cloud-delivered protection of endpoints, cloud workloads, identity, and data through its unified platform. CrowdStrike primarily sells subscriptions to its Falcon platform and cloud modules, catering to organizations across multiple industries.
In its 10-K report, CrowdStrike discusses the management's discussion and analysis of financial condition and results of operations. The company's fiscal 2025 and 2024 items and year-over-year comparisons are highlighted. CrowdStrike emphasizes its go-to-market strategy, which involves a low friction land-and-expand sales approach, targeting organizations of all sizes without the need for modifying its Falcon platform for small and medium-sized businesses. The company also focuses on customer retention and increasing sales, aiming to grow its customer base both domestically and internationally.
The report also addresses certain factors affecting CrowdStrike's performance, including the adoption of its solutions, new customer acquisition, maintaining customer retention, and increasing sales. Additionally, the company discusses its investment in growth, including sales and marketing efforts, research and development, and potential acquisitions. The report also delves into the impact of the July 19, 2024 incident, which led to system crashes for certain Windows systems, resulting in lawsuits, claims, and inquiries.
Key metrics highlighted in the report include the 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, demonstrating the company's ability to retain and expand its customer base.
Furthermore, the report provides insights into the components of CrowdStrike's results of operations, including subscription revenue and professional services revenue. It also details the cost of revenue, specifically subscription cost of revenue, outlining the various costs related to hosting the cloud-based Falcon platform and employee-related expenses.
As a result of these announcements, the company's shares have moved -8.1% on the market, and are now trading at a price of $306.4. If you want to know more, read the company's complete 10-K report here.
