CrowdStrike Holdings Inc CRWD stock is trading lower Wednesday after the company reported third-quarter financial results.On Tuesday, CrowdStrike reported third-quarter revenue of $1.01 billion, up 29%, beating the consensus estimate of $982.36 million. The company reported adjusted EPS of $0.93, beating analyst estimates of $0.81. Annual recurring revenue increased 27% to $4.02 billion.Also Read: Microsoft’s Brad Smith Urges Trump Government to Tackle Growing Cyber ThreatsCrowdStrike expects fourth-quarter ...

Tired of losing money? Our Tech Contrarians team of Wall Street analysts sifts through the noise in the tech industry and captures outperformers through a coveted research process. We let the work speak for itself here .We're picking up our coverage of CrowdStrike Holdings, Inc. (NASDAQ: CRWD ) after the company reported its Q3 FY24 results Tuesday after the bell, causing a pre-market pullback on management's softer-than-expected guidance forAnalyst’s Disclosure: I/we have no stock, option or similar deriva ...

Wall Street is reacting to CrowdStrike’s (NASDAQ: CRWD) full-quarter earnings report after the cybersecurity giant experienced a major global IT outage in July.Although the outage had raised concerns about the company’s client retention abilities, CrowdStrike reported a solid Q3, beating analysts’ estimates in key areas.Revenue came in at $1.01 billion, surpassing estimates of $982.8 million, marking a 29% year-over-year increase. Subscription revenue hit $962.7 million, exceeding expectations of $933.6 mil ...

Shares of cloud-based cybersecurity company CrowdStrike Holdings (CRWD -6.18%) dropped on Wednesday after the company reported financial results for its fiscal third quarter of 2025. Results beat expectations and management raised its full-year guidance. But it didn't raise guidance as much as investors had hoped, which is why CrowdStrike stock was down about 5% as of 10:30 a.m. ET.CrowdStrike's business remains resilientBack on July 19, a glitch in an update to CrowdStrike's software caused massive IT outa ...

CrowdStrike Holdings, Inc. (CRWD) reported non-GAAP earnings of 93 cents per share in the third quarter of fiscal 2025, which surpassed the Zacks Consensus Estimate by 14.8% and came ahead of management’s guidance of 80-81 cents.CRWD reported non-GAAP earnings of 82 cents in the year-ago quarter. The robust bottom-line performance was mainly driven by higher revenues.CRWD’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.32%.Find the latest EPS ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Shares of CrowdStrike Holdings Inc CRWD closed at $364.3 apiece on Tuesday and fell by more than 5% in premarket trading on Wednesday.Technical analysis pointed towards a bullish trend after the Texas-based cybersecurity technology company reported its third-quarter earnings.What Happened: Despite the fallout from a faulty software update in July, the company reported its highest-ever revenue in the third quarter, surpassing the $1 billion mark, beating the consensus estimate of $982.36 million, curated by ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Revenue Growth and Performance - Annual Recurring Revenue (ARR) grew to $4.0 billion as of October 31, 2024, with a year-over-year growth of 27%[193] - Total revenue increased by $224.2 million, or 29%, for the three months ended October 31, 2024 compared to the same period in 2023, driven by subscription growth[221] - Subscription revenue increased by $229.3 million, or 31%, for the three months ended October 31, 2024, primarily due to new customer additions and increased sales of sensors and modules to existing customers[222] - Total revenue increased by $684.9 million, or 31%, for the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023[237] - Revenue for the nine months ended October 31, 2024 was $2,891,704 thousand, with a net income of $63,365 thousand[272] Subscription Revenue and Metrics - Subscription revenue is driven by the number of subscription customers, endpoints per customer, and cloud modules included in the subscription[199] - Subscription revenue accounted for 95% of total revenue for the three months ended October 31, 2024, up from 93% in the same period in 2023[221] - Subscription gross profit increased by $527.9 million (33%) to $2,147.3 million for the nine months ended October 31, 2024, compared to the same period in 2023[243] - Dollar-Based Net Retention Rate was 115% as of October 31, 2024, reflecting customer renewals, expansion, contraction, and churn[196] Professional Services Revenue and Costs - Professional services revenue includes incident response, proactive services, forensic and malware analysis, and attribution analysis[200] - Professional services revenue decreased by $5.1 million, or 10%, for the three months ended October 31, 2024, due to a reduction in billable and non-billable hours[224] - Professional services revenue accounted for 5% of total revenue for the three months ended October 31, 2024, down from 7% in the same period in 2023[221] - Professional services gross margin decreased by 15% for the three months ended October 31, 2024, compared to the three months ended October 31, 2023[228] - Professional services gross profit decreased by $13.4 million (31%) to $30.3 million for the nine months ended October 31, 2024, primarily due to increased consulting expenses and decreased utilization[243][244] Cost of Revenue and Gross Profit - Subscription cost of revenue includes cloud hosting costs, employee-related costs, and software license fees[201] - Professional services cost of revenue consists primarily of employee-related costs and consulting expenses[203] - Total cost of revenue increased by $60.1 million, or 31%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023[225] - Subscription cost of revenue increased by $56.5 million, or 35%, for the three months ended October 31, 2024, compared to the three months ended October 31, 2023[225] - Professional services cost of revenue increased by $3.6 million, or 10%, for the three months ended October 31, 2024, compared to the three months ended October 31, 2023[226] - Total gross profit increased by $164.1 million, or 28%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023[227] - Total gross profit increased by $514.5 million (31%) to $2,177.6 million for the nine months ended October 31, 2024, compared to the same period in 2023[243] Operating Expenses - Sales and marketing expenses are expected to increase in dollar amount but decrease as a percentage of total revenue over time[208] - Sales and marketing expenses increased by $122.1 million, or 43%, for the three months ended October 31, 2024, as the company expanded its market presence[218] - Sales and marketing expenses increased by $122.1 million, or 43%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023[230] - Sales and marketing expenses increased by $263.6 million (31%) to $1,113.9 million for the nine months ended October 31, 2024, driven by a 13% increase in average headcount and higher marketing programs[247] - Research and development expenses increased by $79.5 million, or 41%, for the three months ended October 31, 2024, reflecting higher investments in technology architecture and software platforms[218] - Research and development expenses increased by $79.5 million, or 41%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023[231] - Research and development expenses increased by $207.3 million (37%) to $761.8 million for the nine months ended October 31, 2024, primarily due to a 15% increase in average headcount and higher stock-based compensation[248] - General and administrative expenses increased by $21.4 million, or 20%, for the three months ended October 31, 2024, driven by higher employee-related costs[218] - General and administrative expenses increased by $21.4 million, or 20%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023[232] - General and administrative expenses increased by $47.1 million (16%) to $337.1 million for the nine months ended October 31, 2024, driven by a 17% increase in average headcount and expenses related to the July 19 Incident[249] Net Income and Profitability - Net income attributable to CrowdStrike decreased by $43.5 million, or 163%, for the three months ended October 31, 2024, compared to the same period in 2023[218] - Provision for income taxes increased by $6.2 million (34%) to $24.9 million for the nine months ended October 31, 2024, primarily due to higher pre-tax earnings and withholding taxes in foreign jurisdictions[254] Liquidity and Financial Position - The company had $4.3 billion in cash and cash equivalents as of October 31, 2024, along with a $750.0 million Revolving Facility, providing sufficient liquidity for at least the next 12 months[256] - Deferred revenue as of October 31, 2024, was $3.2 billion, with $2.4 billion expected to be recognized as revenue within the next 12 months[260] - Current assets (excluding current intercompany receivables from non-Guarantors) as of October 31, 2024 were $5,403,852 thousand[272] - Noncurrent assets (excluding noncurrent intercompany receivables from non-Guarantors) as of October 31, 2024 were $1,796,543 thousand[272] - Current liabilities (excluding current intercompany payables to non-Guarantors) as of October 31, 2024 were $2,882,966 thousand[272] - Noncurrent liabilities (excluding noncurrent intercompany payables to non-Guarantors) as of October 31, 2024 were $1,663,028 thousand[272] - The company has non-cancellable purchase commitments totaling $2.8 billion as of October 31, 2024[277] - Unrecognized tax benefits as of October 31, 2024 were $12.3 million[278] - Non-cancellable unfunded commitments from financing arrangements as of October 31, 2024 were approximately $49.3 million[278] - Backlog as of October 31, 2024 was approximately $2.2 billion[286] Strategic Initiatives and Investments - The company's go-to-market strategy focuses on a low friction land-and-expand model, targeting organizations of all sizes worldwide[179][180] - The company expects research and development expenses to increase in dollar amount but decrease as a percentage of total revenue over time as the business grows[210] - The company acquired A.S. Adaptive Shield Ltd. for a total consideration of $213.8 million in cash, net of $13.8 million of cash acquired[279] Impact of the July 19 Incident - The July 19 Incident resulted in increased legal and professional services expenses, elongated sales cycles, and potential future customer churn[188] - General and administrative expenses increased by $47.1 million (16%) to $337.1 million for the nine months ended October 31, 2024, driven by a 17% increase in average headcount and expenses related to the July 19 Incident[249] Interest Income and Other Financial Metrics - Interest income increased by $12.1 million, or 30%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023[234] - Interest income increased by $42.3 million (39%) to $149.6 million for the nine months ended October 31, 2024, due to higher market interest rates and increased cash and cash equivalents[252]

Financial Data and Key Metrics - Ending ARR surpassed $4 billion, growing 27% YoY to $4.02 billion, with $153 million net new ARR added in Q3 [61] - Q3 revenue exceeded $1 billion for the first time, with subscription revenue growing 31% YoY to $962.7 million [12][66] - Free cash flow was $231 million, or 23% of revenue, achieving a Rule of 51 on a free cash flow basis [12][69] - Gross retention rate remained resilient at over 97%, with a slight decrease of less than 0.5 percentage points [14][63] - Dollar-based net retention rate was 115%, reflecting customer commitment to the Falcon platform [15][63] Business Line Performance - Falcon Flex subscription model drove significant adoption, with over 150 deals closed in Q3, representing more than $600 million in total deal value [13][21] - Falcon Next-Gen SIEM saw net new ARR growth accelerating to over 150% YoY, with 30 million Fusion SOAR workflows per week and over 2,000 customers [44] - Identity Protection business expanded with the acquisition of Adaptive Shield, enhancing SaaS posture management and identity security [13][35][41] - Charlotte AI, the company's AI agent, achieved triple-digit growth in Q3, driven by customer demand for automation and time savings [49] Market Performance - Healthcare vertical had a record quarter, driven by increased cybersecurity investments due to heightened attacks [16] - Corporate sales team covering organizations below 2,500 employees had their largest quarter ever, benefiting from Falcon Flex and competitive takeouts [16] - Falcon Flex adoption accelerated globally, with accounts adopting the model now representing more than $1.3 billion in total deal value [21][24] Strategic Direction and Industry Competition - CrowdStrike is focused on platform consolidation, innovation, and customer trust, with Falcon Flex driving rapid adoption and measurable ROI [9][10][18] - The acquisition of Adaptive Shield strengthens the company's cloud and identity security offerings, positioning it as a leader in SaaS posture management [13][35] - CrowdStrike continues to lead in AI-powered cybersecurity, with innovations in cloud security, identity protection, and Next-Gen SIEM [10][34][45] - The company's competitive win rates remain consistent or trending upwards, with larger deal sizes attributed to platform evolution and brand recognition [18] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of trust, platform adoption, and innovation in driving customer obsession and strong execution [10] - The company remains focused on reaccelerating net new ARR growth starting in the back half of FY 2026, driven by Falcon Flex and increased module adoption [65][71] - CrowdStrike is committed to achieving $10 billion in ending ARR by FY 2031 and a free cash flow margin target between 34% and 38% by FY 2029 [76] Other Important Information - CrowdStrike hosted its largest-ever Fal.Con event, with 6,000 attendees from over 60 countries, showcasing the strength of its ecosystem [19][20] - The company announced a strategic partnership with Fortinet, further expanding its reach in the SMB market [51] - CrowdStrike Financial Services (CFS) closed over $49 million in deal value in its first quarter, including two eight-figure deals [31] Q&A Session Summary Question: Security spending outlook for next year - Customers are prioritizing the best products and platforms to stop breaches and consolidate cybersecurity tools, driven by a worsening threat environment and regulatory pressures [90][91] Question: ARR seasonality in Q4 - Limited visibility due to the July 19th incident and customer commitment packages makes it difficult to predict Q4 net new ARR seasonality [95][96] Question: Customer churn and adoption trends - Churn is minimal among larger customers, with strong adoption driven by the Falcon platform's value and the company's response to the July 19th incident [100][101] Question: Agentic AI and Charlotte AI - Charlotte AI is designed to go beyond a copilot, performing tasks autonomously and significantly improving SOC efficiency [104][105] Question: Factors impacting Q4 performance - Extended sales cycles, customer commitment packages, and muted upsell rates are expected to impact Q4 performance [109][110] Question: Falcon Flex deal duration - Falcon Flex deals are trending longer, contributing to increased customer stickiness and platform adoption [115] Question: Falcon Flex and ARR reacceleration - Falcon Flex is driving larger deals and faster module adoption, setting the stage for ARR reacceleration in the back half of FY 2026 [119] Question: Next-Gen SIEM competitive landscape - CrowdStrike's Next-Gen SIEM offers unmatched speed, scalability, and cost efficiency, driving customer adoption and displacing legacy SIEM vendors [123][124] Question: Falcon Flex and customer retention - Falcon Flex increases platform stickiness as customers adopt more modules, making it harder to leave the platform [128] Question: RPO growth and revenue recognition - Strong RPO growth reflects longer deal durations and customer commitment packages, with revenue recognition expected to lag in the short term [133] Question: ARR and revenue divergence - The temporary divergence between ARR and revenue is due to customer commitment packages, with ARR impacted more immediately than revenue [136]