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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________________________________________________________________________
FORM 10-Q
___________________________________________________________________________________________________
(Mark One)
☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 2024
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-38933
___________________________________________________________________________________________________
CROWDSTRIKE HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
___________________________________________________________________________________________________
Delaware45-3788918
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification Number)
206 E. 9th Street, Suite 1400, Austin, Texas 78701
(Address of principal executive offices)
__________________________________________________________________________________________________
Registrant’s telephone number, including area code: (888) 512-8906
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s)Name of each exchange on which registered
Class A common stock, par value $0.0005 per shareCRWDThe Nasdaq Stock Market LLC
(Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    ☑  No   ☐
Indicate by check mark whether the registrant has submitted electronically every interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files) Yes    ☑    No    ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer☑Accelerated Filer
☐
Non-accelerated Filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    ☐   No    ☑
As of August 15, 2024, the number of shares of the registrant’s Class A common stock outstanding was 232,717,008, and the number of shares of the registrant’s Class B common stock outstanding was 12,409,412.


Table of Contents
CROWDSTRIKE HOLDINGS, INC.
TABLE OF CONTENTS
Page No.

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements.
These forward-looking statements include, but are not limited to, statements concerning the following:
•our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit or gross margin, operating expenses (including changes in sales and marketing, research and development, and general and administrative expenses), and our ability to achieve, and maintain, future profitability;
•market acceptance of our cloud platform;
•the effects of increased competition in our markets and our ability to compete effectively;
•our ability to maintain the security and availability of our cloud platform;
•our ability to maintain and expand our customer base, including by attracting new customers;
•our ability to develop new solutions, or enhancements to our existing solutions, and bring them to market in a timely manner;
•anticipated trends, growth rates and challenges in our business and in the markets in which we operate;
•our business plan and our ability to effectively manage our growth and associated investments;
•beliefs and objectives for future operations;
•our relationships with third parties, including channel partners and technology alliance partners;
•our ability to maintain, protect and enhance our intellectual property rights;
•our ability to successfully defend litigation brought against us and respond to government investigations and inquiries;
•our ability to successfully expand in our existing markets and into new markets;
•sufficiency of cash and cash equivalents to meet cash needs for at least the next 12 months;
•anticipated developments relating to our valuation allowances for our deferred tax assets;
•our ability to expand internationally;
•our ability to comply with laws and regulations that currently apply or become applicable to our business both in the United States and internationally;
•our ability to develop, maintain, and improve our internal control over financial reporting;
•macroeconomic factors, including inflation and instability in the global credit and financial markets;
•our ability to successfully close and integrate acquisitions to contribute to our growth objectives;
•the attraction and retention of qualified employees and key personnel; and
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•the Channel File 291 Incident (as defined below), including the findings from our investigations, potential or anticipated developments, our remediation and other efforts in connection with the incident, the outcome of lawsuits, claims and inquiries related to the incident, and the effect on our customer and partner relationships and our business, results of operations and financial condition.
These statements are based on our current plans, estimates and projections in light of information currently available to us. These forward-looking statements may be affected by risks, uncertainties and other factors discussed elsewhere in this Quarterly Report on Form 10-Q, including under “Risk Factors.” Furthermore, new risks and uncertainties emerge from time to time, and it is impossible for us to predict all risks and uncertainties or how they may affect us. If any of these risks or uncertainties materialize, our business, revenue and financial results could be harmed, and the trading price of our Class A common stock could decline. Forward-looking statements made in this Quarterly Report on Form 10-Q speak only as of the date on which such statements are made, and we undertake no obligation to update them in light of new information or future events, except as required by law.
We intend to announce material information to the public through the CrowdStrike Investor Relations website ir.crowdstrike.com, SEC filings, press releases, public conference calls, and public webcasts. We use these channels, as well as social media and our blog, to communicate with our investors, customers, and the public about our company, our offerings, and other issues. It is possible that the information we post on social media and our blog could be deemed to be material information. As such, we encourage investors, the media, and others to follow the channels listed above, including the social media channels listed on our investor relations website, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page on our website.
Summary of Risk Factors
Our business is subject to numerous risks and uncertainties, any one of which could materially adversely affect our business, results of operations, financial condition, and growth prospects. Below is a summary of some of these risks. This summary is not complete, and should be read together with the entire section titled “Risk Factors” in this Quarterly Report on Form 10-Q, as well as the other information in this Quarterly Report on Form 10-Q and the other filings that we make with the SEC.
•The Channel File 291 Incident has had, and is expected to continue to have, an adverse effect on our business, sales, customer and partner relations, reputation, results of operations and financial condition.
•We have experienced rapid growth in recent periods, and if we do not manage our future growth, our business and results of operations will be adversely affected.
•We have a history of losses, and while we have achieved profitability in certain periods, including fiscal 2024, we may not be able to achieve or sustain profitability in the future.
•If organizations do not adopt cloud-based SaaS-delivered endpoint security solutions, our ability to grow our business and results of operations may be adversely affected.
•If we are unable to successfully enhance our existing products and services and introduce new products and services in response to rapid technological changes and market developments as well as evolving security threats, our competitive position and prospects will be harmed.
•If we are unable to attract new customers, our future results of operations could be harmed.
•If our customers do not renew their subscriptions for our products and add additional cloud modules to their subscriptions, our future results of operations could be harmed.
•Our sales cycles can be long and unpredictable, and our sales efforts require considerable time and expense.
•We face intense competition and could lose market share to our competitors, which could adversely affect our business, financial condition, and results of operations.
•If our solutions fail or are perceived to fail to detect or prevent incidents or have or are perceived to have defects, errors, or vulnerabilities, our brand and reputation would be harmed, which would adversely affect our business and results of operations.
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•As a cybersecurity provider, we have been, and expect to continue to be, a target of cyberattacks. If our or our service providers’ internal networks, systems, or data are or are perceived to have been compromised, our reputation may be damaged and our financial results may be negatively affected.
•We rely on third-party data centers, such as Amazon Web Services, and our own colocation data centers to host and operate our Falcon platform, and any disruption of or interference with our use of these facilities may negatively affect our ability to maintain the performance and reliability of our Falcon platform, which could cause our business to suffer.
•We rely on our key technical, sales and management personnel to grow our business, and the loss of one or more key employees could harm our business.
•If we are unable to attract and retain qualified personnel, our business could be harmed.
•Our results of operations may fluctuate significantly, which could make our future results difficult to predict and could cause our results of operations to fall below expectations.
•If we are not able to maintain and enhance our CrowdStrike and Falcon brand and our reputation as a provider of high-efficacy security solutions, our business and results of operations may be adversely affected.
•Claims by others that we infringe their proprietary technology or other intellectual property rights could result in significant costs and substantially harm our business, financial condition, results of operations, and prospects.
•We are required to comply with stringent, complex and evolving laws, rules, regulations and standards in many jurisdictions, as well as contractual obligations, relating to data privacy and security. Any actual or perceived failure to comply with these requirements could have a material adverse effect on our business.
•Failure to comply with laws and regulations applicable to our business could subject us to fines and penalties and could also cause us to lose customers or negatively impact our ability to contract with customers, including those in the public sector.
•We are currently, and may in the future become, involved in litigation that may adversely affect us.
•We have in the past experienced, and may in the future experience, warranty claims, product returns, and claims related to product liability and product defects from real or perceived defects in our solutions or their misuse by our customers or third parties and indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement and other losses.
•Future acquisitions, strategic investments, partnerships, or alliances could be difficult to identify and integrate, divert the attention of key management personnel, disrupt our business, dilute stockholder value and adversely affect our business, financial condition and results of operations.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CrowdStrike Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
July 31,January 31,
20242024
Assets
Current assets:
Cash and cash equivalents$4,038,536 $3,375,069 
Short-term investments— 99,591 
Accounts receivable, net of allowance for credit losses of $1.8 million and $2.2 million as of July 31, 2024 and January 31, 2024, respectively
661,045 853,105 
Deferred contract acquisition costs, current251,246 246,370 
Prepaid expenses and other current assets230,821 183,172 
Total current assets5,181,648 4,757,307 
Strategic investments58,246 56,244 
Property and equipment, net648,474 620,172 
Operating lease right-of-use assets45,897 48,211 
Deferred contract acquisition costs, noncurrent341,539 335,933 
Goodwill721,996 638,041 
Intangible assets, net115,686 114,518 
Other long-term assets88,988 76,094 
Total assets$7,202,474 $6,646,520 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$21,067 $28,180 
Accrued expenses101,300 125,896 
Accrued payroll and benefits205,429 234,624 
Operating lease liabilities, current17,031 14,150 
Deferred revenue2,348,464 2,270,757 
Other current liabilities35,028 23,672 
Total current liabilities2,728,319 2,697,279 
Long-term debt 743,238 742,494 
Deferred revenue, noncurrent744,733 783,342 
Operating lease liabilities, noncurrent31,704 36,230 
Other liabilities, noncurrent63,890 50,086 
Total liabilities4,311,884 4,309,431 
Commitments and contingencies (Note 8)
Stockholders’ Equity
Preferred stock, $0.0005 par value; 100,000 shares authorized as of July 31, 2024 and January 31, 2024; no shares issued and outstanding as of July 31, 2024 and January 31, 2024.
— — 
Class A common stock, $0.0005 par value; 2,000,000 shares authorized as of July 31, 2024 and January 31, 2024; 232,698 shares and 229,380 shares issued and outstanding as of July 31, 2024 and January 31, 2024, respectively; Class B common stock, $0.0005 par value; 300,000 shares authorized as of July 31, 2024 and January 31, 2024; 12,424 shares and 12,485 shares issued and outstanding as of July 31, 2024 and January 31, 2024, respectively.
123 121 
Additional paid-in capital3,824,897 3,364,328 
Accumulated deficit(969,003)(1,058,836)
Accumulated other comprehensive loss(3,102)(1,663)
Total CrowdStrike Holdings, Inc. stockholders’ equity 2,852,915 2,303,950 
Non-controlling interest37,675 33,139 
Total stockholders’ equity 2,890,590 2,337,089 
Total liabilities and stockholders’ equity $7,202,474 $6,646,520 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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CrowdStrike Holdings, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended July 31,Six Months Ended July 31,
2024202320242023
Revenue
Subscription$918,257 $689,972 $1,790,429 $1,341,147 
Professional services45,615 41,654 94,479 83,059 
Total revenue963,872 731,626 1,884,908 1,424,206 
Cost of revenue
Subscription199,910 153,306 389,567 295,406 
Professional services37,491 29,611 72,837 56,741 
Total cost of revenue237,401 182,917 462,404 352,147 
Gross profit726,471 548,709 1,422,504 1,072,059 
Operating expenses
Sales and marketing355,471 282,916 705,585 564,023 
Research and development250,908 179,362 486,157 358,427 
General and administrative106,434 101,804 210,168 184,438 
Total operating expenses712,813 564,082 1,401,910 1,106,888 
Income (loss) from operations13,658 (15,373)20,594 (34,829)
Interest expense(6,549)(6,444)(13,060)(12,831)
Interest income 51,526 36,638 97,376 67,159 
Other income (expense), net(1,031)(1,734)6,625 (1,504)
Income before provision for income taxes57,604 13,087 111,535 17,995 
Provision for income taxes10,914 4,611 18,581 9,020 
Net income46,690 8,476 92,954 8,975 
Net income (loss) attributable to non-controlling interest(323)4 3,121 12 
Net income attributable to CrowdStrike $47,013 $8,472 $89,833 $8,963 
Net income per share attributable to CrowdStrike common stockholders:
Basic $0.19 $0.04 $0.37 $0.04 
Diluted$0.19 $0.03 $0.36 $0.04 
Weighted-average shares used in computing net income per share attributable to CrowdStrike common stockholders:
Basic 244,091 237,911 243,249 237,174 
Diluted251,265 242,144 250,724 241,383 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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CrowdStrike Holdings, Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands)
(unaudited)
Three Months Ended July 31,Six Months Ended July 31,
2024202320242023
Net income$46,690 $8,476 $92,954 $8,975 
Other comprehensive income (loss):
Foreign currency translation adjustments1,635 774 (1,454)1,932 
Unrealized gain on short-term investments, net of tax23 — 15 — 
Other comprehensive income (loss)1,658 774 (1,439)1,932 
Less: Comprehensive income (loss) attributable to non-controlling interest(323)4 3,121 12 
Total comprehensive income attributable to CrowdStrike$48,671 $9,246 $88,394 $10,895 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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CrowdStrike Holdings, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
Three Months Ended July 31, 2024 and 2023
(in thousands)
(unaudited)
Common StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive Income (Loss)Non-controlling InterestTotal Stockholders’ Equity
SharesAmount
Balances at April 30, 2024243,184 $122 $3,556,194 $(1,016,016)$(4,760)$33,242 $2,568,782 
Issuance of common stock upon exercise of options208 — 1,641 — — — 1,641 
Issuance of common stock under RSU and PSU release1,210 1 (1)— — — — 
Issuance of common stock under employee stock purchase plan518 — 56,099 — — — 56,099 
Issuance of common stock for founders holdbacks related to acquisitions2 — 889 — — — 889 
Issuance of common stock for payment of board of director fees— — 87 — — — 87 
Stock-based compensation expense, net of founder revest— — 198,476 — — — 198,476 
Capitalized stock-based compensation— — 11,512 — — — 11,512 
Net income (loss)— — — 47,013 — (323)46,690 
Non-controlling interest— — — — — 4,756 4,756 
Other comprehensive income— — — — 1,658 — 1,658 
Balances at July 31, 2024245,122 $123 $3,824,897 $(969,003)$(3,102)$37,675 $2,890,590 
Common StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive IncomeNon-controlling InterestTotal Stockholders’ Equity
SharesAmount
Balances at April 30, 2023237,099 $118 $2,752,716 $(1,147,672)$139 $29,058 $1,634,359 
Issuance of common stock upon exercise of options210 — 1,474 — — — 1,474 
Issuance of common stock under RSU and PSU release1,011 — — — — — — 
Issuance of common stock under employee stock purchase plan450 1 45,431 — — — 45,432 
Issuance of common stock for founders holdbacks related to acquisitions5 — 889 — — — 889 
Issuance of common stock for payment of board of director fees— — 88 — — — 88 
Stock-based compensation expense, net of founder revest— — 163,811 — — — 163,811 
Capitalized stock-based compensation— — 11,966 — — — 11,966 
Net income— — — 8,472 — 4 8,476 
Non-controlling interest— — — — — 2,831 2,831 
Other comprehensive income— — — — 774 — 774 
Balances at July 31, 2023238,775 $119 $2,976,375 $(1,139,200)$913 $31,893 $1,870,100 
The accompanying notes are an integral part of these condensed consolidated financial statements.



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CrowdStrike Holdings, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
Six Months Ended July 31, 2024 and 2023
(in thousands)
(unaudited)
Common StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive LossNon-controlling InterestTotal Stockholders’ Equity
SharesAmount
Balances at January 31, 2024241,865 $121 $3,364,328 $(1,058,836)$(1,663)$33,139 $2,337,089 
Issuance of common stock upon exercise of options300 — 2,464 — — — 2,464 
Issuance of common stock under RSU and PSU release2,434 2 (2)— — — — 
Issuance of common stock under employee stock purchase plan518 — 56,099 — — — 56,099 
Issuance of common stock for founders holdbacks related to acquisitions5 — 1,778 — — — 1,778 
Issuance of common stock for payment of board of director fees— — 175 — — — 175 
Stock-based compensation expense, net of founder revest— — 380,109 — — — 380,109 
Capitalized stock-based compensation— — 19,478 — — — 19,478 
Fair value of replacement equity awards attributable to pre-acquisition service— — 468 — — — 468 
Net income— — — 89,833 — 3,121 92,954 
Non-controlling interest— — — — — 1,415 1,415 
Other comprehensive loss— — — — (1,439)— (1,439)
Balances at July 31, 2024245,122 $123 $3,824,897 $(969,003)$(3,102)$37,675 $2,890,590 
Common StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive Income (Loss)Non-controlling InterestTotal Stockholders’ Equity
SharesAmount
Balances at January 31, 2023235,777 $118 $2,612,705 $(1,148,163)$(1,019)$23,793 $1,487,434 
Issuance of common stock upon exercise of options585 — 4,125 — — — 4,125 
Issuance of common stock under RSU and PSU release1,944 — — — — — — 
Issuance of common stock under employee stock purchase plan450 1 45,431 — — — 45,432 
Issuance of common stock for founders holdbacks related to acquisitions18 — 2,538 — — — 2,538 
Issuance of common stock for payment of board of director fees1 — 167 — — — 167 
Stock-based compensation expense, net of founder revest— — 292,941 — — — 292,941 
Capitalized stock-based compensation— — 18,468 — — — 18,468 
Net income— — — 8,963 — 12 8,975 
Non-controlling interest— — — — — 8,088 8,088 
Other comprehensive income— — — — 1,932 — 1,932 
Balances at July 31, 2023238,775 $119 $2,976,375 $(1,139,200)$913 $31,893 $1,870,100 
The accompanying notes are an integral part of these condensed consolidated financial statements.

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CrowdStrike Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)(unaudited)
Six Months Ended July 31,
20242023
Operating activities
Net income$92,954 $8,975 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization88,936 56,184 
Amortization of intangible assets12,332 8,276 
Amortization of deferred contract acquisition costs147,851 112,877 
Non-cash operating lease cost7,167 6,331 
Stock-based compensation expense384,002 295,633 
Deferred income taxes(1,929)(352)
Realized gains on strategic investments(6,227)— 
Non-cash interest expense1,785 1,531 
Accretion of short-term investments purchased at a discount2,285 — 
Changes in operating assets and liabilities, net of impact of acquisitions
Accounts receivable, net192,060 86,718 
Deferred contract acquisition costs(158,333)(122,007)
Prepaid expenses and other assets(63,224)(26,338)
Accounts payable(72)(2,982)
Accrued expenses and other liabilities7,968 4,935 
Accrued payroll and benefits(29,432)(30,161)
Operating lease liabilities(7,113)(6,475)
Deferred revenue38,859 152,528 
Net cash provided by operating activities709,869 545,673 
Investing activities
Purchases of property and equipment(88,937)(102,681)
Capitalized internal-use software and website development costs(24,995)(25,975)
Purchases of strategic investments(2,702)(12,177)
Proceeds from sales of strategic investments10,895 — 
Business acquisitions, net of cash acquired(96,381)— 
Purchases of intangible assets— (500)
Proceeds from maturities and sales of short-term investments97,300 250,000 
Purchases of deferred compensation investments(1,209)(876)
Proceeds from sales of deferred compensation investments41 — 
Net cash (used in) provided by investing activities(105,988)107,791 
Financing activities
Proceeds from the issuance of common stock upon exercise stock options2,464 4,125 
Proceeds from issuance of common stock under the employee stock purchase plan 56,099 45,432 
Distributions to non-controlling interest holders(4,085)— 
Capital contributions from non-controlling interest holders5,500 8,088 
Net cash provided by financing activities59,978 57,645 
Effect of foreign exchange rates on cash, cash equivalents and restricted cash(1,040)1,083 
Net increase in cash, cash equivalents and restricted cash662,819 712,192 
Cash, cash equivalents and restricted cash at beginning of period3,377,597 2,456,924 
Cash, cash equivalents and restricted cash at end of period$4,040,416 $3,169,116 
Cash, cash equivalents and restricted cash at the end of period:
Cash and cash equivalents$4,038,536 $3,167,215 
Restricted cash included in prepaid expenses and other assets1,880 1,901 
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows$4,040,416 $3,169,116 
Supplemental disclosure of cash flow information:
Interest paid$11,250 $11,250 
Income taxes paid, net of refunds received10,250 9,991 
Supplemental disclosure of non-cash investing and financing activities:
Net decrease in property and equipment included in accounts payable and accrued expenses(16,469)(20,089)
Equity consideration for acquisitions468 — 
Operating lease liabilities arising from obtaining operating right-of-use assets 2,854 13,083 
Purchases of intangible assets included in accrued expenses and other liabilities— 26 
Proceeds from sales of strategic investments not yet received4,808 — 
Stock-based compensation included in capitalized software development costs and fixed assets19,478 16,000 
Noncash consideration for the purchase of strategic investments3,319 — 
Noncash consideration received from sales of strategic investments3,319 — 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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CrowdStrike Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
1. Description of Business and Significant Accounting Policies
Business
CrowdStrike Holdings, Inc. (the “Company”) was formed on November 7, 2011. The Company is a global cybersecurity leader that delivers cybersecurity’s AI-native platform for the XDR era, purpose-built to stop breaches. The Company’s unified platform provides cloud-delivered protection of endpoints, cloud workloads, identity, and data via a software as a service (“SaaS”) subscription-based model that spans multiple large security markets, including corporate endpoint security, security and IT operations, managed security services, next-gen SIEM, cloud security, identity protection, threat intelligence, data protection, exposure management and cybersecurity generative AI. The Company conducts its business in the United States, as well as locations internationally, including in Australia, Germany, India, Israel, Japan, Romania, and the United Kingdom.
Basis of Presentation
The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2024, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all normal recurring adjustments that are necessary for the fair statement of the Company’s condensed consolidated financial information. The results of operations for the three and six months ended July 31, 2024 are not necessarily indicative of the results to be expected for the year ending January 31, 2025 or for any other interim period or for any other future year.
The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with Item 8, “Financial Statements and Supplementary Data” included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2024, filed with the SEC on March 6, 2024.
Principles of Consolidation
The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ from these estimates and such differences could be material to the Company’s condensed consolidated financial statements.
Estimates and assumptions used by management include, but are not limited to, revenue recognition, the allowance for credit losses, the useful lives of long-lived assets, the fair values of strategic investments, the period of benefit for deferred contract acquisition costs, the discount rate used for operating leases, the recognition and disclosure of contingent liabilities, income taxes, stock-based compensation, and the fair value of assets acquired and liabilities assumed in business combinations.
Concentration of Credit Risk and Geographic Information
The Company generates revenue from the sale of subscriptions to access its cloud platform and professional services. The Company’s sales team, along with its channel partner network of system integrators and value-added resellers (collectively, “channel partners”), sells the Company’s services worldwide to organizations of all sizes.
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Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, short-term investments, accounts receivable, and strategic investments. The Company’s cash is placed with high-credit-quality financial institutions and issuers, and at times exceeds federally insured limits. The Company has not experienced any credit loss relating to its cash, cash equivalents, short-term investments, or strategic investments. The Company performs periodic credit evaluations of its customers and generally does not require collateral.
There were no channel partners or direct customers who represented 10% or more of the Company’s accounts receivable as of July 31, 2024 or January 31, 2024.
There were no channel partners or direct customers who represented 10% or more of the Company’s total revenue for each of the three and six months ended July 31, 2024 or 2023.
Significant Accounting Policies
The Company’s significant accounting policies are described in the Company’s Annual Report on Form 10-K for the year ended January 31, 2024. There have been no significant changes to these policies that have had a material impact on the Company’s condensed consolidated financial statements and related notes for the three and six months ended July 31, 2024.
Recently Issued Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, a final standard on improvements to income tax disclosures. The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The new standard is effective for annual periods beginning after December 15, 2024. The Company does not expect the adoption of this new guidance to have a material impact on its disclosures within the consolidated financial statements.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The standard requires disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount for other segment items required to reconcile the difference between segment revenue and segment expenses to segment profit or loss along with a description of their composition, and the title and position of the entity’s CODM. The update also expands interim segment disclosure requirements. The new standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the condensed consolidated financial statements. The Company is currently evaluating the impact of this new guidance on its disclosures within the consolidated financial statements.
2. Investments and Fair Value Measurements
The Company follows ASC 820, Fair Value Measurements, with respect to cash equivalents, short-term investments and deferred compensation investments that are measured at fair value on a recurring basis. Under the standard, fair value is defined as the exit price, or the amount that would be received to sell an asset or a liability in an orderly transaction between market participants as of the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available in the circumstances.
The hierarchy is broken down into three levels as follows:
Level 1    Assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in active markets
Level 2    Assets and liabilities whose values are based on quoted prices in markets that are not active or inputs that are observable for substantially the full term of the asset or liability
Level 3    Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement
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Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in thousands):
July 31, 2024January 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents
Money market funds$1,505,049 $— $— $1,505,049 $2,360,173 $— $— $2,360,173 
U.S. Treasury securities— 2,190,251 — 2,190,251 — 693,599 — 693,599 
Short-term investments
U.S. Treasury securities— — — — — 99,591 — 99,591 
Other assets
Deferred compensation investments3,749 — — 3,749 2,271 — — 2,271 
Total assets$1,508,798 $2,190,251 $— $3,699,049 $2,362,444 $793,190 $— $3,155,634 
There were no transfers between the levels of the fair value hierarchy during the periods presented.
As of July 31, 2024 and January 31, 2024, the Company’s U.S. Treasury securities were carried at fair value and there were no material realized or unrealized gains or losses, either individually or in aggregate.
Strategic Investments
The Company’s investments of privately held securities as of July 31, 2024, consisted of the following (in thousands):
Privately held equity securitiesPrivately held debt and other securities Total
Initial total cost$52,842 $1,000 $53,842 
Cumulative net gains4,404 — 4,404 
Carrying amount, end of period$57,246 $1,000 $58,246 
The Company’s investments of privately held securities as of January 31, 2024, consisted of the following (in thousands):
Privately held equity securitiesPrivately held debt and other securities Total
Initial total cost$50,373 $1,000 $51,373 
Cumulative net gains4,871 — 4,871 
Carrying amount, end of period$55,244 $1,000 $56,244 
As of July 31, 2024, the cumulative net gains of $4.4 million are comprised of upward adjustments of $8.8 million, less downward adjustments and impairment of $4.4 million. As of January 31, 2024, the cumulative net gains of $4.9 million are comprised of upward adjustments of $9.3 million, less downward adjustments and impairment of $4.4 million.
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Gains and Losses on Strategic Investments
The components of gains and losses on strategic investments were as follows (in thousands):
Three Months Ended July 31,Six Months Ended July 31,
2024202320242023
Realized gains (losses) recognized on sales of privately held equity securities$(655)$— $6,227 $— 
Gains (losses) on strategic investments$(655)$— $6,227 $— 
Realized gains and losses recognized on sales of privately held equity securities reflect the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.
3. Balance Sheet Components
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
July 31, 2024January 31, 2024
Data center and other computer equipment$642,555 $525,890 
Capitalized internal-use software and website development costs225,902 183,117 
Leasehold improvements39,830 39,168 
Purchased software14,267 10,907 
Furniture and equipment9,452 8,524 
Construction in progress142,849 190,832 
1,074,855 958,438 
Less: Accumulated depreciation and amortization(426,381)(338,266)
Property and equipment, net$648,474 $620,172 
Construction in progress primarily includes data center equipment purchased that has not yet been placed in service. Data center equipment that was purchased but not yet been placed into service was $119.2 million as of July 31, 2024.
Depreciation and amortization expense of property and equipment was $46.2 million and $29.8 million during the three months ended July 31, 2024 and July 31, 2023, respectively, and $88.9 million and $56.2 million during the six months ended July 31, 2024 and July 31, 2023, respectively.
There was no impairment of property and equipment during the three and six months ended July 31, 2024 and July 31, 2023. The Company capitalized $25.0 million and $23.6 million in internal-use software and website development costs during the three months ended July 31, 2024 and July 31, 2023, respectively, and $42.5 million and $40.2 million during the six months ended July 31, 2024 and July 31, 2023, respectively. Amortization expense associated with internal-use software and website development costs totaled $13.8 million and $8.4 million during the three months ended July 31, 2024 and July 31, 2023, respectively, and $26.6 million and $15.9 million during the six months ended July 31, 2024 and July 31, 2023, respectively. The net book value of capitalized internal-use software and website development costs was $122.8 million and $106.9 million as of July 31, 2024 and January 31, 2024, respectively.
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Intangible Assets, Net
Total intangible assets, net consisted of the following (dollars in thousands):
July 31, 2024Weighted-Average
Remaining 
Useful
Life
Gross Carrying AmountAccumulated AmortizationNet Amount
(in months)
Developed technology$144,846 $52,279 $92,567 57
Customer relationships17,027 7,030 9,997 64
Intellectual property and other acquired intangible assets15,842 2,720 13,122 118
Total$177,715 $62,029 $115,686 
January 31, 2024Weighted-Average
Remaining 
Useful
Life
Gross Carrying AmountAccumulated AmortizationNet Amount
(in months)
Developed technology$131,346 $41,854 $89,492 60
Customer relationships17,027 5,825 11,202 68
Intellectual property and other acquired intangible assets15,842 2,018 13,824 123
Total$164,215 $49,697 $114,518 
Amortization expense of intangible assets was $6.3 million and $4.1 million during the three months ended July 31, 2024 and July 31, 2023, and $12.3 million and $8.3 million during the six months ended July 31, 2024 and July 31, 2023, respectively.
The estimated aggregate future amortization expense of intangible assets as of July 31, 2024 was as follows (in thousands):
Total
Fiscal 2025 (remaining six months) $12,666 
Fiscal 202624,240 
Fiscal 202722,065 
Fiscal 202821,552 
Fiscal 202918,799 
Thereafter16,364 
Total amortization expense$115,686 
Developed technology, customer relationships, intellectual property and other acquired intangible assets are amortized over their estimated useful lives, generally on a straight-line basis, for periods ranging from 2 to 20 years.
Goodwill
The change in goodwill during the six months ended July 31, 2024 consisted of the following (in thousands):
Amounts
Goodwill as of January 31, 2024
$638,041 
Goodwill acquired(1)
83,957 
Foreign currency translation(2)
Goodwill as of July 31, 2024
$721,996 
(1)    Goodwill acquired resulted from the acquisition of Flow Security. Refer to Note 9 for additional information.
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Accrued Expenses
Accrued expenses consisted of the following (in thousands):
July 31, 2024January 31, 2024
Web hosting services$18,926 $40,706 
Accrued professional services15,767 11,867 
Accrued marketing14,881 14,623 
Accrued interest expense10,375 10,375 
Accrued partner commissions 10,347 13,584 
Other accrued expenses10,155 9,078 
Accrued partner rebates9,935 4,434 
Accrued purchases of property and equipment6,819 16,190 
Accrued health benefits and claims4,095 5,039 
Accrued expenses$101,300 $125,896 
Accrued Payroll and Benefits
Accrued payroll and benefits consisted of the following (in thousands):
July 31, 2024January 31, 2024
Accrued commissions$90,514 $116,870 
Accrued payroll and related expenses62,408 58,579 
Accrued bonuses35,226 36,860 
Employee Stock Purchase Plan17,281 22,315 
Accrued payroll and benefits$205,429 $234,624 
4. Debt
Secured Revolving Credit Facility
In April 2019, the Company entered into a Credit Agreement with Silicon Valley Bank and other lenders, to provide a revolving line of credit of up to $150.0 million, including a letter of credit sub-facility in the aggregate amount of $10.0 million, and a swingline sub-facility in the aggregate amount of $10.0 million.
On January 4, 2021, the Company amended and restated its existing credit agreement (the “A&R Credit Agreement” and the facility thereunder the “Revolving Facility”) among CrowdStrike, Inc., as borrower, CrowdStrike Holdings, Inc., as guarantor, and Silicon Valley Bank and the other lenders party thereto, providing the Company with a revolving line of credit of up to $750.0 million, including a letter of credit sub-facility in the aggregate amount of $100.0 million, and a swingline sub-facility in the aggregate amount of $50.0 million. The Company also has the option to request an incremental facility of up to an additional $250.0 million from one or more of the lenders under the A&R Credit Agreement. The A&R Credit Agreement is guaranteed by all of the Company’s material domestic subsidiaries. The A&R Credit Agreement extended the maturity date of April 19, 2022 to January 2, 2026.
On January 6, 2022, the Company modified the A&R Credit Agreement (the “Amended A&R Credit Agreement”) among CrowdStrike, Inc., as borrower, CrowdStrike Holdings, Inc., as guarantor, and Silicon Valley Bank and the other lenders party thereto. There were no changes to the borrowing amounts or maturity date. Under the Amended A&R Credit Agreement, revolving loans are Alternate Base Rate (“ABR”) Loans. Outstanding ABR Loans incur interest at the highest of (a) the Prime Rate, as published by the Wall Street Journal, (b) the federal funds rate in effect on such day plus 0.50%, and (c) the Term Secured Overnight Finance Rate (the “Term SOFR”) for a one-month tenor in effect on such day plus 1.00%, in each case plus a margin between (0.25)% and 0.25%, depending on the senior secured leverage ratio. The Company will be charged a commitment fee of 0.15% to 0.25% per year for committed but unused amounts, depending on the senior secured leverage ratio. The financial covenants require the Company to maintain a minimum consolidated interest coverage ratio of 3.00:1.00 and a maximum total leverage ratio of 5.50:1.00 stepping down to 3.50:1.00 over time. The Company was in compliance with all of its financial covenants as of July 31, 2024.
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The Amended A&R Credit Agreement is secured by substantially all of the Company’s current and future consolidated assets, property and rights, including, but not limited to, intellectual property, cash, goods, equipment, contractual rights, financial assets, and intangible assets of the Company and certain of its subsidiaries. The Amended A&R Credit Agreement contains customary covenants limiting the Company’s ability and the ability of its subsidiaries to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock, and make investments, in each case subject to certain exceptions.
No amounts were outstanding under the Amended A&R Credit Agreement as of July 31, 2024 or January 31, 2024.
Senior Notes
On January 20, 2021, the Company issued $750.0 million in aggregate principal amount of 3.00% Senior Notes maturing in February 2029. The Senior Notes are guaranteed by the Company’s subsidiary, CrowdStrike, Inc. and will be guaranteed by each of the Company’s existing and future domestic subsidiaries that becomes a borrower or guarantor under the A&R Credit Agreement. The Senior Notes were issued at par and bear interest at a rate of 3.00% per annum. Interest payments are payable semiannually on February 15 and August 15 of each year, commencing on August 15, 2021. The Company may voluntarily redeem the Senior Notes, in whole or in part, 1) at any time prior to February 15, 2024 at (a) 100.00% of their principal amount, plus a “make whole” premium or (b) with the net cash proceeds received from an equity offering at a redemption price equal to 103.00% of the principal amount, provided the aggregate principal amount of all such redemptions does not exceed 40% of the original aggregate principal amount of the Senior Notes; 2) at any time on or after February 15, 2024 at a prepayment price equal to 101.50% of the principal amount; 3) at any time on or after February 15, 2025 at a prepayment price equal to 100.75% of the principal amount; and 4) at any time on or after February 15, 2026 at a prepayment price equal to 100.00% of the principal amount; in each case, plus accrued and unpaid interest, if any, to but excluding, the date of redemption.
The net proceeds from the debt offering were $738.0 million after deducting the underwriting commissions of $9.4 million and $2.6 million of issuance costs. The debt issuance costs are being amortized to interest expense using the effective interest method over the term of the Senior Notes. Interest expense related to contractual interest expense, amortization of debt issuance costs, and accretion of debt discount was $6.0 million during the three months ended July 31, 2024 and 2023 and $12.0 million during the six months ended July 31, 2024 and 2023.
In certain circumstances involving a change of control event, the Company will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s notes of that series at 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.
The indenture governing the Senior Notes (the “Indenture”) contains covenants limiting the Company’s ability and the ability of its subsidiaries to create liens on certain assets to secure debt; grant a subsidiary guarantee of certain debt without also providing a guarantee of the Senior Notes; declare dividends; and consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of its assets to, another person. These covenants are subject to a number of limitations and exceptions. Certain of these covenants will not apply during any period in which the notes are rated investment grade by Fitch Ratings, Inc. (“Fitch”), Moody’s Investors Service, Inc. (“Moody’s”), and Standard & Poor’s Ratings Services (“S&P”).
As of July 31, 2024, the Company was in compliance with all of its financial covenants under the Indenture associated with the Senior Notes.
Based on the trading prices of the Senior Notes, the fair value of the Senior Notes was approximately $673.2 million and $671.2 million as of July 31, 2024 and January 31, 2024, respectively. While the Senior Notes are recorded at cost, the fair value of the Senior Notes was determined based on quoted prices in markets that are not active; accordingly, the Senior Notes are categorized as Level 2 for purposes of the fair value measurement hierarchy.
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5. Income Taxes
The Company’s provision for income taxes during interim reporting periods has generally been calculated using an estimated annual effective tax rate, adjusted for discrete items. When a reliable estimate cannot be made, the actual tax or benefit applicable may be reported as a discrete item in the interim period. For the three and six months ended July 31, 2024, the Company was unable to reliably estimate the annual effective tax rate for its U.S. jurisdiction, due to the sensitivity of the tax rate as a result of minor changes in forecasted income. As a result, the Company has computed its U.S. tax provision on a discrete basis. The Company recognized income tax expense of $10.9 million and $4.6 million for the three months ended July 31, 2024 and July 31, 2023, respectively, and $18.6 million and $9.0 million for the six months ended July 31, 2024 and July 31, 2023, respectively. The tax expense for the three and six months ended July 31, 2024 and July 31, 2023 was primarily attributable to pre-tax earnings and withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business. The Company’s effective tax rates of 18.9% and 35.2% for the three months ended July 31, 2024 and July 31, 2023, respectively, and 16.7% and 50.1% for the six months ended July 31, 2024 and July 31, 2023, respectively, differ from the U.S. statutory tax rate primarily due to income taxes in foreign jurisdictions, withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business, and valuation allowance in the U.S. and certain foreign jurisdictions.
Total gross unrecognized tax benefits were $70.9 million and $58.9 million as of July 31, 2024 and January 31, 2024, respectively, which is primarily attributable to research and development credits. As of July 31, 2024 and January 31, 2024, approximately $14.4 million and $12.7 million, respectively of unrecognized tax benefits, which, if recognized, would affect the Company’s effective tax rate due to the full valuation allowance. The Company’s policy is to classify interest and penalties related to unrecognized tax benefits as part of the income tax provision in the condensed consolidated statements of operations. The Company had incurred $2.1 million and $1.4 million of interest and penalties related to unrecognized tax benefits as of July 31, 2024 and January 31, 2024. The potential change in unrecognized tax benefits during the next 12 months is not expected to be material.
In accordance with the guidance on the accounting for uncertainty in income taxes, for all U.S. and other tax jurisdictions, the Company recognizes potential liabilities for anticipated tax audit issues based on the Company’s estimate of whether, and the extent to which, additional taxes and interest will be due. The Company files income tax returns in the U.S. federal, and various state jurisdictions, as well as various foreign jurisdictions. Tax years 2011 and onwards remain subject to examination by taxing authorities. If the Company’s estimate of income tax liabilities proves to be less than the ultimate assessment, a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes in the condensed consolidated statements of operations. Accrued interest and penalties are included within other liabilities, noncurrent on the condensed consolidated balance sheets.
The Company maintains a full valuation allowance on U.S. federal and state and certain foreign deferred tax assets, including net operating loss carryforwards and tax credits, which the Company has determined are not realizable on a more-likely-than-not basis. The Company regularly evaluates the need for a valuation allowance.
6. Stock-Based Compensation
Stock Incentive Plan
In May 2019, the Company’s board of directors adopted, and the stockholders approved the CrowdStrike Holdings, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) with the purpose of granting stock-based awards to employees, directors, officers, and consultants, including stock options, restricted stock awards, restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”). A total of 8,750,000 shares of Class A common stock were initially available for issuance under the 2019 Plan. The Company’s compensation committee administers the 2019 Plan. The number of shares of the Company’s common stock available for issuance under the 2019 Plan is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of: (i) two percent (2%) of outstanding shares of the Company’s capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as the Company’s board of directors may determine.
The 2011 Plan was terminated on June 10, 2019, which was the business day prior to the effectiveness of the Company’s registration statement on Form S-1 used in connection with the Company’s IPO, and stock-based awards are no longer granted under the 2011 Plan. Any shares underlying stock options that expire, terminate, or are forfeited or repurchased under the 2011 Plan will be automatically transferred to the 2019 Plan.
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Stock Options
The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model.
Stock options granted during the six months ended July 31, 2024 were immaterial. There were no stock options granted during the six months ended July 31, 2023.
The following table is a summary of stock option activity for the six months ended July 31, 2024:
Number of
Shares		Weighted-Average
Exercise Price
Per Share
(in thousands)
Options outstanding at January 31, 20241,754 $9.37 
Granted14 $3.25 
Exercised(300)$8.20 
Canceled(16)$8.41 
Options outstanding at July 31, 20241,452 $9.58 
Options vested and expected to vest at July 31, 20241,452 $9.58 
Options exercisable at July 31, 20241,375 $9.41 
Options outstanding include 43,999 options that were unvested and exercisable as of July 31, 2024.
The aggregate intrinsic value of options vested and exercisable was $306.0 million and $451.0 million as of July 31, 2024 and January 31, 2024, respectively. The weighted-average remaining contractual term of options vested and exercisable was 3.8 years and 4.2 years as of July 31, 2024 and January 31, 2024, respectively.
The weighted-average grant date fair values of all options granted was $325.22 per share and none during the six months ended July 31, 2024 and July 31, 2023, respectively. The total intrinsic value of all options exercised was $75.2 million and $29.4 million during the three months ended July 31, 2024 and July 31, 2023, respectively, and $103.7 million and $74.5 million during the six months ended July 31, 2024 and July 31, 2023, respectively.
The aggregate intrinsic value of stock options outstanding as of July 31, 2024 and January 31, 2024 was $322.7 million and $496.7 million, respectively, which represents the excess of the fair value of the Company’s common stock over the exercise price of the options multiplied by the number of options outstanding. The weighted-average remaining contractual term of stock options outstanding was 3.9 years and 4.3 years as of July 31, 2024 and January 31, 2024, respectively.
Total unrecognized stock-based compensation expense related to unvested options was $6.2 million as of July 31, 2024. This expense is expected to be amortized over a weighted-average vesting period of one year.
Restricted Stock Units
RSUs granted under the 2019 Plan are generally subject to only a service-based vesting condition. The service-based vesting condition is generally satisfied based on one of the following vesting schedules: (i) vesting of one-fourth of the RSUs on the first “Company vest date” (defined as March 20, June 20, September 20, or December 20) on or following the one-year anniversary of the vesting commencement date with the remainder of the RSUs vesting in twelve equal quarterly installments thereafter, subject to continued service, (ii) vesting in sixteen equal quarterly installments, subject to continued service, or (iii) vesting in sixteen quarterly installments with 10% in the first year, 15% in the second year, 25% in the third year and 50% in the fourth year, subject to continued service. The valuation of these RSUs is based solely on the fair value of the Company’s stock on the date of grant.
Total unrecognized stock-based compensation expense related to unvested RSUs was $1.7 billion as of July 31, 2024. This expense is expected to be amortized over a weighted-average vesting period of 2.7 years.
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Performance-based Stock Units
PSUs granted under the 2019 Plan are generally subject to both a service-based vesting condition and a performance-based vesting condition. PSUs will vest upon the achievement of specified performance targets and subject to continued service through the applicable vesting dates. The stock-based compensation expense relating to PSUs is recognized using the accelerated attribution method over the requisite service period when it is probable that the performance condition will be satisfied.
Total unrecognized stock-based compensation expense related to unvested PSUs was $62.8 million as of July 31, 2024, which reflects the Company's updated assessment of the likelihood of satisfying the performance conditions. This expense is expected to be amortized over a weighted-average vesting period of 1.4 years.
Special PSU Awards
In fiscal 2022 the Company’s board of directors granted 655,000 performance stock units (the “Special PSU Awards”) to certain executives under the 2019 Plan. The Special PSU Awards vest upon the satisfaction of the Company’s achievement of specified stock price hurdles, which are based on the average of the closing stock price per share of the Company’s Class A common stock during any 45 consecutive trading day period during the applicable performance period, and a service-based vesting condition. The service condition applicable to each tranche of the Special PSU Awards will be satisfied in installments as follows, subject to continued employment with the Company through each applicable vesting date: (i) 50% of the Special PSU Awards underlying the applicable tranche will service vest on the first anniversary of the vesting commencement date applicable to such tranche of the Special PSU Awards (i.e., February 1, 2022, February 1, 2023, February 1, 2024 and February 1, 2025) and (ii) the remaining PSUs with respect to such tranche will thereafter service vest in four equal quarterly installments of 12.5%.
The Company measured the fair value of the Special PSU Awards on the grant date using a Monte Carlo simulation valuation model. The risk-free interest rates used were 0.85% -1.51%, which were based on the zero-coupon-risk-free interest rate derived from the Treasury Constant Maturities yield curve for the expected term of the award on the grant date. The expected volatility was a blended volatility rate of 54.89% - 55.36%, which includes 50% weight on the Company’s historical volatility calculated from daily stock returns over a 2.21- 2.58 year look-back from the grant date and 50% weight based on the Company’s implied volatility as of the grant date.
Total unrecognized stock-based compensation expense related to the unvested portion of the Special PSU Awards was $20.2 million as of July 31, 2024. This expense is expected to be amortized over a weighted-average vesting period of 1.2 years.
The following table is a summary of RSUs, PSUs and the Special PSU Awards activities for the six months ended July 31, 2024:
Number of
Shares		Weighted-
Average Grant
Date Fair Value
Per Share
(in thousands)
RSUs and PSUs outstanding at January 31, 202410,968 $167.84 
Granted2,260 $316.48 
Released(2,434)$157.47 
Performance adjustment (1)
241 $132.83 
Forfeited(412)$191.16 
RSUs and PSUs outstanding at July 31, 202410,623 $200.17 
RSUs and PSUs expected to vest at July 31, 2024 (2)
9,832 $197.27 
(1)The performance adjustment represents adjustments in shares outstanding due to the actual achievement of performance-based awards, the achievement of which was based upon pre-defined financial performance targets.
(2)Excludes in progress PSUs and Special PSUs where pre-defined targets have not yet been achieved.
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Employee Stock Purchase Plan
In May 2019, the board of directors adopted, and the stockholders approved the CrowdStrike Holdings, Inc. 2019 Employee Stock Purchase Plan (“ESPP”), which became effective on June 10, 2019, which was the business day prior to the effectiveness of the Company’s registration statement on Form S-1 used in connection with the Company’s IPO. A total of 3,500,000 shares of Class A common stock were initially reserved for issuance under the ESPP. The Company’s compensation committee administers the ESPP. The number of shares of common stock available for issuance under the ESPP is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of: (i) one percent (1%) of the outstanding shares of the Company’s capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as its board of directors may determine. In May 2021, the Company’s compensation committee adopted an amendment and restatement of the ESPP, which was approved by the Company’s stockholders in June 2021. The amended and restated ESPP clarified the original intent that the annual increase will in no event exceed 5,000,000 shares of the Company’s Class A common stock in any year.
The ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and are comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 11 and December 11 of each year. The first offering period commenced on June 11, 2019 and ended on June 10, 2021.
The ESPP provides eligible employees with an opportunity to purchase shares of the Company’s Class A common stock through payroll deductions of up to 15% of their eligible compensation. A participant may purchase a maximum of 2,500 shares of common stock during a purchase period. Amounts deducted and accumulated by the participant are used to purchase shares of common stock at the end of each six-month purchase period. The purchase price of the shares is 85% of the lower of the fair market value of the Class A common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the related offering period. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of common stock. Participation ends automatically upon termination of employment. The ESPP allows for up to one increase in contribution during each purchase period. If an employee elects to increase his or her contribution, the Company treats this as an accounting modification. The ESPP also offers a two-year look-back feature, as well as a rollover feature that provides for an offering period to be rolled over to a new lower-priced offering if the offering price of the new offering period is less than that of the current offering period. Contribution modifications during the three and six months ended July 31, 2024 were $7.2 million, which will be recognized over the remaining offering periods.
Employee payroll contributions ultimately used to purchase shares are reclassified to stockholders’ equity on the purchase date. ESPP employee payroll contributions accrued as of July 31, 2024 and January 31, 2024 totaled $17.3 million and $22.3 million, respectively, and are included within accrued payroll and benefits in the condensed consolidated balance sheets.
The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine the fair value of employee stock purchase rights granted under the Company’s ESPP:
Six Months Ended July 31,
20242023
Expected term (in years)
0.5 – 2.0
0.5 – 2.0
Risk-free interest rate
3.4% – 5.3%
0.2% – 5.2%
Expected stock price volatility
40.8% – 59.8%
46.3% – 61.2%
Dividend yield— %— %
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Stock-Based Compensation Expense
Stock-based compensation expense included in the condensed consolidated statements of operations is as follows (in thousands):
Three Months Ended July 31,Six Months Ended July 31,
2024202320242023
Subscription cost of revenue$16,732 $10,132 $30,648 $19,098 
Professional services cost of revenue7,344 5,745 13,617 10,375 
Sales and marketing57,405 51,442 109,663 87,181 
Research and development75,851 46,985 142,593 91,366 
General and administrative43,545 50,473 87,481 87,613 
Total stock-based compensation expense$200,877 $164,777 $384,002 $295,633 
7. Revenue, Deferred Revenue and Remaining Performance Obligations
The following table summarizes revenue by region based on the shipping address of customers who have contracted to use the Company’s platform or service (in thousands, except percentages):
Three Months Ended July 31,Six Months Ended July 31,
2024202320242023
Amount% RevenueAmount% RevenueAmount% RevenueAmount% Revenue
United States$655,001 68 %$500,864 69 %$1,285,027 68 %$975,689 69 %
Europe, Middle East, and Africa148,851 15 %111,909 15 %290,463 15 %216,461 15 %
Asia Pacific98,274 10 %75,198 10 %191,736 10 %147,417 10 %
Other61,746 7 %43,655 6 %117,682 7 %84,639 6 %
Total revenue$963,872 100 %$731,626 100 %$1,884,908 100 %$1,424,206 100 %
No single country other than the United States represented 10% or more of the Company’s total revenue during the three and six months ended July 31, 2024 and July 31, 2023.
Contract Balances
Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. The Company recognized revenue of $843.4 million and $642.3 million for the three months ended July 31, 2024 and July 31, 2023, respectively, and $1,456.5 million and $1,089.9 million for the six months ended July 31, 2024 and July 31, 2023, respectively which was included in the corresponding contract liability balance at the beginning of the period.
The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 – 60 days. Contract assets include amounts related to the contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced.
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Changes in deferred revenue were as follows (in thousands):
Three Months Ended July 31,Six Months Ended July 31,
2024202320242023
Carrying AmountCarrying Amount
Beginning balance$3,069,379 $2,403,791 $3,054,099 $2,355,113 
Additions to deferred revenue987,690 835,477 1,924,006 1,576,735 
Recognition of deferred revenue(963,872)(731,626)(1,884,908)