EX-99.1 2 ex-99d1.htm EX-99.1 crwd_Ex99_1

Exhibit 99.1

 

CrowdStrike Reports Fiscal Second Quarter 2020 Financial Results

 

·

Total revenue of $108.1 million, grew 94% year-over-year

·

Subscription revenue of $97.6 million, grew 98% year-over-year

·

ARR of $423.8 million, grew 104% year-over-year

 

SUNNYVALE, Calif., September 5, 2019 -- CrowdStrike Holdings, Inc., (Nasdaq: CRWD), a leader in cloud-delivered endpoint protection, today announced financial results for the second quarter of its fiscal 2020, ended July 31, 2019.

 

“We delivered a strong second quarter with rapid subscription revenue growth and record net new ARR generated in the quarter,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer. “Customer growth accelerated as an increasing number of organizations recognize the power of CrowdStrike’s cloud-native Falcon platform to effectively stop breaches and simplify their security stack with our single-agent architecture. We secured a record number of net new subscription customers in the quarter. In addition, as of July 31, 2019, 50% of our subscription customers had adopted four or more cloud modules, underscoring the continued success of our platform strategy.”

 

Second Quarter Fiscal 2020 Financial Highlights

 

·

Revenue: Total revenue was $108.1 million, a 94% increase, compared to $55.7 million in the second quarter of fiscal 2019. Subscription revenue was $97.6 million, a 98% increase, compared to $49.2 million in the second quarter of fiscal 2019. 

 

·

Annual Recurring Revenue (ARR) increased 104% year-over-year and grew to $423.8 million as of July 31, 2019, of which $59.2 million was net new ARR added in the quarter.

 

·

Subscription Gross Margin: GAAP subscription gross margin was 74%, compared to 70% in the second quarter of fiscal 2019. Non-GAAP subscription gross margin was 76%, compared to 71% in the second quarter of fiscal 2019.

 

·

Loss from Operations: GAAP loss from operations was $50.6 million, compared to $30.4 million in the second quarter of fiscal 2019. Non-GAAP loss from operations was $20.6 million, compared to $28.0 million in the second quarter of fiscal 2019.

 

·

Net Loss: GAAP net loss was $51.9 million, compared to $32.9 million in the second quarter of fiscal 2019. GAAP net loss per share was $0.40, compared to $0.75 in the second quarter of fiscal 2019. Non-GAAP net loss was $23.1 million, compared to $30.4 million in the second quarter of fiscal 2019. Non-GAAP net loss per share was $0.18, compared to $0.69 in the second quarter of fiscal 2019.

 

·

Cash Flow: Net cash used in operations was $6.2 million, compared to a use of $28.7 million in the second quarter of fiscal 2019. Free cash flow was negative $29.2 million, compared to negative $35.7 million in the second quarter of fiscal 2019.

 

·

Cash, cash equivalents and marketable securities were $826.8 million as of July 31, 2019.

 

 

Recent Highlights

 

·

Added a record 730 net new subscription customers in the quarter for a total of 3,789 subscription customers as of July 31, 2019.

 

·

50% of CrowdStrike’s subscription customers have adopted four or more cloud modules as of July 31, 2019.

 

·

CrowdStrike positioned as a Leader in the Magic Quadrant for Endpoint Protection Platforms by Gartner, Inc.

 

·

Launched Falcon Fund, an early stage investment fund started by CrowdStrike in partnership with Accel.

 

·

Introduced CrowdScore, which leverages cloud-based analytics and AI to enable executives to instantly see the real-time threat level their organizations are facing, allowing customers to quickly mobilize resources to respond.

 

Financial Outlook

 

CrowdStrike is providing the following guidance for the third quarter of fiscal 2020 (ending October 31, 2019) and is raising its guidance for fiscal year 2020 (ending January 31, 2020):

 

 

 

 

 

 

 

    

Q3 FY20

    

Full Year FY20

 

 

Guidance

 

Guidance

Total revenue

 

$117.1 - $119.5 million

 

$445.4 - $451.8 million

Non-GAAP loss from operations

 

$(27.7) - $(26.1) million

 

$(97.9) - $(93.5) million

Non-GAAP net loss

 

$(24.8) - $(23.2) million

 

$(95.3) - $(90.8) million

Non-GAAP net loss per share, basic and diluted

 

$(0.12) - $(0.11)

 

$(0.65) - $(0.62)

Weighted average shares used in computing Non-GAAP net loss per share attributable to common stockholders, basic and diluted

 

204.1 million

 

147.3 million

 

 

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

 

Guidance for non-GAAP financial measures excludes stock-based compensation expense and amortization expense of acquired intangible assets. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP loss from operations, non-GAAP net loss, and non-GAAP net loss per share is not available without unreasonable effort.

 

Conference Call Information

 

CrowdStrike will host a conference call for analysts and investors to discuss its earnings results for the second quarter of fiscal 2020 and outlook for its fiscal third quarter and year 2020 today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). A recorded webcast of the event will also be available for one year on the CrowdStrike Investor Relations website ir.crowdstrike.com.

 

Date:Thursday, September 5, 2019

Time:2:00 p.m. Pacific time / 5:00 p.m. Eastern time

Dial-in number:800-525-5356 or 409-937-8967, conference ID: 7382028

Webcast:ir.crowdstrike.com

 

Forward-Looking Statements

 

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our future financial and operating performance, including our financial outlook for the fiscal third quarter and year 2020. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our limited operating history; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth; our limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the risk of defects, errors, or vulnerabilities; our ability to attract new and retain existing customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscriptions and support; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and general market, political, economic, and business conditions.

 

Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in our filings and reports with the Securities and Exchange Commission (“SEC”), including our prospectus filed with the SEC pursuant to Rule 424(b), dated June 11, 2019, copies of which are available on our website at ir.crowdstrike.com and on the SEC’s website at www.sec.gov.

 

You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

 

Use of Non-GAAP Financial Information

 

We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below, as well as the “Explanation of Non-GAAP Financial Measures" section of this press release.

 

About CrowdStrike Holdings

 

CrowdStrike provides cloud-delivered endpoint protection. Leveraging artificial intelligence (AI), the CrowdStrike Falcon platform protects customers against cyberattacks on endpoints on or off the network by offering visibility and protection across the enterprise.

 

2019 CrowdStrike, Inc. All rights reserved. CrowdStrike® and CrowdStrike Falcon are among the trademarks of CrowdStrike, Inc.

 

Investor Relations Contact

CrowdStrike Holdings, Inc.
Maria Riley, Senior Director of Investor Relations
investors@crowdstrike.com
669-721-0742

 

Press Contact

CrowdStrike Holdings, Inc.
Ilina Cashiola, Director of Public Relations
ilina.cashiola@crowdstrike.com
202-340-0517

 

###

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 31, 

 

Six Months Ended July 31, 

 

    

2019

    

2018

    

2019

    

2018

Revenue

 

 

  

 

 

  

 

 

  

 

 

  

Subscription

 

$

97,575

 

$

49,161

 

$

183,566

 

$

88,919

Professional services

 

 

10,533

 

 

6,540

 

 

20,619

 

 

14,071

Total revenue

 

 

108,108

 

 

55,701

 

 

204,185

 

 

102,990

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

  

 

 

  

 

 

  

 

 

  

Subscription (1)

 

 

24,946

 

 

14,604

 

 

48,637

 

 

29,775

Professional services (1)

 

 

6,636

 

 

3,971

 

 

12,219

 

 

8,194

Total cost of revenue

 

 

31,582

 

 

18,575

 

 

60,856

 

 

37,969

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

76,526

 

 

37,126

 

 

143,329

 

 

65,021

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

  

 

 

 

 

 

  

 

 

  

Sales and marketing (1)

 

 

65,274

 

 

40,113

 

 

122,117

 

 

76,730

Research and development (1)

 

 

31,630

 

 

18,963

 

 

55,505

 

 

36,578

General and administrative (1)

 

 

30,261

 

 

8,477

 

 

42,122

 

 

15,254

Total operating expenses

 

 

127,165

 

 

67,553

 

 

219,744

 

 

128,562

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(50,639)

 

 

(30,427)

 

 

(76,415)

 

 

(63,541)

Interest expense

 

 

(164)

 

 

(236)

 

 

(165)

 

 

(428)

Other expense, net

 

 

(451)

 

 

(1,852)

 

 

(56)

 

 

(2,042)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before provision for income taxes

 

 

(51,254)

 

 

(32,515)

 

 

(76,636)

 

 

(66,011)

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

(635)

 

 

(362)

 

 

(1,230)

 

 

(483)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(51,889)

 

$

(32,877)

 

$

(77,866)

 

$

(66,494)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to Class A and Class B common stockholders, basic and diluted

 

$

(0.40)

 

$

(0.75)

 

$

(0.87)

 

$

(1.52)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted

 

 

130,091

 

 

44,105

 

 

89,335

 

 

43,864

 

 

 

(1)

Includes stock-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 31, 

    

Six Months Ended July 31, 

 

 

2019

    

2018

    

2019

    

2018

 

 

(in thousands)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription cost of revenue

 

$

1,233

 

$

88

 

$

1,498

 

$

151

Professional services cost of revenue

 

 

644

 

 

57

 

 

747

 

 

103

Sales and marketing

 

 

6,638

 

 

1,031

 

 

8,156

 

 

1,804

Research and development

 

 

4,976

 

 

539

 

 

5,657

 

 

987

General and administrative

 

 

16,368

 

 

509

 

 

17,553

 

 

898

Total stock-based compensation expense

 

$

29,859

 

$

2,224

 

$

33,611

 

$

3,943

 

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

    

July 31, 

    

January 31, 

 

 

2019

 

2019

Assets

 

 

  

 

 

  

Current assets:

 

 

  

 

 

  

Cash and cash equivalents

 

$

732,808

 

$

88,408

Marketable securities

 

 

94,003

 

 

103,247

Accounts receivable, net

 

 

115,256

 

 

92,476

Deferred contract acquisition costs, current

 

 

34,017

 

 

28,847

Prepaid expenses and other current assets

 

 

29,348

 

 

18,410

Total current assets

 

 

1,005,432

 

 

331,388

Property and equipment, net

 

 

107,989

 

 

73,735

Deferred contract acquisition costs, noncurrent

 

 

41,766

 

 

9,918

Goodwill

 

 

7,780

 

 

7,947

Intangible assets, net

 

 

738

 

 

1,048

Other assets

 

 

7,881

 

 

9,183

Total assets

 

$

1,171,586

 

$

433,219

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit)

 

 

 

 

 

  

Current liabilities:

 

 

 

 

 

  

Accounts payable

 

$

1,126

 

$

6,855

Accrued expenses

 

 

32,568

 

 

32,541

Accrued payroll and benefits

 

 

20,057

 

 

19,284

Deferred revenue

 

 

279,951

 

 

218,700

Other current liabilities

 

 

8,079

 

 

4,040

Total current liabilities

 

 

341,781

 

 

281,420

Deferred revenue, noncurrent

 

 

89,811

 

 

71,367

Other liabilities, noncurrent

 

 

11,897

 

 

10,313

Total liabilities

 

 

443,489

 

 

363,100

Commitments and contingencies

 

 

 

 

 

  

Redeemable Convertible Preferred Stock

 

 

 

 

 

  

Redeemable convertible preferred stock

 

 

 —

 

 

557,912

Stockholders’ Equity (Deficit)

 

 

 

 

 

  

Preferred stock

 

 

 —

 

 

 —

Common stock 

 

 

 —

 

 

24

Common stock, Class A and Class B

 

 

103

 

 

 —

Additional paid-in capital

 

 

1,302,098

 

 

31,211

Accumulated deficit

 

 

(573,574)

 

 

(519,126)

Accumulated other comprehensive income (loss)

 

 

(530)

 

 

98

Total stockholders’ equity (deficit)

 

 

728,097

 

 

(487,793)

Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)

 

$

1,171,586

 

$

433,219

 

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended July 31, 

 

 

    

2019

    

2018

 

Operating activities

 

 

  

 

 

  

 

Net loss

 

$

(77,866)

 

$

(66,494)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

  

 

 

  

 

Depreciation and amortization

 

 

10,193

 

 

6,424

 

Amortization of intangible assets

 

 

285

 

 

373

 

Amortization of deferred contract acquisition costs

 

 

15,076

 

 

11,991

 

Change in fair value of redeemable convertible preferred stock warrant liability

 

 

6,022

 

 

2,055

 

Allowance for doubtful accounts

 

 

22

 

 

203

 

Stock-based compensation expense

 

 

33,611

 

 

3,943

 

Accretion of marketable securities purchased at a discount

 

 

(960)

 

 

(169)

 

Non-cash interest expense

 

 

163

 

 

187

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

Accounts receivable

 

 

(22,802)

 

 

2,116

 

Deferred contract acquisition costs

 

 

(27,788)

 

 

(14,298)

 

Prepaid expenses and other assets

 

 

(12,505)

 

 

(91)

 

Accounts payable

 

 

(5,897)

 

 

(7,703)

 

Accrued expenses and other current liabilities

 

 

(2,095)

 

 

(9,058)

 

Accrued payroll and benefits

 

 

773

 

 

(1,647)

 

Deferred revenue

 

 

79,362

 

 

37,246

 

Other liabilities, noncurrent

 

 

(393)

 

 

(215)

 

Net cash used in operating activities

 

 

(4,799)

 

 

(35,137)

 

Investing activities

 

 

  

 

 

  

 

Purchases of property and equipment

 

 

(37,159)

 

 

(14,068)

 

Capitalized internal-use software

 

 

(3,310)

 

 

(3,201)

 

Purchases of marketable securities

 

 

(117,572)

 

 

(80,204)

 

Proceeds from sales of marketable securities

 

 

4,473

 

 

 —

 

Maturities of marketable securities

 

 

123,314

 

 

2,600

 

Net cash used in investing activities

 

 

(30,254)

 

 

(94,873)

 

Financing activities

 

 

  

 

 

  

 

Proceeds from the issuance of common stock upon initial public offering, net of underwriting discounts

 

 

665,092

 

 

 —

 

Proceeds from the issuance of redeemable convertible preferred stock, net of issuance costs

 

 

 —

 

 

199,896

 

Repayment of loan payable

 

 

 —

 

 

(6,158)

 

Proceeds from revolving line of credit

 

 

 —

 

 

10,000

 

Repayment of revolving line of credit

 

 

 —

 

 

(20,000)

 

Repayment of notes receivable from related parties

 

 

 —

 

 

198

 

Payments of indemnity holdback

 

 

 —

 

 

(500)

 

Repurchase of stock options

 

 

 —

 

 

(2,330)

 

Payments of deferred offering costs

 

 

(4,080)

 

 

 —

 

Proceeds from issuance of common stock upon exercise of stock options

 

 

8,526

 

 

1,514

 

Proceeds from the issuance of common stock upon exercise of early exercisable stock options

 

 

10,264

 

 

 —

 

Net cash provided by financing activities

 

 

679,802

 

 

182,620

 

 

 

 

 

 

 

 

 

Effect of foreign exchange rates on cash and cash equivalents

 

 

(349)

 

 

(255)

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

644,400

 

 

52,355

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

 

88,408

 

 

63,179

 

Cash and cash equivalents, end of period

 

$

732,808

 

$

115,534

 

 

 

CROWDSTRIKE HOLDINGS, INC.

Non-GAAP Financial Measures with Reconciliation to GAAP

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 31, 

 

Six Months Ended July 31, 

 

 

    

2019

    

2018

    

2019

    

2018

 

 

 

(in thousands)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription revenue

 

$

97,575

 

$

49,161

 

$

183,566

 

$

88,919

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription gross profit

 

$

72,629

 

$

34,557

 

$

134,929

 

$

59,144

 

Add: Stock-based compensation expense

 

 

1,233

 

 

88

 

 

1,498

 

 

151

 

Add: Amortization of acquired intangible assets

 

 

97

 

 

106

 

 

201

 

 

202

 

Non-GAAP subscription gross profit

 

$

73,959

 

$

34,751

 

$

136,628

 

$

59,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription gross margin

 

 

74

%  

 

70

%

 

74

%  

 

67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP subscription gross margin

 

 

76

%  

 

71

%

 

74

%  

 

67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 31, 

 

Six Months Ended July 31, 

 

 

    

2019

    

2018

    

2019

    

2018

 

 

 

(in thousands)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total revenue

 

$

108,108

 

$

55,701

 

$

204,185

 

$

102,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss from operations

 

$

(50,639)

 

$

(30,427)

 

$

(76,415)

 

$

(63,541)

 

Add: Stock-based compensation expense

 

 

29,859

 

 

2,224

 

 

33,611

 

 

3,943

 

Add: Amortization of acquired intangible assets

 

 

139

 

 

207

 

 

285

 

 

373

 

Non-GAAP loss from operations

 

$

(20,641)

 

$

(27,996)

 

$

(42,519)

 

$

(59,225)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating margin

 

 

(47)

%  

 

(55)

%

 

(37)

%  

 

(62)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating margin

 

 

(19)

%  

 

(50)

%

 

(21)

%  

 

(58)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 31, 

 

Six Months Ended July 31, 

 

    

2019

    

2018

    

2019

    

2018

 

 

(in thousands)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(51,889)

 

$

(32,877)

 

$

(77,866)

 

$

(66,494)

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Stock-based compensation expense

 

 

29,859

 

 

2,224

 

 

33,611

 

 

3,943

Add: Amortization of acquired intangible assets

 

 

139

 

 

207

 

 

285

 

 

373

Less: Gain on settlement of lawsuit

 

 

(1,250)

 

 

 —

 

 

(1,250)

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(23,141)

 

$

(30,446)

 

$

(45,220)

 

$

(62,178)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

 

130,091

 

 

44,105

 

 

89,335

 

 

43,864

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic and diluted

 

$

(0.40)

 

$

(0.75)

 

$

(0.87)

 

$

(1.52)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non- GAAP net loss per share attributable to common stockholders, basic and diluted

 

$

(0.18)

 

$

(0.69)

 

$

(0.51)

 

$

(1.42)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 31, 

 

Six Months Ended July 31, 

 

 

    

2019

    

2018

    

2019

    

2018

 

 

 

(in thousands)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total revenue

 

$

108,108

 

$

55,701

 

$

204,185

 

$

102,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net cash used in operating activities

 

 

(6,214)

  

 

(28,744)

 

 

(4,799)

  

 

(35,137)

 

Less: Purchases of property and equipment

 

 

(21,618)

  

 

(5,419)

 

 

(37,159)

  

 

(14,068)

 

Less: Capitalized internal-use software

 

 

(1,326)

  

 

(1,494)

 

 

(3,310)

  

 

(3,201)

 

Free cash flow

 

$

(29,158)

 

$

(35,657)

 

$

(45,268)

 

$

(52,406)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net cash used in investing activities

 

$

(34,392)

 

$

(87,117)

 

$

(30,254)

 

$

(94,873)

 

GAAP net cash provided by financing activities

 

$

680,684

 

$

182,171

 

$

679,802

 

$

182,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net cash used in operating activities as a percentage of revenue

 

 

(6)

%  

 

(52)

%  

 

(2)

%  

 

(34)

%

Less: Purchases of property and equipment as a percentage of revenue

 

 

(20)

%  

 

(10)

%  

 

(18)

%  

 

(14)

%

Less: Capitalized internal-use software as a percentage of revenue

 

 

(1)

%  

 

(3)

%  

 

(2)

%  

 

(3)

%

Free cash flow margin

 

 

(27)

%  

 

(64)

%  

 

(22)

%  

 

(51)

%

 

 

CROWDSTRIKE HOLDINGS, INC.

Statements of Operations: GAAP to Non-GAAP Reconciliations

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 31, 

 

Six Months Ended July 31, 

 

    

2019

    

2018

    

2019

    

2018

 

 

(in thousands)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP cost of revenue

 

$

31,582

 

$

18,575

 

$

60,856

 

$

37,969

Less:

 

 

  

 

 

  

 

 

  

 

 

  

Stock based compensation expense

 

 

1,877

 

 

145

 

 

2,245

 

 

254

Amortization of acquired intangible assets

 

 

97

 

 

106

 

 

201

 

 

202

Non-GAAP cost of revenue

 

$

29,608

 

$

18,324

 

$

58,410

 

$

37,513

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription gross profit

 

$

72,629

 

$

34,557

 

$

134,929

 

$

59,144

Add:

 

 

  

 

 

  

 

 

  

 

 

  

Stock based compensation expense

 

 

1,233

 

 

88

 

 

1,498

 

 

151

Amortization of acquired intangible assets

 

 

97

 

 

106

 

 

201

 

 

202

Non-GAAP subscription gross profit

 

$

73,959

 

$

34,751

 

$

136,628

 

$

59,497

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services gross profit

 

$

3,897

 

$

2,569

 

$

8,400

 

$

5,877

Add:

 

 

  

 

 

  

 

 

  

 

 

  

Stock based compensation expense

 

 

644

 

 

57

 

 

747

 

 

103

Non-GAAP professional services gross profit

 

$

4,541

 

$

2,626

 

$

9,147

 

$

5,980

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Sales and marketing operating expenses

 

$

65,274

 

$

40,113

 

$

122,117

 

$

76,730

Less:

 

 

  

 

 

  

 

 

  

 

 

  

Stock based compensation expense

 

 

6,638

 

 

1,031

 

 

8,156

 

 

1,804

Amortization of acquired intangible assets

 

 

32

 

 

62

 

 

63

 

 

79

Non-GAAP sales and marketing operating expenses

 

$

58,604

 

$

39,020

 

$

113,898

 

$

74,847

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development operating expenses

 

$