CrowdStrike Q4 2023 Revenue Up by 48%

Its full year fiscal 2023 financial revenue touched $2.24 billion, a 54% increase

CrowdStrike observed a positive growth in its Q4 2023 result. As per the report, the total revenue was $637.4 million, a 48% increase, compared to $431.0 million in the fourth quarter of fiscal 2022. Subscription revenue was $598.3 million, a 48% increase, compared to $405.4 million in the fourth quarter of fiscal 2022.

Its full year fiscal 2023 financial revenue touched $2.24 billion, a 54% increase, compared to $1.45 billion in fiscal 2022. Subscription revenue was $2.11 billion, a 55% increase, compared to $1.36 billion in fiscal 2022.

George Kurtz, CrowdStrike’s president, chief executive officer and co-founder, said, “CrowdStrike delivered a record fourth quarter that exceeded our expectations across the board,” “Highlights of the quarter included record net new ARR of $222 million, record net new subscription customers of 1,873, record operating and free cash flow and a rule of 81 on a free cash flow basis. CrowdStrike’s growing market share showcases customers’ recognition of the Falcon platform’s technology leadership and advanced AI that drives better security outcomes, consolidation and lower TCO.”

 Burt Podbere, CrowdStrike’s chief financial officer, added, “CrowdStrike delivered an exceptional fourth quarter and strong finish to the year. We remain focused on delivering increased operating leverage while continuing our thoughtful, disciplined and strategic approach to investing in innovation and market share expansion to capture the massive opportunities we see ahead for CrowdStrike.”

Fourth Quarter Fiscal 2023 Financial Highlights

• Annual Recurring Revenue (ARR) increased 48% year-over-year and grew to $2.56 billion as of January 31, 2023, of which $221.7 million was net new ARR added in the quarter.
• Subscription Gross Margin: GAAP subscription gross margin was 75%, compared to 76% in the fourth quarter of fiscal 2022. Non-GAAP subscription gross margin was 77%, compared to 79% in the fourth quarter of fiscal 2022.
• Income/Loss from Operations: GAAP loss from operations was $61.5 million, compared to $23.5 million in the fourth quarter of fiscal 2022. Non-GAAP income from operations was $95.6 million, compared to $80.4 million in the fourth quarter of fiscal 2022.
• Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $47.5 million, compared to $42.0 million in the fourth quarter of fiscal 2022. GAAP net loss per share attributable to CrowdStrike, basic and diluted was $0.20, compared to $0.18 in the fourth quarter of fiscal 2022. Non-GAAP net income attributable to CrowdStrike was $111.6 million, compared to $70.4 million in the fourth quarter of fiscal 2022. Non-GAAP net income attributable to CrowdStrike per share, diluted, was $0.47, compared to $0.30 in the fourth quarter of fiscal 2022.
• Cash Flow: Net cash generated from operations was $273.3 million, compared to $159.7 million in the fourth quarter of fiscal 2022. Free cash flow was $209.5 million, compared to $127.3 million in the fourth quarter of fiscal 2022.
• Cash, Cash Equivalents and Short-term Investments was $2.71 billion as of January 31, 2023.

Full Year Fiscal 2023 Financial Highlights

• Subscription Gross Margin: GAAP subscription gross margin was 76% in both fiscal 2023 and 2022. Non-GAAP subscription gross margin was 78%, compared to 79% in fiscal 2022.
• Income/Loss from Operations: GAAP loss from operations was $190.1 million, compared to $142.5 million in fiscal 2022. Non-GAAP income from operations was $355.6 million, compared to $196.2 million in fiscal 2022.
• Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $183.2 million, compared to $234.8 million in fiscal 2022. GAAP net loss per share attributable to CrowdStrike, basic and diluted, was $0.79, compared to $1.03 in fiscal 2022. Non-GAAP net income attributable to CrowdStrike was $368.4 million, compared to $160.7 million in fiscal 2022. Non-GAAP net income attributable to CrowdStrike per share, diluted, was $1.54, compared to $0.67 in fiscal 2022.
• Cash Flow: Net cash generated from operations was $941.0 million, compared to $574.8 million in fiscal 2022. Free cash flow was $676.8 million, compared to $441.8 million in fiscal 2022.

Recent Highlights

• Added 1,873 net new subscription customers in the quarter for a total of 23,019 subscription customers as of January 31, 2023, representing 41% growth year-over-year.
• CrowdStrike’s module adoption rates were 62%, 39% and 22% for five or more, six or more and seven or more modules, respectively, as of January 31, 20231.
• Announced CrowdStrike Falcon Surface, an External Attack Surface Management (EASM) module, which features capabilities from the recent acquisition of Reposify and uses a proprietary real-time 24/7 engine to identify risky exposure of known and unknown assets.
• Announced a new strategic alliance with Dell Technologies to help organizations prevent, detect and respond to cyber threats. The CrowdStrike Falcon platform is available to purchase today with volume licensing, and in the coming months, can be added to the purchase of any Dell commercial PC through Dell’s direct sales teams and any of its authorized partners.
• Ranked #1 in IDC’s Worldwide Modern Endpoint Market Shares report2 for the third consecutive year.
• Recognized as a Leader in the 2022 Gartner Magic Quadrant for Endpoint Protection Platforms (EPP) for the third consecutive time and positioned furthest to the right for Completeness of Vision3.
• Received the 2023 SE Labs Award for Best Endpoint Detection and Response (EDR) for the third consecutive year as well as the 2023 SE Labs Award for Best Product Development.
• Named Threat Intel vendor of the year and Asia-Pacific Managed Detection and Response (MDR) vendor of the year by Frost & Sullivan4 and named as a Leader in Frost & Sullivan’s 2022 Frost Radar™: Global Cyber Threat Intelligence5.
• Promoted Michael Sentonas to President. Sentonas, who has served as CrowdStrike’s chief technology officer (CTO) since 2020, will be responsible for leading the company’s product and go-to-market functions, including its sales, marketing, product and engineering, threat intelligence, corporate development and CTO teams.
• Added former SentinelOne executives Daniel Bernard and Raj Rajamani to the leadership team as chief business officer and chief product officer, DICE (Data, Identity, Cloud and Endpoint), respectively.
• Appointed Johanna Flower to the Board of Directors.
• Chosen as a winner for Glassdoor’s Best Places to Work in 2023 List. CrowdStrike ranked at #15, earning the highest ranking for a cybersecurity company.
• Through the CrowdStrike Foundation, corporate-directed giving and corporate-matching, CrowdStrike expanded its corporate giving strategy to grow the next generation of talent and leadership in cybersecurity. This year’s highlights included growing the CrowdStrike NextGen scholarship program by 33% year-over-year and continued investments in the Thurgood Marshall College Fund and the Arkwright Engineering Scholarships program. Additionally, CrowdStrike formed a landmark partnership to support veterans with Operation Motorsport Foundation, increased corporate matching gifts by 47%, year-over-year, and introduced a new volunteer program, CrowdStrike Cares, to increase our impact where we live and work.