CrowdStrike surpasses USD $4 billion in annual revenue

CrowdStrike has released its financial results for the third quarter of fiscal year 2025, reporting significant milestones and growth figures.

The company's Annual Recurring Revenue (ARR) surpassed USD $4 billion, growing 27% year-over-year to reach USD $4.02 billion. CrowdStrike noted that it is the fastest and only pure play cybersecurity software company to hit this milestone. In addition, the company exceeded the USD $1 billion quarterly total revenue milestone, with revenues growing 29% year-over-year to USD $1.01 billion.

George Kurtz, Founder and CEO of CrowdStrike, commented, "CrowdStrike surpassed USD $4 billion in ending ARR in the quarter - the fastest and only pure play cybersecurity software company to reach this reported milestone - as our single platform approach and trailblazing innovation continue to resonate at-scale. With over 97% gross retention, customers remain committed to the technological superiority of the Falcon platform and the benefits of cybersecurity consolidation."

"Accelerating module adoption and customers embracing our transformational Falcon Flex subscription model give us confidence in CrowdStrike's bright future as cybersecurity's AI platform of record."

Burt Podbere, CrowdStrike's Chief Financial Officer, added, "Our third quarter results reflect our focused execution and financial discipline, which drove a strong finish and quarter-over-quarter increase in pipeline, despite expected headwinds from the July 19th incident. We saw incredible success with our customer commitment packages as customers embraced the program and chose to deepen their relationship with CrowdStrike."

CrowdStrike's subscription revenue increased by 31% compared to the third quarter of fiscal 2024, totalling USD $962.7 million.

The company also reported a GAAP loss from operations of USD $55.7 million, contrasting with an income of USD $3.2 million for the same period last year. However, non-GAAP income from operations rose to USD $194.9 million, up from USD $175.7 million in the prior year's third quarter.

The net loss attributable to CrowdStrike under GAAP was USD $16.8 million, whereas it reported a net income of USD $26.7 million a year earlier. On a non-GAAP basis, the company reported net income of USD $234.3 million, compared to USD $199.2 million in the corresponding period the previous year. This resulted in non-GAAP net income per share of USD $0.93, up from USD $0.82 in the third quarter of fiscal 2024.

Regarding cash flow, CrowdStrike generated USD $326.1 million from operations, up from USD $273.5 million last year. Free cash flow stood at USD $230.6 million, a slight decrease from USD $239.0 million in the third quarter of fiscal 2024. The company held cash and cash equivalents totaling USD $4.26 billion by the end of the period.

The adoption of CrowdStrike's modules continues to grow, with rates reaching 66% for five or more modules, 47% for six or more, 31% for seven or more, and 20% for eight or more modules as of October 31, 2024.

The company cited recognition in several industry assessments, such as being named a Leader in the 2024 Gartner Magic Quadrant for Endpoint Protection Platforms and gaining the highest scores in the 2024 Gartner Critical Capabilities for Endpoint Protection Platforms report.

Moreover, it was acknowledged as a Leader in the Forrester Wave for Attack Surface Management Solutions in Q3 2024.

CrowdStrike also highlighted its acquisition of Adaptive Shield as a strategic enhancement, broadening its capabilities to offer unified protection against identity-based attacks across cloud ecosystems.

Looking forward to the fourth quarter and full fiscal year 2025, CrowdStrike projects total revenue between USD $1,028.7 million to USD $1,035.4 million for the fourth quarter and USD $3,923.8 million to USD $3,930.5 million for the full year. The company anticipates non-GAAP net income to range between USD $210.9 million and USD $215.8 million for the fourth quarter and USD $937.5 million to USD $942.6 million for the full year.