Crowdstrike Holdings, Inc. · NASDAQ:CRWD
Crowdstrike — Q4 2024 Earnings Presentation
36 slides from Crowdstrike's earnings presentation, Mar 5, 2024
Slide 1: Financial Results Q4 FY 2024
Financial Results Q4 FY 2024 ® CrowdStrike, Inc. All rights reserved.
Slide 2: Safe Harbor
Safe Harbor This presentation includes express and implied “forward-looking statements”, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and in some cases
Slide 3: Financial information
Financial information Use of Non-GAAP Financial Measures In addition to our results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we believe non-GAAP measures used in this presentation, such as non-GAAP Gross Margins, non-GAAP Operating Expenses, and Free Cash
Slide 4: CrowdStrike Q4 At-a-Glance: Platform Driving Record Results
CrowdStrike Q4 At-a-Glance: Platform Driving Record Results Ending ARR Net New ARR Record & Accelerating Net New ARR Growth $3.44B $282M +34% YoY +27% YoY Customers with >$1M Ending ARR Q4 Deals >$1M Total Deal Value Growing Customer Size & Record Big Deal Volume >580 >250 >33% YoY >30% YoY Operatin
Slide 5: FY24 At-a-Glance
FY24 At-a-Glance Achieved Reached Delivered $875M $3.44B Ending ARR $938M Free Cash Flow Net New ARR 80% 22% 31% Free Cash Non-GAAP Subscription Gross Margin Non-GAAP Operating Margin Flow Margin 67 Free Cash Flow Rule of 40 All financial figures as of fiscal year ended January 31, 2024. See Appendi
Slide 6: Market Opportunity & Leadership
Market Opportunity & Leadership ® CrowdStrike, Inc. All rights reserved.
Slide 7: Our AI-Native XDR Platform Creates Opportunity
Our AI-Native XDR Platform Creates Opportunity Lightweight Cloud-First AI-Native Hardware Data Silos Friction ® CrowdStrike, Inc. All rights reserved.
Slide 8: CY24 TAM $100B The AI-Native Security Platform
$100B CY24 TAM Endpoint Security Security $19B & IT Ops The AI-Native $18B Security Platform Managed Services $17B Observability $12B CY25 TAM Cloud Security Identity $12B Protection Threat $9B Intelligence Data $6B Protection $4B Cybersecurity Generative AI $3B ©2023 CrowdStrike, Inc. All rights re
Slide 9: CY28 TAM $225B
$225B CY28 TAM $100B The AI-Native CY24 TAM Security Platform The AI-Native Security Platform ©2023 CrowdStrike, Inc. All rights reserved. Source: company estimate.
Slide 10: The Falcon Platform: Driving Consolidation
The Falcon Platform: Driving Consolidation Our Single Platform Displaces Point Products and Lowers TCO
Slide 11: CrowdStrike Named a Leader (Gartner Magic Quadrant)
CrowdStrike Named a Leader 2023 Gartner® Magic Quadrant for Endpoint Protection Platforms • Placed Furthest to the Right for Completeness of Vision for the Fourth Consecutive Time • Placed Highest for Ability to Execute Disclaimer: Gartner does not endorse any vendor, product or service depicted in
Slide 12: Customers' Choice for Vulnerability Assessment
Customers’ Choice for Vulnerability Assessment • Recognized as the only Customers’ Choice 2024 Gartner Peer Insights Voice of the Customer for Vulnerability Assessment Gartner, Voice of the Customer for Vulnerability Assessment, January 2024. Disclaimer: Gartner and Peer Insights are trademarks of G
Slide 13: CrowdStrike Named a Leader (Forrester Wave)
CrowdStrike Named a Leader The Forrester Wave : Cloud Workload Security, Q1 2024 Ranked the highest in the Strategy category Received the highest scores possible in the Vision and Innovation criteria Report Referenced: The Forrester Wave : Cloud Workload Security, Q1 2024 report, Forrester Research,
Slide 14: Platform Adoption
Platform Adoption ® CrowdStrike, Inc. All rights reserved.
Slide 15: Customers are Embracing the Falcon Platform
Customers are Embracing the Falcon Platform Deals with 8 or More Modules More Than Doubled YoY 64% 43% 27% Customers Adopted Customers Adopted Customers Adopted 5 or More Modules 6 or More Modules 7 or More Modules Percent of Subscription Customers with Multiple Cloud Module Subscriptions. All figur
Slide 16: Driving Rapid Platform Growth: Cloud Deployed, Identity, LogScale
Driving Rapid Platform Growth Public Cloud Deployed Identity >$850M Security 4Q24 Ending ARR More Than Doubled YoY LogScale Next-Gen SIEM All figures are as of Q4 FY24 ® CrowdStrike, Inc. All rights reserved.
Slide 17: Driving Rapid Platform Growth: Cloud Security
Driving Rapid Platform Growth Cloud Security >$400M >90% 4Q24 Ending ARR Y/Y Growth 8-figure deal: Record Hypergrowth AI company Net New ARR 8-figure deal: Nearly 200% growth YoY Leading hyperscaler All figures are as of Q4 FY24. Customer wins represent total deal value which includes all modules so
Slide 18: Driving Rapid Platform Growth: Identity Security
Driving Rapid Platform Growth Identity Security >$300M >100% 4Q24 Ending ARR Y/Y Growth 8-figure deal: Record Major chip manufacturer 7-figure deal: Net new logos Major cruise line All figures are as of Q4 FY24. Customer wins represent total deal value includes all modules sold. ® CrowdStrike, Inc.
Slide 19: Driving Rapid Platform Growth: LogScale Next-Gen SIEM
Driving Rapid Platform Growth LogScale Next-Gen SIEM >$150M >160% 4Q24 Ending ARR Y/Y Growth 7-figure deal: Large European manufacturer Record 7-figure deal: Net New ARR Major mobile computing company Growth accelerated to >170% YoY 7-figure deal: Fortune 500 hospitality group All figures are as of
Slide 20: Financial Overview
Financial Overview ® CrowdStrike, Inc. All rights reserved.
Slide 21: Growth at Scale
Growth at Scale 34% YoY Growth Ending ARR Net New ARR Starting ARR Net New ARR In $ Millions In $ Millions $3,435 27% YoY Growth 6% YoY Growth $282 $828 $875 $2,560 $222 4Q23 4Q24 FY23 FY24 4Q23 4Q24 Subscription Revenue Total Revenue Subscription Professional Services In $ Millions In $ Millions 33
Slide 22: Non-GAAP Profit & Free Cash Flow
Non-GAAP Profit & Free Cash Flow Subscription Gross Profit Operating Income 38% YoY Growth 40% YoY Growth 123% YoY Growth 86% YoY Growth $2,299 $660 $639 $213 $463 $1,646 $356 $96 4Q23 4Q24 FY23 FY24 4Q23 4Q24 FY23 FY24 % margin 77% 80% 78% 80% % margin 15% 25% 16% 22% Diluted Earnings Per Share Fre
Slide 23: Strong Customer Retention & Expansion
Strong Customer Retention & Expansion Dollar-Based Retention Rates for Subscription ARR (1-Year Prior Cohort) 1Q24 2Q24 3Q24 4Q24 122% 119% 119% 119% Net Retention Net Retention Net Retention Net Retention 98% 97% 98% 98% Gross Retention Gross Retention Gross Retention Gross Retention ® CrowdStrike,
Slide 24: Key Takeaways
Key Takeaways Record non-GAAP operating income, net Record Financial $3.44B $282M income & EPS - all grew >100% YoY 1 Ending ARR Net New ARR Performance +34% Y/Y 27%, accelerating Record free cash flow, 33% of revenue growth Fourth consecutive quarter of GAAP net income Driving Platform >$400M >$300
Slide 25: Guidance
Q1 FY2025 Full Year FY2025 Revenue $902.2 - $905.8M $3,924.9 - $3,989.0M Non-GAAP Income from Operations $188.1 - $190.8M $863.6 - $913.0M Guidance Non-GAAP Net Income $220.4 - $223.1M $940.3 - $989.7M Non-GAAP Net Income per share $0.89 - $0.90 $3.77 - $3.97 Weighted Average Shares ~248M ~250M Crow
Slide 26: Modeling Points
Modeling Points While we do not specifically guide to ending or net new ARR, given the incredible performance of Q4, our current seasonality ARR assumptions with respect to net new ARR in Q1 call for Q1 net new ARR year-over-year growth to be at least double-digits, up to the low teens. Given our st
Slide 27: Target Operating Model
Non-GAAP Measures Target % of Revenue Subscription Gross Margin 82 – 85% S&M 28 – 33% Target R&D 15 – 20% Operating Model G&A 5 – 7% Operating Margin 28 – 32% Free Cash Flow Margin 34 – 38% Note: Targets are on a full year basis. Target ranges assume consistent macroeconomic conditions and do not in
Slide 28: Appendix
Appendix ® CrowdStrike, Inc. All rights reserved.
Slide 29: Appendix: Calculation of metrics
Appendix Calculation of metrics Annual Recurring Revenue (ARR). ARR is calculated as the annualized value of our customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. To the extent that we are negoti
Slide 30: Appendix (cont'd): TAM data sources
Appendix (cont’d) Reports used for data shown in the chart titled “CY24 TAM | The AI-Native Security Platform”: CY24 TAM: IDC Worldwide and U.S. Comprehensive Security Services Forecast, 2023–2027. (June 2023) IDC Worldwide IT Operations Management Software Forecast, 2022–2026. (August 2022) I
Slide 31: Explanation of Non-GAAP Financial Measures
Appendix (cont’d) Explanation of Non-GAAP Financial Measures Non-GAAP Subscription Gross Profit and Non-GAAP Subscription Gross Margin We define non-GAAP subscription gross profit and non-GAAP subscription gross margin as GAAP subscription gross profit and GAAP subscription gross margin, respectivel
Slide 32: GAAP Income Statement
GAAP Income Statement Revenue ‘Subscription Professional services Total revenue Cost of revenue ‘Subscription Total cost of revenue Gross profit Subscription Professional services Total gross profit Operating expenses Sales and marketing Research and development General and administrative Total oper
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation statements of Operations: GAAP to Non-GAAP Reconciliations (in thousands) (unaudited) qarv23 oary24 Fy23 Fy26 GAAP subscription gross profit 8 443837 $ 620,438, 8 1599,976 $ 2,230,812 ‘Stock based compensation expense 10134 13301 32,091 43,386, ‘Amortization of acquir
Slide 34: GAAP to Non-GAAP Reconciliation (Cont'd)
GAAP to Non-GAAP Reconciliation (Cont’d) 1. We use our GAAP provision for income taxes for the purpose of determining our non-GAAP income tax expense. The tax costs for intellectual property Integration relating to acquisitions are included In the GAAP provision for income taxes. The income tax bene
Slide 35: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Free cash flow reconciliation GAAP net cash provided by operating activities Purchases of property and equipment Capitalized internal-use software and website development Purchases of deferred compensation investments Free cash flow Free cash flow margin (CROWDSTRIKE HO
Slide 36: Supplemental Disclosure - Additional Metrics
Supplemental Disclosure - Additional Metrics Annual recurring revenue Year-over-year growth Remaining performance obligations (in billions) Revenue by geographic regions: United States Europe, Middle East, and Africa Asia Pacific Other Total revenue Geographic breakdown of total revenue: United Stat