CrowdStrike Holdings Inc (CRWD) Reports Strong Fiscal Year 2024 Results with Record ARR and Net ...
Annual Recurring Revenue (ARR): Grew by 34% year-over-year to $3.44 billion.
Net New ARR: Accelerated to 27% year-over-year, reaching a record $282 million.
GAAP and Non-GAAP Net Income: Achieved fourth consecutive quarter of record net income.
Revenue: Total revenue increased by 33% to $845.3 million for Q4 and 36% to $3.06 billion for FY 2024.
Free Cash Flow: Delivered record free cash flow with a margin of 31%.
Subscription Gross Margin: Improved both GAAP and Non-GAAP subscription gross margins year-over-year.
On March 5, 2024, CrowdStrike Holdings Inc (NASDAQ:CRWD), a leader in cloud-delivered cybersecurity, announced its financial results for the fourth quarter and fiscal year 2024, which ended on January 31, 2024. The company released its 8-K filing, showcasing significant growth in key financial metrics, including a substantial increase in Annual Recurring Revenue (ARR) and record net income.
CrowdStrike, known for its Falcon platform, has continued to attract customers with its comprehensive cybersecurity solutions, leading to a 34% year-over-year growth in ARR, reaching $3.44 billion. The company's net new ARR growth accelerated to 27% year-over-year, reaching a record $282 million. This growth is indicative of CrowdStrike's strong market position and the increasing demand for cybersecurity solutions.
Financial Performance and Operational Highlights
The company's total revenue for the fourth quarter was $845.3 million, a 33% increase from the fourth quarter of fiscal 2023. Subscription revenue, which is a critical indicator of the company's business health, was $795.9 million, marking a 33% increase from the previous fiscal year's quarter. For the full fiscal year 2024, total revenue was $3.06 billion, a 36% increase from fiscal 2023, with subscription revenue also up by 36%.
Improvements in efficiency and scale were evident in the subscription gross margin, which saw GAAP and Non-GAAP margins increase to 78% and 80%, respectively. This improvement reflects CrowdStrike's ability to manage costs effectively while scaling its operations.
Notably, CrowdStrike achieved its fourth consecutive quarter of record GAAP and Non-GAAP net income. GAAP net income attributable to CrowdStrike for the fourth quarter was $53.7 million, a significant turnaround from a loss of $47.5 million in the same quarter of the previous year. Non-GAAP net income attributable to CrowdStrike was $236.2 million, more than doubling from $111.6 million in the fourth quarter of fiscal 2023.
The company's operational efficiency also translated into strong cash flow performance. Net cash generated from operations was $347.0 million for the quarter, and free cash flow was $283.0 million, compared to $209.5 million in the fourth quarter of fiscal 2023. CrowdStrike ended the fiscal year with $3.47 billion in cash, cash equivalents, and short-term investments.
Strategic Acquisitions and Industry Recognition
During the fiscal year, CrowdStrike continued to innovate and expand its offerings, including the acquisition of Flow Security and the expansion of its strategic partnership with Dell. The company was recognized as a leader in several industry reports, including the Gartner Magic Quadrant for Endpoint Protection Platforms and The Forrester Wave reports for Cloud Workload Security and Managed Detection And Response Services In Europe.
George Kurtz, CrowdStrike's president, CEO, and co-founder, highlighted the company's consolidator, innovator, and platform of choice status in the cybersecurity industry. Burt Podbere, CrowdStrike's CFO, emphasized the company's focus on profitably scaling the business towards a $10 billion ARR and beyond.
Looking Forward
CrowdStrike provided guidance for the first quarter of fiscal 2025, projecting total revenue between $902.2 and $905.8 million, and for the full fiscal year 2025, with revenue expected to be between $3.924.9 and $3.989.0 million. The company anticipates non-GAAP income from operations and non-GAAP net income to continue to grow, reflecting confidence in its business model and market opportunities.
Value investors and potential GuruFocus.com members should note the robust financial health and growth trajectory of CrowdStrike, as evidenced by its latest earnings report. The company's focus on innovation and strategic acquisitions, coupled with strong financial discipline, positions it well for continued success in the dynamic cybersecurity market.
For a more detailed analysis of CrowdStrike's financial results and future outlook, investors are encouraged to review the full earnings report and listen to the earnings call.
Explore the complete 8-K earnings release (here) from CrowdStrike Holdings Inc for further details.
This article first appeared on GuruFocus.
