CrowdStrike Holdings, Inc 10-Q for FY2023 Q1

CrowdStrike Holdings, Inc. (CRWD)

10-Q 2022-06-03 For: 2022-04-30

Added on April 09, 2026

About this 10-Q

CrowdStrike Holdings, Inc filed this 10-Q on June 3, 2022, covering the quarter ended April 30, 2022 (FY2023 Q1).

Headline figures

Quarter ended April 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $487.83M; up 61.1% from $302.84M a year earlier
Net loss: $31.52M; compared with a net loss of $85.05M a year earlier
Diluted EPS: -$0.14; compared with -$0.38 a year earlier

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Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.0005 per share	CRWD	The Nasdaq Stock Market LLC
		(Nasdaq Global Select Market)


Large Accelerated Filer	☑	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☐
(Do not check if a smaller reporting company)		Emerging growth company	☐


		Page No.
	PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of April 30, 2022 and January 31, 2022	6
	Condensed Consolidated Statements of Operations for the Three Months Ended April 30, 2022 and April 30, 2021	7
	Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended April 30, 2022 and April 30, 2021	8
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended April 30, 2022 and April 30, 2021	9
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 30, 2022 and April 30, 2021	10
	Notes to Condensed Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	41
Item 4.	Controls and Procedures	41

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Shares of Equity Securities and Use of Proceeds	73
Item 3.	Defaults Upon Senior Securities	73
Item 4.	Mine Safety Disclosures	73
Item 5.	Other Information	73
Item 6.	Exhibits	73
	Signatures	75


	April 30,		January 31,
	2022		2022
Assets
Current assets:
Cash and cash equivalents	$	2,152,736	$	1,996,633

Accounts receivable, net of allowance for credit losses of $1.7 million and $1.6 million as of April 30, 2022 and January 31, 2022, respectively	369,130		368,145
Deferred contract acquisition costs, current	135,681		126,822
Prepaid expenses and other current assets	75,511		79,352
Total current assets	2,733,058		2,570,952
Strategic investments	28,665		23,632
Property and equipment, net	316,309		260,577
Operating lease right-of-use assets	28,701		31,735
Deferred contract acquisition costs, noncurrent	197,261		192,358
Goodwill	416,228		416,445
Intangible assets, net	93,945		97,336
Other long-term assets	21,668		25,346
Total assets	$	3,835,835	$	3,618,381
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	11,024	$	47,634
Accrued expenses	94,966		83,382
Accrued payroll and benefits	116,406		104,563
Operating lease liabilities, current	9,967		9,820
Deferred revenue	1,249,198		1,136,502
Other current liabilities	15,542		24,929
Total current liabilities	1,497,103		1,406,830
Long-term debt	739,889		739,517
Deferred revenue, noncurrent	443,399		392,819
Operating lease liabilities, noncurrent	22,197		25,379
Other liabilities, noncurrent	16,250		16,193
Total liabilities	2,718,838		2,580,738
Commitments and contingencies (Note 8)
Stockholders’ Equity
Preferred stock, $0.0005 par value; 100,000 shares authorized as of April 30, 2022 and January 31, 2022; no shares issued and outstanding as of April 30, 2022 and January 31, 2022.	—		—
Class A common stock, $0.0005 par value; 2,000,000 shares authorized as of April 30, 2022 and January 31, 2022; 213,353 shares and 209,996 shares issued and outstanding as of April 30, 2022 and January 31, 2022, respectively; Class B common stock, $0.0005 par value; 300,000 shares authorized as of April 30, 2022 and January 31, 2022; 18,663 shares and 20,710 shares issued and outstanding as of April 30, 2022 and January 31, 2022, respectively.	116		115
Additional paid-in capital	2,103,054		1,991,807
Accumulated deficit	(996,441)		(964,918)
Accumulated other comprehensive loss	(4,188)		(1,240)
Total CrowdStrike Holdings, Inc. stockholders’ equity	1,102,541		1,025,764
Non-controlling interest	14,456		11,879
Total stockholders’ equity	1,116,997		1,037,643
Total liabilities and stockholders’ equity	$	3,835,835	$	3,618,381


	Three Months Ended April 30,
	2022		2021
Revenue
Subscription	$	459,822	$	281,228
Professional services	28,012		21,615
Total revenue	487,834		302,843

Cost of revenue
Subscription	107,942		64,903
Professional services	18,890		13,602
Total cost of revenue	126,832		78,505

Gross profit	361,002		224,338

Operating expenses
Sales and marketing	193,532		135,131
Research and development	123,399		78,180
General and administrative	67,954		42,374
Total operating expenses	384,885		255,685

Loss from operations	(23,883)		(31,347)
Interest expense	(6,298)		(6,230)
Other income, net	3,212		4,768

Loss before provision for income taxes	(26,969)		(32,809)

Provision for income taxes	3,440		50,062

Net loss	(30,409)		(82,871)
Net income attributable to non-controlling interest	1,114		2,178
Net loss attributable to CrowdStrike	$	(31,523)	$	(85,049)

Net loss per share attributable to CrowdStrike common stockholders, basic and diluted	$	(0.14)	$	(0.38)

Weighted-average shares used in computing net loss per share attributable to CrowdStrike common stockholders, basic and diluted	231,179		224,153


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Non-controlling Interest		Total Stockholders’ Equity
	Shares	Amount
Balances at January 31, 2022	230,706	$	115	$	1,991,807	$	(964,918)	$	(1,240)	$	11,879	$	1,037,643
Issuance of common stock upon exercise of options	407	1		3,104		—		—		—		3,105
Issuance of common stock under RSU and PSU release	886	—		—		—		—		—		—


Vesting of early exercised options	—	—		735		—		—		—		735
Issuance of common stock for founders holdbacks related to acquisitions	19	—		3,704		—		—		—		3,704
Stock-based compensation expense	—	—		100,776		—		—		—		100,776
Capitalized stock-based compensation	—	—		2,928		—		—		—		2,928

Net income (loss)	—	—		—		(31,523)		—		1,114		(30,409)
Non-controlling interest	—	—		—		—		—		1,463		1,463
Other comprehensive loss	—	—		—		—		(2,948)		—		(2,948)
Balances at April 30, 2022	232,018	$	116	$	2,103,054	$	(996,441)	$	(4,188)	$	14,456	$	1,116,997


	April 30, 2022		January 31, 2022

Channel partner A(1)	15	%	9	%
Channel partner B	11	%	3	%
Channel partner C	10	%	9	%
Customer A(1)	1	%	10	%


	April 30, 2022								January 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

Assets
Cash equivalents (1)
Money market funds	$	89,498	$	—	$	—	$	89,498	$	300,027	$	—	$	—	$	300,027
Total assets	$	89,498	$	—	$	—	$	89,498	$	300,027	$	—	$	—	$	300,027


	April 30, 2022		January 31, 2022

Total initial cost	$	21,634	$	18,809
Unrealized gains due to changes in fair value	7,031		4,823
Carrying value	$	28,665	$	23,632


	April 30, 2022		January 31, 2022
Data center and other computer equipment	$	210,819	$	198,297
Capitalized internal-use software and website development costs	77,497		70,476
Leasehold improvements	21,951		22,029
Purchased software	5,269		5,232
Furniture and equipment	7,176		7,291
Construction in process	151,000		99,030
	473,712		402,355
Less: Accumulated depreciation and amortization	(157,403)		(141,778)
Property and equipment, net	$	316,309	$	260,577


	April 30, 2022						Weighted-Average Remaining Useful Life
	Gross Carrying Amount		Accumulated Amortization		Net Amount
							(in months)
Developed technology	$	97,628	$	15,377	$	82,251	76
Customer relationships	12,012		2,420		9,592		69
Other acquired intangible assets	3,090		988		2,102		142
Total	$	112,730	$	18,785	$	93,945


	Total
Fiscal 2023 (remaining nine months)	$	12,249
Fiscal 2024	15,649
Fiscal 2025	15,564
Fiscal 2026	14,477
Fiscal 2027	12,302
Thereafter	23,704
Total amortization expense	$	93,945


	Amounts

Goodwill as of January 31, 2022	$	416,445
Goodwill adjustment for the SecureCircle acquisition	81
Foreign currency translation	(298)
Goodwill as of April 30, 2022	$	416,228


	Three Months Ended April 30, 2021


Expected term (in years)	3.82 - 5.63
Risk-free interest rate	0.6% - 1.0%
Expected stock price volatility	36.1% - 37.1%
Dividend yield	—	%


	Number of Shares	Weighted-Average Exercise Price Per Share
	(in thousands)
Options outstanding at January 31, 2022	3,938	$	8.48

Exercised	(407)	$	7.64
Canceled	(13)	$	12.01
Options outstanding at April 30, 2022	3,518	$	8.57
Options vested and expected to vest at April 30, 2022	3,518	$	8.57
Options exercisable at April 30, 2022	2,668	$	7.34


	Number of Shares	Weighted- Average Grant Date Fair Value Per Share
	(in thousands)
RSUs and PSUs outstanding at January 31, 2022	7,886	$	125.04
Granted	1,982	$	211.70
Released	(886)	$	100.66
Performance adjustment (1)	99	$	194.15
Forfeited	(200)	$	157.15
RSUs and PSUs outstanding at April 30, 2022	8,881	$	146.86
RSUs and PSUs expected to vest at April 30, 2022	8,881	$	146.86


	Three Months Ended April 30,
	2022		2021
Expected term (in years)	0.5 - 2.0		0.5 - 2.0
Risk-free interest rate	0.1% - 0.7%		0.1% - 2.0%
Expected stock price volatility	39.6% - 55.9%		30.1% - 54.3%
Dividend yield	—	%	—	%


	April 30, 2022		January 31, 2022
Web hosting services	$	25,133	$	23,711
Accrued purchases of property and equipment	24,130		10,878
Accrued legal and accounting	10,516		14,166
Accrued marketing	10,482		9,801
Other accrued expenses	8,993		6,988
Accrued consulting expenses	6,486		3,498
Accrued interest expense	4,750		10,375
Accrued partner commissions	4,476		3,965
Accrued expenses	$	94,966	$	83,382


	April 30, 2022		January 31, 2022
Accrued commissions	$	36,982	$	47,298
Employee Stock Purchase Plan	31,804		14,764
Accrued payroll and related expenses	28,848		24,910
Accrued bonuses	18,772		17,591
Accrued payroll and benefits	$	116,406	$	104,563


	Total Commitments

Fiscal 2023 (remaining nine months)	$	66,342
Fiscal 2024	84,805
Fiscal 2025	29,597
Fiscal 2026	8,154
Fiscal 2027	3,695
Thereafter	1,405
Total purchase commitments	$	193,998


	Fair Value		Useful Life
			(in months)
Developed technology	$	15,300	72
Customer relationships	3,000		72

Total intangible assets acquired	$	18,300


	April 30, 2022	April 30, 2021
Shares of common stock subject to repurchase from outstanding stock options	132	458
RSUs and PSUs subject to future vesting	8,881	8,274
Shares of common stock issuable from stock options	3,518	5,912
Share purchase rights under the employee stock purchase plan	610	851
Potential common shares excluded from diluted net loss per share	13,141	15,495


	As of April 30,
	2022		2021
Subscription customers	17,945		11,420
Year-over-year growth	57	%	82	%


	Three Months Ended April 30,				Change $		Change %
	2022		2021

Revenue
Subscription	$	459,822	$	281,228	$	178,594	64	%
Professional services	28,012		21,615		6,397		30	%
Total revenue	487,834		302,843		184,991		61	%
Cost of revenue
Subscription	107,942		64,903		43,039		66	%
Professional services	18,890		13,602		5,288		39	%
Total cost of revenue	126,832		78,505		48,327		62	%
Gross profit	361,002		224,338		136,664		61	%
Operating expenses
Sales and marketing	193,532		135,131		58,401		43	%
Research and development	123,399		78,180		45,219		58	%
General and administrative	67,954		42,374		25,580		60	%
Total operating expenses	384,885		255,685		129,200		51	%
Loss from operations	(23,883)		(31,347)		7,464		(24)	%
Interest expense	(6,298)		(6,230)		(68)		1	%
Other income, net	3,212		4,768		(1,556)		(33)	%
Loss before provision for income taxes	(26,969)		(32,809)		5,840		(18)	%
Provision for income taxes	3,440		50,062		(46,622)		(93)	%
Net loss	(30,409)		(82,871)		52,462		(63)	%
Net income attributable to non-controlling interest	1,114		2,178		(1,064)		(49)	%
Net loss attributable to CrowdStrike	$	(31,523)	$	(85,049)	$	53,526	(63)	%


Statement of Operations	Three Months Ended April 30, 2022
	(in thousands)
Revenue	$	487,834
Cost of revenue	135,595
Operating expenses	390,297
Loss from operations	(38,057)
Net loss	(45,248)
Net loss attributable to CrowdStrike	(45,248)


Balance Sheets	April 30, 2022		January 31, 2022

	(in thousands)
Current assets (excluding intercompany receivables from non-Guarantors)	$	2,658,366	$	2,499,941
Intercompany receivables from non-Guarantors	8,623		11,900
Noncurrent assets	1,249,713		1,201,620
Current liabilities	1,451,442		1,363,873
Noncurrent liabilities (excluding intercompany payable to non-Guarantors)	1,215,021		1,165,807
Intercompany payable to non-Guarantors	263,065		276,919



*						The certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” or purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any of CrowdStrike Holdings, Inc.’s filings under the Securities Act of 1933, as amended, irrespective of any general incorporation language contained in such filing.


			CROWDSTRIKE HOLDINGS, INC.

			By:			/s/ Burt W. Podbere
						Burt W. Podbere Chief Financial Officer (Principal Financial Officer)

			By:			/s/ Anurag Saha
						Anurag Saha Chief Accounting Officer (Principal Accounting Officer)


CROWDSTRIKE HOLDINGS, INC.

By:			/s/ George Kurtz
Name:			George Kurtz
Title:			President, Chief Executive Officer, and Director (Principal Executive Officer)


Date: June 3, 2022
	By:	/s/ George Kurtz
	Name:	George Kurtz
	Title:	President, Chief Executive Officer, and Director (Principal Executive Officer)