NASDAQ$CRWD

Crowdstrike Holdings · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Crowdstrike's Q1 2023 results were marked by strong ARR growth, record cash flow, and increased customer adoption of multiple modules.

CrowdStrike reported an exceptional first quarter, with a 61% year-over-year increase in ending ARR, reaching $1.9 billion. The company added over $190 million in net new ARR and achieved record cash flow from operations and free cash flow. The company also raises revenue and profit guidance for fiscal year 2023.

  • Ending ARR grew 61% year-over-year to $1.9 billion, with over $190 million in net new ARR.
  • Cash flow from operations increased 46% year-over-year to a record $215 million.
  • Free cash flow grew 34% year-over-year to a record $158 million.
  • Subscription customers adopting six or more and seven or more modules more than doubled year-over-year.

Headline financials

Total Revenue

$488M

Previous: $303M+61.1%
EPS (adj)

$0.31

Previous: $0.10+210.0%
Annual Recurring Revenue

$1.9B

Previous: $1.19B+59.7%
Capital Expenditures

-$52.2M

Previous: $25.8M-302.4%
Free Cash Flow

$163M

Previous: $117M+38.7%
Net Income

-$31.5M

Previous: -$85M+62.9%
Operating Income

-$23.9M

Previous: -$31.3M+23.7%
Gross Profit

$361M

Previous: $224M+60.9%
Cash & Equivalents

$2.15B

Previous: $1.68B+27.8%
Total Assets

$3.84B

Previous: $2.88B+33.1%
Stock-Based Comp

$102M

Previous: $54.4M+88.5%

Revenue & EPS history

Crowdstrike · Revenue · Quarterly

$488M

Q1 2023+61.1%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Crowdstrike · $488M total across 2 segments · Q1 2023

  • Subscription
    $460M+63.5%
  • Professional services
    $28M+29.5%

Forward guidance

CrowdStrike is providing the following guidance for the second quarter of fiscal 2023 (ending July 31, 2022) and increasing its guidance for fiscal year 2023 (ending January 31, 2023):

Tailwinds

  • Total revenue for Q2 FY23 is expected to be between $512.7 - $516.8 million
  • Non-GAAP income from operations for Q2 FY23 is expected to be between $70.4 - $73.3 million
  • Non-GAAP net income attributable to CrowdStrike for Q2 FY23 is expected to be between $64.9 - $67.9 million
  • Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted for Q2 FY23 is expected to be between $0.27 - $0.28
  • Total revenue for full year FY23 is expected to be between $2,190.5 - $2,205.8 million

Headwinds

  • Non-GAAP income from operations for full year FY23 is expected to be between $306.5 - $317.8 million
  • Non-GAAP net income attributable to CrowdStrike for full year FY23 is expected to be between $283.3 - $294.6 million
  • Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted for full year FY23 is expected to be between $1.18 - $1.22
  • Weighted average shares used in computing Non-GAAP net income per share attributable to common stockholders, diluted for Q2 FY23 is expected to be 240 million
  • Weighted average shares used in computing Non-GAAP net income per share attributable to common stockholders, diluted for full year FY23 is expected to be 241 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.6%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+6.7%

Avg return

30 days after

64%

18 / 28 earnings

Positive

+26.9%

Q4 2020

Best reaction

-15.6%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+6.1%-4.9%
Q4 2026+0.8%+10.9%+2.0%
Q3 2026+0.6%-0.3%-12.2%
Q2 2026+12.9%-2.2%+13.9%
Q1 2026+2.0%+3.0%-7.2%
Q4 2025-6.3%-20.8%-17.6%
Q3 2025-4.4%-4.9%+0.4%
Q2 2025+0.7%+2.8%+5.9%
Q1 2025+10.8%+13.1%+25.4%
Q4 2024+5.0%+2.9%-1.5%
Q3 2024+11.6%+11.9%+21.9%
Q2 2024+11.1%+9.9%+14.1%
Q1 2024-0.7%-2.8%-7.4%
Q4 2023+1.0%-6.2%+0.2%
Q3 2023-15.6%-11.1%-25.0%
Q2 2023-4.9%-10.2%-13.7%
Q1 2023+0.4%+9.4%+11.0%
Q4 2022+21.8%+16.8%+39.2%
Q2 2022-5.7%-2.8%-14.2%
Q1 2022-6.2%-2.5%+14.5%
Q4 2021+3.7%-3.0%+6.3%
Q3 2021+9.3%+15.7%+43.6%
Q2 2021-10.0%-12.9%-2.7%
Q1 2021+3.4%-1.0%+13.1%
Q4 2020+26.9%+48.4%+67.6%
Q3 2020-7.4%-13.5%-7.7%
Q2 2020-10.9%-16.0%-25.2%
Q1 2020+17.6%+22.2%+35.3%
Q4 2019
Q3 2018
Q2 2018
Q1 2018
Q4 2017

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