NASDAQ$CRWD

Crowdstrike Holdings · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Crowdstrike's Q3 2024 earnings report showcases record profitability and ARR growth.

CrowdStrike's Q3 FY24 exceeded expectations, achieving record net new ARR of $223 million and surpassing $3 billion in ending ARR. The company's focus on operational excellence drove record operating margin, net income, and free cash flow.

  • Ending ARR surpassed $3 billion, growing 35% year-over-year to reach $3.15 billion.
  • Net new ARR reached a record $223 million, driven by accelerating year-over-year growth.
  • Record profitability was delivered through operational excellence.
  • Record Q3 cash flow from operations and free cash flow were achieved.

Headline financials

Total Revenue

$786M

Previous: $581M+35.3%
EPS (adj)

$0.82

Previous: $0.40+105.0%
Annual Recurring Revenue

$3.15B

Previous: $2.34B+34.6%
Capital Expenditures

-$124M

Previous: -$180M+31.0%
Free Cash Flow

$695M

Previous: $488M+42.4%
Net Income

$26.7M

Previous: -$55M+148.5%
Operating Income

$3.16M

Previous: -$56.4M+105.6%
Gross Profit

$591M

Previous: $423M+39.8%
Cash & Equivalents

$2.97B

Previous: $2.47B+20.4%
Total Assets

$5.83B

Previous: $4.47B+30.5%
R&D Expense

$195M

No prior period
Stock-Based Comp

$160M

Previous: $140M+13.9%

Revenue & EPS history

Crowdstrike · Revenue · Quarterly

$786M

Q3 2024+35.3%vs Q3 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Crowdstrike · $786M total across 2 segments · Q3 2024

  • Subscription
    $734M+34.0%
  • Professional services
    $52.6M+56.8%

Forward guidance

CrowdStrike provided guidance for the fourth quarter of fiscal year 2024 (ending January 31, 2024) and increased its guidance for the fiscal year 2024 (ending January 31, 2024).

Tailwinds

  • Total revenue is expected to be between $836.6 million and $840.0 million for Q4 FY24.
  • Total revenue is expected to be between $3,046.8 million and $3,050.2 million for the full year FY24.
  • Non-GAAP income from operations is expected to be between $186.5 million and $189.0 million for Q4 FY24.
  • Non-GAAP income from operations is expected to be between $633.6 million and $636.2 million for the full year FY24.
  • Non-GAAP net income attributable to CrowdStrike is expected to be between $199.6 million and $202.1 million for Q4 FY24.

Headwinds

  • Guidance for non-GAAP financial measures excludes stock-based compensation expense.
  • Guidance excludes amortization expense of acquired intangible assets (including purchased patents).
  • Guidance excludes amortization of debt issuance costs and discount.
  • Guidance excludes mark-to-market adjustments on deferred compensation liabilities.
  • Guidance excludes legal reserve and settlement charges or benefits.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+2.5%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+6.7%

Avg return

30 days after

63%

17 / 27 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
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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