CrowdStrike announced the financial results for the third quarter of the fiscal year 2025, which ended October 31, 2024. Revenue increased 29% year over year to reach $1.01 billion, surpassing the $4 billion ending ARR milestone.
“CrowdStrike surpassed $4 billion in ending ARR in the quarter – the fastest and only pure play cybersecurity software company to reach this reported milestone – as our single platform approach and trailblazing innovation continue to resonate at-scale,” said George Kurtz, Founder and CEO. “With over 97% gross retention, customers remain committed to the technological superiority of the Falcon platform and the benefits of cybersecurity consolidation. Accelerating module adoption and customers embracing our transformational Falcon Flex subscription model give us confidence in CrowdStrike’s bright future as cybersecurity’s AI platform of record.”
Commenting on the company’s financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “Our third quarter results reflect our focused execution and financial discipline, which drove a strong finish and quarter-over-quarter increase in pipeline, despite expected headwinds from the July 19th incident. We saw incredible success with our customer commitment packages as customers embraced the program and chose to deepen their relationship with CrowdStrike.”
Third Quarter Fiscal 2025 Financial Highlights
- Revenue: Total revenue was $1,010.2 million, a 29% increase, compared to $786.0 million in the third quarter of fiscal 2024. Subscription revenue was $962.7 million, a 31% increase, compared to $733.5 million in the third quarter of fiscal 2024.
- Annual Recurring Revenue (ARR) grew 27% year-over-year to $4.02 billion as of October 31, 2024, of which $153.0 million was net new ARR added in the quarter.
- Subscription Gross Margin: GAAP subscription gross margin was 78% for the third quarter of both fiscal 2025 and 2024. Non-GAAP subscription gross margin was 80% for the third quarter of both fiscal 2025 and 2024.
- Income/Loss from Operations: GAAP loss from operations was $55.7 million, compared to income of $3.2 million in the third quarter of fiscal 2024. Non-GAAP income from operations was $194.9 million, compared to $175.7 million in the third quarter of fiscal 2024.
- Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $16.8 million, compared to income of $26.7 million in the third quarter of fiscal 2024. GAAP net loss per share attributable to CrowdStrike, diluted, was $0.07, compared to income of $0.11 in the third quarter of fiscal 2024. Non-GAAP net income attributable to CrowdStrike was $234.3 million, compared to $199.2 million in the third quarter of fiscal 2024. Non-GAAP net income attributable to CrowdStrike per share, diluted, was $0.93, compared to $0.82 in the third quarter of fiscal 2024.
- Cash Flow: Net cash generated from operations was $326.1 million, compared to $273.5 million in the third quarter of fiscal 2024. Free cash flow was $230.6 million, compared to $239.0 million in the third quarter of fiscal 2024.
- Cash and Cash Equivalents was $4.26 billion as of October 31, 2024.
