CRWD Q1 2020 Earnings

Call Details

• Call Title: CrowdStrike Q1 2020 Earnings Call
• Date: July 18, 2019 at 9:00 PM UTC
• Management Team:
  • Peter Daly (Vice President, Strategic Finance)
  • George Kurtz (President, Chief Executive Officer, and co-founder)
  • Burt Podbere (Chief Financial Officer)

Call Summary

Financial Performance

• Total revenue in Q1 was $96.1M, which the company stated represented 103% year-over-year total revenue growth.
• Subscription revenue for Q1 was $86M, representing approximately 90% of total revenue and a 116% year-over-year increase.
• Non-GAAP gross margin improved to 70% in Q1 from 59% a year ago, and non-GAAP subscription gross margin increased to 73% from 62% a year ago.
• Total non-GAAP operating expenses in Q1 were $89.2M, or 93% of revenue, compared with $59.4M or 126% of revenue in the prior-year quarter.
• Non-GAAP net loss for Q1 was $22.1M, or $0.47 per share, versus a non-GAAP net loss of $31.7M, or $0.73 per share, in Q1 of last year.
• Cash, cash equivalents, and marketable securities at quarter end were $175.1M, and subsequent to quarter close the company received $659.1M of net proceeds from the IPO.

ARR / Recurring Revenue Growth

• ARR at the end of Q1 was $364.6M, which the company reported as 114% ARR growth year-over-year with $52M of net new ARR added in the quarter.
• The company defines ARR as the annualized value of customer subscription contracts at quarter end assuming renewal of contracts expiring within 12 months.
• Approximately 90% of revenue is subscription-based, emphasizing a recurring revenue base and low reliance on perpetual licensing.
• The company stated that subscription ARR generation benefits from initial professional services where approximately $3 of subscription ARR is derived for every $1 spent on an initial incident response engagement.
• Geographic revenue mix in Q1 was reported as approximately 75% U.S. and 25% international.
• The company reported 543 net new subscription customers in Q1.