CRWD Q3 2022 Earnings

Call Details

• Call Title: CrowdStrike Q3 2022 Earnings Call
• Date: December 1, 2021 at 10:00 PM UTC
• Management Team:
  • Maria Riley (Vice President of Investor Relations)
  • George Kurtz (President and Chief Executive Officer and co-founder)
  • Burt Podbere (Chief Financial Officer)
  • Jim Seidel (Chief Sales Officer)
  • Mike Carpenter (Head of Global Sales (transitioning to advisory role))

Call Summary

Financial Performance

• Total revenue for the third quarter was $380.1M, representing 63% year-over-year growth versus Q3 last year.
• Subscription revenue was $357.0M, which grew 67% year-over-year versus Q3 last year.
• Ended ARR exceeded $1.51B, reflecting 67% year-over-year ARR growth and surpassing the $1.5B milestone.
• Net new ARR reached $170.0M, which was an all-time high for the company in the quarter.
• Professional services revenue was $23.0M, representing 22% year-over-year growth and setting a new record for the fifth consecutive quarter.
• Third quarter non-GAAP gross margin was 76% and non-GAAP subscription gross margin was 79%, both consistent with the prior-year quarter.
• Non-GAAP operating income was $50.7M and non-GAAP net income attributable to CrowdStrike was $41.1M, or $0.17 per diluted share on a non-GAAP basis.
• Operating cash flow was $159.1M and free cash flow was a record $123.5M, representing 32% of revenue.
• Cash and cash equivalents increased to approximately $1.91B as of quarter end.

Guidance

• For Q4 FY22, revenue guidance is $406.5M to $412.3M, reflecting year-over-year growth of 53% to 56%.
• Q4 FY22 non-GAAP income from operations guidance is $55.2M to $59.5M.
• Q4 FY22 non-GAAP net income attributable to CrowdStrike guidance is $45.2M to $49.4M.
• Q4 FY22 diluted non-GAAP EPS guidance is $0.19 to $0.21 using an estimated 241M diluted shares.
• For full FY22, revenue guidance is $1,427.1M to $1,432.9M, reflecting 63% to 64% year-over-year growth.
• Full-year FY22 non-GAAP income from operations is guided to $171.0M to $175.3M and non-GAAP net income attributable to CrowdStrike is guided to $135.4M to $139.7M.
• Full-year FY22 non-GAAP diluted EPS is guided to $0.57 to $0.59 using 238M weighted average diluted shares.
• Guidance explicitly incorporates the Secure Circle acquisition and the $70M IP transfer tax expense related to the Humio acquisition in Q4.