CrowdStrike Subscription Revenues Jump 98 Percent

CrowdStrike (NASDAQ:CRWD), cloud endpoint security company announced record earnings as subscription revenues shot up 98 percent over the quarter to US$114.2 million. Although the company’s share price has had a turbulent year, rising 70 percent in July down to negative 8 percent in December, the most recent financial report signaled strength in cash flow positive figures and revenues reaching US$125.1 million, an 88 percent increase compared to last year.

As quoted in the press release:

“Third quarter results well exceeded our expectations and CrowdStrike delivered the best quarter yet in company history with strength in multiple areas of the business including 98% subscription revenue growth and record net new ARR. We achieved two significant milestones as ARR grew 97% year-over-year to exceed half a billion dollars and we generated positive cash flow in the quarter,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer.

“Strong demand among organizations across diverse sizes and industries and our frictionless go-to-market engine drove our rapid growth at scale, which we believe continues to demonstrate our growing leadership in the Security Cloud category and ongoing growth potential,” concluded Kurtz.

Burt Podbere, CrowdStrike’s chief financial officer, said, “Robust growth along with our relentless focus on execution and strong unit economics drove improved operating leverage, positive cash flow from operations and positive free cash flow. Given our strong performance and growing momentum in the market, we are raising our guidance for fiscal year 2020. Looking forward into fiscal year 2021 ending January 31, 2021, we expect to be free cash flow positive for the year and achieve non-GAAP operating income breakeven in the fourth quarter of fiscal year 2021, while at the same time continuing to aggressively invest in our market opportunity.”

Click here to read the full press release.