CrowdStrike Holdings, Inc. (CRWD) has released its quarterly financial results for the period ending October 31, 2024, showcasing strong revenue growth but a net loss due to rising expenses, Quartz reports.
The company’s 10-Q filing highlights key financial metrics, operational developments, and ongoing legal matters tied to a notable system incident earlier in the year.
CrowdStrike reported total revenue of $1.01 billion for the quarter, a 29% increase compared to $786 million in the same quarter last year. Subscription services accounted for 95% of total revenue, while professional services contributed the remaining 5%. The company’s cost of revenue rose to $255 million, primarily due to increased employee-related expenses and cloud hosting costs, yet it maintained a strong gross margin of 75%. Gross profit reached $755 million, up from $591 million in the previous year.
Operating expenses surged 38% year-over-year to $811 million, driven mainly by a 43% rise in sales and marketing expenditures, totaling $408 million. Other contributing factors included increased spending on research and development.
The company reported a net loss of $16.8 million for the quarter, a significant decline from the net income of $26.7 million in the same period last year. CrowdStrike attributed the loss to heightened operating expenses and costs associated with the “July 19 Incident,” which caused system outages for certain customers and led to ongoing legal proceedings.
Despite the net loss, CrowdStrike generated robust cash flow from operating activities, totaling $1.04 billion. Cash used in investing and financing activities amounted to $211.6 million and $60.8 million, respectively. As of October 31, the company reported a working capital position of $2.57 billion.
CrowdStrike reiterated that it does not plan to issue cash dividends to common stockholders in the near future, as it remains focused on reinvesting in growth initiatives.
The company disclosed ongoing legal matters related to the July 19 Incident, during which system crashes impacted some customers. CrowdStrike is cooperating with inquiries and has incurred significant costs in addressing the incident. The company emphasized its commitment to resolving these issues while ensuring minimal disruption to its customers.
CrowdStrike continues to prioritize expansion of its customer base and enhancements to its flagship Falcon platform. It is also investing heavily in research and development to maintain its competitive edge in the rapidly evolving cybersecurity market.
However, the company highlighted key risks, including its dependence on third-party data centers and the potential impact of geopolitical tensions on its global operations.
