The significant jump in cash and cash equivalents in Q2 2024 was driven by **record cash flow from operations** of **$244.8 million** and **record free cash flow** of **$188.7 million**, which were achieved amid strong revenue growth, operational leverage, and disciplined cost management.  **[CRWD_3384440_8]** **[0001535527-23-000018_crwd-20230830xex991.htm:0]** **[CRWD_3311224_5]** 

What drove the significant jump in cash and cash equivalents in Q2 2024?

CrowdStrike’s accounts receivable dropped sharply in Q1 2024 primarily due to **seasonality in billings** and **strong cash collections**. The company typically sees higher accounts receivable in Q4 due to large deals and renewals, which then decrease in Q1 as these payments are collected. Additionally, robust cash collection efforts, reflected by net cash provided by operating activities of **$300.9 million**, significantly contributed to reducing the balances.  **[0001535527-23-000012_crwd-20230531xex991.htm:7]** **[CRWD_3253386_7]** **[0001535527-23-000012_crwd-20230531xex991.htm:0]** **[0001535527-23-000012_crwd-20230531xex991.htm:8]** 

Why did accounts receivable drop sharply in Q1 2024?

The significant increase in Goodwill in Q3 2024 was primarily driven by **CrowdStrike's acquisition of Bionic Technology**, which resulted in the Goodwill balance rising from **$430,645 thousand** to **$637,678 thousand**.  **[0001535527-24-000007_crwd-20240131.htm:138]** **[0001535527-23-000024_crwd-20231128xex991.htm:8]** **[0001535527-23-000026_crwd-20231031.htm:5]** 

What explains the steep increase in Goodwill in Q3 2024?

The spike in **intangible assets, net** in Q3 2024 was primarily due to the **acquisition of Bionic Technology**. This acquisition led to a significant increase in the gross carrying amounts of **developed technology, customer relationships, and other acquired intangible assets**. Additionally, the acquisition contributed to a rise in **goodwill**, supporting the overall increase in intangible assets for the period.  **[0001535527-23-000026_crwd-20231031.htm:15]** 

What factors contributed to the spike in intangible assets in Q3 2024?

The documents indicate that **short-term investments declined from $250,000 thousand in Q4 2023 to $100,000 thousand in Q1 2024**. Although the documents do not provide an explicit explanation for this change, they suggest that the company may have **reallocated funds toward increasing cash and cash equivalents** (which rose from **$2,455,369 thousand to $2,829,677 thousand**) to potentially enhance liquidity or fund operational needs.  **[0001535527-23-000012_crwd-20230531xex991.htm:7]** **[0001535527-23-000014_crwd-20230430.htm:5]** 

Why did short-term investments decline significantly in Q1 2024?

69cb2505ac9ae107aaa7197c1a19939e9e4d693a83402c4976b1eb9548484b44

Operating cash flow was notably robust in FY 2024 primarily because of a **significant turnaround in net income** and **increased non-cash adjustments**. In FY 2024, the company reported a **net income of $90,585 thousand** compared to a **net loss of $182,285 thousand** in FY 2023, which substantially improved the cash-generating capacity of its operations.  **[0001535527-24-000007_crwd-20240131.htm:118]** **[0001535527-24-000004_crwd-20240305xex991.htm:9]**  Additionally, higher non-cash charges—including increases in **stock-based compensation expense**, **amortization of deferred contract acquisition costs**, and **depreciation and amortization**—further bolstered operating cash flow. While changes in working capital such as deferred revenue increases also contributed positively, the overall strength was driven by the turnaround in profitability and elevated non-cash adjustments.  **[0001535527-24-000007_crwd-20240131.htm:118]** **[0001535527-24-000004_crwd-20240305xex991.htm:9]** 

Why was Operating Cash Flow so robust in FY 2024?

The jump in **Operating Cash Flow** in **Q4 2024** was driven by several key factors. First, **CrowdStrike** shifted to profitability, with GAAP net income turning positive at **$53.7 million** compared to a loss of **$47.5 million** in Q4 2023.  **[0001535527-24-000004_crwd-20240305xex991.htm:0]**  This improvement was bolstered by increased revenue and Annual Recurring Revenue (ARR), with total revenue growing **33%** to **$845.3 million** and ARR rising **34%** to **$3.44 billion**.  **[0001535527-24-000004_crwd-20240305xex991.htm:0]**  Additionally, operational efficiency improved markedly—non-GAAP operating income surged **123%** to **$213.1 million**, and the operating margin increased by **10 percentage points** to reach **25%**.  **[CRWD_3376591_8]**  Deferred revenue growth also played a role, with **$3.1 billion** recorded as of January 31, 2024, contributing to operating cash inflows.  **[0001535527-24-000007_crwd-20240131.htm:104]**  Lastly, adjustments related to non-cash charges such as stock-based compensation, totaling **$631.5 million** for FY 2024, further enhanced the cash flow from operations.  **[0001535527-24-000007_crwd-20240131.htm:105]** 

What drove the jump in Operating Cash Flow in Q4 2024?

The increase in operating cash flow in Q1 2025 was driven by several factors. **Net income rose significantly** from **$0.5 million** in Q1 2024 to **$46.3 million** in Q1 2025, contributing to the enhanced cash flow.  **[0001535527-24-000011_crwd-20240604xex991.htm:8]** **[0001535527-24-000011_crwd-20240604xex991.htm:0]**  Additionally, there was a notable increase in **non-cash charges**, particularly in stock-based compensation expense, which rose significantly during the period.  **[0001535527-24-000011_crwd-20240604xex991.htm:8]** **[0001535527-24-000011_crwd-20240604xex991.htm:0]**  The **amortization of deferred contract acquisition costs** also expanded from **$55.3 million** to **$74.1 million**.  **[0001535527-24-000011_crwd-20240604xex991.htm:8]** **[0001535527-24-000011_crwd-20240604xex991.htm:0]**  Furthermore, improvements in operating working capital, including a **$150.2 million decrease in accounts receivable** and a **$15.0 million increase in deferred revenue**, helped to further boost the cash flow.  **[0001535527-24-000013_crwd-20240430.htm:45]** 

Why did Operating Cash Flow increase notably in Q1 2025?

In Q2 2025, **CrowdStrike’s operating cash flow** was significantly boosted by multiple factors. **Higher net income** – which jumped from **$8,476 thousand** to **$46,690 thousand** – played a major role, driven by strong revenue growth and improved operational efficiency.  **[0001535527-24-000017_crwd-20240828xex991.htm:0]** **[0001535527-24-000017_crwd-20240828xex991.htm:4]**  Additionally, **increases in stock-based compensation expense** (from **$164,777 thousand** to **$200,877 thousand**) and **amortization of deferred contract acquisition costs** (from **$55,322 thousand** to **$74,128 thousand**) contributed to the higher cash flow by enhancing non-cash adjustments.  **[0001535527-24-000017_crwd-20240828xex991.htm:4]**  The rise in **depreciation and amortization expenses** (from **$26,409 thousand** to **$42,689 thousand**) and positive changes in operating assets and liabilities – including a **$150.2 million decrease in accounts receivable** and a **$15.0 million increase in deferred revenue** – further increased the net cash provided by operating activities.  **[0001535527-24-000017_crwd-20240828xex991.htm:4]** **[0001535527-24-000013_crwd-20240430.htm:45]** 

What contributed to the higher Operating Cash Flow in Q2 2025?

35bd68a976505bbe20685d10feb1b79ed8b0bac4eb723fa65166dac954a4eb6c

CrowdStrike’s **exceptionally high operating income** in Q4 2024 was primarily driven by a combination of factors, including **strong revenue growth** (with total revenue rising by **33%** year-over-year to **$845.3 million**, up from **$637.4 million**), **improved gross margins** (with GAAP margins moving from **75%** to **78%** and non-GAAP margins from **77%** to **80%**), and a notable **operating expense leverage** that boosted non-GAAP operating income by **123%** to **$213.1 million**. Additionally, various adjustments, such as reductions in stock-based compensation and other expense items, also contributed to the significant improvement in operating income.  **[0001535527-24-000004_crwd-20240305xex991.htm:0]** **[CRWD_3376591_8]** **[0001535527-24-000004_crwd-20240305xex991.htm:11]** 

Why was operating income so high in Q4 2024?

The substantial increase in **net income** for Q4 2024 was driven by several factors, including **33% revenue growth** to **$845.3 million** driven by strong subscription revenue, improved **gross margins** (with subscription gross margin at **80%** compared to **77%** in the previous year), and enhanced **operating leverage** (evidenced by a **123%** increase in non-GAAP operating income to **$213.1 million** and a **10 percentage point** boost in operating margins). Additionally, the shift from a GAAP loss of **$47.5 million** in Q4 2023 to achieving **GAAP net income of approximately $53.7 million** in Q4 2024 further underscores the improvement in profitability, supported by robust free cash flow generation and strong growth in annual recurring revenue (ARR).  **[CRWD_3376591_8]** **[0001535527-24-000004_crwd-20240305xex991.htm:0]** 

What drove the significant increase in net income in Q4 2024?

EPS turned negative in Q3 2025 primarily because the company recorded a **GAAP net loss of $16.8 million** (in contrast to a GAAP net income of $26.7 million in Q3 2024) driven by several cost increases and one-time expenses. Notably, the **July 19 incident incurred $33.9 million in expenses**, and there were steep increases in **operating expenses** (with Sales and Marketing up 43% and R&D up 41% year-over-year). Additionally, **stock-based compensation increased to $208.9 million**, and amortization costs also rose, further contributing to the negative earnings per share in Q3 2025.  **[CRWD_3410093_9]** **[0001535527-24-000024_crwd-20241126xex991.htm:12]** **[0001535527-24-000024_crwd-20241126xex991.htm:6]** 

Why did EPS turn negative in Q3 2025?

CrowdStrike’s pre-tax income decline in Q3 2025 was primarily driven by a significant increase in operating expenses—rising by **38%** year-over-year due to notable jumps in sales and marketing, research and development, and general and administrative expenses—along with a **31%** increase in the cost of revenue. Despite a **29%** growth in revenue, the gross margin remained flat at **75%**, and although interest income increased by **30%**, it was not enough to offset these higher costs, leading to a sharp decline in pre-tax income.  **[0001535527-24-000026_crwd-20241031.htm:48]** **[0001535527-24-000026_crwd-20241031.htm:7]** **[0001535527-24-000024_crwd-20241126xex991.htm:0]** 

Why did pre-tax income decline sharply in Q3 2025?

The drastic reduction in diluted shares in Q3 2025 is explained by the company’s net loss during the quarter. When a net loss is reported, all potentially dilutive securities — such as stock options and RSUs — are excluded from the calculation because their inclusion would be antidilutive, resulting in the diluted share count equaling the basic share count.  **[0001535527-24-000024_crwd-20241126xex991.htm:6]** **[0001535527-24-000026_crwd-20241031.htm:36]** 

What explains the drastic reduction in diluted shares in Q3 2025?

1c237c5a140331d93d1c38f31a352b821cad50d992f34185abaa0bb340ec4980

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Weighted-average Shares Used in Computing Net Income (Loss) per Share Attributable to CrowdStrike Common Stockholders - Diluted

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11d3ea00e7b5436c2ef9c2b52616df8f9d115f14567c0a28d9b786f2b3382580

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Subscription

Professional Services

Total Revenue

bea1e9f87b30a63c9dacc68c9ceabb0e79cca5e0813294dc9cc7a9a654a6d07a

United States

Europe, Middle East, and Africa

Asia Pacific

Other

b19d2e9e9e46dc3150161a7d96f5dada97c6163c49600d2124456fb86dd53539

CrowdStrike Holdings (CRWD)

Financials