CrowdStrike Reports Second Quarter Fiscal Year 2023 Financial Results

BENGALURU, India, August 30, 2022 - CrowdStrike Holdings, Inc. (Nasdaq: CRWD), a global cybersecurity leader that provides cloud-delivered protection of endpoints, cloud workloads,identity and data, today announced financial results for the second quarter fiscal year 2023, endedJuly 31, 2022.

“CrowdStrike delivered a strong second quarter with new milestones across the business. EndingARR surpassed the $2 billion milestone, net new ARR reached a record $218 million and net new subscription customers reached a record 1,741 in the quarter. As organizations respond to macroeconomic conditions, they are prioritizing investments and looking to standardize with a security partner they can trust to achieve better protection with less time, fewer resources and lower total cost of ownership. Our ability to deliver immediate ROI and consolidate the security and IT stack significantly sets us apart from the competition,” said George Kurtz, CrowdStrike’s co-founderand chief executive officer.

Commenting on the company's financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “CrowdStrike delivered robust growth at scale and exceptional unit economics withover 80% year-over-year growth in operating and free cash flow. We are raising our guidance for fiscal year 2023, which reflects our technology advantage and strong industry tailwinds combined with a pragmatic view of current macroeconomic conditions. Additionally, we remain committed to delivering increased non-GAAP operating leverage and 30% or more free cash flow margin forthe full year.”

Second Quarter Fiscal 2023 Financial Highlights

• Revenue: Total revenue was $535.2 million, a 58%increase, compared to $337.7 million in the secondquarter of fiscal 2022. Subscription revenue was $506.2 million, a 60% increase, compared to $315.8 million in the second quarter of fiscal 2022.

• Annual Recurring Revenue (ARR) increased 59%year-over-year and grew to $2.14 billion as of July31, 2022, of which $218.1 million was net newARR added in the quarter.

• Subscription Gross Margin: GAAP subscriptiongross margin was approximately 76% in both thesecond quarter of fiscal 2023 and 2022. Non-GAAP subscription gross margin was approximately 78% in both the second quarter of fiscal 2023 and 2022.

• Income/Loss from Operations: GAAP loss from operations was $48.3 million, compared to $47.4 million in the second quarter of fiscal 2022. Non-GAAP income from operations was $87.3 million,compared to $35.3 million in the second quarter offiscal 2022.

• Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $49.3 million,compared to $57.3 million in the second quarter of fiscal 2022. GAAP net loss per share attributable to CrowdStrike, basic and diluted was $0.21, compared to $0.25 in the second quarter of fiscal 2022. Non-GAAP net income attributable to CrowdStrike was $85.9 million, compared to $25.9 million in the second quarter of fiscal 2022. Non- GAAP net incomeattributable to CrowdStrike per share, diluted, was$0.36, compared to $0.11 in the second quarter of fiscal2022.

• Cash Flow: Net cash generated from operations was $209.9 million, compared to $108.5 million in the second quarter of fiscal 2022. Free cash flow was$135.8 million, compared to $73.6 million in thesecond quarter of fiscal 2022.

• Cash and Cash Equivalents was $2.32 billion as of July31, 2022.

Recent Highlights

• Added 1,741 net new subscription customers in thequarter for a total of 19,686 subscription customers asof July 31, 2022, representing 51% growth year-over-year.

• CrowdStrike’s subscription customers that have adoptedfive or more, six or more and seven or more moduleswas 59%, 36% and 20%, respectively, as of July 31,2022.

• Achieved the highest Mac malware protection score inAV-Comparatives Mac Security Test and Review2022 and won the Approved Security Product awardfor the fifth consecutive time.

• Named Best Security Company by 2022 SC AwardsUS and received the Best Emerging TechnologyAward at SC Awards Europe 2022 for Falcon XDR.

• Earned Frost & Sullivan’s 2022 Global TechnologyInnovation Leadership Award in Endpoint Security.

• Announced the general availability of the FalconIdentity Threat Protection module for its GovCloud-1environment. This makes Falcon Identity Threat Protection available to U.S. public sector organizations that require Federal Risk and AuthorizationManagement Program (FedRAMP) Moderate orImpact Level 4 (IL-4) authorization.

• Unveiled CrowdStrike Asset Graph, a new graphdatabase powered by the CrowdStrike Security Cloudthat provides visibility into IT assets alongsidevisibility into attack surfaces to simplify IT operationsand stop breaches.

• Launched Falcon OverWatch Cloud Threat Hunting,the first standalone cloud threat hunting service forthreats originating, operating or persisting in cloudenvironments.

• Introduced the first AI-powered Indicators of Attack(IoA), new innovations for fileless attackprevention and enhanced visibility for stealthycloud intrusions.

• Added new Cloud Native Application Protection Platform (CNAPP) capabilities, including support for Amazon Elastic Container Service (ECS) within AWSFargate to enable Software Composition Analysis(SCA) for open source software and expand imageregistry scanning for eight new container registries.

• Announced the release of the Open Cybersecurity Schema Framework (OCSF) project, a collaborative open-source effort among cybersecurity andtechnology leaders to break down silos that impedecybersecurity teams’ abilities to quickly andeffectively detect, investigate and stop breaches.