Subscription rise fuels CrowdStrike Q2 revenue beat

By Robert Scammell

CrowdStrike has reported an earnings and revenue beat in its second-quarter results as the cybersecurity company benefited from a rise in subscriptions and strong demand for endpoint protection among remote workforces.

For the quarter ended 31 July, CrowdStrike reported total revenue of $199m. This marks an 84% year-on-year increase. The US company had forecast Q2 revenues of $185.8m to $190.3m, while analysts predicted $188.6m.

The cloud-based security firm reported non-GAAP net income per share of $0.03, compared to a loss of $0.18 in the year-ago period. Analysts had expected a loss of $0.06 per share for Q2 fiscal 2021.

An 89% year-on-year increase in subscription revenues was a key driver for the company’s successful quarter. Subscription revenue was $184.3m, compared to $97.6m in the year-ago quarter.

In Q2 CrowdStrike added 969 net new subscription customers, bringing its total subscription customers to 7,230 as of 31 July.

CrowdStrike Q2 results: Consecutive quarterly profits

The company reported its first quarterly profit in Q1 nearly a year after going public. It now has a $30.7bn market cap.

CrowdStrike reported non-GAAP profits of $7.9m in Q2, compared to a $231.1m loss a year ago. However, using the GAAP metric, CrowdStrike’s Q2 net loss was $29.9m, compared with a $519m loss in the year-ago quarter.

“CrowdStrike’s strong momentum continued into the second quarter with net new ARR reaching a new record and exceeding $100m. A favourable competitive environment and strong secular tailwinds are fuelling our growth,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer.

“Organisations are shedding outdated systems and accelerating their move to modern cloud-native technologies to meet the demands of today’s threat landscape. Furthermore, as organisations adapt to the new distributed workforce paradigm, it has become clear that the endpoint is the new security perimeter and the complex patchwork of legacy solutions is inadequate in this new environment.”

For Q3, CrowdStrike anticipates revenues of $210.6m to $215m and non-GAAP earnings per share to range between a $0.01 loss and break even. For the full fiscal year, CrowdStrike forecasts revenues of $809.1m to $826.7m.

CrowdStrike’s share price is down 3% since posting its Q2 results, but up 187% since the start of the year.


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