CrowdStrike (CRWD) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 results with total revenue of $921.0M (up 33% YoY), ending ARR of $3.65B (up 33% YoY), and net new ARR of $212M (up 22% YoY), driven by strong subscription growth and customer expansion.

• Free cash flow reached $322M (35% of revenue), up 42% YoY, with record operating cash flow of $383M.

• Platform adoption accelerated, with deals involving 8+ modules growing 95% YoY and high customer consolidation on the Falcon platform.

• Major product innovations included Falcon Flex, Charlotte AI, Next-Gen SIEM, and Falcon Application Security Posture Management.

• Significant customer wins included Fortune 100 healthcare, Middle East utilities, and major hyperscaler cloud providers.

Financial highlights

• Subscription revenue was $872.2M (up 34% YoY); professional services revenue was $48.9M (up 18% YoY); total revenue reached $921.0M (up 33% YoY).

• Record total gross margin of 78% GAAP and 80% non-GAAP; subscription gross margin steady at 80%.

• Non-GAAP operating income was $198.7M (up 72% YoY); non-GAAP operating margin was 22% (up 5pp YoY); GAAP operating income was $6.9M.

• Non-GAAP net income was $231.7M ($0.93 per diluted share); GAAP net income was $42.8M ($0.17 per diluted share).

• Cash and equivalents totaled $3.70B at quarter end.

Outlook and guidance

• Q2 FY25 revenue guidance: $958.3M–$961.2M; non-GAAP net income: $245.7M–$247.8M; non-GAAP EPS: $0.98–$0.99.

• FY25 revenue guidance raised to $3,976.3M–$4,010.7M; non-GAAP net income: $985.6M–$1,012.0M; non-GAAP EPS: $3.93–$4.03.

• Free cash flow margin target maintained at 31–33% of revenue for FY25.

• Expects to recognize about 60% of $4.7B in remaining performance obligations over the next 12 months.

• Guidance excludes stock-based compensation, amortization of intangibles, and other non-cash or non-recurring items.