CrowdStrike posts record cash flow as growth reaccelerates
The cybersecurity firm raised its net new ARR growth guidance by 520 basis points at the midpoint.
The cybersecurity platform provider CrowdStrike Holdings (CRWD) reported first-quarter results that showed accelerating growth and record cash generation. Net new annual recurring revenue (ARR) jumped 32% year-over-year to $256 million, outpacing the 26% revenue increase to $1.39 billion.
The quarter marked a clear inflection after three consecutive periods of decelerating ARR growth. Net new ARR had risen 47% in the prior quarter and 73% in the year-earlier period, while total revenue growth had slowed to 23% in the fourth quarter and 22% in the third. The rebound came alongside a surge in operating cash flow to $591 million, up 19% sequentially and 48% year-over-year, lifting the cash-flow margin to 43%.
Revenue reached $1.39 billion, up 26% from the year-ago quarter, while non-GAAP net income totaled $283.4 million, or $1.17 a share, compared with $289.1 million, or $1.19 a share, in the prior quarter. Subscription revenue, which accounts for 95% of the total, grew 26% to $1.32 billion, matching the overall revenue growth rate.
The reacceleration was driven by broader adoption of the company’s security modules. Customers using six or more modules rose to 51% from 50% in the prior quarter, while those using eight or more reached 25%, up from 24%. Ending ARR grew 24% to $5.51 billion, unchanged from the prior quarter’s growth rate but up from 23% in the third quarter.
CrowdStrike also introduced new AI-driven products, including Project QuiltWorks and Charlotte AI AgentWorks, and expanded its cloud-security portfolio with Falcon Data Security and enhanced Cloud Detection and Response for Google Cloud. The company said it secured FedRAMP High Authorization for its Falcon for XIoT product, a milestone not disclosed in prior quarters.
Management raised its full-year net new ARR growth guidance by 520 basis points at the midpoint to 27.7%, citing stronger demand and the contribution from new modules. The company also announced its first stock split, a four-for-one division effective in July.
Cash flow from operations set a record at $591 million, while free cash flow rose to $468 million, up 24% sequentially. The company said it expects to maintain its non-GAAP operating margin at 24% for the year, down slightly from 25% in the prior quarter but above the 21% recorded in the third quarter.
Source: company public filings.