CrowdStrike Holdings, Inc. (CRWD): history, ownership, mission, how it works & makes money

A Brief History of CrowdStrike Holdings, Inc.

Company Overview

CrowdStrike Holdings, Inc. is a cybersecurity technology company that specializes in endpoint security, threat intelligence, and cyberattack response services. Founded in 2011, the company has rapidly evolved to become a prominent player in the cybersecurity market, leveraging cloud-native technology to deliver its services.

Financial Performance

As of July 31, 2024, CrowdStrike reported a total revenue of $1,884.9 million for the six months ended July 31, 2024, which represents a 32% increase compared to $1,424.2 million for the same period in 2023. The revenue breakdown is as follows:

Cost of Revenue and Gross Profit

For the six months ended July 31, 2024, the total cost of revenue was $462.4 million, a 31% increase from $352.1 million in the same period in 2023. The gross profit for the same period was $1,422.5 million, reflecting a gross margin of 75%.

Operating Expenses

CrowdStrike's operating expenses for the six months ended July 31, 2024, totaled $1,401.9 million, a 27% increase from $1,106.9 million in the same period in 2023. The breakdown is as follows:

Net Income

For the six months ended July 31, 2024, CrowdStrike reported a net income of $89.8 million, compared to $9.0 million for the same period in 2023, marking a significant improvement in profitability.

Stock Performance and Market Capitalization

As of July 31, 2024, CrowdStrike's market capitalization was approximately $9.7 billion. The company's stock has shown resilience, reflecting strong demand for its cybersecurity solutions amidst increasing global cyber threats.

Key Metrics

Annual Recurring Revenue (ARR) as of July 31, 2024, was reported at $3.86 billion, a 32% increase from $2.93 billion in the previous year. The Dollar-Based Net Retention Rate remained robust, indicating strong customer loyalty and expansion.

A Who Owns CrowdStrike Holdings, Inc. (CRWD)

Major Shareholders

As of 2024, CrowdStrike Holdings, Inc. has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:

Class Structure of Shares

CrowdStrike has two classes of common stock: Class A and Class B. The Class A shares are publicly traded on NASDAQ under the ticker symbol CRWD, while Class B shares are primarily held by insiders and provide enhanced voting rights.

Insider Transactions and Holdings

As of July 31, 2024, CrowdStrike's management and board members hold a significant amount of stock. The following table summarizes the recent insider transactions:

Institutional Investor Trends

Institutional ownership has been steadily increasing, highlighting confidence in CrowdStrike's growth potential. The following table provides insights into the trend of institutional ownership over recent quarters:

Summary of Financial Performance

CrowdStrike's financial performance reflects its growth trajectory, which directly impacts shareholder confidence and ownership structure:

CrowdStrike Holdings, Inc. (CRWD) Mission Statement

Mission Statement Overview

CrowdStrike Holdings, Inc. is dedicated to revolutionizing cybersecurity by delivering a comprehensive AI-native platform designed to stop breaches and protect organizations around the globe. The company emphasizes innovation, scalability, and customer-centric solutions, ensuring that its Falcon platform meets the evolving needs of its diverse clientele.

Core Values

• Innovation: Continuous improvement in technology and services to stay ahead of cyber threats.
• Customer Focus: Commitment to understanding and addressing customer needs effectively.
• Integrity: Upholding the highest standards of ethics and transparency in all operations.
• Teamwork: Fostering a collaborative environment to drive success across the organization.

Financial Performance

As of July 31, 2024, CrowdStrike reported significant growth in its financial metrics:

Market Position

CrowdStrike continues to strengthen its position in the cybersecurity market through innovative solutions and strategic acquisitions. The company's leadership in AI-driven security solutions is evidenced by its growing customer base and expanding market share.

Customer Acquisition and Retention

In the six months ended July 31, 2024, CrowdStrike added:

• New Customers: Significant growth in new customer acquisitions, further expanding its user base.
• Customer Retention: A strong dollar-based net retention rate indicates effective customer engagement and satisfaction.

Investment in Growth

CrowdStrike is committed to investing in research and development as well as sales and marketing to ensure continued growth and innovation. The company anticipates increased operating expenses as it scales its operations and enhances its product offerings.

Recent Developments

In July 2024, CrowdStrike faced a technical incident related to its Falcon platform. The company is actively addressing the situation to ensure customer trust and service reliability while continuing to innovate its offerings.

Stockholder Information

As of July 31, 2024, CrowdStrike's financial position reflected:

Conclusion

CrowdStrike's mission statement and operational focus underscore its commitment to redefining cybersecurity, ensuring that organizations are equipped with cutting-edge solutions to combat emerging threats. The company's robust financial performance and strategic initiatives position it for sustained growth in the evolving landscape of cybersecurity.

How CrowdStrike Holdings, Inc. (CRWD) Works

Business Model

CrowdStrike Holdings, Inc. operates primarily through a subscription-based model, providing cloud-delivered endpoint protection solutions. The company's services are centered around its Falcon platform, which utilizes artificial intelligence to detect and respond to cyber threats.

Financial Performance

As of July 31, 2024, CrowdStrike reported total revenue of $963.9 million for the three months ended, marking a 32% increase from $731.6 million in the same period of 2023. The breakdown of revenue is as follows:

Key Metrics

The annual recurring revenue (ARR) for CrowdStrike as of July 31, 2024, stood at $3.86 billion, reflecting a year-over-year growth of 32%. The following table summarizes the ARR and dollar-based net retention rate:

Operating Expenses

CrowdStrike's operating expenses for the three months ended July 31, 2024, were $712.8 million, compared to $564.1 million in the same period of 2023. The detailed breakdown is as follows:

Net Income

Net income attributable to CrowdStrike for the three months ended July 31, 2024, was $46.7 million, compared to $8.5 million in the same period of 2023, reflecting a significant increase in profitability.

Cash Flow

For the six months ended July 31, 2024, net cash provided by operating activities was $709.9 million, compared to $545.7 million in the same period of 2023. The cash flow from investing and financing activities is summarized below:

Market Position

CrowdStrike continues to hold a strong position in the cybersecurity market, driven by increasing demand for cloud-native security solutions. The company's focus on AI and machine learning enhances its competitive edge in threat detection and response capabilities.

Conclusion

As of July 31, 2024, CrowdStrike has demonstrated robust financial growth and a solid operational framework, positioning itself favorably for continued expansion in the cybersecurity landscape.

How CrowdStrike Holdings, Inc. (CRWD) Makes Money

Revenue Streams

CrowdStrike Holdings, Inc. generates revenue primarily through two main sources: subscription revenue and professional services revenue.

Subscription Revenue

Subscription revenue is the largest component of CrowdStrike's income, accounting for approximately 95% of total revenue for the three months ended July 31, 2024. The breakdown of subscription revenue for Q2 2024 compared to Q2 2023 is as follows:

Annual Recurring Revenue (ARR)

As of July 31, 2024, CrowdStrike reported an ARR of $3.86 billion, reflecting a year-over-year growth rate of 32%. This growth is attributed to new customer acquisitions and increased sales to existing customers.

Cost of Revenue

The cost of revenue for subscriptions includes expenses related to hosting the Falcon platform, employee-related costs, and amortization of capitalized software. For Q2 2024, the subscription cost of revenue was:

Gross Profit and Margin

CrowdStrike's gross profit for Q2 2024 was $726,471,000, resulting in a gross margin of 75%, consistent with the previous year.

Operating Expenses

Operating expenses consist of sales and marketing, research and development, and general administrative expenses. For Q2 2024, the breakdown was:

Net Income

CrowdStrike reported a net income of $46,690,000 for Q2 2024, a significant increase from $8,476,000 in Q2 2023, marking a growth of 451%.

Market Overview and Future Expectations

The demand for CrowdStrike’s services is driven by the increasing need for cybersecurity solutions. The company continues to invest in technology and customer acquisition strategies to maintain its growth trajectory. The dollar-based net retention rate was stable, indicating strong customer loyalty and expansion opportunities within existing accounts.

As of July 31, 2024, CrowdStrike had a remaining performance obligation of $4.9 billion, with approximately 59% expected to be recognized in the next 12 months, indicating strong future revenue visibility.