Cybersecurity firm CrowdStrike reported a 37% increase in total revenue for the second quarter of the fiscal year 2024, ending July 31, 2023. The company's total revenue for the quarter was $731.6 million, compared to $535.2 million in the second quarter of the previous fiscal year, fiscal 2023.
In addition to the surge in total revenue, the cybersecurity major also recorded growth in other financial metrics. Subscription revenue rose by 36% during the same period, reaching $690 million, up from $506.2 million in the second quarter of fiscal year 2023. Annual Recurring Revenue (ARR) showed a year-over-year increase of 37%, totaling $2.93 billion as of July 31, 2023, with $196.2 million being added as new ARR in the second quarter alone.
CrowdStrike delivered strong growth
“CrowdStrike delivered strong growth at scale, exceeding our guidance across both top and bottom line metrics in the second quarter,” said George Kurtz, CrowdStrike's
Operating profitability also demonstrated upward trends. The company reported non-GAAP income from operations at $155.7 million, compared to $87.3 million in the same quarter of the previous year. Under Generally Accepted Accounting Principles (GAAP), the loss from operations was $15.4 million, an improvement from a loss of $48.3 million in the second quarter of fiscal year 2023.
Net income attributable to CrowdStrike showed positive results as well. According to GAAP, net income for the second quarter of fiscal year 2024 was $8.5 million, as opposed to a net loss of $49.3 million in the corresponding period of the previous year. On a non-GAAP basis, net income stood at $180 million, an increase from $85.9 million in the second quarter of fiscal year 2023.
Cash flow metrics
Cash flow metrics showed a strengthening financial position. Net cash generated from operations increased to $244.8 million from $209.9 million in the second quarter of fiscal year 2023. Free cash flow was reported at $188.7 million, compared to $135.8 million in the same period the previous year. As of July 31, 2023, the company's cash and cash equivalents totaled $3.17 billion.
The firm was named the 2023 US ISV Partner of the Year by Amazon Web Services and a cloud security leader in Frost & Sullivan's 2023 Frost Radar. The company also announced the introduction of new service offerings such as Falcon Cloud Security features and the launch of CrowdStrike Counter Adversary Operations.
“The AI-powered Falcon platform's native capabilities across our cloud, identity, and next-gen SIEM businesses are unique in the market, in aggregate contributing well over half a billion dollars in ending ARR. Our platform strategy sets us apart from the competition, resulting in high win rates as customers rapidly embrace Falcon to consolidate vendors, lower TCO and achieve better security outcomes,” said Kurtz.