CrowdStrike beats estimates for Q3, sees revenue increase 63% compared to 2020

CrowdStrike brought in $380.1 million in revenue for Q3.
Written by Jonathan Greig, Contributor

Crowdstrike published its third-quarter financial results on Wednesday, beating market estimates with solid growth from subscription customers. 

Crowdstrike's total Q3 revenue was $380.1 million, a 63% increase over a year prior. Non-GAAP net income came to $41.1 million or 17 cents per share. 

The cybersecurity company added 1,607 net new subscription customers in the quarter for a total of 14,687 subscription customers as of October 31. That represents 75% year-over-year growth. Subscription revenue was $357 million, a 67% increase. 

Analysts were expecting earnings of 10 cents per share on revenue of $364.19 million. 

"CrowdStrike delivered a robust third quarter with broad-based strength across multiple areas of the business leading to net new ARR growth accelerating and ending ARR growing 67% year-over-year to surpass the $1.5 billion milestone," said George Kurtz, CrowdStrike's co-founder and chief executive officer. 

"Our outstanding results this quarter demonstrate the flywheel effect of our platform and reflect continued strong customer adoption for our core products in addition to the growing success of our newer product initiatives, including identity protection, log management, and cloud. With our leading technology, unmatched platform, and approach to stopping breaches, we continue to eclipse our competitors and extend our leadership position."

Crowdstrike's annual recurring revenue (ARR) increased 67% year-over-year and grew to $1.51 billion as of October 31. Of that, $170 million was net new ARR added in the quarter. 

In addition to adding a record number of net new subscribers in the quarter, Crowdstrike reported solid growth in the portion of subscribers adopting multiple modules. CrowdStrike's subscription customers that have adopted four or more modules, five or more modules, and six or more modules increased to 68%, 55%, and 32%, respectively, as of October 31. 

For the third quarter, the company expects total revenue in the range of $406.5 million and $412.3 million.

Burt Podbere, CrowdStrike's chief financial officer, added that the company maintained high unit economics while generating strong operating and free cash flow. 

"Given the growth drivers of our business, as well as our exceptional third-quarter performance and momentum into the fourth quarter, we are once again raising our guidance for the fiscal year 2022," Podbere said. 

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