Crowdstrike beats Q2 estimates with strong subscription growth

Subscription revenue was up 71%, while the cybersecurity company saw its total number of subscription customers grow by 81%
Written by Stephanie Condon, Senior Writer

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

The cybersecurity company added 1,660 net new subscription customers in the quarter for a total of 13,080 subscription customers as of July 31. That represents 81% year-over-year growth. Subscription revenue was $315.8 million, a 71% increase. 

Crowdstrike's total Q2 revenue was $337.7 million, a 70% increase over a year prior. Non-GAAP net income came to $25.9 million or 11 cents per share. 

Analysts were expecting earnings of 9 cents per share on revenue of $323.16 million. 

"CrowdStrike delivered an outstanding second quarter with rapid subscription revenue growth and record net new ARR generated in the quarter," CEO and co-founder George Kurtz said in a statement. "The success of our platform strategy and our growing brand leadership has led to a groundswell of customers turning to CrowdStrike as their trusted security platform of record. We believe that our extensible Falcon platform, purpose-built to leverage the power of the cloud, collecting data once and reusing it many times, is a fundamental cornerstone to building a durable growth business over the long-term." 

Crowdstrike's annual recurring revenue (ARR) increased 70% year-over-year and grew to $1.34 billion as of July 31. Of that, $150.6 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 66%, 53%, and 29%, respectively, as of July 31. 

For the third quarter, the company expects total revenue in the range of $358 million to $365.3 million.

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