CrowdStrike posts solid Q1 as customers seek to protect remote workers

The cybersecurity firm achieved non-GAAP operating profitability for the first time and beat Wall Street expectations.

CrowdStrike on Tuesday reported better-than-expected first quarter financial results, as organizations tapped its cloud-native cybersecurity products to protect workers kept at home during the COVID-19 pandemic. Shares were up in after-hours trading. 

The company's Q1 non-GAAP net income was $4.5 million, compared to a loss of $22.1 million in the first quarter of fiscal 2020. Non-GAAP net income per share was 2 cents, compared to a loss of 47 in the first quarter of fiscal 2020. 

Total revenue was $178.1 million, an 85 percent year-over-year increase. 

Analysts were looking for a net loss of 6 cents per share on revenue of $165.41 million. 

"CrowdStrike finished the quarter with strong momentum and delivered results that exceeded our expectations across the board," CEO George Kurtz said in a statement. "An increasing number of organizations recognize the power of CrowdStrike's cloud-native Falcon platform to effectively stop breaches as well as simplify their security and I.T. operations stack with a single, lightweight agent. Cybersecurity is mission critical and in the quarter our customers continued to prioritize their cybersecurity investments. With both security administrators and end-users working from home, we believe the rapid shift to a remote workforce has helped increase our leadership."

The quarter marked CrowdStrike's first time achieving non-GAAP operating profitability. The company also generated record positive cash flow from operations of  $98.6 million, as well as free cash flow of $87 million.

First quarter subscription revenue was $162.2 million, an 89 percent year-over-year increase. The company added 830 net new subscription customers in the quarter, for a total of 6,261 subscription customers as of April 30, representing 105 percent growth year-over-year.

Annual Recurring Revenue (ARR) increased 88 percent year-over-year and grew to $686.1 million as of April 30. From that, $85.7 million was net new ARR added in the quarter.

For the second quarter, CrowdStrike expects revenue in the range of $185.8 million to $190.3 million. Analysts have projected Q2 revenue of $173.09 million.