Business Wire | Aug 31, 2021 04:05PM EDT

CrowdStrike Reports Second Quarter Fiscal Year 2022 Financial Results

Aug. 31, 2021

SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 31, 2021--CrowdStrike Holdings, Inc. (Nasdaq: CRWD), a leader in cloud-delivered endpoint and workload protection, today announced financial results for the second quarter fiscal year 2022, ended July 31, 2021.

"CrowdStrike delivered an outstanding second quarter with rapid subscription revenue growth and record net new ARR generated in the quarter. We saw strength in multiple areas of the business, added $151 million in net new ARR and grew ending ARR 70% year-over-year to exceed $1.34 billion. The success of our platform strategy and our growing brand leadership have 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," said George Kurtz, CrowdStrike's co-founder and chief executive officer.

Commenting on the company's financial results, Burt Podbere, CrowdStrike's chief financial officer, added, "In the second quarter we once again achieved strong growth at scale and delivered exceptional unit economics, drove leverage and remained capital efficient, generating strong operating and free cash flow. Given our strong performance and growing momentum in the market, and reflecting our view of a continued robust demand environment, we are raising our guidance for fiscal year 2022."

Second Quarter Fiscal 2022 Financial Highlights

* Revenue: Total revenue was $337.7 million, a 70% increase, compared to $199.0 million in the second quarter of fiscal 2021. Subscription revenue was $315.8 million, a 71% increase, compared to $184.3 million in the second quarter of fiscal 2021.

* Annual Recurring Revenue (ARR) increased 70% year-over-year and grew to $1.34 billion as of July 31, 2021, of which $150.6 million was net new ARR added in the quarter.

* Subscription Gross Margin: GAAP subscription gross margin was 76%, compared to 76% in the second quarter of fiscal 2021. Non-GAAP subscription gross margin was 78%, compared to 78% in the second quarter of fiscal 2021.

* Income/Loss from Operations: GAAP loss from operations was $47.4 million, compared to $30.0 million in the second quarter of fiscal 2021. Non-GAAP income from operations was $35.3 million, compared to $7.8 million in the second quarter of fiscal 2021.

* Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $57.3 million, compared to $29.9 million in the second quarter of fiscal 2021. GAAP net loss per share attributable to CrowdStrike common stockholders was $0.25, compared to $0.14 in the second quarter of fiscal 2021. Non-GAAP net income attributable to CrowdStrike was $25.9 million, compared to $7.9 million in the second quarter of fiscal 2021. Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted, was $0.11, compared to $0.03 in the second quarter of fiscal 2021.

* Cash Flow: Net cash generated from operations was $108.5 million, compared to $55.0 million in the second quarter of fiscal 2021. Free cash flow was $73.6 million, compared to $32.4 million in the second quarter of fiscal 2021.

* Cash and Cash Equivalents was $1.79 billion as of July 31, 2021.

Recent Highlights

* Added 1,660 net new subscription customers in the quarter for a total of 13,080 subscription customers as of July 31, 2021, representing 81% growth year-over-year.

* 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, 2021.

* Ranked number one for Modern Endpoint Security 2020 revenue market share in IDC's Worldwide Corporate Endpoint Security Market Shares, 2020 report and named as a Leader in the IDC MarketScape report for U.S. Managed Detection & Response Services 2021 Vendor Assessment.

* Announced Falcon X Recon+, a new managed solution that simplifies the process of hunting and mitigating external threats to brands, employees and sensitive data.

* Added multiple new CrowdStrike Store partner integrations in the quarter, including Rapid7, Google Cloud, ExtraHop and Siemplify.

* Launched Falcon Complete for GovCloud, a U.S. FedRAMP compliant program, which provides cloud-native managed detection and response for the public sector.

* Won a fourth consecutive Approved Security Product award from leading independent testing organization AV-Comparatives. Within the AV-Comparatives Malware Protection Test, Falcon Pro for Mac achieved 99.8% malware protection.

* Named the winner of multiple partner-focused awards including the 2021 AWS Global Public Sector Partner Award for best cybersecurity solution, 2021 Canada AWS Partner Award as the ISV Partner of the Year and the Go-to-Market Technology Partner of the Year Award at Zscaler's 2021 ZenithLive Cloud Summit.

Financial Outlook

CrowdStrike is providing the following guidance for the third quarter of fiscal 2022 (ending October 31, 2021) and increasing its guidance for fiscal year 2022 (ending January 31, 2022):

Q3 FY22 Full Year Guidance FY22 Guidance

$358.0 - $1,391.2 -Total revenue $365.3 $1,409.4 million million

$29.4 - $138.5 -Non-GAAP income from operations $34.7 $152.1 million million

$19.7 - $102.9 -Non-GAAP net income attributable to CrowdStrike $25.0 $116.5 million million

Non-GAAP net income per share attributable to $0.08 - $0.43 -CrowdStrike common stockholders, diluted $0.10 $0.49

Weighted average shares used in computing non-GAAP 240net income per share attributable to CrowdStrike million 239 millioncommon stockholders, diluted

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization expense of acquired intangible assets, amortization of debt issuance costs and discount, legal reserve and settlement charges or benefits, gain (loss) on strategic investments, acquisition-related expenses, and tax costs for intellectual property integration relating to the Humio acquisition. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP income from operations, non-GAAP net income attributable to CrowdStrike, and non-GAAP net income per share attributable to CrowdStrike common stockholders is not available without unreasonable effort.

Conference Call Information

CrowdStrike will host a conference call for analysts and investors to discuss its earnings results for the second quarter of fiscal 2022 and outlook for its fiscal third quarter and year 2022 today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). A recorded webcast of the event will also be available for one year on the CrowdStrike Investor Relations website ir.crowdstrike.com.

Date: August 31, 2021

Time: 2:00 p.m. Pacific time / 5:00 p.m. Eastern time

Dial-in number: 409-937-8967, conference ID: 9695498

Webcast: ir.crowdstrike.com

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our future growth, and future financial and operating performance, including our financial outlook for the fiscal third quarter and fiscal year 2022. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our limited operating history; risks associated with managing our rapid growth; our ability to identify and effectively implement the necessary changes to address execution challenges; the impact of the COVID-19 pandemic on our and our customers' business; our limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the risk of defects, errors, or vulnerabilities; our ability to attract new and retain existing customers; our ability to successfully integrate acquisitions; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscriptions and support; our ability to collaborate and integrate our products with offerings from other parties to deliver benefits to customers; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and general market, political, economic, and business conditions, including those related to COVID-19.

Further information on risks, uncertainties and other factors that could affect our financial results are included in the filings we make with the Securities and Exchange Commission ("SEC") from time to time, including our most recently filed Quarterly Report on Form 10-Q and subsequent filings.

You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Use of Non-GAAP Financial Information

We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below, as well as the "Explanation of Non-GAAP Financial Measures" section of this press release.

Channels for Disclosure of Information

We intend to announce material information to the public through the CrowdStrike Investor Relations website ir.crowdstrike.com, SEC filings, press releases, public conference calls, and public webcasts. We use these channels, as well as social media and our blog, to communicate with our investors, customers, and the public about our company, our offerings, and other issues. It is possible that the information we post on social media and our blog could be deemed to be material information. As such, we encourage investors, the media, and others to follow the channels listed above, including the social media channels listed on our investor relations website, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page on our website.

Reports Referenced

Worldwide Corporate Endpoint Security Market Shares, 2020: Pandemic and Expanding Functionality Propelled Market Growth, (# US47768021), Jun 2021

IDC MarketScape: U.S. Managed Detection and Response Services 2021 Vendor Assessment, (Doc #US48129921), August 2021

About CrowdStrike Holdings

CrowdStrike provides cloud-delivered endpoint and cloud workload protection. Leveraging artificial intelligence (AI), the CrowdStrike Falcon(r) platform protects customers against cyberattacks on endpoints on or off the network by offering visibility and protection across the enterprise.

Copyright (c) 2021 CrowdStrike, Inc. All rights reserved. CrowdStrike and CrowdStrike Falcon(r) are the registered trademarks of CrowdStrike, Inc. CrowdStrike owns other trademarks and service marks, and may use the brands of third parties to identify their products and services.

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

Three Months Ended July 31, Six Months Ended July 31,

2021 2020 2021 2020

Revenue

Subscription $ 315,836 $ 184,256 $ 597,064 $ 346,478

Professional 21,854 14,715 43,469 30,571 services

Total revenue 337,690 198,971 640,533 377,049

Cost of revenue

Subscription ^ 75,993 44,037 140,896 81,281 (1)(2)

Professional 14,439 10,354 28,041 20,005 services^ (1)

Total cost of 90,432 54,391 168,937 101,286 revenue

Gross profit 247,258 144,580 471,596 275,763

Operating expenses

Sales andmarketing^ (1) 153,861 95,127 288,992 183,265 (2)

Research anddevelopment ^(1) 90,455 50,483 168,635 91,061 (2)

General andadministrative ^ 50,345 28,961 92,719 54,004 (1)(3)(4)

Total operating 294,661 174,571 550,346 328,330 expenses

Loss from (47,403 ) (29,991 ) (78,750 ) (52,567 ) operations

Interest expense (6,296 ) (174 ) (12,526 ) (317 ) ^(5)

Other income, 619 732 5,387 5,265 net^(6)

Loss beforeprovision for (53,080 ) (29,433 ) (85,889 ) (47,619 ) income taxes

Provision for 4,238 441 54,300 1,477 income taxes^(7)

Net loss (57,318 ) (29,874 ) (140,189 ) (49,096 )

Net incomeattributable to - - 2,178 - noncontrollinginterest

Net lossattributable to $ (57,318 ) $ (29,874 ) $ (142,367 ) $ (49,096 ) CrowdStrike

Net loss pershareattributable toCrowdStrike $ (0.25 ) $ (0.14 ) $ (0.63 ) $ (0.23 ) commonshareholders,basic anddiluted

Weighted-averageshares used incomputing netloss per shareattributable to 226,362 216,695 225,276 214,932 CrowdStrikecommonshareholders,basic anddiluted

_____________________________

(1) Includes stock-based compensation expense as follows:

Three Months Ended July Six Months Ended July 31, 31,

2021 2020 2021 2020



(in thousands) (in thousands)

Subscription cost of revenue $ 5,294 $ 2,635 $ 9,579 $ 4,630

Professional services cost of 2,389 1,425 4,417 2,396 revenue

Sales and marketing 25,265 13,603 42,679 22,290

Research and development 25,808 9,029 43,609 13,929

General and administrative 17,531 11,021 30,365 18,106

Total stock-based compensation $ 76,287 $ 37,713 $ 130,649 $ 61,351 expense

(2) Includes amortization of acquired intangible assets as follows:

Three Months Ended Six Months Ended July 31, July 31,

2021 2020 2021 2020



(in thousands) (in thousands)

Subscription cost of revenue $ 2,771 $ 63 $ 4,766 $ 125

Sales and marketing 547 31 969 62

Research and development - 10 - 20

Total amortization of acquired $ 3,318 $ 104 $ 5,735 $ 207 intangible assets

(3) Includes acquisition-related expenses as follows:

Three Months Ended July Six Months Ended July 31, 31,

2021 2020 2021 2020



(in thousands) (in thousands)

General and administrative $ 596 $ - $ 4,941 $ -

Total acquisition-related $ 596 $ - $ 4,941 $ - expenses

(4) Includes legal reserve and settlement charges as follows:

Three Months Ended Six Months Ended July 31, July 31,

2021 2020 2021 2020



(in thousands) (in thousands)

General and administrative $ 2,500 $ - $ 2,500 $ -

Total legal reserve and $ 2,500 $ - $ 2,500 $ - settlement charges

(5) Includes amortization of debt issuance costs and discount as follows:

Three Months Ended Six Months Ended July 31, July 31,

2021 2020 2021 2020



(in thousands) (in thousands)

Interest expense $ 546 $ - $ 1,093 $ -

Total amortization of debt issuance $ 546 $ - $ 1,093 $ - costs and discount

(6) Includes gains from strategic investment as follows:

Three Months Ended July Six Months Ended 31, July 31,

2021 2020 2021 2020



(in thousands) (in thousands)

Other income, net $ - $ - $ 4,356 $ -

Total gains from strategic $ - $ - $ 4,356 $ - investments

(7) Includes tax costs for intellectual property integration relating to the Humio acquisition as follows:

Three Months Ended July Six Months Ended July 31, 31,

2021 2020 2021 2020



(in thousands) (in thousands)

Provision for income taxes $ - $ - $ 48,824 $ -

Total provision for income $ - $ - $ 48,824 $ - taxes

CROWDSTRIKE HOLDINGS, INC.Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

July 31,

January 31,

2021

2021

Assets

Current assets:

Cash and cash equivalents

$

1,787,051

$

1,918,608

Accounts receivable, net of allowance for credit losses

266,540

239,199

Deferred contract acquisition costs, current

95,470

80,850

Prepaid expenses and other current assets

102,964

53,617

Total current assets

2,252,025

2,292,274

Strategic investments

14,165

2,500

Property and equipment, net

215,832

167,014

Operating lease right-of-use assets

34,854

36,484

Deferred contract acquisition costs, noncurrent

140,443

117,906

Goodwill

374,310

83,566

Intangible assets, net

85,580

15,677

Other assets

18,836

17,112

Total assets

$

3,136,045

$

2,732,533

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

19,642

$

12,065

Accrued expenses

70,162

51,117

Accrued payroll and benefits

95,462

71,907

Operating lease liabilities, current

9,374

8,977

Deferred revenue

882,969

701,988

Other current liabilities

59,219

17,499

Total current liabilities

1,136,828

863,553

Long-term debt

738,772

738,029

Deferred revenue, noncurrent

281,388

209,907

Operating lease liabilities, noncurrent

29,378

31,986

Other liabilities, noncurrent

38,278

17,184

Total liabilities

2,224,644

1,860,659

Commitments and contingencies

Stockholders' Equity

Common stock, Class A and Class B

114

112

Additional paid-in capital

1,775,087

1,598,259

Accumulated deficit

(872,483

)

(730,116

)

Accumulated other comprehensive income

1,550

2,319

Total CrowdStrike Holdings, Inc. stockholders' equity

904,268

870,574

Non-controlling interest

7,133

1,300

Total stockholders' equity

911,401

871,874

Total liabilities and stockholders' equity

$

3,136,045

$

2,732,533

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

July 31, January 31,

2021 2021

Assets

Current assets:

Cash and cash equivalents $ 1,787,051 $ 1,918,608

Accounts receivable, net of allowance for credit 266,540 239,199 losses

Deferred contract acquisition costs, current 95,470 80,850

Prepaid expenses and other current assets 102,964 53,617

Total current assets 2,252,025 2,292,274

Strategic investments 14,165 2,500

Property and equipment, net 215,832 167,014

Operating lease right-of-use assets 34,854 36,484

Deferred contract acquisition costs, noncurrent 140,443 117,906

Goodwill 374,310 83,566

Intangible assets, net 85,580 15,677

Other assets 18,836 17,112

Total assets $ 3,136,045 $ 2,732,533

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 19,642 $ 12,065

Accrued expenses 70,162 51,117

Accrued payroll and benefits 95,462 71,907

Operating lease liabilities, current 9,374 8,977

Deferred revenue 882,969 701,988

Other current liabilities 59,219 17,499

Total current liabilities 1,136,828 863,553

Long-term debt 738,772 738,029

Deferred revenue, noncurrent 281,388 209,907

Operating lease liabilities, noncurrent 29,378 31,986

Other liabilities, noncurrent 38,278 17,184

Total liabilities 2,224,644 1,860,659

Commitments and contingencies

Stockholders' Equity

Common stock, Class A and Class B 114 112

Additional paid-in capital 1,775,087 1,598,259

Accumulated deficit (872,483 ) (730,116 )

Accumulated other comprehensive income 1,550 2,319

Total CrowdStrike Holdings, Inc. stockholders' 904,268 870,574 equity

Non-controlling interest 7,133 1,300

Total stockholders' equity 911,401 871,874

Total liabilities and stockholders' equity $ 3,136,045 $ 2,732,533

CROWDSTRIKE HOLDINGS, INC.Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Six Months Ended July 31,

2021

2020

Operating activities

Net loss

$

(140,189

)

$

(49,096

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

24,725

17,621

Loss on disposal of property and equipment

244

-

Amortization of intangible assets

5,735

207

Amortization of deferred contract acquisition costs

50,419

28,171

Non-cash operating lease costs

4,469

4,939

Provision for credit losses

354

(269

)

Stock-based compensation expense

130,649

61,351

Gain on sale of debt securities, net

-

(1,347

)

Accretion of marketable securities purchased at a premium

-

578

Non-cash interest expense

1,199

320

Change in fair value of strategic investments

(4,356

)

-

Changes in operating assets and liabilities, net of impact of acquisition

Accounts receivable

(24,257

)

16,020

Deferred contract acquisition costs

(87,576

)

(48,988

)

Prepaid expenses and other assets

(47,883

)

(1,953

)

Accounts payable

5,383

9,634

Accrued expenses and other current liabilities

55,242

(8,112

)

Accrued payroll and benefits

22,853

(711

)

Operating lease liabilities

(5,022

)

1,315

Deferred revenue

251,742

118,672

Other liabilities

12,277

5,250

Net cash provided by operating activities

256,008

153,602

Investing activities

Purchases of property and equipment

(55,793

)

(30,334

)

Capitalized internal-use software and website development

(9,273

)

(3,850

)

Purchase of strategic investments

(7,309

)

(1,000

)

Business acquisition, net of cash acquired

(353,746

)

-

Purchases of marketable securities

-

(84,904

)

Proceeds from sales of marketable securities

-

639,586

Maturities of marketable securities

-

91,605

Net cash (used in) provided by investing activities

(426,121

)

611,103

Financing activities

Payment of debt issuance costs related to revolving line of credit

(219

)

-

Payment of debt issuance costs related to Senior Notes

(1,581

)

-

Proceeds from issuance of common stock upon exercise of stock options

9,492

16,601

Proceeds from issuance of common stock under the employee stock purchase plan

27,452

17,284

Capital contributions from non-controlling interest holders

3,655

550

Net cash provided by financing activities

38,799

34,435

Effect of foreign exchange rates on cash and cash equivalents

(243

)

796

Net (decrease) increase in cash and cash equivalents

(131,557

)

799,936

Cash and cash equivalents, beginning of period

1,918,608

264,798

Cash and cash equivalents, end of period

$

1,787,051

$

1,064,734

CROWDSTRIKE HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Six Months Ended July 31,

2021 2020

Operating activities

Net loss $ (140,189 ) $ (49,096 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization 24,725 17,621

Loss on disposal of property and equipment 244 -

Amortization of intangible assets 5,735 207

Amortization of deferred contract acquisition 50,419 28,171 costs

Non-cash operating lease costs 4,469 4,939

Provision for credit losses 354 (269 )

Stock-based compensation expense 130,649 61,351

Gain on sale of debt securities, net - (1,347 )

Accretion of marketable securities purchased at a - 578 premium

Non-cash interest expense 1,199 320

Change in fair value of strategic investments (4,356 ) -

Changes in operating assets and liabilities, net of impact of acquisition

Accounts receivable (24,257 ) 16,020

Deferred contract acquisition costs (87,576 ) (48,988 )

Prepaid expenses and other assets (47,883 ) (1,953 )

Accounts payable 5,383 9,634

Accrued expenses and other current liabilities 55,242 (8,112 )

Accrued payroll and benefits 22,853 (711 )

Operating lease liabilities (5,022 ) 1,315

Deferred revenue 251,742 118,672

Other liabilities 12,277 5,250

Net cash provided by operating activities 256,008 153,602

Investing activities

Purchases of property and equipment (55,793 ) (30,334 )

Capitalized internal-use software and website (9,273 ) (3,850 )development

Purchase of strategic investments (7,309 ) (1,000 )

Business acquisition, net of cash acquired (353,746 ) -

Purchases of marketable securities - (84,904 )

Proceeds from sales of marketable securities - 639,586

Maturities of marketable securities - 91,605

Net cash (used in) provided by investing (426,121 ) 611,103 activities

Financing activities

Payment of debt issuance costs related to (219 ) - revolving line of credit

Payment of debt issuance costs related to Senior (1,581 ) - Notes

Proceeds from issuance of common stock upon 9,492 16,601 exercise of stock options

Proceeds from issuance of common stock under the 27,452 17,284 employee stock purchase plan

Capital contributions from non-controlling 3,655 550 interest holders

Net cash provided by financing activities 38,799 34,435



Effect of foreign exchange rates on cash and cash (243 ) 796 equivalents



Net (decrease) increase in cash and cash (131,557 ) 799,936 equivalents



Cash and cash equivalents, beginning of period 1,918,608 264,798

Cash and cash equivalents, end of period $ 1,787,051 $ 1,064,734

CROWDSTRIKE HOLDINGS, INC.Non-GAAP Financial Measures with Reconciliation to GAAP

(in thousands, except percentages)

(unaudited)

Three Months Ended July 31,

Six Months Ended July 31,

2021

2020

2021

2020

GAAP subscription revenue

$

315,836

$

184,256

$

597,064

$

346,478

GAAP subscription gross profit

$

239,843

$

140,219

$

456,168

$

265,197

Add: Stock-based compensation expense

5,294

2,635

9,579

4,630

Add: Amortization of acquired intangible assets

2,771

63

4,766

125

Non-GAAP subscription gross profit

$

247,908

$

142,917

$

470,513

$

269,952

GAAP subscription gross margin

76

%

76

%

76

%

77

%

Non-GAAP subscription gross margin

78

%

78

%

79

%

78

%

Three Months Ended July 31,

Six Months Ended July 31,

2021

2020

2021

2020

GAAP total revenue

$

337,690

$

198,971

$

640,533

$

377,049

GAAP loss from operations

$

(47,403

)

$

(29,991

)

$

(78,750

)

$

(52,567

)

Add: Stock-based compensation expense

76,287

37,713

130,649

61,351

Add: Amortization of acquired intangible assets

3,318

104

5,735

207

Add: Acquisition-related expenses

596

-

4,941

-

Add: Legal reserve and settlement charges

2,500

-

2,500

-

Non-GAAP income from operations

$

35,298

$

7,826

$

65,075

$

8,991

GAAP operating margin

(14

)%

(15

)%

(12

)%

(14

)%

Non-GAAP operating margin

10

%

4

%

10

%

2

%

CROWDSTRIKE HOLDINGS, INC.

Non-GAAP Financial Measures with Reconciliation to GAAP

(in thousands, except percentages)

(unaudited)

Three Months Ended July Six Months Ended July 31, 31,

2021 2020 2021 2020

GAAP subscription revenue $ 315,836 $ 184,256 $ 597,064 $ 346,478



GAAP subscription gross $ 239,843 $ 140,219 $ 456,168 $ 265,197 profit

Add: Stock-based 5,294 2,635 9,579 4,630 compensation expense

Add: Amortization ofacquired intangible 2,771 63 4,766 125 assets

Non-GAAP subscription $ 247,908 $ 142,917 $ 470,513 $ 269,952 gross profit



GAAP subscription gross 76 % 76 % 76 % 77 %margin



Non-GAAP subscription 78 % 78 % 79 % 78 %gross margin

Three Months Ended July Six Months Ended July 31, 31,

2021 2020 2021 2020

GAAP total revenue $ 337,690 $ 198,971 $ 640,533 $ 377,049



GAAP loss from operations $ (47,403 ) $ (29,991 ) $ (78,750 ) $ (52,567 )

Add: Stock-based 76,287 37,713 130,649 61,351 compensation expense

Add: Amortization ofacquired intangible 3,318 104 5,735 207 assets

Add: Acquisition-related 596 - 4,941 - expenses

Add: Legal reserve and 2,500 - 2,500 - settlement charges

Non-GAAP income from $ 35,298 $ 7,826 $ 65,075 $ 8,991 operations



GAAP operating margin (14 ) (15 ) (12 ) (14 ) % % % %



Non-GAAP operating margin 10 % 4 % 10 % 2 %

CROWDSTRIKE HOLDINGS, INC.Non-GAAP Financial Measures with Reconciliation to GAAP (Continued)

(in thousands, except percentages and per share amounts)

(unaudited)

Three Months Ended July 31,

Six Months Ended July 31,

2021

2020

2021

2020

GAAP net loss attributable to CrowdStrike

$

(57,318

)

$

(29,874

)

$

(142,367

)

$

(49,096

)

Add: Stock-based compensation expense

$

76,287

$

37,713

$

130,649

$

61,351

Add: Amortization of acquired intangible assets

3,318

104

5,735

207

Add: Acquisition-related expenses

596

-

4,941

-

Add: Amortization of debt issuance costs and discount

546

-

1,093

-

Add: Legal reserve and settlement charges

2,500

-

2,500

-

Add: Provision for income taxes(1)

-

-

48,824

-

Less: Gain on strategic investments attributable to CrowdStrike

-

-

(2,178

)

-

Non-GAAP net income attributable to CrowdStrike

$

25,929

$

7,943

$

49,197

$

12,462

Weighted-average shares used in computing GAAP net loss per share attributable to CrowdStrike common stockholders, basic and diluted

226,362

216,695

225,276

214,932

Weighted-average shares used in computing Non-GAAP net income per share attributable to CrowdStrike common stockholders, basic

226,362

216,695

225,276

214,932

Weighted-average shares used in computing Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted

238,043

233,169

237,753

231,720

GAAP net loss per share attributable to CrowdStrike common stockholders, basic and diluted

$

(0.25

)

$

(0.14

)

$

(0.63

)

$

(0.23

)

Non-GAAP net income per share attributable to CrowdStrike common stockholders, basic

$

0.11

$

0.04

$

0.22

$

0.06

Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted

$

0.11

$

0.03

$

0.21

$

0.05

CROWDSTRIKE HOLDINGS, INC.

Non-GAAP Financial Measures with Reconciliation to GAAP (Continued)

(in thousands, except percentages and per share amounts)

(unaudited)

Three Months Ended July 31, Six Months Ended July 31,

2021 2020 2021 2020

GAAP net lossattributable to $ (57,318 ) $ (29,874 ) $ (142,367 ) $ (49,096 ) CrowdStrike



Add: Stock-basedcompensation $ 76,287 $ 37,713 $ 130,649 $ 61,351 expense

Add: Amortizationof acquired 3,318 104 5,735 207 intangible assets

Add:Acquisition-related 596 - 4,941 - expenses

Add: Amortizationof debt issuance 546 - 1,093 - costs and discount

Add: Legal reserveand settlement 2,500 - 2,500 - charges

Add: Provision for - - 48,824 - income taxes^(1)

Less: Gain onstrategicinvestments - - (2,178 ) - attributable toCrowdStrike



Non-GAAP net incomeattributable to $ 25,929 $ 7,943 $ 49,197 $ 12,462 CrowdStrike



Weighted-averageshares used incomputing GAAP netloss per share 226,362 216,695 225,276 214,932 attributable toCrowdStrike commonstockholders, basicand diluted

Weighted-averageshares used incomputing Non-GAAPnet income per 226,362 216,695 225,276 214,932 share attributableto CrowdStrikecommonstockholders, basic

Weighted-averageshares used incomputing Non-GAAPnet income pershare attributable 238,043 233,169 237,753 231,720 to CrowdStrikecommonstockholders,diluted



GAAP net loss pershare attributableto CrowdStrike $ (0.25 ) $ (0.14 ) $ (0.63 ) $ (0.23 ) commonstockholders, basicand diluted



Non-GAAP net incomeper shareattributable to $ 0.11 $ 0.04 $ 0.22 $ 0.06 CrowdStrike commonstockholders, basic

Non-GAAP net incomeper shareattributable to $ 0.11 $ 0.03 $ 0.21 $ 0.05 CrowdStrike commonstockholders,diluted

Three Months Ended July 31,

Six Months Ended July 31,

2021

2020

2021

2020

GAAP total revenue

$

337,690

$

198,971

$

640,533

$

377,049

GAAP net cash provided by operating activities

108,475

55,025

256,008

153,602

Less: Purchases of property and equipment

(29,997

)

(20,640

)

(55,793

)

(30,334

)

Less: Capitalized internal-use software and website development

(4,839

)

(1,968

)

(9,273

)

(3,850

)

Free cash flow

$

73,639

$

32,417

$

190,942

$

119,418

GAAP net cash (used in) provided by investing activities

$

(41,175

)

$

(23,608

)

$

(426,121

)

$

611,103

GAAP net cash provided by financing activities

$

36,190

$

27,542

$

38,799

$

34,435

GAAP net cash provided by operating activities as a percentage of revenue

32

%

28

%

40

%

41

%

Less: Purchases of property and equipment as a percentage of revenue

(9

)%

(10

)%

(9

)%

(8

)%

Less: Capitalized internal-use software and website development as a percentage of revenue

(1

)%

(1

)%

(1

)%

(1

)%

Free cash flow margin

22

%

16

%

30

%

32

%

_____________________________

Three Months Ended July Six Months Ended July 31, 31,

2021 2020 2021 2020

GAAP total revenue $ 337,690 $ 198,971 $ 640,533 $ 377,049



GAAP net cash provided 108,475 55,025 256,008 153,602 by operating activities

Less: Purchases of (29,997 ) (20,640 ) (55,793 ) (30,334 )property and equipment

Less: Capitalizedinternal-use software (4,839 ) (1,968 ) (9,273 ) (3,850 )and website development

Free cash flow $ 73,639 $ 32,417 $ 190,942 $ 119,418



GAAP net cash (used in)provided by investing $ (41,175 ) $ (23,608 ) $ (426,121 ) $ 611,103 activities

GAAP net cash provided $ 36,190 $ 27,542 $ 38,799 $ 34,435 by financing activities



GAAP net cash providedby operating activities 32 % 28 % 40 % 41 %as a percentage ofrevenue

Less: Purchases ofproperty and equipment (9 ) (10 ) (9 ) (8 )as a percentage of % % % %revenue

Less: Capitalizedinternal-use software ) ) ) )and website development (1 % (1 % (1 % (1 %as a percentage ofrevenue

Free cash flow margin 22 % 16 % 30 % 32 %

_____________________________

We use our GAAP provision for income taxes for the purpose of determining our non-GAAP income tax expense. The tax costs for intellectual property integration relating to the Humio acquisition is included in the GAAP provision for income taxes during the first quarter of fiscal 2022. The(1) income tax benefits related to stock-based compensation, amortization of intangibles, acquisition related expenses, amortization of debt issuance costs and discount, and gain on strategic investments attributable to CrowdStrike included in the GAAP provision for income taxes was not material for all periods presented.

CROWDSTRIKE HOLDINGS, INC.Statements of Operations: GAAP to Non-GAAP Reconciliations

(in thousands)

(unaudited)

Three Months Ended July 31,

Six Months Ended July 31,

2021

2020

2021

2020

GAAP cost of revenue

$

90,432

$

54,391

$

168,937

$

101,286

Less:

Stock based compensation expense

7,683

4,060

13,996

7,026

Amortization of acquired intangible assets

2,771

63

4,766

125

Non-GAAP cost of revenue

$

79,978

$

50,268

$

150,175

$

94,135

GAAP subscription gross profit

$

239,843

$

140,219

$

456,168

$

265,197

Add:

Stock based compensation expense

5,294

2,635

9,579

4,630

Amortization of acquired intangible assets

2,771

63

4,766

125

Non-GAAP subscription gross profit

$

247,908

$

142,917

$

470,513

$

269,952

GAAP professional services gross profit

$

7,415

$

4,361

$

15,428

$

10,566

Add:

Stock based compensation expense

2,389

1,425

4,417

2,396

Non-GAAP professional services gross profit

$

9,804

$

5,786

$

19,845

$

12,962

GAAP sales and marketing operating expenses

$

153,861

$

95,127

$

288,992

$

183,265

Less:

Stock based compensation expense

25,265

13,603

42,679

22,290

Amortization of acquired intangible assets

547

31

969

62

Non-GAAP sales and marketing operating expenses

$

128,049

$

81,493

$

245,344

$

160,913

GAAP research and development operating expenses

$

90,455

$

50,483

$

168,635

$

91,061

Less:

Stock based compensation expense

25,808

9,029

43,609

13,929

Amortization of acquired intangible assets

-

10

-

20

Non-GAAP research and development operating expenses

$

64,647

$

41,444

$

125,026

$

77,112

GAAP general and administrative operating expenses

$

50,345

$

28,961

$

92,719

$

54,004

Less:

Stock based compensation expense

17,531

11,021

30,365

18,106

Acquisition-related expenses

596

-

4,941

-

Legal reserve and settlement charges

2,500

-

2,500

-

Non-GAAP general and administrative operating expenses

$

29,718

$

17,940

$

54,913

$

35,898

GAAP loss from operations

$

(47,403

)

$

(29,991

)

$

(78,750

)

$

(52,567

)

Add:

Stock based compensation expense

76,287

37,713

130,649

61,351

Amortization of acquired intangible assets

3,318

104

5,735

207

Acquisition-related expenses

596

-

4,941

-

Legal reserve and settlement charges

2,500

-

2,500

-

Non-GAAP income from operations

$

35,298

$

7,826

$

65,075

$

8,991

CROWDSTRIKE HOLDINGS, INC.

Statements of Operations: GAAP to Non-GAAP Reconciliations

(in thousands)

(unaudited)

Three Months Ended July Six Months Ended July 31, 31,

2021 2020 2021 2020

GAAP cost of revenue $ 90,432 $ 54,391 $ 168,937 $ 101,286

Less:

Stock based compensation 7,683 4,060 13,996 7,026 expense

Amortization of acquired 2,771 63 4,766 125 intangible assets

Non-GAAP cost of revenue $ 79,978 $ 50,268 $ 150,175 $ 94,135



GAAP subscription gross $ 239,843 $ 140,219 $ 456,168 $ 265,197 profit

Add:

Stock based compensation 5,294 2,635 9,579 4,630 expense

Amortization of acquired 2,771 63 4,766 125 intangible assets

Non-GAAP subscription $ 247,908 $ 142,917 $ 470,513 $ 269,952 gross profit



GAAP professional $ 7,415 $ 4,361 $ 15,428 $ 10,566 services gross profit

Add:

Stock based compensation 2,389 1,425 4,417 2,396 expense

Non-GAAP professional $ 9,804 $ 5,786 $ 19,845 $ 12,962 services gross profit



GAAP sales and marketing $ 153,861 $ 95,127 $ 288,992 $ 183,265 operating expenses

Less:

Stock based compensation 25,265 13,603 42,679 22,290 expense

Amortization of acquired 547 31 969 62 intangible assets

Non-GAAP sales andmarketing operating $ 128,049 $ 81,493 $ 245,344 $ 160,913 expenses



GAAP research anddevelopment operating $ 90,455 $ 50,483 $ 168,635 $ 91,061 expenses

Less:

Stock based compensation 25,808 9,029 43,609 13,929 expense

Amortization of acquired - 10 - 20 intangible assets

Non-GAAP research anddevelopment operating $ 64,647 $ 41,444 $ 125,026 $ 77,112 expenses



GAAP general andadministrative operating $ 50,345 $ 28,961 $ 92,719 $ 54,004 expenses

Less:

Stock based compensation 17,531 11,021 30,365 18,106 expense

Acquisition-related 596 - 4,941 - expenses

Legal reserve and 2,500 - 2,500 - settlement charges

Non-GAAP general andadministrative operating $ 29,718 $ 17,940 $ 54,913 $ 35,898 expenses



GAAP loss from operations $ (47,403 ) $ (29,991 ) $ (78,750 ) $ (52,567 )

Add:

Stock based compensation 76,287 37,713 130,649 61,351 expense

Amortization of acquired 3,318 104 5,735 207 intangible assets

Acquisition-related 596 - 4,941 - expenses

Legal reserve and 2,500 - 2,500 - settlement charges

Non-GAAP income from $ 35,298 $ 7,826 $ 65,075 $ 8,991 operations

CROWDSTRIKE HOLDINGS, INC.Statements of Operations: GAAP to Non-GAAP Reconciliations (continued)

(in thousands, except per share amounts)

(unaudited)

Three Months Ended July 31,

Six Months Ended July 31,

2021

2020

2021

2020

GAAP net loss attributable to CrowdStrike

$

(57,318

)

$

(29,874

)

$

(142,367

)

$

(49,096

)

Add:

Stock based compensation expense

76,287

37,713

130,649

61,351

Amortization of acquired intangible assets

3,318

104

5,735

207

Acquisition-related expenses

596

-

4,941

-

Amortization of debt issuance costs and discount

546

-

1,093

-

Legal reserve and settlement charges

2,500

-

2,500

-

Provision for income taxes(1)

-

-

48,824

-

Less:

Gain on strategic investments attributable to CrowdStrike

-

-

(2,178

)

-

Non-GAAP net income attributable to CrowdStrike

$

25,929

$

7,943

$

49,197

$

12,462

Weighted-average shares used in computing basic net income (loss) per share attributable to CrowdStrike common stockholders (GAAP and Non-GAAP)

226,362

216,695

225,276

214,932

GAAP basic net loss per share attributable to CrowdStrike common stockholders

$

(0.25

)

$

(0.14

)

$

(0.63

)

$

(0.23

)

Non-GAAP basic net income per share attributable to CrowdStrike common stockholders

$

0.11

$

0.04

$

0.22

$

0.06

GAAP diluted net loss per share attributable to CrowdStrike common stockholders

$

(0.25

)

$

(0.14

)

$

(0.63

)

$

(0.23

)

Add:

Stock-based compensation

0.32

0.16

0.55

0.26

Amortization of acquired intangible assets

0.01

-

0.02

-

Acquisition-related expenses

-

-

0.02

-

Amortization of debt issuance costs and discount

-

-

-

-

Legal reserve and settlement charges

0.01

-

0.01

-

Provision for income taxes (1)

-

-

0.21

-

Adjustment to fully diluted earnings per share (2)

0.02

0.01

0.04

0.02

Less:

Gain on strategic investments attributable to CrowdStrike

-

-

(0.01

)

-

Non-GAAP diluted net income per share attributable to CrowdStrike common stockholders

$

0.11

$

0.03

$

0.21

$

0.05

Weighted-average shares used in diluted net income (loss) per share attributable to CrowdStrike common stockholders calculation:

GAAP

226,362

216,695

225,276

214,932

Non-GAAP

238,043

233,169

237,753

231,720

____________________________

CROWDSTRIKE HOLDINGS, INC.

Statements of Operations: GAAP to Non-GAAP Reconciliations (continued)

(in thousands, except per share amounts)

(unaudited)

Three Months Ended July Six Months Ended July 31, 31,

2021 2020 2021 2020

GAAP net loss ) ) ) )attributable to $ (57,318 $ (29,874 $ (142,367 $ (49,096 CrowdStrike

Add:

Stock based compensation 76,287 37,713 130,649 61,351 expense

Amortization of acquired 3,318 104 5,735 207 intangible assets

Acquisition-related 596 - 4,941 - expenses

Amortization of debtissuance costs and 546 - 1,093 - discount

Legal reserve and 2,500 - 2,500 - settlement charges

Provision for income - - 48,824 - taxes^(1)

Less:

Gain on strategic )investments attributable - - (2,178 - to CrowdStrike

Non-GAAP net incomeattributable to $ 25,929 $ 7,943 $ 49,197 $ 12,462 CrowdStrike



Weighted-average sharesused in computing basicnet income (loss) pershare attributable to 226,362 216,695 225,276 214,932 CrowdStrike commonstockholders (GAAP andNon-GAAP)



GAAP basic net loss pershare attributable to $ (0.25 ) $ (0.14 ) $ (0.63 ) $ (0.23 )CrowdStrike common stockholders



Non-GAAP basic netincome per shareattributable to $ 0.11 $ 0.04 $ 0.22 $ 0.06 CrowdStrike commonstockholders



GAAP diluted net lossper share attributable $ (0.25 ) $ (0.14 ) $ (0.63 ) $ (0.23 )to CrowdStrike common stockholders

Add:

Stock-based compensation 0.32 0.16 0.55 0.26

Amortization of acquired 0.01 - 0.02 - intangible assets

Acquisition-related - - 0.02 - expenses

Amortization of debtissuance costs and - - - - discount

Legal reserve and 0.01 - 0.01 - settlement charges

Provision for income - - 0.21 - taxes^ (1)

Adjustment to fullydiluted earnings per 0.02 0.01 0.04 0.02 share ^(2)

Less:

Gain on strategic )investments attributable - - (0.01 - to CrowdStrike

Non-GAAP diluted netincome per shareattributable to $ 0.11 $ 0.03 $ 0.21 $ 0.05 CrowdStrike commonstockholders



Weighted-average sharesused in diluted netincome (loss) per shareattributable to CrowdStrike commonstockholderscalculation:

GAAP 226,362 216,695 225,276 214,932

Non-GAAP 238,043 233,169 237,753 231,720

____________________________

We use our GAAP provision for income taxes for the purpose of determining our non-GAAP income tax expense. The tax costs for intellectual property integration relating to the Humio acquisition is included in the GAAP provision for income taxes during the first quarter of fiscal 2022. The(1) income tax benefits related to stock-based compensation, amortization of intangibles, acquisition related expenses, amortization of debt issuance costs and discount, gain on strategic investments attributable to CrowdStrike and legal reserve and settlement charges or benefits included in the GAAP provision for income taxes was not material for all periods presented.

For periods in which we had diluted non-GAAP net income per share attributable to CrowdStrike common stockholders, the sum of the impact of individual reconciling items may not total to diluted Non-GAAP net income per share attributable to CrowdStrike common stockholders because the basic share counts used to calculate GAAP net loss per share attributable(2) to CrowdStrike common stockholders differ from the diluted share counts used to calculate non-GAAP net income per share attributable to CrowdStrike common stockholders and because of rounding differences. The GAAP net loss per share attributable to CrowdStrike common stockholders calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share attributable to CrowdStrike common stockholders.

Explanation of Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our financial performance and liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period.

Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Non-GAAP Subscription Gross Profit and Non-GAAP Subscription Gross Margin

We define non-GAAP subscription gross profit and non-GAAP subscription gross margin as GAAP subscription gross profit and GAAP subscription gross margin, respectively, excluding stock-based compensation expense and amortization of acquired intangible assets. We believe non-GAAP subscription gross profit and non-GAAP subscription gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these measures eliminate the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Income from Operations

We define non-GAAP income from operations as GAAP loss from operations excluding stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses and legal reserve and settlement charges or benefits. We believe non-GAAP income from operations provides our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as this metric generally eliminates the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Net Income Attributable to CrowdStrike

We define non-GAAP net income attributable to CrowdStrike as GAAP net loss attributable to CrowdStrike excluding stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses, amortization of debt issuance costs and discount, gain on strategic investments, legal reserve and settlement charges or benefits and the tax costs for intellectual property integration relating to the Humio acquisition. We believe non-GAAP net income attributable to CrowdStrike provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons, as this metric generally eliminates the effects of certain variables unrelated to our overall performance.

Non-GAAP Net Income per Share Attributable to CrowdStrike Common Stockholders, Basic and Diluted

We define non-GAAP net income per share attributable to CrowdStrike common stockholders, as non-GAAP net income attributable to CrowdStrike divided by the weighted-average shares outstanding, which includes the dilutive effect of potentially diluted common stock equivalents outstanding during the period. We may periodically incur charges or receive payments in connection with litigation settlements. We exclude these charges and payments received from non-GAAP net income attributable to CrowdStrike when associated with a significant settlement because we do not believe they are reflective of ongoing business and operating results.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that we define as net cash provided by operating activities less purchases of property and equipment and capitalized internal-use software and website development. We monitor free cash flow as one measure of our overall business performance, which enables us to analyze our future performance without the effects of non-cash items and allow us to better understand the cash needs of our business. While we believe that free cash flow is useful in evaluating our business, free cash flow is a non-GAAP financial measure that has limitations as an analytical tool, and free cash flow should not be considered as an alternative to, or substitute for, net cash provided by operating activities in accordance with GAAP. The utility of free cash flow as a measure of our liquidity is further limited as it does not represent the total increase or decrease in our cash balance for any given period. In addition, other companies, including companies in our industry, may calculate free cash flow differently or not at all, which reduces the usefulness of free cash flow as a tool for comparison.

Explanation of Operational Measures

Annual Recurring Revenue

ARR is calculated as the annualized value of our customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. To the extent that we are negotiating a renewal with a customer after the expiration of the subscription, we continue to include that revenue in ARR if we are actively in discussion with such an organization for a new subscription or renewal, or until such organization notifies us that it is not renewing its subscription.

Magic Number

Magic Number is calculated by performing the following calculation for the most recent four quarters and taking the average: annualizing the difference between a quarter's Subscription Revenue and the prior quarter's Subscription Revenue, and then dividing the resulting number by the previous quarter's Non-GAAP Sales & Marketing Expense. Magic Number = Average of previous four quarters: ((Quarter Subscription Revenue - Prior Quarter Subscription Revenue) x 4) / Prior Quarter Non-GAAP Sales & Marketing Expense.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210831005864/en/

CONTACT: Investor Relations Contact CrowdStrike Holdings, Inc. Maria Riley, Vice President of Investor Relations investors@crowdstrike.com 669-721-0742

CONTACT: Press Contact CrowdStrike Holdings, Inc. Craig VerColen, Chief Communications Officer press@crowdstrike.com 617-599-2180