Crowdstrike exceeds guidance and grows 61% | #cloudsecurity

US based cybersecurity provider Crowdstrike reported Q1 FY23 earnings last Thursday, posting impressive YoY revenue growth of 61% and exceeding its guidance and analyst expectations.

Crowdstrike provide a broad range of cloud-delivered cybersecurity solutions across Endpoint management, detection and response, identity protection, cloud security and advanced threat solutions, and are a key partner for many IT managed service providers.

Total revenue in Q123 was $488m, a 61% increase YoY ($303m in Q122). Subscription revenue was $460M growing 64% ($281M in Q122). Loss from operations was $24m ($31m in Q122), while Net income loss was $31.5m ($85m loss in Q122). EMEA (which includes the UK) represents 14% of total revenue. Crowdstrike added 1,620 net new subscription customers in Q1 for a total of 17,945 representing 57% growth YoY. Customers that have adopted four or more modules, five or more modules and six or more modules increased to 71%, 59%, and 35%, respectively, demonstrating the company is able effectively grow its share of wallet once customers begin utilising its solutions.

The company also continues to announce new strategic partnerships, the latest with Mandiant and Cloudflare, and have also introduced a new adversary-focused Cloud Native Application Protection Platform (CNAPP) to accelerate threat hunting for cloud environments. Crowdstrike is guiding for FY23 revenue of around $2.2bn at the midpoint, which would represent YoY growth of around 52%.

Crowdstrike continue to be one of the most dominant vendors in the cybersecurity space, though are facing increased competition from the likes of Microsoft who are heavily investing in security solutions. Crowdstrike’s solutions, while very comprehensive, do often come with a price premium, and with many customers getting Microsoft security tools already built into licenses the justification for additional high-cost solutions on top will be increasingly challenging for many organisations.

Posted by: Simon Baxter at 09:36

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cyber