CrowdStrike expects revenue of $628 mn in fourth quarter

CrowdStrike Holdings announced financial results for the third quarter fiscal year 2023, ended October 31, 2022.
CrowdStrikeAustin, Texas-based CrowdStrike is a cybersecurity leader that provides cloud-delivered protection of endpoints, cloud workloads, identity and data.

CrowdStrike expects revenue between $619.1 million and $628.2 million during the fourth quarter. CrowdStrike said increased macroeconomic headwinds elongated sales cycles with smaller customers, and caused some larger ones to pursue multi-phase subscription start dates, which delays annual recurring revenue (ARR) recognition until future quarters.

“CrowdStrike delivered robust growth at scale, strong retention rates, growing module adoption, record net new ARR from emerging products and a record number of customers contributing at least $1 million to net new ARR,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer.

CrowdStrike reported revenue of $580.9 million (+53 percent) as its subscription revenue rose 53 percent to $547.4 million during Q3.

Annual Recurring Revenue (ARR) grew 54 percent to $2.34 billion, of which $198.1 million was net new ARR added in the quarter. The acquisition of Reposify contributed less than $1.0 million to net new ARR in the third quarter of fiscal 2023.

CrowdStrike added 1,460 new subscription customers in the quarter for a total of 21,146 subscription customers as of October 31, 2022, representing 44 percent growth.

CrowdStrike’s subscription customers that have adopted five or more, six or more and seven or more modules was 60 percent, 36 percent and 21 percent, respectively.