CrowdStrike, which has lowered its revenue outlook for the current fiscal due to the outage incident on July 19th, has revealed its key achievements in the latest quarter.
The July 19th incident delayed sales deals into subsequent quarters. CrowdStrike says the vast majority of these deals remain in its pipeline. CrowdStrike did not reveal the size of the deals that will be lost in the wake of the outage. CrowdStrike also did not reveal whether it allocated funds due to damages to its customers or Microsoft customers.
CrowdStrike said it ended the second-quarter with ARR of $3.86 billion, growing 32 percent. New ARR was $218 million (up 11 percent).
CrowdStrike’s cloud security business is more than $515 million in ARR and grew faster than 80 percent.
CrowdStrike has revealed two noteworthy post-July 19th wins; an eight-figure deal in a major enterprise software firm, where Falcon Cloud Security was already running, replacing another cloud security vendor.
CrowdStrike also signed nine-figure Falcon Cloud security deal across one million hosts in an enterprise for their production.
Identity-ending ARR surpassed $350 million, growing over 70 percent.
LogScale Next-Gen SIEM business has greater than $220 million in ARR and grew more than 140 percent.
Two post-July 19th wins include an eight-figure win in which LogScale Next-Gen SIEM replace two legacy SIEMs. This customer was already a large CrowdStrike customer.
CrowdStrike signed seven-figure contract with a leading generative AI company that started using LogScale Next-Gen SIEM over a year ago.
Systems integrator business grew 100 percent, highlighting Falcon as an industry driver in delivering multidisciplinary cybersecurity transformation.
CrowdStrike says its partners such as Accenture, KPMG, E&Y, among a dozen others, were instrumental in helping customers. Global system integrators are becoming a central part of its partner strategy, as the Falcon Flex subscription model resonates with the transformative nature of GSI engagements.
CrowdStrike said it is the fastest-growing cybersecurity vendor on the Google Cloud Marketplace this year.
Through the AWS marketplace, spend with CrowdStrike will grow from $2.2 million in ARR to more than $5 million in ARR over the subscription.
Falcon Flex grew platform adoption through the subscription term and increased ARR over the multiyear period.
Falcon Flex subscription program, a licensing model, represents over $700 million in total deal value.
Subscription customers with five, six, and seven or more modules represented 65 percent, 45 percent and 29 percent of subscription customers, respectively. Deals with eight or more modules grew by 66 percent over the prior year and 48 percent of all customers with $100,000 or more in ending ARR adopted at least eight modules, an increase of more than 10 percentage points over the prior year.
CrowdStrike says its revenue grew 32 percent to $963.9 million in the second-quarter of 2024. CrowdStrike’s subscription revenue rose 33 percent to $918.3 million. Professional services revenue was $45.6 million, representing 10 percent growth.
The sequential decrease in professional services revenue was attributed to deploying complementary remediation services to help customers impacted by the July 19th incident.
CrowdStrike said it is committed to reaching $10 billion in ending ARR by the end of fiscal year 2031.
For the third quarter of FY 2025, CrowdStrike expects revenue of $979.2 million – $984.7 million, reflecting a growth of 25 percent. This includes an estimated $30 million impact from the customer commitment package.
For the full fiscal year 2025, CrowdStrike expects revenue of $3,890 million – $3,902 million, reflecting a growth rate of 27 percent to 28 percent. This includes $60 million impact from the customer commitment package.
