CrowdStrike Holdings Inc

Previous wording

CrowdStrike Holdings, Inc. is a global cybersecurity leader that delivers cybersecurity’s AI-native platform for the XDR era, purpose-built to stop breaches. Founded in 2011, we reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers. When we started CrowdStrike, cyberattackers had an asymmetric advantage over legacy cybersecurity products that could not keep pace with the rapid changes in adversary tactics. We took a fundamentally different approach to solve this problem with the AI-native CrowdStrike Falcon XDR platform – the first, true cloud-native unified platform built with AI at the core, capable of harnessing vast amounts of security and enterprise data to deliver highly modular solutions through a single lightweight agent.

Current wording

Founded in 2011, we reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers. When we started CrowdStrike, cyberattackers had an asymmetric advantage over legacy cybersecurity products that could not keep pace with the rapid changes in adversary tactics. We took a fundamentally different approach to solve this problem with the AI-native CrowdStrike Falcon platform – the first, true cloud-native unified platform built with artificial intelligence (“AI”) at the core, capable of harnessing vast amounts of security and enterprise data to deliver highly modular solutions through a single lightweight agent.

Previous wording

We believe our approach has defined a new category called the Security Cloud, which has the power to transform the cybersecurity industry the same way the cloud has transformed the customer relationship management, human resources, and service management industries. Using cloud-scale AI, our Security Cloud enriches and correlates trillions of cybersecurity events per week with indicators of attack, threat intelligence, and enterprise data (including data from across endpoints, workloads, identities, DevOps, IT assets, and configurations) to create actionable data, identify shifts in adversary tactics, and automatically prevent threats in real-time across our customer base. The more data that is fed into our Falcon platform, the more intelligent our Security Cloud becomes, and the more our customers benefit, creating a powerful network effect that increases the overall value we provide.

Current wording

We believe our approach has defined a new category called the Security Cloud, which has transformed the cybersecurity industry the same way the cloud has transformed the customer relationship management, human resources, and service management industries. Using cloud-scale AI, our Security Cloud enriches and correlates trillions of cybersecurity events per week with indicators of attack, threat intelligence, and enterprise data (including data from across endpoints, workloads, identities, DevOps, IT assets, and configurations) to create actionable data, identify shifts in adversary tactics, and automatically prevent threats in real-time across our customer base. The more data that is fed into our Falcon platform, the more intelligent our Security Cloud becomes, and the more our customers benefit, creating a powerful network effect that increases the overall value we provide.

Previous wording

A substantial majority of our customers purchase subscriptions with a term of one year. Our subscriptions are generally priced on a per-endpoint and per-module basis. We recognize revenue from our subscriptions ratably over the term of the subscription. We also generate revenue from our incident response and proactive professional services, which are generally priced on a time and materials basis. We view our professional services business primarily as an opportunity to cross-sell subscriptions to our Falcon platform and cloud modules.

Current wording

A substantial majority of our customers purchase subscriptions with a term over one year. Our subscriptions are generally priced on a per-endpoint and per-module basis. We recognize revenue from our subscriptions ratably over the term of the subscription. We also generate revenue from our incident response and proactive professional services, which are generally priced on a time and materials basis. We view our professional services business primarily as an opportunity to cross-sell subscriptions to our Falcon platform and cloud modules.

Previous wording

Maintain Customer Retention and Increase Sales. Our ability to increase revenue depends in large part on our ability to retain our existing customers and increase the ARR of their subscriptions. We focus on increasing sales to our existing customers by expanding their deployments to more endpoints and selling additional cloud modules for increased functionality. Over time we have transitioned our platform from a single offering into highly-integrated offerings of multiple cloud modules.

Current wording

Maintain Customer Retention and Increase Sales. Our ability to increase revenue depends in large part on our ability to retain our existing customers and increase the size of their subscriptions. We focus on increasing sales to our existing customers by expanding their deployments to more endpoints and selling additional cloud modules for increased functionality. Over time we have transitioned our platform from a single offering into highly-integrated offerings of multiple cloud modules.

Previous wording

July 19 Incident. On July 19, 2024, we released a content configuration update for our Falcon sensor that resulted in system crashes for certain Windows systems (the “July 19 Incident”). As a result of the July 19 Incident, we are subject to lawsuits, claims and inquiries as described in Note 8, “Commitments and Contingencies,” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q. We have incurred, and expect to continue to incur, significant legal and professional services and other general and administrative expenses associated with the July 19 Incident in future periods. It is not reasonably possible to quantify the precise impact of the July 19 Incident, but the incident has adversely affected our results of operations, and we currently expect a number of factors relating to the incident to adversely affect our key metrics and results of operations in future periods. While we have not experienced high levels of customer churn following the incident, we have experienced delays in creating sales opportunities and longer sales cycles, including delays in customer purchasing decisions. We expect sales cycles to continue to be elongated in future periods. In addition, because our customers typically sign contracts with terms of twelve months or longer, customer churn and any corresponding impact to our key metrics and revenue may occur in future periods. Customer commitment packages introduced following the July 19 Incident may include discounting, additional modules, professional services, flexible payment terms or subscription period extensions. Our customer commitment packages have resulted, and are expected to continue to result, in increased contraction, due to elongated subscription terms, and decreased upsell dollar values.

Current wording

July 19 Incident. On July 19, 2024, we released a content configuration update for our Falcon sensor that resulted in system crashes for certain Windows systems (the “July 19 Incident”). As a result of the July 19 Incident, we are subject to lawsuits, claims and inquiries as described in Note 9, “Commitments and Contingencies,” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q. We have incurred, and expect to continue to incur, significant legal and professional services and other general and administrative expenses associated with the July 19 Incident in future periods. It is not reasonably possible to quantify the precise impact of the July 19 Incident, but the incident has adversely affected our results of operations, and we currently expect a number of factors relating to the incident to adversely affect our key metrics and results of operations in future periods. While we have maintained high dollar-based gross retention rates following the incident, we have experienced delays in creating sales opportunities and longer sales cycles, including delays in customer purchasing decisions. We expect sales cycles to continue to be elongated in future periods. In addition, because our customers typically sign contracts with terms of twelve months or longer, customer churn and any corresponding impact to our key metrics and revenue may occur in future periods. Customer commitment packages introduced following the July 19 Incident have included discounting, additional modules, professional services, flexible payment terms or subscription period extensions. Our customer commitment packages have resulted, and are expected to continue to result, in increased contraction, due to elongated subscription terms, and decreased upsell dollar values.

Previous wording

ARR grew to $4.0 billion as of October 31, 2024, of which $153.0 million and $582.3 million was net new ARR added for the three and nine months ended October 31, 2024, respectively. ARR grew to $3.2 billion as of October 31, 2023, of which $223.1 million and $593.5 million was net new ARR added for the three and nine months ended October 31, 2023, respectively.

Current wording

ARR grew to $4.4 billion as of April 30, 2025, of which $193.8 million was net new ARR added for the three months ended April 30, 2025. ARR grew to $3.6 billion as of April 30, 2024, of which $211.7 million was net new ARR added for the three months ended April 30, 2024.

Previous wording

Our dollar-based net retention rate was 115% as of October 31, 2024. Our dollar-based net retention rate can fluctuate from period to period due to large customer contracts in a given period and ongoing increased contraction associated with our customer commitment packages, which may reduce our dollar-based net retention rate in subsequent periods.

Current wording

Our dollar-based net retention rate was in line with our expectations as of April 30, 2025. Our dollar-based net retention rate can fluctuate from period to period due to large customer contracts in a given period and incentives provided, which may reduce our dollar-based net retention rate in subsequent periods. In addition, if our customers are not able to fully utilize their product subscriptions (including in connection with our flexible subscription offering), we may experience increased contraction as such customers may elect to renew with shorter subscription periods, fewer cloud modules, fewer endpoints or smaller contract values, which may reduce our dollar-based net retention rate.

Previous wording

Subscription Revenue. Subscription revenue primarily consists of subscription fees for our Falcon platform and additional cloud modules that are supported by our cloud-based platform. Subscription revenue is driven primarily by the number of subscription customers, the number of endpoints per customer, and the number of cloud modules included in the subscription. We recognize subscription revenue ratably over the term of the agreement, which is generally one to three years. Because the majority of our subscription customers are billed upfront, we have recorded significant deferred revenue. Consequently, a substantial portion of the revenue that we report in each period is attributable to the recognition of deferred revenue relating to subscriptions that we entered into during previous periods. The majority of our customers are invoiced annually in advance or multi-year in advance.

Current wording

Subscription Revenue. Subscription revenue primarily consists of subscription fees for our Falcon platform and additional cloud modules that are supported by our cloud-based platform. Subscription revenue is driven primarily by the number of subscription customers, the number of endpoints per customer, and the number of cloud modules included in the subscription. We recognize subscription revenue ratably over the term of the agreement, which is generally one to three years. We generally invoice our subscription customers at the beginning of the subscription term, or in some instances, such as in multi-year arrangements, in installments. Consequently, a substantial portion of the revenue that we report in each period is attributable to the recognition of deferred revenue relating to subscriptions that we entered into during previous periods.

Previous wording

Professional Services Revenue. Professional services revenue includes incident response and proactive services, forensic and malware analysis, and attribution analysis. Professional services are generally sold separately from subscriptions to our Falcon platform, although customers frequently enter into a separate arrangement to purchase subscriptions to our Falcon platform at the conclusion of a professional services arrangement. Professional services are available through hourly rate and fixed fee contracts, one-time and ongoing engagements, and retainer-based agreements. For time and materials and retainer-based arrangements, revenue is recognized as services are performed. Fixed fee contracts account for an immaterial portion of our revenue.

Current wording

Professional Services Revenue. Professional services revenue includes incident response and proactive services, forensic and malware analysis, attribution analysis, operationalizing the Falcon Platform, residency program, and active defense services. Professional services are generally sold separately from subscriptions to our Falcon platform, although customers frequently enter into a separate arrangement to purchase subscriptions to our Falcon platform at the conclusion of a professional services arrangement. Professional services are available through hourly rate and fixed fee contracts, one-time and ongoing engagements, and retainer-based agreements. For time and materials and retainer-based arrangements, revenue is recognized as services are performed. Fixed fee contracts account for an immaterial portion of our revenue.

Previous wording

Our operating expenses consist of sales and marketing, research and development and general administrative expenses. For each of these categories of expense, employee-related expenses are the most significant component, which include salaries, employee bonuses, sales commissions, and employer payroll tax. Operating expenses also include an allocated portion of overhead costs for facilities and IT.

Current wording

Our operating expenses consist of sales and marketing, research and development, and general administrative expenses. For each of these categories of expense, employee-related expenses are the most significant component, which include salaries, employee bonuses, sales commissions, and employer payroll tax. Operating expenses also include an allocated portion of overhead costs for facilities and other administrative functions.

Previous wording

Sales and Marketing. Sales and marketing expenses primarily consist of employee-related expenses such as salaries, commissions, and bonuses. Sales and marketing expenses also include stock-based compensation; expenses related to our marketing programs; an allocated portion of facilities and administrative expenses; amortization of acquired intangibles; and cloud hosting and related services costs related to proof of value efforts. Sales and marketing expenses also include sales commissions and any other incremental payments made upon the initial acquisition of a subscription or upsells to existing customers, which are capitalized and amortized over the estimated customer life. We also capitalize and amortize any such expenses paid for the renewal of a subscription over the term of the renewal.

Current wording

Sales and Marketing. Sales and marketing expenses primarily consist of employee-related expenses such as salaries, commissions, and bonuses. Sales and marketing expenses also include stock-based compensation; expenses related to our marketing programs; and an allocated portion of facilities and administrative expenses. Sales and marketing expenses also include the amortization of deferred contract acquisition costs, which includes commissions and any other incremental payments made upon the initial acquisition of a subscription or upsells to existing customers, which are capitalized and amortized over the estimated customer life. We also capitalize and amortize any such expenses paid for the renewal of a subscription over the term of the renewal.

Previous wording

We expect general and administrative expenses to increase in dollar amount over time. General and administrative expenses may fluctuate as a percentage of our total revenue from period to period depending on the timing of these expenses.

Current wording

We expect general and administrative expenses to increase in dollar amount over time. We expect to incur significant legal and professional services and other expenses associated with the July 19 Incident and related matters in future periods. General and administrative expenses may fluctuate as a percentage of our total revenue from period to period depending on the timing of these expenses.

Previous wording

Interest Expense. Interest expense consists primarily of amortization of debt issuance costs, contractual interest expense for our Senior Notes issued in January 2021, and amortization of debt issuance costs on our Revolving Facility.

Current wording

Interest Expense. Interest expense consists primarily of amortization of debt issuance costs, contractual interest expense for our Senior Notes issued in January 2021, and amortization of debt issuance costs on our secured Revolving Facility.

Previous wording

Interest Income. Interest income consists primarily of income earned on our cash, cash equivalents, and short-term investments.

Current wording

Interest Income. Interest income consists primarily of income earned on our cash and cash equivalents.

Previous wording

Provision for Income Taxes. Provision for income taxes consists of state income taxes in the United States, foreign income taxes, and withholding taxes related to customer payments in certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on our U.S. federal and state and certain foreign deferred tax assets, including net operating loss carryforwards and tax credits, which we have determined are not realizable on a more-likely-than-not basis. We regularly evaluate the need for a valuation allowance. For the three and nine months ended October 31, 2024, we computed our U.S. tax provision on a discrete basis.

Current wording

Provision for Income Taxes. Provision for income taxes consists of state income taxes in the United States, foreign income taxes, and withholding taxes related to customer payments in certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on our U.S. federal and state and certain foreign deferred tax assets, including net operating loss carryforwards and tax credits, which we have determined are not realizable on a more-likely-than-not basis. We regularly evaluate the need for a valuation allowance.

Previous wording

Net Income Attributable to Non-controlling Interest. Net income attributable to non-controlling interest consists of the Falcon Funds’ non-controlling interest share of gains and losses and interest income from our strategic investments.

Current wording

Net Income (Loss) Attributable to Non-controlling Interest. Net income (loss) attributable to non-controlling interest consists of the Falcon Funds’ non-controlling interest share of gains and losses and interest income from our strategic investments.

Previous wording

Total revenue increased by $224.2 million, or 29%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023. Subscription revenue accounted for 95% and 93% of our total revenue for the three months ended October 31, 2024 and October 31, 2023, respectively. Professional services revenue accounted for 5% and 7% of our total revenue for the three months ended October 31, 2024 and October 31, 2023, respectively.

Current wording

Total revenue increased by $182.4 million, or 20%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. Subscription revenue accounted for 95% total revenue for both the three months ended April 30, 2025 and April 30, 2024. Professional services revenue accounted for 5% of our total revenue for both the three months ended April 30, 2025 and April 30, 2024.

Previous wording

Subscription revenue increased by $229.3 million, or 31%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023, which was primarily driven by a combination of the addition of new customers and the sale of additional sensors and modules to existing customers.

Current wording

Subscription revenue increased by $178.6 million, or 20%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, which was primarily driven by a combination of the addition of new customers and the sale of additional sensors and modules to existing customers.

Previous wording

Professional services revenue increased by $6.3 million, or 5%, for the nine months ended October 31, 2024, compared to the nine months ended October 31, 2023, which was primarily attributable to an increase in the number of professional service hours performed.

Current wording

Professional services revenue increased by $3.8 million, or 8%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024, which was primarily attributable to an increase in the number of professional service hours.

Previous wording

Total cost of revenue increased by $60.1 million, or 31%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023. Subscription cost of revenue increased by $56.5 million, or 35%, for the three months ended October 31, 2024, compared to the three months ended October 31, 2023. The increase in subscription cost of revenue was primarily due to an increase in employee-related expenses of $13.9 million driven by a 30% increase in average headcount, an increase in cloud hosting and related services cost of $10.5 million, an increase in depreciation of data center equipment of $9.4 million, an increase in stock-based compensation expense of $7.1 million, an increase in allocated overhead costs of $5.5 million, an increase in amortization of internal-use software of $5.4 million, an increase in hardware maintenance costs of $1.4 million, and an increase in employee benefits of $1.2 million.

Current wording

Total cost of revenue increased by $64.1 million, or 29%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. Subscription cost of revenue increased by $52.7 million, or 28%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The increase in subscription cost of revenue was primarily due to an increase in employee-related expenses of $14.8 million driven by a 28% increase in average headcount, an increase in cloud hosting and related services costs of $10.3 million, an increase in stock-based compensation expense of $10.2 million, an increase in depreciation of data center equipment of $8.0 million, an increase in allocated overhead costs of $4.7 million, and an increase in amortization of internal-use software of $4.7 million.

Previous wording

Professional services gross margin decreased by 15% for the three months ended October 31, 2024, compared to the three months ended October 31, 2023. The decrease in professional services gross margin was primarily due to an increase in consulting expense and decreased utilization during the three months ended October 31, 2024.

Current wording

Professional services gross margin decreased by 17 percentage points for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The decrease in professional services gross margin was primarily due to an increase in consulting expense during the three months ended April 30, 2025.

Previous wording

Sales and marketing expenses increased by $263.6 million, or 31%, for the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023. The increase in sales and marketing expenses was primarily due to an increase in employee-related expenses of $108.3 million driven by a 13% increase in average headcount, an increase in marketing programs of $43.4 million, an increase in stock-based compensation expense of $36.2 million, an increase in allocated overhead costs of $19.5 million, $18.2 million of expenses relating to the July 19 Incident, an increase in travel expenses of $9.3 million, an increase in company events expenses of $5.4 million, an increase in term-based software licenses of $3.8 million, an increase in cloud hosting and related costs of $3.4 million, an increase in employee health benefits of $2.8 million, an increase in other labor expenses of $2.5 million, and an increase in consulting expense of $1.5 million, partially offset by a decrease in taxes and licenses of $1.3 million.

Current wording

Sales and marketing expenses increased by $89.5 million, or 26%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The increase in sales and marketing expenses was primarily due to an increase in employee-related expenses of $48.0 million driven by a 21% increase in average headcount, an increase in stock-based compensation expense of $12.9 million, an increase in marketing programs of $6.9 million, an increase in allocated overhead costs of $6.8 million, an increase in travel expenses of $5.9 million, an increase in employee benefits of $4.8 million, and an increase in term-based software licenses of $2.1 million, partially offset by a decrease in company events expenses of $3.1 million.

Previous wording

Research and development expenses increased by $79.5 million, or 41%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023. This increase was primarily due to an increase in stock-based compensation expense of $29.5 million, an increase in employee-related expenses of $22.8 million driven by a 20% increase in average headcount, an increase in cloud hosting and related costs of $11.6 million, an increase in allocated overhead costs of $7.4 million, $3.5 million of expenses relating to the July 19 Incident, an increase in term-based software licenses of $1.5 million, and an increase in employee benefits of $1.0 million, partially offset by a decrease in other labor expenses of $2.7 million.

Current wording

Research and development expenses increased by $98.9 million, or 42%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. This increase was primarily due to an increase in stock-based compensation expense of $40.5 million, an increase in employee-related expenses of $36.7 million driven by a 28% increase in average headcount, an increase in cloud hosting and related costs of $14.5 million, an increase in allocated overhead costs of $7.6 million, an increase in employee benefits of $4.4 million, and an increase in term-based software licenses of $1.4 million, partially offset by an increase in software capitalization of $7.6 million, a decrease in other labor expenses of $6.2 million, and a decrease in depreciation of data center equipment of $1.1 million.

Previous wording

General and administrative expenses increased by $21.4 million, or 20%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023. The increase in general and administrative expenses was primarily due to $15.3 million of expenses relating to the July 19 Incident, an increase in employee-related expenses of $6.6 million driven by a 19% increase in average headcount, an increase in corporate insurance of $3.6 million, an increase in allocated overhead costs of $2.0 million, an increase in term-based software licenses of $1.0 million, and an increase in leased airfare costs of $1.0 million, partially offset by a decrease in stock-based compensation expense of $2.9 million, a decrease in legal expense of $4.9 million unrelated to the July 19 Incident, and a decrease in consulting expense of $1.8 million.

Current wording

General and administrative expenses increased by $61.5 million, or 59%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The increase in general and administrative expenses was primarily due to $38.7 million of expenses associated with the July 19 Incident and related matters, an increase in strategic plan related charges of $6.6 million, an increase in employee-related expenses of $5.4 million driven by a 26% increase in average headcount, an increase in stock-based compensation expense of $3.5 million, an increase in allocated overhead costs of $1.7 million, an increase in legal expense of $1.4 million unrelated to the July 19 Incident or related matters, an increase in term-based software licenses of $1.2 million, and an increase in travel expenses of $1.2 million, partially offset by a decrease in consulting expense of $1.8 million.

Previous wording

The following shows interest expense, interest income, and other expense, net for the three months ended October 31, 2024 as compared to the three months ended October 31, 2023 (in thousands, except percentages):

Current wording

The following shows interest expense, interest income, and other income (expense), net for the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 (in thousands, except percentages):

Previous wording

The increase in interest income for the three months ended October 31, 2024 compared to the three months ended October 31, 2023 was driven by an increase in our cash and cash equivalents.

Current wording

The decrease in interest income for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was driven by lower market rates partially offset by a higher cash balance.

Previous wording

The increase in other income (expense), net for the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023 was primarily due to gains on sales of our strategic investments of $6.2 million and an increase in net foreign currency transaction gains of $1.1 million.

Current wording

The decrease in other income (expense), net for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily due to a decrease in gains on our strategic investments of $6.9 million, downward adjustments and impairment of $1.6 million of our strategic investments, and an increase in net foreign currency transaction losses of $2.6 million.

Previous wording

The increase in provision for income taxes of $6.2 million during the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023 was primarily attributable to the increase in pre-tax earnings and withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business.

Current wording

The increase in provision for income taxes of $13.4 million during the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily attributable to an increase in U.S. taxable income, foreign pre-tax earnings, and withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business.

Previous wording

Our primary sources of liquidity as of October 31, 2024, consisted of: (i) $4.3 billion in cash and cash equivalents, which mainly consists of cash on hand and highly liquid investments in money market funds and U.S. Treasury bills, (ii) cash we expect to generate from operations, and (iii) available capacity under our $750.0 million Revolving Facility. It is not currently possible to reasonably estimate the amount of loss or range of possible loss that might result from adverse judgments, settlements, penalties, or other resolution of proceedings resulting from the July 19 Incident. However, despite such uncertainties, we expect that the combination of our existing cash and cash equivalents, cash flows from operations, and the Revolving Facility will be sufficient to meet our anticipated cash needs for working capital and capital expenditures for at least the next 12 months.

Current wording

Our primary sources of liquidity as of April 30, 2025, consisted of: (i) $4.6 billion in cash and cash equivalents, which mainly consists of cash on hand and highly liquid investments in money market funds and U.S. Treasury bills, (ii) cash we expect to generate from operations, and (iii) available capacity under our $750.0 million Revolving Facility. It is not currently possible to reasonably estimate the amount of loss or range of possible loss that might result from adverse judgments, settlements, penalties, or other resolution of proceedings resulting from the July 19 Incident or related matters. However, despite such uncertainties, we expect that the combination of our existing cash and cash equivalents, cash flows from operations, and the Revolving Facility will be sufficient to meet our anticipated cash needs for working capital and capital expenditures for at least the next 12 months. Our Revolving Facility matures on January 2, 2026.

Previous wording

We have historically generated operating losses prior to fiscal 2024 and during the three months ended October 31, 2024, which corresponds to the third quarter of fiscal 2025, as reflected in our accumulated deficit of $1.0 billion as of October 31, 2024. We expect to continue to make investments, particularly in sales and marketing and research and development. As a result, we may require additional capital resources in the future to execute strategic initiatives to grow our business.

Current wording

We have historically generated operating losses, as reflected in our accumulated deficit of $1.2 billion as of April 30, 2025. We expect to continue to make investments, particularly in sales and marketing and research and development. As a result, we may require additional capital resources in the future to execute strategic initiatives to grow our business.

Previous wording

We typically invoice our subscription customers annually in advance. Therefore, a substantial source of our cash is from such prepayments, which are included on our condensed consolidated balance sheets as deferred revenue. Deferred revenue primarily consists of billed fees for our subscriptions, prior to satisfying the criteria for revenue recognition, which are subsequently recognized as revenue in accordance with our revenue recognition policy. As of October 31, 2024, we had deferred revenue of $3.2 billion, of which $2.4 billion was recorded as a current liability and is expected to be recorded as revenue in the next 12 months, provided all other revenue recognition criteria have been met.

Current wording

We generally invoice our subscription customers at the beginning of the subscription term, or in some instances, such as in multi-year arrangements, in installments. Therefore, a substantial source of our cash is from such prepayments, which are included on our condensed consolidated balance sheets as deferred revenue. Deferred revenue primarily consists of billed fees for our subscriptions, prior to satisfying the criteria for revenue recognition, which are subsequently recognized as revenue in accordance with our revenue recognition policy. As of April 30, 2025, we had deferred revenue of $3.8 billion, of which $2.7 billion was recorded as a current liability and is expected to be recorded as revenue in the next 12 months, provided all other revenue recognition criteria have been met.

Previous wording

Net cash provided by operating activities during the nine months ended October 31, 2024 was $1,036.0 million, which resulted from net income of $76.1 million, adjusted for non-cash charges of $984.9 million and net cash outflow of $25.0 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $592.9 million in stock-based compensation expense, $227.7 million of amortization of deferred contract acquisition costs, $137.9 million of depreciation and amortization, $18.7 million of amortization of intangibles assets, $11.1 million of non-cash operating lease costs, $2.7 million of non-cash interest expense, and $2.3 million of accretion of short-term investments purchased at a discount, partially offset by $6.2 million realized gains on strategic investments and $2.1 million of deferred income taxes. The net cash outflow from changes in operating assets and liabilities was primarily due to a $361.4 million increase in deferred contract acquisition costs, a $42.8 million increase in prepaid expenses and other assets, and a $11.8 million decrease in operating lease liabilities, partially offset by a $142.2 million increase in deferred revenue, an $89.9 million increase in accrued payroll and benefits, an $85.7 million increase in accrued expenses and other liabilities, a $39.2 million decrease in accounts receivable, and a $34.1 million increase in accounts payable.

Current wording

Net cash provided by operating activities during the three months ended April 30, 2025 was $384.1 million, which resulted from net loss of $111.0 million, adjusted for non-cash charges of $425.7 million and net cash inflow of $69.4 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $253.6 million in stock-based compensation expense, $102.9 million of amortization of deferred contract acquisition costs, $56.4 million of depreciation and amortization, $7.6 million of amortization of intangibles assets, $4.2 million of non-cash operating lease costs, $1.6 million change in fair value of strategic investments, and $1.1 million of non-cash interest expense, partially offset by $1.7 million of deferred income taxes. The net cash inflow from changes in operating assets and liabilities was primarily due to a $319.9 million decrease in accounts receivable and a $42.7 million increase in deferred revenue, partially offset by a $102.8 million increase in deferred contract acquisition costs, a $83.2 million decrease in accounts payable, a $43.8 million decrease in accrued expenses and other liabilities, a $37.8 million decrease in accrued payroll and benefits, a $21.0 million increase in prepaid expenses and other assets, and a $4.6 million decrease in operating lease liabilities.

Previous wording

Net cash used in investing activities of $211.6 million during the nine months ended October 31, 2024 was primarily due to purchases of property and equipment of $167.6 million, business acquisitions, net of cash acquired, of $96.4 million, which was related to the Flow Security acquisition, capitalized internal-use software and website development costs of $41.3 million, purchases of strategic investments of $12.7 million, and purchases of deferred compensation investments of $1.8 million, partially offset by proceeds from maturities of short-term investments of $97.3 million and proceeds from sales of strategic investments of $10.9 million.

Current wording

Net cash used in investing activities of $101.8 million during the three months ended April 30, 2025 was primarily due to purchases of property and equipment of $85.8 million, capitalized internal-use software and website development costs of $17.4 million, purchases of deferred compensation investments of $1.5 million, and purchases of strategic investments of $0.4 million, partially offset by proceeds from sales of strategic investments of $3.1 million.

Previous wording

Net cash provided by financing activities of $60.8 million during the nine months ended October 31, 2024 was primarily due to proceeds from our employee stock purchase plan of $56.1 million, capital contributions from non-controlling interests of $5.5 million, and proceeds from the exercise of stock options of $3.3 million, partially offset by distributions to non-controlling interest holders of $4.1 million.

Current wording

Net cash provided by financing activities of $2.1 million during the three months ended April 30, 2025 was primarily due to capital contributions from non-controlling interest holders of $1.5 million, and proceeds from the exercise of stock options of $0.6 million.

Previous wording

Our Senior Notes are guaranteed on a senior, unsecured basis by CrowdStrike, Inc., a wholly owned subsidiary of CrowdStrike Holdings, Inc. (the “subsidiary guarantor,” and together with CrowdStrike Holdings, Inc., the “Obligor Group”). The guarantee is full and unconditional and is subject to certain conditions for release. See Note 4, “Debt,” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q, for a brief description of the Senior Notes.

Current wording

Our Senior Notes are guaranteed on a senior, unsecured basis by CrowdStrike, Inc. and CrowdStrike Financial Services, Inc., wholly owned subsidiaries of CrowdStrike Holdings, Inc. (the “subsidiary guarantors,” and together with CrowdStrike Holdings, Inc., the “Obligor Group”). The guarantee is full and unconditional and is subject to certain conditions for release. See Note 5, “Debt,” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q, for a brief description of the Senior Notes.

Previous wording

During the nine months ended October 31, 2024, there were no significant changes to our debt obligations related to the Senior Notes or our contractual obligations under our non-cancelable real estate arrangements, as presented in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024.

Current wording

During the three months ended April 30, 2025, there were no significant changes to our debt obligations related to the Senior Notes or our contractual obligations under our non-cancelable real estate arrangements, as presented in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025.

Previous wording

We have non-cancellable purchase commitments with various parties to purchase products and services entered in the normal course of business totaling $2.8 billion as of October 31, 2024, with remaining terms in excess of 12 months. We expect to fund these obligations with cash flows from operations and cash and cash equivalents on our balance sheet.

Current wording

We have non-cancellable purchase commitments with various parties to purchase products and services entered in the normal course of business totaling $2.7 billion as of April 30, 2025, with remaining terms in excess of 12 months. We expect to fund these obligations with cash flows from operations and cash on our balance sheet.

Previous wording

As of October 31, 2024, our unrecognized tax benefits included $12.3 million, which were classified as long-term liabilities due to the inherent uncertainty with respect to the timing of future cash outflows associated with our unrecognized tax benefits.

Current wording

As of April 30, 2025, our unrecognized tax benefits included $53.2 million, which were classified as long-term liabilities due to the inherent uncertainty with respect to the timing of future cash outflows associated with our unrecognized tax benefits.

Previous wording

As of October 31, 2024, we had non-cancellable unfunded commitments from our financing arrangements totaling approximately $49.3 million.

Current wording

As of April 30, 2025, we had non-cancellable unfunded commitments from our financing arrangements totaling approximately $24.6 million.

Previous wording

Our condensed consolidated financial statements were prepared in accordance with U.S GAAP. The preparation of the condensed consolidated financial statements requires our management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We base our estimates and judgments on our historical experience, knowledge of factors affecting our business and our belief as to what could occur in the future considering available information and assumptions that are believed to be reasonable under the circumstances.

Current wording

Our condensed consolidated financial statements were prepared in accordance with U.S GAAP. The preparation of the condensed consolidated financial statements requires our management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. We base our estimates and judgments on our historical experience, knowledge of factors affecting our business and our belief as to what could occur in the future considering available information and assumptions that are believed to be reasonable under the circumstances.