Q1 2025 CrowdStrike Holdings Inc Earnings Call Transcript
Key Points
- CrowdStrike Holdings Inc (CRWD) reported a record Q1 net new ARR of $212 million, growing 22% year over year.
- The company achieved a record ending ARR of $3.65 billion, growing 33% year over year.
- CrowdStrike Holdings Inc (CRWD) delivered a record subscription gross margin of 80%, growing 32 basis points year over year.
- The company reported a significant year-over-year increase in free cash flow to $322.5 million, representing 35% of revenue.
- CrowdStrike Holdings Inc (CRWD) continues to see strong adoption of its Falcon platform, with deals involving 8 or more modules growing 95% year over year.
- The macroeconomic environment remains challenging, which could impact future growth.
- Stock-based compensation (SBC) increased by 40%, which may raise concerns about dilution.
- Despite strong performance, the company acknowledges the ongoing talent war, which could affect hiring and retention.
- The company faces competition from legacy vendors in the SIM market, which could impact its market share.
- CrowdStrike Holdings Inc (CRWD) continues to invest heavily in growth, which may affect short-term profitability.
Good day, everyone, and thank you for standing by. Welcome to CrowdStrike fiscal first quarter 2025 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand it over to the Vice President of Investor Relations, Maria Riley. Please go ahead.
Good afternoon and thank you for your participation today. With me on the call are George Kurtz, President and Chief Executive Officer and Co-Founder, CrowdStrike, and Bert Podbere, Chief Financial Officer.
Before we get started, I would like to note that certain statements made during this call that are not historical facts, including those regarding our future plans, objectives, growth, including projection and expected performance, including our outlook for the second quarter and fiscal year 2025. The assumptions for fiscal periods beyond that are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward looking statements
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