Down after hours, I skimmed at it looked like good news to me. I know there was a large run up. Your thoughts, what did I miss?
Second Quarter Fiscal 2021 Financial Highlights
Revenue: Total revenue was $199.0 million, an 84% increase, compared to $108.1 million in the second quarter of fiscal 2020. Subscription revenue was $184.3 million, an 89% increase, compared to $97.6 million in the second quarter of fiscal 2020.
Annual Recurring Revenue (ARR) increased 87% year-over-year and grew to $790.6 million as of July 31, 2020, of which $104.5 million was net new ARR added in the quarter.
Subscription Gross Margin: GAAP subscription gross margin was 76%, compared to 74% in the second quarter of fiscal 2020. Non-GAAP subscription gross margin was 78%, compared to 76% in the second quarter of fiscal 2020.
Income/Loss from Operations: GAAP loss from operations was $30.0 million, compared to $50.6 million in the second quarter of fiscal 2020. Non-GAAP income from operations was $7.8 million, compared to a loss of $20.6 million in the second quarter of fiscal 2020.
Net Income/Loss: GAAP net loss was $29.9 million, compared to $51.9 million in the second quarter of fiscal 2020. GAAP net loss per share, basic and diluted, was $0.14, compared to $0.40 in the second quarter of fiscal 2020. Non-GAAP net income was $7.9 million, compared to a loss of $23.1 million in the second quarter of fiscal 2020. Non-GAAP net income per share, diluted, was $0.03, compared to a loss of $0.18 in the second quarter of fiscal 2020.
Cash Flow: Net cash generated from operations was $55.0 million, compared to negative $6.2 million in the second quarter of fiscal 2020. Free cash flow was $32.4 million, compared to negative $29.2 million in the second quarter of fiscal 2020.
Cash and Cash Equivalents increased to $1,065 million as of July 31, 2020.
Recent Highlights
Added 969 net new subscription customers in the quarter for a total of 7,230 subscription customers as of July 31, 2020, representing 91% growth year-over-year.
CrowdStrike’s subscription customers that have adopted four or more cloud modules increased to 57% and those with five or more cloud modules increased to 39% as of July 31, 2020.
CrowdStrike was identified as the fastest-growing endpoint security software vendor in the IDC Worldwide Endpoint Security Software Market Shares, 2019 report.
CrowdStrike, Netskope, Okta, Inc., and Proofpoint, Inc. announced they are coordinating to help organizations implement an integrated, zero trust security strategy. The companies will offer integrated solutions, advanced insights, and reference architectures, in addition to implementation best practices, accounting for end-user, device, network, and data security.
Announced the addition of applications from Illumio, Obsidian Security, and SecurityAdvisor to the CrowdStrike Store.
Financial Outlook
CrowdStrike is providing the following guidance for the third quarter of fiscal 2021 (ending October 31, 2020) and increasing its guidance for fiscal year 2021 (ending January 31, 2021):
Q3 FY21
Guidance
Full Year FY21
Guidance
Total revenue
$210.6 - $215.0 million
$809.1 - $826.7 million
Non-GAAP income (loss) from operations
$(1.4) - $1.6 million
$3.6 - $16.4 million
Non-GAAP net income (loss)
$(2.2) - $0.9 million
$5.6 - $18.4 million
Non-GAAP net income (loss) per share, diluted
$(0.01) - $0.00
$0.02 - $0.08
Weighted average shares used in computing Non-GAAP net loss per share attributable to common stockholders, diluted
219 million
218 million
Weighted average shares used in computing Non-GAAP net income per share attributable to common stockholders, diluted
235 million
234 million
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Guidance for non-GAAP financial measures excludes stock-based compensation expense and amortization expense of acquired intangible assets. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP loss from operations, non-GAAP net loss, and non-GAAP net loss per share is not available without unreasonable effort.