On June 5th, Futu News reported that a cybersecurity service provider $CrowdStrike (CRWD.US)$Announced its Q1 2025 financial results after the U.S. market close on Tuesday and gained over 6% in after-hours trading. The stock price continued to rise before the opening of the market today. As of the time of publication, it has risen by 6.99% to 326.94 U.S. dollars, and the pre-market transaction volume has reached 3.581 million U.S. dollars.

Q1 2025 financial results

• Quarterly revenue was $921 million, a year-on-year increase of 33%, better than the analyst's expected $905 million.

• Adjusted earnings per share were $0.93, better than the analyst's expected $0.89.

• Achieved a record subscription gross margin of 80%.

• Realized a record-breaking free cash flow of 322 million US dollars, accounting for 35% of revenue.

• As of April 30, 2024, the annual recurring revenue (ARR) increased by 33% year-on-year to US$36.5 billion, and the net addition of ARR in Q1 increased by 22% year-on-year to US$212 million.

CrowdStrike President, CEO and Co-founder George Kurtz said,

CrowdStrike began the fiscal year with strong momentum and extraordinary strength, with net new annual recurring revenue of US$212 million, a year-on-year increase of 22%; annual recurring revenue increased by 33% year-on-year to US$36.5 billion. The differentiated architecture of the Falcon platform creates a broad competitive moat, enabling CrowdStrike to uniquely address the industry's biggest cybersecurity, IT, and data challenges. Customers of all sizes are standardizing on the Falcon platform to achieve better security outcomes and reduce total ownership costs.

CrowdStrike Chief Financial Officer Burt Podbere said,

With more and more customers adopting the Falcon platform, the team has achieved outstanding performance in this quarter driven by strong execution and platform adoption. In addition to strong performance, financial highlights include record gross margins, significant year-on-year operating leverage, record free cash flow of $322 million (35% of revenue) and the free cash flow-based 68 rule, which indicates our focus on profitably expanding the business to year-end total revenue of $10 billion and higher levels.

Q2 and FY2025 guidance

CrowdStrike expects Q2 revenue to be $958 million to $961 million, higher than the analyst's expected $954 million; adjusted earnings per share are expected to be $0.98 to $0.99, higher than the analyst's expected $0.91. It is expected that the full-year revenue for FY2025 will be $3.976 billion to $4.011 billion, higher than the analyst's expected $3.97 billion; and the adjusted earnings per share for the full year of FY2025 are expected to be $3.93 to $4.03, higher than the analyst's expected $3.91.

About the company

CrowdStrike Holdings, Inc. provides cybersecurity products and services to prevent unauthorized activity. It provides cloud-based protection for endpoints, cloud workloads, identity and data, threat intelligence, managed security services, IT operations management, threat search, zero trust identity protection, and log management. CrowdStrike serves customers globally.