CrowdStrike Q3 results: ARR tops $3bn for the first time

Cyber vendor exceeded $3bn in annual recurring revenue, delivering 35 per cent revenue growth

Cybersecurity vendor CrowdStrike's annual recurring revenue (ARR) has exceeded $3bn for the first time in its latest financial results.

Total revenue was $786m, a 35 per cent increase in its third quarter fiscal year 2024, ended October 31, 2023.

Non-GAAP net income attributable to CrowdStrike rose to $199.2m, compared to $96.1m in the same period last year.

Subscription revenue grew 34 per cent to $733.5m while revenues for professional services surged 58 per cent to $52.5m

"CrowdStrike delivered new milestones across the business this quarter, becoming the fastest pure play cybersecurity software company to achieve $3bn in ARR," said CEO George Kurtz.

"Our platform strategy continues gaining momentum."

CrowdStrike's switch from product to platform is a key part of the endpoint vendor's business plan moving forward.

Q4 FY24 guidance and future opportunities

For the fiscal fourth quarter, CrowdStrike provided guidance indicating continued growth.

The company raised its full-year outlook across key metrics like subscription revenue and ARR.

"Our relentless focus on operational excellence drove record profitability and cash flow while we aggressively invest to achieve our $10bn ARR target," said CFO Burt Podbere.

This was also one of the key takeaways from the cybersecurity vendor's recent inaugural European channel event in Lisbon, Portugal.

During the conference, CrowdStrike told CRN about its focus towards the SMB space.

Chief business officer Daniel Bernard said a majority of the market still uses legacy antivirus (AV) solutions.

"For us the opportunities are strong to continue the revolution and displacements that we brought to this market helping customers liberate themselves from signature-based AV that's reactive and effective.

"One of the strongholds or areas of the market where there's still a lot of legacy AV is small medium businesses, and it's because the technologies that they have access to are still a lot of the names that we were all familiar with about a decade ago.

"This is the next phase in our strategy of making sure we have the right product market fit and we're doing everything we can to continue our market share for the whole company."