Market Newsdesk

Black Rifle Coffee Company to Participate in the William Blair 43rd Annual Growth Stock Conference

SALT LAKE CITY–(BUSINESS WIRE)–
BRC Inc. (NYSE: BRCC), a rapidly growing and mission-driven premium coffee company founded to support veterans, active-duty military, first responders and serve a broad customer base by connecting consumers with great coffee and a unique brand experience, today announced that members of its management team will present at the William Blair 43rd Annual Growth Stock Conference on June 7, 2023 at 4:00 PM Central Time.

A webcast of the event will be available on the investor relations page of the Company’s website. An archived replay of the webcast will be available following the live presentation.

About Black Rifle Coffee Company

Black Rifle Coffee Company (BRCC) is a veteran-founded coffee company serving premium coffee to people who love America. Founded in 2014 by Green Beret Evan Hafer, Black Rifle develops their explosive roast profiles with the same mission focus they learned while serving in the military. BRCC is committed to supporting veterans, active-duty military, first responders and the American way of life.

To learn more about BRCC, visit www.blackriflecoffee.com, follow BRCC on social media, or subscribe to Coffee or Die Magazine’s daily newsletter at https://coffeeordie.com/presscheck-signup.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230531005883/en/

For inquiries regarding Black Rifle Coffee Company, please contact:

Investors

Tanner Doss: [email protected]

ICR for BRCC: [email protected]

KEYWORDS: United States North America Utah

INDUSTRY KEYWORDS: Retail Veterans Defense Food/Beverage

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PGIM Closed-End Funds declare distributions for June, July and August 2023

NEWARK, N.J.–(BUSINESS WIRE)–
PGIM High Yield Bond Fund, Inc. (NYSE: ISD), PGIM Global High Yield Fund, Inc. (NYSE: GHY) and PGIM Short Duration High Yield Opportunities Fund (NYSE: SDHY) declared today monthly distributions for June, July and August 2023. The distribution amounts and schedule for each fund appear below:

The distribution amounts are forward-looking and may include net investment income, currency gains, capital gains and a return of capital, but such a determination cannot be made at this time. This press release is not for tax reporting purposes but is being provided to announce the amount of each Fund’s distributions that have been declared by the applicable Board of Directors.

In early 2024, after definitive information is available, each Fund will send shareholders a Form 1099-DIV, if applicable, specifying how the distributions paid by each Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a shareholder’s tax return (e.g., ordinary income, long-term capital gain or return of capital). If applicable, and when available, a current estimate of the distribution’s composition can be found in the Section 19 notice section of the website. Please consult your tax advisor for further information.

ABOUT PGIM INVESTMENTS

PGIM Investments, LLC and its affiliates offer more than 100 funds globally across a broad spectrum of asset classes and investment styles. All products draw on PGIM’s globally diversified investment platform that encompasses the expertise of managers across fixed income, equities, alternatives and real estate.

ABOUT PGIM

PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU), a leading global investment manager with more than $1.2 trillion in assets under management as of March 31, 2023. With offices in 18 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.

Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.

Data and commentary provided in this press release are for informational purposes only. PGIM Investments LLC, the Investment Manager of the Fund, and its affiliates do not engage in selling shares of the Fund.

Each Fund is a diversified, closed-end management investment company managed by PGIM Investments LLC and subadvised by PGIM Fixed Income, a business unit of PGIM, Inc., and an affiliate of the investment manager.

These Funds invest in high yield (“junk”) bonds, which are subject to greater credit and market risks, including greater risk of default; derivative securities, which may carry market, credit, and liquidity risks; foreign securities, which are subject to currency fluctuation and political uncertainty; and emerging markets securities, which are subject to greater volatility and price declines. Fixed income investments are subject to interest rate risk, where their value will decline as interest rates rise. There are fees and expenses involved with investing in these Funds. Diversification does not assure a profit or protect against a loss in declining markets. There is no guarantee that dividends or distributions will be paid.

An investment in a closed-end fund’s common stock may be speculative in that it involves a high degree of risk, should not constitute a complete investment program, and may result in loss of principal. Each closed-end fund will have its own unique investment strategy, risks, charges and expenses that need to be considered before investing.

This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation. Clients seeking information regarding their particular investment needs should contact a financial professional. Please consult with a qualified investment professional if you wish to obtain investment advice.

PGIM Fixed Income is a unit of PGIM, Inc., which is a registered investment advisor and Prudential Financial company. © 2023 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

Investment products are not insured by the FDIC or any federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.

1067839-00002-00 Expiration: 05/31/2024

View source version on businesswire.com: https://www.businesswire.com/news/home/20230531005103/en/

MEDIA:

Kylie Scott

973-902-2503

[email protected]

CONNECT WITH US:

Visit pgim.com

Join the conversation on Twitter @PGIM

KEYWORDS: New Jersey United States North America

INDUSTRY KEYWORDS: Banking Asset Management Professional Services Finance

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Ranger Energy Services, Inc. Announces New Asset Based Lending Facility

HOUSTON–(BUSINESS WIRE)–
Ranger Energy Services, Inc. (NYSE: RNGR) (“Ranger” or the “Company”), a leading provider of well service rigs and associated services to the oil and gas industry, is pleased to announce the successful closing of a new asset based lending facility (“ABL”) with Wells Fargo Bank, N.A, as administrative agent and sole lender. The facility includes $75 million of committed liquidity and features an accordion that allows for potential expansion up to $150 million to support future growth opportunities. Under the terms of the agreement, the ABL will have a tenor of five years, providing Ranger with enhanced financial flexibility and support for its strategic initiatives.

This new facility will consolidate all material existing debt instruments into the new expanded facility, enabling Ranger to simplify its debt structure and reduce its cost of capital. The asset based facility incorporates a tiered pricing structure based on the Secured Overnight Financing Rate (SOFR), offering borrowing levels with significantly better economic terms compared to the existing financings. The facility includes standard fixed charge coverage ratio covenant tests to be applied.

Stuart Bodden, Ranger’s Chief Executive Officer, commented, “Ranger is pleased to announce the refinancing of its debt and enhanced liquidity into a more streamlined and economical facility that provides flexibility to grow in the future. The agreed terms evidence the strides made by the business to strengthen the balance sheet after the acquisitions completed in 2021, as well as the value those acquisitions have brought to Ranger. Going forward, we will be able to access capital when needed to grow at attractive rates without significant administrative burden. This is an important step in Ranger’s journey, and we are excited to continue down our strategic path with the enhanced liquidity now available to us.”

Ranger remains committed to delivering exceptional service to its customers and maintaining its position as a leader in the oilfield services industry. With the closing of the ABL, the Company is optimally positioned to leverage its strengthened balance sheet and execute on new growth opportunities.

Winston & Strawn LLP served as legal counsel to Ranger on the ABL facility.

About Ranger Energy Services, Inc.

Ranger is one of the largest providers of high specification mobile rig well services, cased hole wireline services, and ancillary services in the U.S. oil and gas industry. Our services facilitate operations throughout the lifecycle of a well, including the completion, production, maintenance, intervention, workover and abandonment phases.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements represent Ranger’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ranger’s control that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Ranger does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Ranger to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in our filings with the Securities and Exchange Commission. The risk factors and other factors noted in Ranger’s filings with the SEC could cause its actual results to differ materially from those contained in any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230530005583/en/

Melissa Cougle

Chief Financial Officer

(713) 935-8900

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Energy Other Energy Oil/Gas

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Chewy Announces First Quarter 2023 Financial Results

PLANTATION, Fla.–(BUSINESS WIRE)–
Chewy, Inc. (NYSE: CHWY) (“Chewy”), a trusted destination for pet parents and partners everywhere, has released its financial results for the first quarter of fiscal year 2023 ended April 30, 2023, and posted a letter to its shareholders on its investor relations website at https://investor.chewy.com.

Fiscal Q1 2023 Highlights:

• Net sales of $2.78 billion improved 14.7 percent year over year

• Gross margin of 28.4 percent expanded 90 basis points year over year

• Net income of $22.2 million, including share-based compensation expense and related taxes of $53.8 million

• Net margin of 0.8 percent remained flat year over year

• Basic and diluted earnings per share of $0.05, an increase of $0.01 year over year

• Adjusted EBITDA⁽¹⁾ of $110.2 million, an increase of $49.7 million year over year

• Adjusted EBITDA margin⁽¹⁾ of 4.0 percent expanded 150 basis points year over year

• Adjusted net income⁽¹⁾ of $87.2 million, an increase of $41.6 million year over year

• Adjusted basic and diluted earnings per share⁽¹⁾ of $0.20, an increase of $0.09 year over year

“2023 is off to a strong start for Chewy. Our first quarter results reflect accelerating double-digit topline growth and continued expansion of adjusted EBITDA margin. Net sales per active customer and Autoship customer sales also both reached new record highs for the company and continued to fuel customer loyalty and spend towards our platform,” said Sumit Singh, Chief Executive Officer of Chewy. “The superior value proposition of the Chewy brand continues to resonate, and our team continues to demonstrate operating discipline and high-quality execution.”

Management will host a conference call and webcast to discuss Chewy’s financial results today at 5:00 pm ET.

Chewy Fiscal First Quarter 2023 Financial Results Conference Call

When: Wednesday, May 31, 2023

Time: 5:00 pm ET

Conference ID: 659648

Live Call: 1-833-470-1428 (US Toll-Free) or +1-404-975-4839 (International)

Replay: 1-866-813-9403 (US Toll-Free), 1-929-458-6194 (US Local), +44-204-525-0658 (International)

Replay Access Code: 741437

(The replay will be available approximately two hours after the completion of the live call until 11:59 pm ET on June 7, 2023)

Webcast:https://investor.chewy.com

About Chewy

Our mission is to be the most trusted and convenient destination for pet parents and partners everywhere. We believe that we are the preeminent online source for pet products, supplies, and prescriptions as a result of our broad selection of high-quality products and services, which we offer at competitive prices and deliver with an exceptional level of care and a personal touch to build brand loyalty and drive repeat purchasing. We seek to continually develop innovative ways for our customers to engage with us, as our website and mobile app allow our pet parents to manage their pets’ health, wellness, and merchandise needs, while enabling them to conveniently shop for our products. We partner with more than 3,500 of the best and most trusted brands in the pet industry offering more than 110,000 products and services offerings, to bring what we believe is a high-bar, customer-centric experience to our customers.

Forward-Looking Statements

This communication contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this communication, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements.

In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning our ability to: sustain our recent growth rates and successfully manage challenges to our future growth, including introducing new products or services, improving existing products and services, and expanding into new offerings; successfully manage risks related to the macroeconomic environment, including any adverse impacts on our business operations, financial performance, supply chain, workforce, facilities, customer services and operations; acquire and retain new customers in a cost-effective manner and increase our net sales, improve margins and maintain profitability; manage our growth effectively; maintain positive perceptions of our company and preserve, grow, and leverage the value of our reputation and our brand; limit operating losses as we continue to expand our business; forecast net sales and appropriately plan our expenses in the future; estimate the size of our addressable market; strengthen our current supplier relationships, retain key suppliers, and source additional suppliers; negotiate acceptable pricing and other terms with third-party service providers, suppliers and outsourcing partners and maintain our relationships with such parties; mitigate changes in, or disruptions to, our shipping arrangements and operations; optimize, operate and manage the expansion of the capacity of our fulfillment centers; provide our customers with a cost-effective platform that is able to respond and adapt to rapid changes in technology; limit our losses related to online payment methods; maintain and scale our technology, including the reliability of our website, mobile applications, and network infrastructure; maintain adequate cybersecurity with respect to our systems and ensure that our third-party service providers do the same with respect to their systems; maintain consumer confidence in the safety, quality and health of our products; limit risks associated with our suppliers and our outsourcing partners; comply with existing or future laws and regulations in a cost-efficient manner; compete with other retailers and service providers; utilize tax attributes, net operating loss and tax credit carryforwards, and limit fluctuations in our tax obligations and effective tax rate; adequately protect our intellectual property rights; successfully defend ourselves against any allegations or claims that we may be subject to; attract, develop, motivate and retain highly-qualified and skilled employees; predict and respond to economic conditions, industry trends, and market conditions, and their impact on the pet products market; reduce merchandise returns or refunds; respond to severe weather and limit disruption to normal business operations; manage new acquisitions, investments or alliances, and integrate them into our existing business; successfully compete in the pet insurance market; manage challenges presented by international markets; successfully compete in the pet products and services health and retail industry, especially in the e-commerce sector; raise capital as needed; and maintain effective internal control over financial reporting and disclosure controls and procedures.

You should not rely on forward-looking statements as predictions of future events, and you should understand that these statements are not guarantees of performance or results, and our actual results could differ materially from those expressed in the forward-looking statements due to a variety of factors. We have based the forward-looking statements contained in this communication primarily on our current assumptions, expectations, and projections about future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” included under Part I, Item 1A of our Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission and elsewhere in this communication. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this communication. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this communication. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this communication relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this communication to reflect events or circumstances after the date of this communication or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted EBITDA Margin

To provide investors with additional information regarding our financial results, we have disclosed in this earnings release adjusted EBITDA, a non-GAAP financial measure that we calculate as net income (loss) excluding depreciation and amortization; share-based compensation expense and related taxes; income tax provision; interest income (expense), net; transaction related costs; changes in the fair value of equity warrants; exit costs; and litigation matters and other items that we do not consider representative of our underlying operations. We have provided a reconciliation below of adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure.

We have included adjusted EBITDA and adjusted EBITDA margin in this earnings release because each is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating adjusted EBITDA and adjusted EBITDA margin facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable charges. Accordingly, we believe that adjusted EBITDA and adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

We believe it is useful to exclude non-cash charges, such as depreciation and amortization and share-based compensation expense from our adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude income tax provision; interest income (expense), net; transaction related costs; changes in the fair value of equity warrants; exit costs; and litigation matters and other items which are not components of our core business operations. Adjusted EBITDA has limitations as a financial measure and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and adjusted EBITDA does not reflect capital expenditure requirements for such replacements or for new capital expenditures;

• adjusted EBITDA does not reflect share-based compensation and related taxes. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy;

• adjusted EBITDA does not reflect interest income (expense), net; or changes in, or cash requirements for, our working capital;

• adjusted EBITDA does not reflect transaction related costs and other items which are either not representative of our underlying operations or are incremental costs that result from an actual or planned transaction and include changes in the fair value of equity warrants, exit costs, litigation matters, integration consulting fees, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and converging IT systems; and

• other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider adjusted EBITDA and adjusted EBITDA margin alongside other financial performance measures, including various cash flow metrics, net income (loss), net margin, and our other GAAP results.

The following table presents a reconciliation of net income to adjusted EBITDA, as well as the calculation of net margin and adjusted EBITDA margin, for each of the periods indicated.

We define net margin as net income divided by net sales and adjusted EBITDA margin as adjusted EBITDA divided by net sales.

Adjusted Net Income and Adjusted Basic and Diluted Earnings per Share

To provide investors with additional information regarding our financial results, we have disclosed in this earnings release adjusted net income and adjusted basic and diluted earnings per share, which represent non-GAAP financial measures. We calculate adjusted net income as net income excluding share-based compensation expense and related taxes, changes in the fair value of equity warrants, and exit costs. We calculate adjusted basic and diluted earnings per share by dividing adjusted net income attributable to common stockholders by the weighted-average shares outstanding during the period. We have provided a reconciliation below of adjusted net income to net income, the most directly comparable GAAP financial measure.

We have included adjusted net income and adjusted basic and diluted earnings per share in this earnings release because each is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating adjusted net income and adjusted basic and diluted earnings per share facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable gains and losses that do not represent a component of our core business operations. We believe it is useful to exclude non-cash share-based compensation expense because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude exit costs and the changes in the fair value of equity warrants, because exit costs and the variability of equity warrant gains and losses are not representative of our underlying operations. Accordingly, we believe that these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Adjusted net income and adjusted basic and diluted earnings per share have limitations as financial measures and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Other companies may calculate adjusted net income and adjusted basic and diluted earnings per share differently, which reduces their usefulness as comparative measures. Because of these limitations, you should consider adjusted net income and adjusted basic and diluted earnings alongside other financial performance measures, including various cash flow metrics, net income, basic and diluted earnings per share, and our other GAAP results.

The following table presents a reconciliation of net income to adjusted net income, as well as the calculation of adjusted basic and diluted earnings per share, for each of the periods indicated.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230531005800/en/

Investor Contact:

Jennifer Hsu

[email protected]

Media Contact:

Diane Pelkey

[email protected]

KEYWORDS: Florida United States North America

INDUSTRY KEYWORDS: Online Retail Consumer Retail Pets Specialty

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CrowdStrike Reports First Quarter Fiscal Year 2024 Financial Results

• Achieves record revenue, GAAP and non-GAAP earnings, cash flow from operations and free cash flow
• Ending ARR grows 42% year-over-year to reach $2.73 billion, adding $174 million in net new ARR
• Delivers record GAAP subscription gross margin of 78% and record non-GAAP subscription gross margin of 80%

AUSTIN, Texas–(BUSINESS WIRE)–
CrowdStrike Holdings, Inc. (Nasdaq: CRWD), a global cybersecurity leader that provides cloud-delivered protection of endpoints, cloud workloads, identity and data, today announced financial results for the first quarter fiscal year 2024, ended April 30, 2023.

“CrowdStrike’s first quarter results exceeded our guided metrics and reached new financial milestones, delivering the winning combination of growth, profitability and free cash flow at scale,” said George Kurtz, CrowdStrike’s president, chief executive officer and co-founder. “Our demonstrated leadership in leveraging AI to drive better security outcomes and consolidate security spend strategically positions CrowdStrike to win in our markets.”

Commenting on the company’s financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “Highlights of the quarter included a rule of 75 on a free cash flow basis and records across revenue, gross margin, GAAP and non-GAAP earnings, and cash flow. Through our relentless focus on execution, we achieved these records while remaining capital efficient and increasing module adoption rates.”

First Quarter Fiscal 2024 Financial Highlights

• Revenue: Total revenue was $692.6 million, a 42% increase, compared to $487.8 million in the first quarter of fiscal 2023. Subscription revenue was $651.2 million, a 42% increase, compared to $459.8 million in the first quarter of fiscal 2023.

• Annual Recurring Revenue (ARR) increased 42% year-over-year and grew to $2.73 billion as of April 30, 2023, of which $174.2 million was net new ARR added in the quarter.

• Subscription Gross Margin: GAAP subscription gross margin was 78%, compared to 77% in the first quarter offiscal 2023. Non-GAAP subscription gross margin was 80%, compared to 79% in the first quarter of fiscal 2023.

• Income/Loss from Operations: GAAP loss from operations was $19.5 million, compared to $23.9 million in the first quarter of fiscal 2023. Non-GAAP income from operations was $115.9 million, compared to $83.0 million in the first quarter of fiscal 2023.

• Net Income/Loss Attributable to CrowdStrike: GAAP net income attributable to CrowdStrike was $0.5 million, compared to a loss of $31.5 million in the first quarter of fiscal 2023. GAAP net income per share attributable to CrowdStrike, diluted, was $0.00, compared to a loss of $0.14 in the first quarter of fiscal 2023. Non-GAAP net income attributable to CrowdStrike was $136.4 million, compared to $74.8 million in the first quarter of fiscal 2023. Non-GAAP net income attributable to CrowdStrike per share, diluted, was $0.57, compared to $0.31 in the first quarter of fiscal 2023.

• Cash Flow: Net cash generated from operations was $300.9 million, compared to $215.0 million in the first quarter of fiscal 2023. Free cash flow was $227.4 million, compared to $157.5 million in the first quarter of fiscal 2023.

• Cash, Cash Equivalents and Short-term Investments was $2.93 billion as of April 30, 2023.

Recent Highlights

• CrowdStrike’s module adoption rates were 62%, 40% and 23% for five or more, six or more and seven or more modules, respectively, as of April 30, 2023¹.

• Introduced Charlotte AI, a new generative AI security analyst that uses the world’s highest-fidelity security data and is continuously improved through a tight human feedback loop from usage by CrowdStrike’s industry-leading threat hunters, managed detection and response operators, and incident response experts.

• Announced CrowdStrike and AWS are working together to develop powerful new Generative AI applications that help customers accelerate their cloud, security and AI journeys.

• Granted an Impact Level 5 Provisional Authorization from the Department of Defense.

• Named a leader in The Forrester Wave™: Managed Detection and Response (MDR), Q2 2023 report².

• Ranked #1 worldwide for revenue for a second consecutive year in Managed Detection and Response (MDR) in the new Gartner® report: “Market Share: Managed Security Services, Worldwide, 2022.”³

• Announced CrowdStrike Falcon Complete XDR, a new Managed eXtended Detection and Response (MXDR) service.

• Released CrowdStrike Falcon Insight for IoT, the world’s first and only EDR/XDR solution for Extended Internet of Things (XIoT) assets.

• Launched a new partnership with Abnormal Security, the leading behavioral AI-based email security platform.

• Introduced CrowdStream, a native platform capability that directly connects any data source into the CrowdStrike Falcon platform using Cribl’s observability pipeline technology.

• Expanded partnership with Google with industry’s first native EDR/XDR offering for ChromeOS.

• Named to the 2023 Fortune 100 Best Companies to Work For® list for the third consecutive year.

Financial Outlook

CrowdStrike is providing the following guidance for the second quarter of fiscal 2024 (ending July 31, 2023) and increasing its guidance for the fiscal year 2024 (ending January 31, 2024).

Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization expense of acquired intangible assets, including purchased patents, amortization of debt issuance costs and discount, mark-to-market adjustments on deferred compensation liabilities, legal reserve and settlement charges or benefits, gain (loss) and other income from strategic investments, acquisition-related expenses, and losses (gains) from deferred compensation assets. The company has not provided the most directly comparable GAAP measures because certain items are out of the company’s control or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP income from operations, non-GAAP net income attributable to CrowdStrike, and non-GAAP net income per share attributable to CrowdStrike common stockholders is not available without unreasonable effort.

	Q2 FY24 Guidance		Full Year FY24 Guidance
Total revenue	$717.2 – $727.4 million		$3,000.5 – $3,036.7 million
Non-GAAP income from operations	$116.4 – $123.8 million		$498.9 – $526.2 million
Non-GAAP net income attributable to CrowdStrike	$129.5 – $137.0 million		$562.8 – $590.1 million
Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted	$0.54 – $0.57		$2.32 – $2.43
Weighted average shares used in computing Non-GAAP net income per share attributable to common stockholders, diluted	242 million		243 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 the company’s actual results to differ materially from these forward-looking statements.

Conference Call Information

CrowdStrike will host a conference call for analysts and investors to discuss its earnings results for the first quarter of fiscal 2024 and outlook for its fiscal second quarter and fiscal year 2024 today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). A recorded webcast of the event will also be available for one year on the CrowdStrike Investor Relations website ir.crowdstrike.com.

Date:	May 31, 2023
Time:	2:00 p.m. Pacific time / 5:00 p.m. Eastern time
Pre-registration link for dial-in access:	register.vevent.com/register/BI598eb6ba76e2464eae231d18fa2614f0
Webcast:	ir.crowdstrike.com

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding CrowdStrike’s future growth, and future financial and operating performance, including CrowdStrike’s financial outlook for the fiscal second quarter and fiscal year 2024. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: risks associated with managing CrowdStrike’s rapid growth; CrowdStrike’s ability to identify and effectively implement necessary changes to address execution challenges; CrowdStrike’s limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the risk of defects, errors, or vulnerabilities; length and unpredictability of sales cycles; CrowdStrike’s ability to attract new and retain existing customers; CrowdStrike’s ability to successfully integrate acquisitions; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscriptions and support; CrowdStrike’s ability to collaborate and integrate its products with offerings from other parties to deliver benefits to customers; industry trends; rapidly evolving technological developments in the market for security products and subscription and support offerings; and general market, political, economic, and business conditions, including those related to a deterioration in macroeconomic conditions, inflation, geopolitical uncertainty, public health crises and volatility in the banking and financial services sector.

Additional risks and uncertainties that could affect CrowdStrike’s financial results are included in the filings CrowdStrike makes with the Securities and Exchange Commission (“SEC”) from time to time, particularly under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, including CrowdStrike’s most recently filed Annual Report on Form 10-K, most recently filed Quarterly Report on Form 10-Q and subsequent filings.

You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to CrowdStrike as of the date hereof, and CrowdStrike does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Use of Non-GAAP Financial Information

CrowdStrike believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to CrowdStrike’s financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below, as well as the “Explanation of Non-GAAP Financial Measures” section of this press release.

Channels for Disclosure of Information

CrowdStrike intends to announce material information to the public through the CrowdStrike Investor Relations website ir.crowdstrike.com, SEC filings, press releases, public conference calls, and public webcasts. CrowdStrike uses these channels, as well as social media and its blog, to communicate with its investors, customers, and the public about the company, its offerings, and other issues. It is possible that the information CrowdStrike posts on social media and its blog could be deemed to be material information. As such, CrowdStrike encourages investors, the media, and others to follow the channels listed above, including the social media channels listed on CrowdStrike’s investor relations website, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which CrowdStrike will announce information will be posted on the investor relations page on CrowdStrike’s website.

Definition of Module Adoption Rates

1. Beginning in the fourth quarter of fiscal 2023, module adoption rates are calculated by taking the total number of customers with five or more, six or more, and seven or more modules, respectively, divided by the total number of subscription customers (excluding Falcon Go customers). Falcon Go customers are defined as customers who have subscribed with the Falcon Go bundle, a package designed for organizations with 100 endpoints or less.

Reports Referenced and Disclaimers

2. The Forrester Wave™: Managed Detection And Response, Q2 2023 report, Forrester Research, Inc., May 18, 2023

3. Gartner, Market Share: Managed Security Services, Worldwide, 2022, Rahul Yadav, Travis Lee, Matt Milone, Akshita Joshi, Shailendra Upadhyay, 18 April 2023

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

The Gartner content described herein, (the “Gartner Content”) represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this press release) and the opinions expressed in the Gartner Content are subject to change without notice.

About CrowdStrike Holdings

CrowdStrike Holdings, Inc. is a global cybersecurity leader that provides cloud-delivered protection of endpoints, cloud workloads, identity and data.

Powered by the CrowdStrike Security Cloud and advanced artificial intelligence, the CrowdStrike Falcon® platform delivers better outcomes to customers through rapid and scalable deployment, superior protection and performance, reduced complexity and immediate time-to-value.

CrowdStrike Falcon leverages a single lightweight-agent architecture with integrated cloud modules spanning multiple security markets, including corporate workload security, managed security services, security and vulnerability management, IT operations management, threat intelligence services, identity protection and log management.

For more information, please visit: ir.crowdstrike.com

CrowdStrike, the CrowdStrike logo, and other CrowdStrike marks are trademarks and/or registered trademarks of CrowdStrike, Inc., or its affiliates or licensors. Other words, symbols, and company product names may be trademarks of the respective companies with which they are associated.

CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
	Three Months Ended April 30,
		2023				2022
Revenue
Subscription	$	651,175			$	459,822
Professional services		41,405				28,012
Total revenue		692,580				487,834
Cost of revenue
Subscription (1)(2)		142,100				107,942
Professional services (1)		27,130				18,890
Total cost of revenue		169,230				126,832
Gross profit		523,350				361,002
Operating expenses
Sales and marketing (1)(2)		281,107				193,532
Research and development (1)(3)		179,065				123,399
General and administrative (1)(2)(3)(4)		82,634				67,954
Total operating expenses		542,806				384,885
Loss from operations		(19,456	)			(23,883	)
Interest expense(5)		(6,387	)			(6,298	)
Interest income		30,521				1,507
Other income, net(6)(7)		230				1,705
Income (loss) before provision for income taxes		4,908				(26,969	)
Provision for income taxes(9)		4,409				3,440
Net income (loss)		499				(30,409	)
Net income attributable to non-controlling interest		8				1,114
Net income (loss) attributable to CrowdStrike	$	491			$	(31,523	)
Net income (loss) per share attributable to CrowdStrike common stockholders:
Basic	$	0.00			$	(0.14	)
Diluted	$	0.00			$	(0.14	)
Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders:
Basic		236,414				231,179
Diluted		240,598				231,179

____________________________

(1)		Includes stock-based compensation expense as follows (in thousands):

	Three Months Ended April 30,
		2023			2022
Subscription cost of revenue	$	8,966		$	6,578
Professional services cost of revenue		4,630			3,001
Sales and marketing		35,739			26,710
Research and development		44,381			34,036
General and administrative		37,140			32,169
Total stock-based compensation expense	$	130,856		$	102,494

(2)		Includes amortization of acquired intangible assets, including purchased patents, as follows (in thousands):

	Three Months Ended April 30,
		2023			2022
Subscription cost of revenue	$	3,580		$	3,425
Sales and marketing		531			649
General and administrative		63			14
Total amortization of acquired intangible assets	$	4,174		$	4,088

(3)

Includes acquisition-related expenses (credit), net as follows (in thousands):

	Three Months Ended April 30,
		2023				2022
Research and development	$	371			$	—
General and administrative		(70	)			301
Total acquisition-related expenses, net	$	301			$	301

(4)		Includes mark-to-market adjustments on deferred compensation liabilities as follows (in thousands):

	Three Months Ended April 30,
		2023			2022
Sales and marketing	$	3		$	—
Research and development		1			—
Total mark-to-market adjustments on deferred compensation liabilities	$	4		$	—

(5)

Includes amortization of debt issuance costs and discount as follows (in thousands):

	Three Months Ended April 30,
		2023			2022
Interest expense	$	546		$	546
Total amortization of debt issuance costs and discount	$	546		$	546

(6)

Includes gains and other income from strategic investments as follows (in thousands):

	Three Months Ended April 30,
		2023			2022
Other income, net	$	16		$	2,229
Total gains and other income from strategic investments	$	16		$	2,229

(7)

Includes gains on deferred compensation assets as follows (in thousands):

	Three Months Ended April 30,
		2023			2022
Other income, net	$	4		$	—
Total gains on deferred compensation assets	$	4		$	—

CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
	April 30, 2023				January 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	2,829,677			$	2,455,369
Short-term investments		100,000				250,000
Accounts receivable, net of allowance for credit losses		461,092				626,181
Deferred contract acquisition costs, current		186,901				186,855
Prepaid expenses and other current assets		131,100				121,862
Total current assets		3,708,770				3,640,267
Strategic investments		57,877				47,270
Property and equipment, net		523,721				492,335
Operating lease right-of-use assets		50,459				39,936
Deferred contract acquisition costs, noncurrent		254,397				260,233
Goodwill		430,755				430,645
Intangible assets, net		83,215				86,889
Other long-term assets		28,664				28,965
Total assets	$	5,137,858			$	5,026,540
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	16,900			$	45,372
Accrued expenses		91,494				137,884
Accrued payroll and benefits		151,099				168,767
Operating lease liabilities, current		16,215				13,046
Deferred revenue		1,788,304				1,727,484
Other current liabilities		16,052				16,519
Total current liabilities		2,080,064				2,109,072
Long-term debt		741,377				741,005
Deferred revenue, noncurrent		615,487				627,629
Operating lease liabilities, noncurrent		36,774				29,567
Other liabilities, noncurrent		29,797				31,833
Total liabilities		3,503,499				3,539,106
Commitments and contingencies
Stockholders’ Equity
Common stock, Class A and Class B		118				118
Additional paid-in capital		2,752,716				2,612,705
Accumulated deficit		(1,147,672	)			(1,148,163	)
Accumulated other comprehensive income (loss)		139				(1,019	)
Total CrowdStrike Holdings, Inc. stockholders’ equity		1,605,301				1,463,641
Non-controlling interest		29,058				23,793
Total stockholders’ equity		1,634,359				1,487,434
Total liabilities and stockholders’ equity	$	5,137,858			$	5,026,540

CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Three Months Ended April 30,
		2023				2022
Operating activities
Net income (loss)	$	499			$	(30,409	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		26,409				16,341
Amortization of intangible assets		4,174				4,088
Amortization of deferred contract acquisition costs		55,322				37,592
Non-cash operating lease costs		3,092				2,237
Stock-based compensation expense		130,856				102,494
Deferred income taxes		(255	)			1,752
Non-cash interest expense		754				669
Change in fair value of strategic investments		—				(2,208	)
Changes in operating assets and liabilities, net of impact of acquisitions
Accounts receivable, net		165,089				(1,058	)
Deferred contract acquisition costs		(49,532	)			(51,354	)
Prepaid expenses and other assets		(8,542	)			4,243
Accounts payable		(18,596	)			(36,431	)
Accrued expenses and other liabilities		(36,576	)			(7,300	)
Accrued payroll and benefits		(17,281	)			13,235
Operating lease liabilities		(3,199	)			(2,210	)
Deferred revenue		48,678				163,276
Net cash provided by operating activities		300,892				214,957
Investing activities
Purchases of property and equipment		(62,264	)			(52,211	)
Capitalized internal-use software and website development costs		(10,902	)			(5,214	)
Purchases of strategic investments		(10,513	)			(2,825	)
Purchases of intangible assets		—				(700	)
Proceeds from sales of investments		150,000				—
Purchases of deferred compensation investments		(290	)			—
Net cash used provided by (used in) investing activities		66,031				(60,950	)
Financing activities
Proceeds from issuance of common stock upon exercise of stock options		2,651				3,106
Capital contributions from non-controlling interest holders		5,257				1,462
Net cash provided by financing activities		7,908				4,568
Effect of foreign exchange rates on cash, cash equivalents and restricted cash		(190	)			(2,472	)
Net increase in cash, cash equivalents and restricted cash		374,641				156,103
Cash, cash equivalents and restricted cash, beginning of period		2,456,924				1,996,633
Cash, cash equivalents and restricted cash, end of period	$	2,831,565			$	2,152,736

CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages)
(unaudited)
	Three Months Ended April 30,
		2023				2022
GAAP subscription revenue	$	651,175			$	459,822
GAAP professional services revenue		41,405				28,012
GAAP total revenue	$	692,580			$	487,834
GAAP subscription gross profit	$	509,075			$	351,880
Stock based compensation expense		8,966				6,578
Amortization of acquired intangible assets		3,580				3,425
Non-GAAP subscription gross profit	$	521,621			$	361,883
GAAP subscription gross margin		78	%			77	%
Non-GAAP subscription gross margin		80	%			79	%
GAAP professional services gross profit	$	14,275			$	9,122
Stock based compensation expense		4,630				3,001
Non-GAAP professional services gross profit	$	18,905			$	12,123
GAAP professional services gross margin		34	%			33	%
Non-GAAP professional services gross margin		46	%			43	%
Total GAAP gross margin		76	%			74	%
Total Non-GAAP gross margin		78	%			77	%
GAAP sales and marketing operating expenses	$	281,107			$	193,532
Stock based compensation expense		(35,739	)			(26,710	)
Amortization of acquired intangible assets		(531	)			(649	)
Mark-to-market adjustments on deferred compensation liabilities		(3	)			—
Non-GAAP sales and marketing operating expenses	$	244,834			$	166,173
GAAP sales and marketing operating expenses as a percentage of revenue		41	%			40	%
Non-GAAP sales and marketing operating expenses as a percentage of revenue		35	%			34	%
GAAP research and development operating expenses	$	179,065			$	123,399
Stock based compensation expense		(44,381	)			(34,036	)
Acquisition-related expenses		(371	)			—
Mark-to-market adjustments on deferred compensation liabilities		(1	)			—
Non-GAAP research and development operating expenses	$	134,312			$	89,363
GAAP research and development operating expenses as a percentage of revenue		26	%			25	%
Non-GAAP research and development operating expenses as a percentage of revenue		19	%			18	%
GAAP general and administrative operating expenses	$	82,634			$	67,954
Stock based compensation expense		(37,140	)			(32,169	)
Acquisition-related credit (expense)		70				(301	)
Amortization of acquired intangible assets		(63	)			(14	)
Non-GAAP general and administrative operating expenses	$	45,501			$	35,470
GAAP general and administrative operating expenses as a percentage of revenue		12	%			14	%
Non-GAAP general and administrative operating expenses as a percentage of revenue		7	%			7	%

CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued)
(in thousands, except per share amounts)
(unaudited)
	Three Months Ended April 30,
		2023				2022
GAAP loss from operations	$	(19,456	)		$	(23,883	)
Stock based compensation expense		130,856				102,494
Amortization of acquired intangible assets		4,174				4,088
Acquisition-related expenses, net		301				301
Mark-to-market adjustments on deferred compensation liabilities		4				—
Non-GAAP income from operations	$	115,879			$	83,000
GAAP operating margin		(3	) %			(5	) %
Non-GAAP operating margin		17	%			17	%
GAAP net income (loss) attributable to CrowdStrike	$	491			$	(31,523	)
Stock based compensation expense		130,856				102,494
Amortization of acquired intangible assets		4,174				4,088
Acquisition-related expenses, net		301				301
Amortization of debt issuance costs and discount		546				546
Mark-to-market adjustments on deferred compensation liabilities		4				—
Gains and other income from strategic investments attributable to CrowdStrike		(8	)			(1,114	)
Gains on deferred compensation assets		(4	)			—
Non-GAAP net income attributable to CrowdStrike	$	136,360			$	74,792
Weighted-average shares used in computing basic net income (loss) per share attributable to CrowdStrike common stockholders (GAAP)		236,414				231,179
GAAP basic net income (loss) per share attributable to CrowdStrike common stockholders	$	0.00			$	(0.14	)
GAAP diluted net income (loss) per share attributable to CrowdStrike common stockholders	$	0.00			$	(0.14	)
Stock-based compensation		0.54				0.43
Amortization of acquired intangible assets		0.02				0.02
Acquisition-related expenses, net		—				—
Amortization of debt issuance costs and discount		—				—
Mark-to-market adjustments on deferred compensation liabilities		—				—
Adjustment to fully diluted earnings per share (1)		0.01				—
Gains and other income from strategic investments attributable to CrowdStrike		—				—
Gains on deferred compensation assets		—				—
Non-GAAP diluted net income per share attributable to CrowdStrike common stockholders	$	0.57			$	0.31
Weighted-average shares used in diluted net income (loss) per share attributable to CrowdStrike common stockholders calculation:
GAAP		240,598				231,179
Non-GAAP		240,598				238,654

______________________________________________________

(1) For periods in which we had diluted non-GAAP net income per share attributable to CrowdStrike common stockholders, the sum of the impact of individual reconciling items may not total to diluted Non-GAAP net income per share attributable to CrowdStrike common stockholders because of rounding differences or because the basic share counts used to calculate GAAP net loss per share attributable to CrowdStrike common stockholders differ from the diluted share counts used to calculate non-GAAP net income per share attributable to CrowdStrike common stockholders. The GAAP net loss per share attributable to CrowdStrike common stockholders calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share attributable to CrowdStrike common stockholders.

CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued)
(in thousands, except percentages)
(unaudited)
	Three Months Ended April 30,
		2023				2022
GAAP net cash provided by operating activities	$	300,892			$	214,957
Purchases of property and equipment		(62,264	)			(52,211	)
Capitalized internal-use software and website development costs		(10,902	)			(5,214	)
Purchases of deferred compensation investments		(290	)			—
Free cash flow	$	227,436			$	157,532
GAAP net cash provided by (used in) investing activities	$	66,031			$	(60,950	)
GAAP net cash provided by financing activities	$	7,908			$	4,568
GAAP net cash provided by operating activities as a percentage of revenue		43	%			44	%
Purchases of property and equipment as a percentage of revenue		(9	) %			(11	) %
Capitalized internal-use software and website development costs as a percentage of revenue		(2	) %			(1	) %
Purchases of deferred compensation investments as a percentage of revenue		—	%			—	%
Free cash flow margin		33	%			32	%

Explanation of Non-GAAP Financial Measures

In addition to determining results in accordance with U.S. generally accepted accounting principles (“GAAP”), CrowdStrike believes the following non-GAAP measures are useful in evaluating its operating performance. CrowdStrike uses the following non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. CrowdStrike believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and facilitates period-to-period comparisons of operations, as these measures eliminate the effects of certain variables unrelated to CrowdStrike’s overall operating performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Other companies, including companies in CrowdStrike’s industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of CrowdStrike’s non-GAAP financial measures as tools for comparison.

Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate CrowdStrike’s business.

Non-GAAP Subscription Gross Profit and Non-GAAP Subscription Gross Margin

CrowdStrike defines non-GAAP subscription gross profit and non-GAAP subscription gross margin as GAAP subscription gross profit and GAAP subscription gross margin, respectively, excluding stock-based compensation expense and amortization of acquired intangible assets.

Non-GAAP Income from Operations

CrowdStrike defines non-GAAP income from operations as GAAP loss from operations excluding stock-based compensation expense, amortization of acquired intangible assets (including purchased patents), acquisition-related expenses, net, and mark-to-market adjustments on deferred compensation liabilities.

Non-GAAP Net Income Attributable to CrowdStrike

The company defines non-GAAP net income attributable to CrowdStrike as GAAP net income (loss) attributable to CrowdStrike excluding stock-based compensation expense, amortization of acquired intangible assets (including purchased patents), acquisition-related expenses, net, amortization of debt issuance costs and discount, mark-to-market adjustments on deferred compensation liabilities, gains and other income from strategic investments, and gains on deferred compensation assets.

Non-GAAP Net Income per Share Attributable to CrowdStrike Common Stockholders, Diluted

CrowdStrike defines non-GAAP net income per share attributable to CrowdStrike common stockholders, as non-GAAP net income attributable to CrowdStrike divided by the weighted-average shares outstanding, which includes the dilutive effect of potentially dilutive common stock equivalents outstanding during the period.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that CrowdStrike defines as net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software and website development costs, and purchases of deferred compensation investments. CrowdStrike monitors free cash flow as one measure of its overall business performance, which enables CrowdStrike to analyze its future performance without the effects of non-cash items and allow CrowdStrike to better understand the cash needs of its business. While CrowdStrike believes that free cash flow is useful in evaluating its business, free cash flow is a non-GAAP financial measure that has limitations as an analytical tool, and free cash flow should not be considered as an alternative to, or substitute for, net cash provided by operating activities in accordance with GAAP. The utility of free cash flow as a measure of CrowdStrike’s liquidity is further limited as it does not represent the total increase or decrease in CrowdStrike’s cash balance for any given period. In addition, other companies, including companies in CrowdStrike’s industry, may calculate free cash flow differently or not at all, which reduces the usefulness of free cash flow as a tool for comparison.

Explanation of Operational Measures

Annual Recurring Revenue

ARR is calculated as the annualized value of CrowdStrike’s customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. To the extent that CrowdStrike is negotiating a renewal with a customer after the expiration of the subscription, CrowdStrike continues to include that revenue in ARR if CrowdStrike is actively in discussion with such an organization for a new subscription or renewal, or until such organization notifies CrowdStrike that it is not renewing its subscription.

Magic Number

Magic Number is calculated by performing the following calculation for the most recent four quarters and taking the average: annualizing the difference between a quarter’s Subscription Revenue and the prior quarter’s Subscription Revenue, and then dividing the resulting number by the previous quarter’s Non-GAAP Sales & Marketing Expense. Magic Number = Average of previous four quarters: ((Quarter Subscription Revenue – Prior Quarter Subscription Revenue) x 4) / Prior Quarter Non-GAAP Sales & Marketing Expense.

Free Cash Flow Rule of 40

Free cash flow rule of 40 is calculated by taking the current quarter total revenue year over year growth rate percentage and summing it with the current quarter free cash flow margin percentage.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230531005253/en/

Investor Relations Contact

CrowdStrike Holdings, Inc.

Maria Riley, Vice President of Investor Relations

[email protected]

669-721-0742

Press Contact

CrowdStrike Holdings, Inc.

Kevin Benacci, Sr. Director, Corporate Communications

[email protected]

216-409-5055

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