What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2024-03-07 compared with 2023-03-09 · 229 added, 226 removed, 996 unchanged (31% of the section changed)

5 unchanged sentences

Consolidated Statements of Operations for the years ended January 31, 2024, 2023 and 2022

Consolidated Statements of Comprehensive Loss for the years ended January 31, 2023, 2022 and 2021

Consolidated Statements of Comprehensive Income (Loss) for the years ended January 31, 2024, 2023 and 2022

Consolidated Statements of Stockholders’ Equity for the years ended January 31, 2024, 2023 and 2022

5 unchanged sentences

We have audited the accompanying consolidated balance sheets of CrowdStrike Holdings, Inc.

and its subsidiaries (the “Company”) as of January 31, 2023 and 2022, and the related consolidated statements of operations, of comprehensive loss, of stockholders' equity and of cash flows for each of the three years in the period ended January 31, 2023, including the related notes (collectively referred to as the “consolidated financial statements”).

and its subsidiaries (the “Company”) as of January 31, 2024 and 2023, and the related consolidated statements of operations, of comprehensive income (loss), of stockholders’ equity and of cash flows for each of the three years in the period ended January 31, 2024, including the related notes (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of January 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

17 unchanged sentences

A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the

and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

24 unchanged sentences

Short-term investments 99,591 250,000

Accounts receivable, net of allowance for credit losses of $ 2.6 million and

$ 1.6 million as of January 31, 2023 and January 31, 2022, respectively

Accounts receivable, net of allowance for credit losses of $ 2.2 million and $ 2.6 million as of January 31, 2024 and January 31, 2023, respectively

853,105 626,181

66 unchanged sentences

Other income, net 1,638 3,053 3,968

Loss before provision for income taxes ( 159,883 ) ( 160,023 ) ( 87,869 )

Income (loss) before provision for income taxes 122,817 ( 159,883 ) ( 160,023 )

Provision for income taxes 32,232 22,402 72,355

Net loss ( 182,285 ) ( 232,378 ) ( 92,629 )

Net income (loss) 90,585 ( 182,285 ) ( 232,378 )

Net income attributable to non-controlling interest 1,258 960 2,424

Net loss attributable to CrowdStrike $ ( 183,245 ) $ ( 234,802 ) $ ( 92,629 )

Net loss per share attributable to CrowdStrike common stockholders, basic and diluted $ ( 0.79 ) $ ( 1.03 ) $ ( 0.43 )

Weighted-average shares used in computing net loss per share attributable to CrowdStrike common stockholders, basic and diluted 233,139 227,142 217,756

Net income (loss) attributable to CrowdStrike $ 89,327 $ ( 183,245 ) $ ( 234,802 )

Net income (loss) per share attributable to CrowdStrike common stockholders:

Basic $ 0.37 $ ( 0.79 ) $ ( 1.03 )

Diluted $ 0.37 $ ( 0.79 ) $ ( 1.03 )

Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders:

Basic 238,637 233,139 227,142

Diluted 243,635 233,139 227,142

The accompanying notes are an integral part of these consolidated financial statements.

CrowdStrike Holdings, Inc.

Consolidated Statements of Comprehensive Loss

Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

1 unchanged sentence

2024 2023 2022

Net loss $ ( 182,285 ) $ ( 232,378 ) $ ( 92,629 )

Net income (loss) $ 90,585 $ ( 182,285 ) $ ( 232,378 )

Other comprehensive income (loss):

Foreign currency translation adjustments ( 594 ) 221 ( 3,559 )

Reversal of unrealized gain upon sale of debt securities, net of tax — — ( 1,320 )

Unrealized loss on short-term investments, net of tax ( 50 ) — —

Other comprehensive income (loss) ( 644 ) 221 ( 3,559 )

Comprehensive income attributable to non-controlling interest 1,258 960 2,424

Total comprehensive loss attributable to CrowdStrike $ ( 183,024 ) $ ( 238,361 ) $ ( 91,319 )

Total comprehensive income (loss) attributable to CrowdStrike $ 88,683 $ ( 183,024 ) $ ( 238,361 )

The accompanying notes are an integral part of these consolidated financial statements.

6 unchanged sentences

Comprehensive

Income (Loss) Non-controlling Interest Total Stockholders’ Equity (Deficit)

Income (Loss) Non-controlling Interest Total Stockholders’ Equity

Shares Amount

1 unchanged sentence

Issuance of common stock upon exercise of options 2,598 1 15,898 — — — 15,899

Issuance of common stock under RSU release 1,994 — — — — — —

Issuance of common stock under RSU and PSU release 3,408 2 ( 2 ) — — — —

Issuance of common stock under employee stock purchase plan 904 — 50,277 — — — 50,277

Issuance of common stock for restricted stock awards 57 — — — — — —

Vesting of early exercised options — — 3,165 — — — 3,165

Issuance of common stock for founders holdbacks related to acquisitions 15 — 3,528 — — — 3,528

Stock-based compensation expense — — 305,792 — — — 305,792

1 unchanged sentence

Fair value of replacement equity awards attributable to pre-acquisition service — — 4,011 — — — 4,011

Net loss — — — ( 92,629 ) — — ( 92,629 )

Net income (loss) — — — ( 234,802 ) — 2,424 ( 232,378 )

Non-controlling interest — — — — — 8,155 8,155

Other comprehensive income — — — — 1,310 — 1,310

Other comprehensive loss — — — — ( 3,559 ) — ( 3,559 )

Balances at January 31, 2022 230,706 $ 115 $ 1,991,807 $ ( 964,918 ) $ ( 1,240 ) $ 11,879 $ 1,037,643

10 unchanged sentences

Non-controlling interest — — — — — 10,954 10,954

Other comprehensive loss — — — — ( 3,559 ) — ( 3,559 )

Other comprehensive income — — — — 221 — 221

Balances at January 31, 2023 235,777 $ 118 $ 2,612,705 $ ( 1,148,163 ) $ ( 1,019 ) $ 23,793 $ 1,487,434

3 unchanged sentences

Issuance of common stock for restricted stock awards 125 — — — — — —

Vesting of early exercised options — — 2,204 — — — 2,204

Issuance of common stock for founders holdbacks related to acquisitions 27 — 4,314 — — — 4,314

Issuance of common stock for payment of board of director fees 2 — 344 — — — 344

Stock-based compensation expense — — 626,861 — — — 626,861

1 unchanged sentence

Fair value of replacement equity awards attributable to pre-acquisition service — — 652 — — — 652

Net income (loss) — — — ( 183,245 ) — 960 ( 182,285 )

Net income — — — 89,327 — 1,258 90,585

Non-controlling interest — — — — — 8,088 8,088

Other comprehensive income — — — — 221 — 221

Other comprehensive loss — — — — ( 644 ) — ( 644 )

Balances at January 31, 2024 241,865 $ 121 $ 3,364,328 $ ( 1,058,836 ) $ ( 1,663 ) $ 33,139 $ 2,337,089

6 unchanged sentences

Operating activities

Net loss $ ( 182,285 ) $ ( 232,378 ) $ ( 92,629 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Net income (loss) $ 90,585 $ ( 182,285 ) $ ( 232,378 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization 126,838 77,245 55,908

4 unchanged sentences

Deferred income taxes ( 3,387 ) 1,306 ( 13,956 )

Gain on sale of debt securities, net — — ( 1,347 )

Amortization of marketable securities purchased at a premium — — 578

Realized gains on strategic investments ( 3,936 ) — —

Accretion of short-term investments purchased at a discount ( 2,285 ) — —

Non-cash interest expense 3,173 2,813 2,469

14 unchanged sentences

Purchases of strategic investments ( 17,177 ) ( 21,808 ) ( 16,309 )

Proceeds from sales of strategic investments 2,000 — —

Business acquisitions, net of cash acquired ( 239,030 ) ( 18,349 ) ( 414,518 )

Purchases of intangible assets ( 11,126 ) ( 2,323 ) ( 680 )

Purchases of investments ( 250,000 ) — ( 84,904 )

Proceeds from sales of investments — — 639,586

Purchases of short-term investments ( 195,581 ) ( 250,000 ) —

Proceeds from maturities and sales of short-term investments 348,281 — —

Purchases of deferred compensation investments ( 2,031 ) ( 64 ) —

Maturities of marketable securities — — 91,605

Net cash (used in) provided by investing activities ( 556,658 ) ( 564,516 ) 495,427

Net cash used in investing activities ( 340,650 ) ( 556,658 ) ( 564,516 )

Financing activities

1 unchanged sentence

Payments of debt issuance costs related to Senior Notes — — ( 1,581 )

Proceeds from issuance of Senior Notes, net of debt financing costs — — 739,569

Repayment of loan payable — ( 1,591 ) —

15 unchanged sentences

Supplemental disclosure of non-cash investing and financing activities:

Net increase in property and equipment included in accounts payable and accrued expenses $ 22,421 $ 6,522 $ 1,042

Net (decrease) increase in property and equipment included in accounts payable and accrued expenses $ ( 3,081 ) $ 22,421 $ 6,522

Vesting of early exercised stock options $ — $ 2,204 $ 3,165

Equity consideration for acquisitions $ 652 $ 50 $ 4,011

Debt financing costs, accrued but not paid $ — $ — $ 1,581

Operating lease liabilities arising from obtaining operating right of-use assets

$ 16,445 $ 18,464 $ 4,867

Proceeds from sales of strategic investments not yet received $ 8,774 $ — $ —

Stock-based compensation included in capitalized software development costs and fixed assets $ 31,919 $ 20,193 $ 10,879

The accompanying notes are an integral part of these consolidated financial statements.

4 unchanged sentences

(the “Company”) was formed on November 7, 2011.

The Company is a global cybersecurity leader that provides cloud-delivered protection of endpoints, cloud workloads, identity, and data via a software as a service (“SaaS”) subscription-based model that spans multiple security markets, including corporate workload security, security and vulnerability management, managed security services, IT operations management, threat intelligence services, identity protection and log management.

The Company is a global cybersecurity leader that delivers cybersecurity’s AI-native platform for the XDR era, purpose-built to stop breaches.

The Company’s unified platform provides cloud-delivered protection of endpoints, cloud workloads, identity, and data via a software as a service (“SaaS”) subscription-based model that spans multiple large security markets, including corporate endpoint security, security and IT operations, managed security services, next-gen SIEM, cloud security, identity protection, threat intelligence, data protection, exposure management and cybersecurity generative AI.

The Company conducts its business in the United States, as well as locations internationally, including in Australia, Germany, India, Israel, Romania, and the United Kingdom.

21 unchanged sentences

The Company performs periodic credit evaluations of its customers and generally does not require collateral.

There were no direct customers who represented 10% or more of the Company’s accounts receivable as of January 31, 2023.

One direct customer who represented 10% of more of the Company’s accounts receivable as of January 31, 2022 was as follows:

Customer A 9 % 10 %

There were no channel partners or direct customers who represented 10% or more of the Company’s accounts receivable as of January 31, 2024 and January 31, 2023.

There were no channel partners or direct customers who represented 10% or more of the Company’s total revenue during the fiscal years ended January 31, 2024, January 31, 2023, and January 31, 2022.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

There were no channel partners who represented 10% or more of the Company’s accounts receivable as of January 31, 2023 and January 31, 2022.

There were no channel partners or direct customers who represented 10% or more of the Company’s total revenue during the fiscal years ended January 31, 2023, January 31, 2022, and January 31, 2021.

Cash Equivalents and Short-term Investments

The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.

Cash equivalents are mainly comprised of time deposits and money market funds.

Cash equivalents are mainly comprised of money market funds, U.S.

Treasury bills, and time deposits.

The Company had $ 3.1 billion and $ 1.6 billion of cash equivalents as of January 31, 2024 and January 31, 2023, respectively.

Short-term investments consist of time deposits with original maturities greater than three months but less than one year.

The Company had $ 250.0 million of short-term investments as of January 31, 2023 and no short-term investments as of January 31, 2022.

Short-term investments consist of U.S.

Treasury bills and time deposits with original maturities greater than three months but less than one year.

The Company had $ 99.6 million and $ 250.0 million of short-term investments as of January 31, 2024 and January 31, 2023, respectively.

The Company classifies investments in U.S.

Treasury bills as available-for-sale securities at the time of purchase and re-evaluates the designations as of each balance sheet date.

The Company classifies its available-for-sale securities as short-term investments based on their nature and their availability for use in current operations.

Available-for-sale securities are carried at fair value with unrealized gains and losses, if any, included in accumulated other comprehensive income (loss).

Unrealized losses are recorded in other income (expense), net, for declines in fair value below the cost of an individual investment that is deemed to be other-than-temporary.

The Company did not identify any available-for-sale securities as other-than-temporarily impaired as of January 31, 2024 and January 31, 2023.

Realized gains and losses from the sale of available-for-sale securities are determined based on a specific identification method and are recorded in other income (expense), net.

Strategic Investments

12 unchanged sentences

The Company classifies the investments in the Falcon Funds as a non-current asset called strategic investments on the consolidated balance sheets.

The Company has recognized a net unrealized gain for its portion of ownership of the strategic investments in the amount of $ 1.0 million and $ 2.4 million during the fiscal years ended January 31, 2023 and and January 31, 2022, respectively.

Net unrealized gain attributable to non-controlling interest was $ 1.0 million and $ 2.4 million during the fiscal years ended January 31, 2023 and January 31, 2022, respectively.

Fair Value of Financial Instruments

1 unchanged sentence

The carrying values of cash equivalents, short-term investments, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term nature.

If these financial instruments were measured at fair value in the consolidated financial statements, cash equivalents, accounts receivable, accounts payable, accrued expenses and investments for the Company’s deferred compensation plan would be classified as Level 1 and short-term investments would be classified as Level 2.

The Senior Notes are carried at the initially allocated liability value less unamortized debt discount and issuance

If these financial instruments were measured at fair value in the consolidated financial statements, money market funds, accounts receivable, accounts payable, accrued expenses, and investments for the Company’s deferred compensation plan would be classified as Level 1, and U.S.

treasury securities included in cash equivalents and short-term investments would be classified as Level 2.

The Senior Notes are carried at the initially allocated liability value less unamortized debt discount and issuance costs on the Company’s consolidated balance sheets.

The Company discloses the fair value of the Senior Notes at each reporting period for disclosure purposes only.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

costs on the Company’s consolidated balance sheets.

The Company discloses the fair value of the Senior Notes at each reporting period for disclosure purposes only.

The Company's investments related to the deferred compensation plan are invested within a Rabbi Trust.

Company's investments related to the deferred compensation plan are invested within a Rabbi Trust.

Participants in the deferred compensation plan may select the securities in which their compensation deferrals are invested within the confines of the Rabbi Trust.

33 unchanged sentences

Notes to Consolidated Financial Statements

Acquired intangible assets mainly consisting of developed technology and customer relationships, are stated at fair value at the acquisition date and are amortized on a straight-line basis over their estimated economic lives, which are generally one to 20 years.

Acquired intangible assets mainly consisting of developed technology, customer relationships, intellectual property and other acquired intangible assets are stated at fair value at the acquisition date and are amortized on a straight-line basis over their estimated economic lives, which are generally one to 20 years.

The Company reviews the carrying amounts of intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

38 unchanged sentences

Commissions, including referral fees paid to referral partners, earned upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four years , while commissions earned for renewal contracts are amortized over the contractual term of the renewals.

Sales commissions associated with professional service contracts are amortized ratably over an estimated period of benefit of eight months .

Sales commissions associated with professional service contracts are amortized ratably over an estimated period of benefit of six months .

Deferred Revenue

98 unchanged sentences

They are not available for use in the Company’s daily operations and are not intended to be sold within a short period of time after purchase.

The marketable securities were recorded at fair value based on quoted market prices and were immaterial as of January 31, 2023.

The deferred compensation liability was also immaterial as of January 31, 2023, and is included in Other liabilities, noncurrent in the consolidated balance sheets.

The marketable securities were recorded at fair value based on quoted market prices and were $ 2.3 million and immaterial as of January 31, 2024 and January 31, 2023, respectively.

The deferred compensation liability was $ 2.3 million and immaterial as of January 31, 2024 and January 31, 2023, respectively, and is included in other liabilities, noncurrent in the consolidated balance sheets.

Gains and losses on deferred compensation investments are included in other income (expense), net, and corresponding changes in the deferred compensation liability are included in operating expenses and cost of revenue.

Changes in the fair value of the deferred compensation asset and liability were immaterial for the year ended January 31, 2023.

Changes in the fair value of the deferred compensation asset and liability were immaterial for the fiscal years ended January 31, 2024 and January 31, 2023, respectively.

Operating Leases

9 unchanged sentences

Lease expenses are recognized on a straight-line basis over the lease term.

The Company uses the non-cancelable lease term when recognizing the ROU assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised.

The Company uses the non-cancellable lease term when recognizing the ROU assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised.

The Company accounts for the lease and non-lease components as a single lease component.

3 unchanged sentences

However, the Company has chosen to present debt issuance costs under other long-term assets for its revolving credit facility on the consolidated balance sheets regardless of whether the Company has any outstanding borrowings on the revolving credit facility.

Debt issuance costs, net of accumulated amortization, were $ 4.5 million and $ 4.6 million as of January 31, 2023 and January 31, 2022, respectively.

Debt issuance costs associated with the Senior Notes are recorded as a reduction to the carrying value of the Senior Notes on the consolidated balance sheets.

The unamortized issuance costs relating to the Senior Notes were $ 2.0 million and $ 2.3 million as of January 31, 2023 and January 31, 2022, respectively.

Debt issuance costs, net of accumulated amortization, were $ 4.0 million and $ 4.5 million as of

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

January 31, 2024 and January 31, 2023, respectively.

Debt issuance costs associated with the Senior Notes are recorded as a reduction to the carrying value of the Senior Notes on the consolidated balance sheets.

The unamortized issuance costs relating to the Senior Notes were $ 1.6 million and $ 2.0 million as of January 31, 2024 and January 31, 2023, respectively.

All deferred financing costs are amortized to interest expense.

22 unchanged sentences

however, the final determination of any of these examinations could significantly impact the amounts provided for income taxes in the Company’s consolidated financial statements.

Net Loss per Share

The Company computes basic and diluted net loss per share attributable to common stockholders for Class A and Class B common stock using the two-class method required for participating securities.

Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of outstanding stock options, RSUs, PSUs, ESPP obligations, and founder holdbacks.

As the Company has reported losses for all periods presented, all potentially dilutive securities are antidilutive and accordingly, basic net loss per share equals diluted net loss per share.

Recently Issued Accounting Pronouncements

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805):

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 as if it had originated the contracts.

For public business entities, this ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years.

This ASU is not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

Net Income (Loss) per Share

The Company computes basic and diluted net income (loss) per share attributable to common stockholders for Class A and Class B common stock using the two-class method required for participating securities.

Under the two-class method, basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

The dilutive potential shares are computed using the treasury stock method.

The effects of the outstanding stock options, RSUs, PSUs, Special PSUs, ESPP obligations, and founders holdbacks are excluded from the computation of the diluted earnings per share in periods in which the effect would be anti-dilutive.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Recently Adopted Accounting Pronouncements

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805):

For public business entities, this ASU was effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years.

The Company adopted this guidance on February 1, 2023, which did not have a material effect on its condensed consolidated financial statements.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, a final standard on improvements to income tax disclosures.

The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid.

The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes.

The new standard is effective for annual periods beginning after December 15, 2024.

The Company does not expect the adoption of this new guidance to have a material impact on its disclosures within the consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The standard requires disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount for other segment items required to reconcile the difference between segment revenue and segment expenses to segment profit or loss along with a description of their composition, and the title and position of the entity's CODM.

The update also expands interim segment disclosure requirements.

The new standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the consolidated financial statements.

The Company is currently evaluating the impact of this new guidance on its disclosures within the consolidated financial statements.

Investments and Fair Value Measurements

The Company follows ASC 820 , Fair Value Measurements , with respect to cash equivalents that are measured at fair value on a recurring basis.

The Company follows ASC 820 , Fair Value Measurements , with respect to cash equivalents, short-term investments and deferred compensation investments that are measured at fair value on a recurring basis.

Under the standard, fair value is defined as the exit price, or the amount that would be received to sell an asset or a liability in an orderly transaction between market participants as of the measurement date.

7 unchanged sentences

Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in thousands):

3 unchanged sentences

Money market funds $ 2,360,173 $ — $ — $ 2,360,173 $ 64,752 $ — $ — $ 64,752

Treasury securities — 693,599 — 693,599 — — — —

Short-term investments (1)

Treasury securities — 99,591 — 99,591 — — — —

Deferred compensation investments 2,271 — — 2,271 64 — — 64

1 unchanged sentence

_______________________________________

(1) $ 250.0 million of time deposits, which are included in short-term investments, are excluded since they are carried at cost and approximate fair value.

(2) Cash equivalents exclude $ 1.6 billion of time deposits, which are carried at cost and approximate fair value.

(1) $ 250.0 million of time deposits, which are included in short-term investments, are excluded since they are carried at cost and approximate fair value as of January 31, 2023.

(2) Cash equivalents exclude $ 1.6 billion of time deposits, which are carried at cost and approximate fair value as of January 31, 2023.

There were no transfers between the levels of the fair value hierarchy during the periods presented.

The following summarizes the net carrying value of the strategic investments, which are Level 3, within the fair value hierarchy (in thousands):

Total initial cost $ 40,617 $ 18,809

Unrealized net gains due to changes in fair value 6,653 4,823

Carrying value $ 47,270 $ 23,632

As of January 31, 2024, the Company’s U.S.

Treasury securities are carried at fair value and there were no material realized or unrealized gains or losses, either individually or in aggregate.

There were no U.S.

Treasury securities as of January 31, 2023.

The following summarizes the changes in the net carrying value of strategic investments, which are Level 3, within the fair value hierarchy for the fiscal years ended January 31, 2024 and January 31, 2023 (in thousands):

Carrying amount, beginning of period $ 47,270 $ 23,632

Adjustments related to non-marketable securities:

Purchases 17,177 21,807

Unrealized net gains (loss) due to changes in fair value ( 1,459 ) 1,831

Sales of investments ( 6,838 ) —

Carrying amount, end of period $ 56,244 $ 47,270

Cumulative unrealized gains and losses on strategic investments held as of January 31, 2024 are $ 9.3 million and $ 4.4 million, respectively.

CrowdStrike Holdings, Inc.

24 unchanged sentences

Customer relationships 17,027 5,825 11,202 68

Other acquired intangible assets 4,717 1,615 3,102 147

Intellectual property and other acquired intangible assets 15,842 2,018 13,824 123

Total $ 164,215 $ 49,697 $ 114,518

5 unchanged sentences

Customer relationships 12,032 3,831 8,201 61

Other acquired intangible assets 2,397 801 1,596 89

Intellectual property and other acquired intangible assets 4,717 1,615 3,102 147

Total $ 118,201 $ 31,312 $ 86,889

8 unchanged sentences

Total amortization expense $ 114,518

The changes in goodwill during the fiscal year ended January 31, 2023 consisted of the following (in thousands):

The change in goodwill during the fiscal year ended January 31, 2024 consisted of the following (in thousands):

Goodwill as of January 31, 2023 $ 430,645

Goodwill acquired (1)

Goodwill adjustment for the SecureCircle acquisition 81

Foreign currency translation ( 54 )

1 unchanged sentence

__________________________________

(1) Goodwill acquired resulted from the acquisition of Reposify Ltd.

(1) Goodwill acquired resulted from the acquisition of Bionic Technology.

Refer to Note 11 for additional information.

5 unchanged sentences

Accrued purchases of property and equipment 16,190 20,157

Accrued professional services 13,281 10,664

Accrued marketing 14,623 11,435

Accrued partner commissions 13,584 5,800

Other accrued expenses 13,512 9,487

Accrued professional services 11,867 13,281

Accrued interest expense 10,375 10,375

Accrued partner commissions 5,800 3,965

Accrued health benefits and claims 5,039 1,760

Accrued expenses $ 125,896 $ 137,884

6 unchanged sentences

Accrued payroll and benefits $ 234,624 $ 168,767

In April 2020, the Company began deferring payment on its share of payroll taxes owed, as permitted by the CARES Act, through December 31, 2020.

As of January 31, 2023, all applicable payments have been made and there are no deferred payments to be paid.

As of January 31, 2022, the Company had deferred $ 5.1 million of payroll taxes in Other current liabilities.

Secured Revolving Credit Facility

11 unchanged sentences

The Company will be charged a commitment fee of 0.15 % to 0.25 % per year for committed but unused amounts, depending on the senior secured leverage ratio.

The financial covenants require the Company to maintain a minimum consolidated interest coverage ratio of 3.00 :1.00, a maximum senior secured leverage ratio of 3.00 :1.00 (through January 31, 2023), and a maximum total leverage ratio of 5.50 :1.00 stepping down to 3.50 :1.00 over time.

The financial covenants require the Company to maintain a minimum consolidated interest coverage ratio of 3.00 :1.00 and a maximum total leverage ratio of 5.50 :1.00 stepping down to 3.50 :1.00 over time.

The Company was in compliance with all of its financial covenants as of January 31, 2024.

7 unchanged sentences

Interest payments are payable semiannually on February 15 and August 15 of each year, commencing on August 15, 2021.

The Company may voluntarily redeem the Senior Notes, in whole or in part, 1) at any time prior to February 15, 2024 at (a) 100.00 % of their principal amount, plus a “make whole” premium or (b) with the net cash proceeds received from an equity offering at a redemption price equal to 103.00 % of the principal amount, provided the aggregate principal amount of all such redemptions does not to exceed 40 % of the original aggregate principal amount of the Senior Notes;

The Company may voluntarily redeem the Senior Notes, in whole or in part, 1) at any time prior to February 15, 2024 at (a) 100.00 % of their principal amount, plus a “make whole” premium or (b) with the net cash proceeds received from an equity offering at a redemption price equal to 103.00 % of the principal amount, provided the aggregate principal amount of all such redemptions does not exceed 40 % of the original aggregate principal amount of the Senior Notes;

2) at any time on or after February 15, 2024 at a prepayment price equal to 101.50 % of the principal amount;

4 unchanged sentences

The debt issuance costs are being amortized to interest expense using the effective interest method over the term of the Senior Notes.

Interest expense related to contractual interest expense, amortization of debt issuance

costs, and accretion of debt discount was $ 24.0 million during both fiscal years ended January 31, 2023 and January 31, 2022.

Interest expense related to contractual interest expense, amortization of debt issuance costs, and accretion of debt discount was $ 24.0 million during both fiscal years ended January 31, 2024 and January 31, 2023.

In certain circumstances involving a change of control event, the Company will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s notes of that series at 101 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.

The indenture governing the Senior Notes (the “Indenture”) contain covenants limiting the Company’s ability and the ability of its subsidiaries to create liens on certain assets to secure debt;

The indenture governing the Senior Notes (the “Indenture”) contains covenants limiting the Company’s ability and the ability of its subsidiaries to create liens on certain assets to secure debt;

grant a subsidiary guarantee of certain debt without also providing a guarantee of the Senior Notes;

11 unchanged sentences

accordingly, the Senior Notes are categorized as Level 2 for purposes of the fair value measurement hierarchy.

The Company’s geographical breakdown of its loss before provision for income taxes for the fiscal years ended January 31, 2023, January 31, 2022, and January 31, 2021 is as follows (in thousands):

The Company’s geographical breakdown of its income (loss) before provision for income taxes for the fiscal years ended January 31, 2024, January 31, 2023, and January 31, 2022 is as follows (in thousands):

Year Ended January 31,

2 unchanged sentences

International 23,576 35,159 19,311

Loss before provision for income taxes $ ( 159,883 ) $ ( 160,023 ) $ ( 87,869 )

Income (loss) before provision for income taxes $ 122,817 $ ( 159,883 ) $ ( 160,023 )

The components of the provision for income taxes during the fiscal years ended January 31, 2024, January 31, 2023, and January 31, 2022 are as follows (in thousands):

27 unchanged sentences

The Company recognized income tax expense of $ 32.2 million, $ 22.4 million, and $ 72.4 million for the fiscal years January 31, 2024, January 31, 2023 and January 31, 2022, respectively.

The tax expense for the fiscal year ended January 31, 2021 was primarily attributable to pre-tax foreign earnings and withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business.

The tax expense for the fiscal years ended January 31, 2023 and January 31, 2022 was primarily attributable to pre-tax foreign earnings, withholding taxes related to customer payments in certain foreign jurisdictions and intercompany sales of intellectual property from acquisitions, whereby the Company transferred acquired intellectual property from the respective foreign subsidiary to the U.S.

The tax expense for the fiscal year ended January 31, 2024 was primarily attributable to pre-tax earnings and withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business.

The tax expense for the fiscal years ended January 31, 2023 and January 31, 2022 was primarily attributable to pre-tax foreign earnings and withholding taxes related to customer payments in certain foreign jurisdictions and intercompany sales of intellectual property from acquisitions.

Although the transfers of the intellectual property between consolidated entities did not result in any gain in the consolidated statements of operations, the Company generated a taxable gain in the respective foreign jurisdiction, resulting in an additional tax expense of $ 4.7 million and $ 57.2 million for the fiscal years ended January 31, 2023 and January 31, 2022, respectively.

11 unchanged sentences

Capitalized research and development 320,708 286,124

Other, net — 4,514

Gross deferred assets 1,171,295 1,051,521

4 unchanged sentences

Capitalized commissions ( 128,302 ) ( 99,397 )

Intangible assets ( 6,489 ) —

Operating right-of-use assets ( 19,956 ) ( 12,285 )

2 unchanged sentences

Net deferred tax assets $ 7,226 $ 4,453

At each reporting date, the Company has established a valuation allowance against its U.S.

federal and state and U.K.net deferred tax assets due to the uncertainty surrounding the realization of those assets.

The Company periodically evaluates the recoverability of the deferred tax assets and, when it is determined to be more-likely-than-not that the deferred tax assets are realizable, the valuation allowance is reduced.

The Company maintains a full valuation allowance on U.S.

federal and state and certain foreign deferred tax assets, including net operating loss carryforwards and tax credits, which the Company has determined are not realizable on a more-likely-than-not basis.

The Company regularly evaluates the need for a valuation allowance.

Due to recent profitability, a material reversal of the Company’s valuation allowance in U.S.

jurisdictions in the foreseeable future is reasonably possible.

During the fiscal years ended January 31, 2024, January 31, 2023, and January 31, 2022, the valuation allowance increased by $ 47.6 million, $ 139.2 million, and $ 357.0 million, respectively.

The increases in the valuation allowance during the fiscal years ended January 31, 2023 and January 31, 2022 were primarily driven by losses generated in the U.S.

The increases in the valuation allowance during the fiscal years ended January 31, 2024 and January 31, 2023 were primarily driven by U.S.

As of January 31, 2024, January 31, 2023, and January 31, 2022 the valuation allowance for deferred taxes was $ 957.7 million, $ 910.1 million, and $ 770.9 million, respectively.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

As of January 31, 2024, the Company had aggregate federal and California net operating loss carryforwards of $ 1.5 billion and $ 243.9 million, respectively, which may be available to offset future taxable income for income tax purposes.

The federal and California net operating loss carryforwards begin to expire in fiscal 2031 through fiscal 2043.

The federal net operating losses are carried forward indefinitely, and California net operating loss carryforwards begin to expire in 2032 through 2043.

As of January 31, 2024, net operating loss carryforwards for other states totaled $ 0.8 billion, which begin to expire in fiscal 2025 through fiscal 2043.

As of January 31, 2024, net operating loss carryforwards for the U.K.

totaled $ 80.9 million, which are carried forward indefinitely.

totaled $ 78.0 million and Israel totaled $ 51.5 million, which are carried forward indefinitely.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

As of January 31, 2024, the Company had federal and California research and development (“R&D”) credit carryforwards of $ 113.9 million and $ 27.4 million, respectively.

8 unchanged sentences

The Company’s policy is to classify interest and penalties related to unrecognized tax benefits as part of the income tax provision in the consolidated statements of operations.

The Company had incurred an insignificant amount of interest and penalties related to unrecognized tax benefits as of January 31, 2023 and January 31, 2022, and did not accrue interest and penalties in prior periods.

Cumulatively, the Company had incurred $ 1.4 million of interest and penalties related to unrecognized tax benefits as of January 31, 2024, and an insignificant amount of interest and penalties related to unrecognized tax benefits as of January 31, 2023, and January 31, 2022.

During the fiscal year ended January 31, 2024, January 31, 2023, and January 31, 2022 the net increase in uncertain tax benefits was a result of research and development credits.

3 unchanged sentences

Increases in prior period tax positions

Decreases in prior period tax positions ( 9,772 )

Increases in current period tax positions 11,463

Balance as of January 31, 2022 26,324

Increases in prior period tax positions 186

Decreases in prior period tax positions ( 2,122 )

1 unchanged sentence

Balance as of January 31, 2023 36,901

Increases in prior period tax positions 4,757

Decreases in prior period tax positions ( 1,321 )

3 unchanged sentences

federal, foreign, and various state jurisdictions.

Tax years 2011 and onwards remain subject to examination by U.S.

taxing authorities due to the Company’s net operating losses and R&D credit carryforwards.

Tax years 2011 and onwards remain subject to examination by taxing authorities.

The Company does not provide for federal and state income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested offshore indefinitely.

3 unchanged sentences

Operating Leases

The Company has entered into non-cancelable operating lease agreements with various expiration dates through fiscal 2031.

The Company has entered into non-cancellable operating lease agreements with various expiration dates through fiscal 2033.

Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments.

10 unchanged sentences

Total lease cost $ 27,654 $ 21,707 $ 18,054

There was no sublease income for the fiscal years ended January 31, 2023, January 31, 2022, or January 31, 2021.

As of January 31, 2023, the Company has entered into non-cancelable operating leases with terms greater than 12 months that have not yet commenced with undiscounted future minimum payments of $ 10.9 million, which are excluded from the table above.

The operating leases will commence between February 2023 and April 2023 with lease terms between 5 and 6 years.

The maturities of the Company’s non-cancelable operating lease liabilities are as follows (in thousands):

Sublease income for fiscal year ended January 31, 2024 was immaterial .

There was no sublease income for the fiscal years ended January 31, 2023, or January 31, 2022.

As of January 31, 2024, the Company has not entered into non-cancellable operating leases with terms greater than 12 months that have not yet commenced.

The maturities of the Company’s non-cancellable operating lease liabilities are as follows (in thousands):

January 31, 2024

13 unchanged sentences

In May 2019, the Company’s board of directors adopted, and the stockholders approved the CrowdStrike Holdings, Inc.

2019 Equity Incentive Plan (the “2019 Plan”) with the purpose of granting stock-based awards to employees, directors, officers, and consultants, including stock options, restricted stock awards, restricted stock units, and performance-based restricted stock units.

A total of 8,750,000 shares of Class A common stock were initially available for issuance under the 2019 Plan.

11 unchanged sentences

Treasury yield curve in effect at the time of grant for the estimated option life.

The fair value of stock options was generally estimated on the date of grant using the following assumptions during the period:

Stock options granted during both fiscal years ended January 31, 2024 and January 31, 2023 were immaterial.

The fair value of stock options was generally estimated on the date of grant using the following assumptions during the fiscal year ended January 31, 2022:

Year Ended January 31, 2022

1 unchanged sentence

Risk-free interest rate 0.6 % – 1.0 %

0.2 % – 0.4 %

Expected stock price volatility 36.1 % – 37.1 %

35.8 % – 37.3 %

Dividend yield — %

Stock options granted during the fiscal year ended January 31, 2023 were immaterial.

The following table is a summary of stock option activity for the fiscal year ended January 31, 2024:

9 unchanged sentences

Options exercisable at January 31, 2024 1,591 $ 8.98

Options outstanding include 307,991 options that were unvested and exercisable as of January 31, 2023.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Options outstanding include 131,996 options that were unvested and exercisable as of January 31, 2024.

The aggregate intrinsic value of options vested and exercisable was $ 451.0 million, $ 247.2 million, and $ 480.5 million as of January 31, 2024, January 31, 2023, and January 31, 2022, respectively.

2 unchanged sentences

The total intrinsic value of all options exercised was $ 190.1 million, $ 166.8 million, and $ 570.9 million during the fiscal years ended January 31, 2024, January 31, 2023, and January 31, 2022, respectively.

The aggregate intrinsic value of stock options outstanding as of January 31, 2023, January 31, 2022, and January 31, 2021 was $ 279.4 million, $ 678.0 million, and $ 1.4 billion, respectively, which represents the excess of the fair value of the Company’s common stock over the exercise price of the options, multiplied by the number of options outstanding.

The aggregate intrinsic value of stock options outstanding as of January 31, 2024, January 31, 2023, and January 31, 2022 was $ 496.7 million, $ 279.4 million, and $ 678.0 million, respectively, which represents the excess of the fair value of the Company’s common stock over the exercise price of the options, multiplied by the number of options outstanding.

The weighted-average remaining contractual term of stock options outstanding was 4.3 years, 5.0 years, and 6.1 years as of January 31, 2024, January 31, 2023, and January 31, 2022, respectively.

Total unrecognized stock-based compensation expense related to unvested options was $ 4.3 million as of January 31, 2024.

This expense is expected to be amortized over a weighted-average vesting period of 1.6 years.

This expense is expected to be amortized over a weighted-average vesting period of 1.0 year.

Early Exercise of Employee Options

4 unchanged sentences

There were no issued shares of common stock related to early exercised stock options during the fiscal year ended January 31, 2024 or January 31, 2023.

As of January 31, 2023, there were no shares of common stock related to early exercised stock options subject to repurchase.

As of January 31, 2022, the number of shares of common stock related to early exercised stock options subject to repurchase was 197,994 shares for $ 2.2 million.

As of January 31, 2024 and January 31, 2023, there were no shares of common stock related to early exercised stock options subject to repurchase.

Common stock purchased pursuant to an early exercise of stock options is not deemed to be outstanding for accounting purposes until those shares vest.

10 unchanged sentences

PSUs will vest upon the achievement of specified performance targets and subject to continued service through the applicable vesting dates.

The associated compensation cost is recognized over the requisite service period when it is probable that the performance condition will be satisfied.

The stock-based compensation expense relating to PSUs is recognized using the accelerated attribution method over the requisite service period when it is probable that the performance condition will be satisfied.

CrowdStrike Holdings, Inc.

21 unchanged sentences

RSUs and PSUs outstanding at January 31, 2024 10,968 $ 167.84

RSUs and PSUs expected to vest at January 31, 2024 (2)

10,263 $ 164.78

___________________________

(1) The performance adjustment represents adjustments in shares outstanding due to the actual achievement of performance-based awards, the achievement of which was based upon pre-defined financial performance targets.

(2) Excludes in progress PSUs and Special PSUs where pre-defined targets have not yet been achieved.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Employee Stock Purchase Plan

4 unchanged sentences

The number of shares of common stock available for issuance under the ESPP is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of:

(i) one percent ( 1 %) of the outstanding shares of the Company’s capital stock as of the last day of the immediately preceding

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

fiscal year or (ii) such other amount as its board of directors may determine.

(i) one percent ( 1 %) of the outstanding shares of the Company’s capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as its board of directors may determine.

In May 2021, the Company’s compensation committee adopted an amendment and restatement of the ESPP, which was approved by the Company’s stockholders in June 2021.

14 unchanged sentences

As a result, these offering dates were rolled over to a new 24-month offering period through December 12, 2024.

This rollover was accounted for as a modification to the original offerings.

These rollovers were accounted for as a modification to the original offerings.

The total incremental expense as a result of the rollover and contribution modifications was $ 58.6 million, which will be recognized over the new or remaining offering periods.

Total incremental expense as a result of contribution modifications during the fiscal year ended January 31, 2024 was $ 7.3 million, which will be recognized over the remaining offering periods.

Employee payroll contributions ultimately used to purchase shares are reclassified to Stockholders’ equity on the purchase date.

ESPP employee payroll contributions accrued as of January 31, 2024 and January 31, 2023 totaled $ 22.3 million and $ 17.5 million, respectively, and are included within accrued payroll and benefits in the consolidated balance sheets.

The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of the ESPP:

The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine the fair value of employee stock purchase rights granted under the Company’s stock plan:

Year Ended January 31,

8 unchanged sentences

Dividend yield — % — % — %

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Stock-Based Compensation Expense

8 unchanged sentences

Total stock-based compensation expense $ 631,519 $ 526,504 $ 309,952

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Revenue, Deferred Revenue and Remaining Performance Obligations

The following table summarizes the revenue from contracts by type of customer (in thousands, except percentages):

Year Ended January 31,

2023 2022 2021

Amount % Revenue Amount % Revenue Amount % Revenue

Channel Partners $ 1,856,715 83 % $ 1,093,336 75 % $ 655,031 75 %

Direct Customers 384,521 17 % 358,258 25 % 219,407 25 %

Total revenue $ 2,241,236 100 % $ 1,451,594 100 % $ 874,438 100 %

The Company uses channel partners to complement direct sales and marketing efforts.

The partners place an order with the Company after negotiating the order directly with an end customer.

The partners negotiate pricing with the end customer and in some rare instances are responsible for certain support levels directly with the end customer.

The Company’s contract is with the partner, and payment to the Company is not contingent on the receipt of payment from the end customer.

The Company recognizes the contractual amount charged to the partners as revenue ratably over the term of the arrangement once access to the Company’s solution has been provided to the end customer.

The Company also uses referral and marketplace partners.

Referral partners refer customers in exchange for a referral fee, while marketplace partners process the transactions and charge a transaction processing fee.

For both sets of partners, the Company negotiates pricing and contracts directly with the end customer.

The Company recognizes revenue from the sales to the end customers ratably over the term of the contract once access to the Company’s solution has been provided to the end customer.

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the Company’s platform or service (in thousands, except percentages):

The following table summarizes revenue by region based on the shipping address of customers who have contracted to use the Company’s platform or service (in thousands, except percentages):

Year Ended January 31,

10 unchanged sentences

Such amounts are recognized as revenue over the contractual period.

The Company recognized revenue of $ 1.1 billion and $ 696.7 million for the fiscal years ended January 31, 2023 and January 31, 2022, respectively, which was included in the corresponding contract liability balance at the beginning of the period.

The Company recognized revenue of $ 1,718.5 million and $ 1,126.9 million for the fiscal years ended January 31, 2024 and January 31, 2023, respectively, which was included in the corresponding contract liability balance at the beginning of the period.

The Company receives payments from customers based upon contractual billing schedules.

2 unchanged sentences

Contract assets include amounts related to the contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Changes in deferred revenue were as follows (in thousands):

4 unchanged sentences

Ending balance $ 3,054,099 $ 2,355,113

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Remaining Performance Obligations

The Company’s subscription contracts with its customers have a typical term of one to three years , and most subscription contracts are non-cancelable.

The Company’s subscription contracts with its customers have a typical term of one to three years , and most subscription contracts are non-cancellable.

Customers generally have the right to terminate their contracts for cause as a result of the Company’s failure to perform.

6 unchanged sentences

Sales commissions associated with professional service contracts are amortized ratably over an estimated period of benefit of eight months and are included in Sales and marketing expense in the consolidated statements of operations.

Sales commissions associated with professional service contracts are amortized ratably over an estimated period of benefit of six months and are included in sales and marketing expense in the consolidated statements of operations.

In determining the period of benefit for commissions paid for the acquisition of the initial contract, the Company took into consideration the expected subscription term and expected renewals of customer contracts, the historical duration of relationships with customers, customer retention data, and the life of the developed technology.

14 unchanged sentences

Purchase Obligations

The Company enters into long-term non-cancelable agreements with providers to purchase data center capacity, such as bandwidth and colocation space, for the Company’s cloud platform.

As of January 31, 2023, the Company is committed to spend $ 179.9 million on such agreements through fiscal 2031.

These obligations are included in purchase commitments below.

In the normal course of business, the Company also enters into non-cancelable purchase commitments with various parties to purchase products and services such as advertising, technology, equipment, office renovations, corporate events, and consulting services.

A summary of non-cancelable purchase obligations in excess of one year as of January 31, 2023, with expected date of payment is as follows (in thousands):

In the normal course of business, the Company enters into non-cancellable purchase commitments with various parties to purchase products and services such as data center capacity, advertising, technology, equipment, office renovations, corporate events, and consulting services.

A summary of non-cancellable purchase obligations in excess of one year as of January 31, 2024, with expected date of payment is as follows (in thousands):

Fiscal 2025 $ 220,707

5 unchanged sentences

Total purchase commitments $ 747,631

In October 2021, the Company entered into a new private pricing addendum with Amazon Web Services (“AWS”), which provides the Company with cloud computing infrastructure.

Under the new pricing addendum, the minimum commitment is $ 600 million of cloud services from AWS through September 2026.

As of January 31, 2023, the Company had utilized $ 297.6 million of this commitment.

The remaining commitment is excluded from the table above, and the Company expects to meet its remaining commitment with AWS.

Subsequent to January 31, 2024, the Company has committed to an additional $ 1.8 billion of non-cancellable purchase obligations from fiscal 2025 to fiscal 2031.

These commitments are excluded from the table above and will be included in the table in subsequent periods.

On March 3, 2024, a wholly owned subsidiary of the Company entered into a definitive agreement to purchase Flow Security Ltd., a privately held company.

The purchase price for the transaction will be approximately $ 115.0 million, subject to customary closing adjustments.

The acquisition is expected to close in the first quarter of fiscal 2025.

Letters of Credit

As of January 31, 2023 and January 31, 2022 , the Company had unused standby letters of credit for $ 0.4 million securing its facility in Sunnyvale, California, and $ 0.8 million securing its principal executive offices in Austin, Texas.

The Company has unused unsecured standby letters of credit for securing its facilities in Tel Aviv, Israel, Sunnyvale, California and Austin, Texas.

As of January 31, 2024 and January 31, 2023 , the unused standby letters of credit were immaterial .

In June 2022, the Company and Fair Isaac Corporation (“FICO”) resolved a trademark dispute that was pending before the Trademark Trial and Appellate Board (“TTAB”) at the U.S.

11 unchanged sentences

In September 2022, Webroot amended its complaint to assert six additional patents.

The Company intends to vigorously defend against Webroot’s allegations.

As of January 31, 2023, the Company is unable to predict the outcome of Webroot’s claims or reasonably estimate a loss or a range of loss.

In November 2023, CrowdStrike, Inc.

entered into an agreement that provided for, among other things, the settlement and dismissal of the parties’claims and filed for dismissal.

The amount attributable to the settlement was not material.

In addition, the Company is involved in various other legal proceedings and subject to claims that arise in the ordinary course of business.

23 unchanged sentences

Total property and equipment, net and operating lease right-of-use assets $ 668,383 $ 532,271

Related Party Transactions

Subscription and Professional Services Revenue from Related Parties

During the fiscal years ended January 31, 2023, January 31, 2022, and January 31, 2021, certain investors and companies, with whom the Company’s board of directors are affiliated, purchased subscriptions and professional services.

The Company recorded revenue from subscriptions and professional services from related parties of $ 10.5 million, $ 7.7 million, and $ 4.3 million during the fiscal years ended January 31, 2023, January 31, 2022, and January 31, 2021, respectively.

Accounts receivable associated with these related parties was $ 2.6 million, and $ 2.2 million as of January 31, 2023 and January 31, 2022, respectively.

Accounts Payable to Related Parties

During the fiscal years ended January 31, 2023, January 31, 2022, and January 31, 2021, the Company purchased goods and services totaling $ 4.0 million, $ 26.0 million, and $ 8.8 million, respectively, from certain investors and companies with whom the Company’s board of directors are affiliated.

The accounts payable to such vendors was immaterial as of January 31, 2023 and was $ 3.7 million as of January 31, 2022.

On September 28, 2023, the Company acquired 100 % of the equity interest of Bionic Stork, Ltd.

(“Bionic”), a privately-held company that provides an Application Security Posture Management platform designed to proactively reduce and mitigate security, data privacy, and operational risks by analyzing application architecture and dependencies that run in production.

The acquisition has been accounted for as a business combination.

The total consideration transferred consisted of $ 239.0 million in cash, net of $ 25.7 million of cash acquired, and $ 0.7 million representing the fair value of replacement equity awards attributable to pre-acquisition service.

The remaining fair value of these replacement awards attributed to post-combination service was excluded from the purchase price.

The purchase price was allocated on a preliminary basis, subject to working capital adjustment and continuing management analysis, to identified intangible assets, which include developed technology and customer relationships of $ 34.9 million, net tangible liabilities acquired of $ 2.7 million, and goodwill of $ 207.5 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The goodwill was primarily attributable to the assembled workforce of Bionic, planned growth in new markets, and synergies expected to be achieved from the integration of Bionic.

Goodwill is not deductible for income tax purposes.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Per the terms of the share purchase agreement with Bionic, certain unvested stock options held by Bionic employees were canceled and exchanged for replacement stock options under the 2019 Plan.

Additionally, certain shares of Bionic stock held by Bionic employees were exchanged for shares of the Company’s Class A common stock, subject to service-based vesting and other conditions.

Further, the Company granted RSUs and PSUs under the 2019 Plan to certain continuing employees.

The awards that are subject to continued service are recognized ratably as stock-based compensation expense over the requisite service period.

The awards that are subject to both continued service and specified performance targets are recognized over the requisite service period when it is probable that the performance condition will be satisfied.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands):

Fair Value Useful Life

Developed technology $ 29,900 72

Customer relationships 5,000 96

Total intangible assets acquired $ 34,900

Acquisition costs during the fiscal year ended January 31, 2024 were $ 4.1 million and are recorded in general and administrative and research and development expenses on the Company’s consolidated statements of operations.

The results of operations for the acquisition have been included in the Company’s consolidated financial statements from the date of acquisition.

The acquisition of Bionic did not have a material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented.

Reposify Ltd.

4 unchanged sentences

The remaining fair value of these replacement awards is subject to the recipient’s continued service and thus was excluded from the purchase price.

The purchase price was allocated on a preliminary basis, subject to working capital adjustment and continuing management analysis, to developed technology of $ 3.8 million, net tangible assets acquired of $ 0.9 million, and goodwill of $ 14.2 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The purchase price was allocated to developed technology of $ 3.8 million, net tangible assets acquired of $ 0.9 million, and goodwill of $ 14.2 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The goodwill was primarily attributable to the assembled workforce of Reposify, planned growth in new markets, and synergies expected to be achieved from the integration of Reposify.

1 unchanged sentence

The fair value of the developed technology acquired was $ 3.8 million with a useful life of 72 months.

Secure Circle, LLC

On November 29, 2021, the Company acquired 100 % of the equity interest of Secure Circle, LLC (“SecureCircle”), a SaaS-based cybersecurity service that extends Zero Trust security to data on, from, and to the endpoint.

The acquisition has been accounted for as a business combination.

The total consideration transferred was $ 60.6 million, which consisted solely of cash.

The purchase price was allocated to identified intangible assets, which include developed technology and customer relationships of $ 18.3 million, net tangible assets acquired of $( 0.8 ) million and goodwill of $ 43.1 million allocated to the Company’s one reporting unit, representing the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The goodwill was primarily attributable to the assembled workforce of SecureCircle, planned growth in new markets, and synergies expected to be achieved from the integration of SecureCircle.

Goodwill was deductible for income tax purposes.

Subsequent to the closing of the acquisition, SecureCircle employees were granted RSUs and PSUs under the 2019 Plan.

The awards, which are subject to continued service, will be recognized ratably as stock-based compensation expense over the requisite service period.

The awards, which are based on specified performance targets, will be recognized under the accelerated attribution method.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands):

Fair Value Useful Life

Developed technology $ 15,300 72

Customer relationships 3,000 72

Total intangible assets acquired $ 18,300

Humio Limited

On March 5, 2021, the Company acquired 100 % of the equity interest of Humio Limited (“Humio”), a privately-held company that is a leading provider of high-performance cloud log management and observability technology.

The total consideration transferred was $ 370.3 million, which consisted of $ 353.8 million in cash, net of $ 12.5 million cash acquired, and $ 4.0 million representing the fair value of replacement equity awards attributable to pre-acquisition service.

The purchase price was allocated to identified intangible assets, which include developed technology, customer relationships, and trade names, of $ 75.6 million, net tangible assets acquired of $ 3.4 million, and goodwill of $ 291.3 million allocated to the Company’s one reporting unit, representing the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The goodwill was primarily attributable to the assembled workforce of Humio, planned growth in new markets, and synergies expected to be achieved from the integration of Humio.

Goodwill was not deductible for income tax purposes.

Per the terms of the share purchase agreement with Humio, certain unvested stock options held by Humio employees were canceled and exchanged for replacement stock options under the 2019 Plan.

Additionally, certain shares of stock issued pursuant to share-based compensation awards to entities affiliated with certain Humio employees were exchanged for replacement RSAs of the Company, which are subject to future vesting.

The portion of the fair value of the replacement equity awards associated with pre-acquisition service of Humio’s employees represented a component of the total purchase consideration.

The remaining fair value of these issued awards is subject to the recipients’ continued service and thus was excluded from the purchase price.

In addition, Humio employees were granted RSUs and PSUs under the 2019 Plan.

The awards, which are subject to continued service are recognized ratably as stock-based compensation expense over the requisite service period.

The awards, which are based on specified performance targets, are recognized under the accelerated attribution method.

The following table sets forth the fair value of the identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands):

Fair Value Useful Life

Developed technology $ 68,800 96

Customer relationships 5,400 96

Trade names 1,400 24

Total intangible assets acquired $ 75,600

Acquisition costs during the fiscal year ended January 31, 2023 were not material and are recorded in general and administrative expenses on the Company’s consolidated statements of operations.

Acquisition costs during the fiscal year ended January 31, 2024 were not material and are recorded in research and development expenses on the Company’s consolidated statements of operations.

The results of operations for the above acquisitions have been included in the Company’s consolidated financial statements from the date of acquisition.

The acquisitions did not have material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented.

Net Loss Per Share Attributable to Common Stockholders

Basic and diluted net loss per share attributable to CrowdStrike’s common stockholders is computed in conformity with the two-class method required for participating securities.

Basic net loss per share attributable to CrowdStrike common stockholders is computed by dividing the net loss attributable to CrowdStrike by the weighted-average number of shares of common stock outstanding during the period.

Diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were antidilutive given the Company’s net loss position in the periods presented.

The rights of the holders of Class A and Class B common stock are identical, except with the respect to voting and conversion rights.

As such, the undistributed earnings are allocated equally to each share of common stock without class distinction, and the resulting basic and diluted net loss per share attributable to CrowdStrike common stockholders are the same for shares of Class A and Class B common stock.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The following table sets forth the computation of basic and diluted net loss per share attributable to CrowdStrike common stockholders (in thousands, except per share data):

Net Income (Loss) Per Share Attributable to Common Stockholders

Basic and diluted net income (loss) per share attributable to CrowdStrike’s common stockholders is computed in conformity with the two-class method required for participating securities.

Basic net income (loss) per share attributable to CrowdStrike common stockholders is computed by dividing the net income (loss) attributable to CrowdStrike by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income per share attributable to CrowdStrike common stockholders is calculated by dividing net income by the combination of the weighted-average number of common shares outstanding and the weighted-average number of dilutive common share equivalents during the period.

The dilutive potential shares of common stock are comprised of outstanding stock options, RSUs, PSUs, Special PSUs, ESPP obligations, and founder holdbacks, and are computed using the treasury stock method.

The effects of the outstanding stock options, RSUs, PSUs, Special PSUs, ESPP obligations, and founders holdbacks are excluded from the computation of the diluted net income per share in periods in which the effect would be anti-dilutive.

The rights of the holders of Class A and Class B common stock are identical, except with the respect to voting and conversion rights.

As such, the undistributed earnings are allocated equally to each share of common stock without class distinction and the resulting basic and diluted net income (loss) per share attributable to CrowdStrike common stockholders are the same for shares of Class A and Class B common stock.

The following table sets forth the computation of basic and diluted net income (loss) per share attributable to CrowdStrike common stockholders (in thousands, except per share data):

Year Ended January 31,

2024 2023 2022

Net loss attributable to Class A and Class B CrowdStrike common stockholders $ ( 183,245 ) $ ( 234,802 ) $ ( 92,629 )

Weighted-average shares used in computing net loss per share attributable to Class A and Class B of CrowdStrike common stockholders, basic and diluted

Net income (loss) attributable to Class A and Class B CrowdStrike common stockholders $ 89,327 $ ( 183,245 ) $ ( 234,802 )

Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B of CrowdStrike common stockholders, basic

238,637 233,139 227,142

Net loss per share attributable to Class A and Class B CrowdStrike common stockholders, basic and diluted $ ( 0.79 ) $ ( 1.03 ) $ ( 0.43 )

The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows (in thousands):

Dilutive effect of common stock equivalents 4,998 — —

Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B of CrowdStrike common stockholders, dilutive 243,635 233,139 227,142

Net income (loss) per share attributable to Class A and Class B CrowdStrike common stockholders, basic $ 0.37 $ ( 0.79 ) $ ( 1.03 )

Net income (loss) per share attributable to Class A and Class B CrowdStrike common stockholders, diluted $ 0.37 $ ( 0.79 ) $ ( 1.03 )

The potential shares of common stock that were excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows (in thousands):

Year Ended January 31,

4 unchanged sentences

Share purchase rights under the Employee Stock Purchase Plan 411 4,481 642

Potential common shares excluded from diluted net loss per share 17,400 12,664 16,515

The above table excludes founder holdbacks related to business combinations.

A variable number of shares will be issued upon vesting to settle a fixed monetary amount of $ 7.9 million, contingent upon continued employment with the Company.

Potential common shares excluded from diluted net income (loss) per share 3,537 17,400 12,664

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The above table excludes founder holdbacks related to business combinations where a variable number of shares will be issued upon vesting to settle a fixed monetary amount of $ 3.6 million, contingent upon continued employment with the Company.

The share price will be determined based on the Company’s average stock price or the volume weighted average stock price five days prior to each vesting date.

As of January 31, 2023, 86,519 shares were issued to settle founder holdbacks at a weighted average price of $ 163.82 per share.

During the fiscal year ended January 31, 2024, 27,330 shares were issued to settle founder holdbacks at a weighted average price of $ 157.85 per share.

As of January 31, 2024, the above table also excludes 689,358 weighted average shares of in progress PSUs and Special PSUs where pre-defined targets have not yet been achieved.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data