What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-03-10 compared with 2024-03-07 · 372 added, 262 removed, 963 unchanged (40% of the section changed)

40 unchanged sentences

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition – Identification and Evaluation for Terms and Conditions in Contracts

As described in Note 1 to the consolidated financial statements, the Company generates its revenue from contracts with customers for subscriptions and professional services.

Management considers the terms and conditions of contracts with customers and the Company’s customary business practices in identifying contracts.

Management determines the Company has a contract with a customer when the contract is approved, each party’s rights regarding the services to be transferred can be identified, payment terms for the services can be identified, it has been determined that the customer has the ability and intent to pay, and the contract has commercial substance.

Revenue is recognized when control of the promised services is transferred to the customer, in an amount that reflects the consideration expected to be received in exchange for those services.

The Company’s consolidated revenue for the year ended January 31, 2024 was $3,056 million.

The principal considerations for our determination that performing procedures relating to revenue recognition, specifically the identification and evaluation of terms and conditions in contracts, is a critical audit matter are the high degree of auditor subjectivity and effort in performing procedures and evaluating evidence relating to the identification and evaluation of terms and conditions in contracts.

Revenue Recognition – Subscription Revenue

As described in Note 1 to the consolidated financial statements, subscription revenues are primarily comprised of fees that give customers access to the ordered service, related support and updates, if any, during the subscription term.

The Company initially records the subscription fees as deferred revenue and recognizes revenue on a straight-line basis over the term of the agreement.

The Company recognized consolidated subscription revenue of $3,761.5 million for the year ended January 31, 2025.

The principal consideration for our determination that performing procedures relating to revenue recognition for subscription revenue is a critical audit matter is a high degree of auditor effort in performing procedures relating to the Company’s subscription revenue recognition.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the identification and evaluation of terms and conditions in contracts.

These procedures also included, among others, (i) testing management’s process for identifying and evaluating terms and conditions in contracts, including evaluating management’s determination of the impact of those terms and conditions on revenue recognition, and (ii) testing the completeness and accuracy of management’s identification and evaluation of terms and conditions in contracts by examining revenue transactions on a test basis.

These procedures included testing the effectiveness of controls relating to the subscription revenue recognition process.

These procedures also included, among others (i) testing subscription revenue recognized for a sample of revenue transactions by obtaining and inspecting source documents, such as agreements, evidence of delivery of the service, invoices, and receipt of payment and (ii) confirming a sample of outstanding customer invoice balances as of January 31, 2025 and, for confirmations not returned, obtaining and inspecting source documents, such as agreements, evidence of delivery of the service, invoices, and subsequent receipt of payment.

/s/ PricewaterhouseCoopers LLP

1 unchanged sentence

March 10, 2025

We have served as the Company’s auditor since 2016.

CrowdStrike Holdings, Inc.

40 unchanged sentences

Class B common stock, $ 0.0005 par value;

300,000 shares authorized as of January 31, 2024 and January 31, 2023;

92,364 shares and 300,000 shares authorized as of January 31, 2025 and January 31, 2024, respectively;

0 shares, and 12,485 shares issued and outstanding as of January 31, 2025 and January 31, 2024, respectively.

50 unchanged sentences

Foreign currency translation adjustments ( 8,631 ) ( 594 ) 221

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

Unrealized gain (loss) on cash equivalents and short-term investments, net of tax 701 ( 50 ) —

Other comprehensive income (loss) ( 7,930 ) ( 644 ) 221

18 unchanged sentences

Issuance of common stock for founders holdbacks related to acquisitions 72 — 10,645 — — — 10,645

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

Stock-based compensation expense, net of founder revest — — 519,735 — — — 519,735

Capitalized stock-based compensation — — 20,193 — — — 20,193

2 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

Stock-based compensation expense — — 519,735 — — — 519,735

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

Stock-based compensation expense, net of founder revest — — 626,861 — — — 626,861

Capitalized stock-based compensation — — 34,385 — — — 34,385

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

5 unchanged sentences

Issuance of common stock for payment of board of director fees — — 348 — — — 348

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

Stock-based compensation expense, net of founder revest — — 857,129 — — — 857,129

Capitalized stock-based compensation — — 36,959 — — — 36,959

Fair value of replacement equity awards attributable to pre-acquisition service — — 1,155 — — — 1,155

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

Net income (loss) — — — ( 19,271 ) — 2,675 ( 16,596 )

Non-controlling interest — — — — — 3,609 3,609

40 unchanged sentences

Purchases of deferred compensation investments ( 2,721 ) ( 2,031 ) ( 64 )

Proceeds from the sale of deferred compensation investments 106 — —

Net cash used in investing activities ( 536,588 ) ( 340,650 ) ( 556,658 )

Financing activities

Payments of debt issuance costs related to revolving line of credit — — ( 219 )

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

Repayment of loan payable — — ( 1,591 )

1 unchanged sentence

Proceeds from issuance of common stock under the employee stock purchase plan 99,616 76,375 59,419

Distributions to non-controlling interest holders ( 4,891 ) — —

Capital contributions from non-controlling interest holders 8,500 8,088 10,954

12 unchanged sentences

Supplemental disclosure of non-cash investing and financing activities:

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

Net increase (decrease) in property and equipment included in accounts payable and accrued expenses $ 9,452 $ ( 3,081 ) $ 22,421

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

4 unchanged sentences

Stock-based compensation included in capitalized software development costs and fixed assets $ 36,959 $ 31,919 $ 20,193

Noncash consideration for the purchase of strategic investments $ 3,319 $ — $ —

Noncash consideration received from sales of strategic investments $ 3,319 $ — $ —

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

3 unchanged sentences

CrowdStrike Holdings, Inc.

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

(and/or its subsidiaries, as applicable, the “Company”) was formed on November 7, 2011.

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.

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

Basis of Presentation

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The Company’s sales team, along with its channel partner network of system integrators and value-added resellers (collectively, “channel partners”), sells the Company’s services worldwide to organizations of all sizes.

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, short-term investments, accounts receivable, and strategic investments.

The Company’s cash is placed with high-credit-quality financial institutions and issuers, and at times exceed federally insured limits.

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, accounts receivable, financing receivables, and strategic investments.

The Company’s cash is placed with high-credit-quality financial institutions and issuers, and at times exceeds federally insured limits.

The Company has not experienced any credit loss relating to its cash, cash equivalents, short-term investments, or strategic investments.

1 unchanged sentence

There were no channel partners or direct customers who represented 10% or more of the Company’s accounts receivable as of January 31, 2025 and January 31, 2024.

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.

There were two end users who represented 10% or more of the Company’s financing receivables as of January 31, 2025 representing 41 % and 37 %, respectively.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

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, 2025, January 31, 2024, and January 31, 2023.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash equivalents, short-term investments, strategic investments, accounts receivable, financing receivables, accounts payable, accrued expenses, the Senior Notes, and investments for the Company’s deferred compensation plan.

The carrying values of cash equivalents, short-term investments, accounts receivable, financing receivables, accounts payable, and accrued expenses approximate fair value.

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, U.S.

treasury securities included in cash equivalents and short-term investments would be classified as Level 2, and financing receivables would be classified as Level 3.

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.

The 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.

These securities are marked-to-market each reporting period.

Refer to Note 2, Investments and Fair Value Measurements, regarding the fair value of the Company’s financial instruments, and Note 5, Debt, for the fair value of the Company’s Senior Notes.

Cash Equivalents and Short-term Investments

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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 had no short-term investments as of January 31, 2025, and $ 99.6 million of short-term investments as of January 31, 2024.

The Company classifies investments in U.S.

2 unchanged sentences

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.

Unrealized losses are recorded in other income, 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, 2025 and January 31, 2024.

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.

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, net.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and are non-interest bearing.

Accounts receivable are stated at their net realizable value, net of the allowance for credit losses.

The Company has a well-established collections history from its customers.

Credit is extended to customers based on an evaluation of their financial condition and other factors.

The Company generally does not require collateral from its customers;

however, the Company may require payment prior to commencing service in certain instances to limit credit risk.

The Company regularly reviews the adequacy of the allowance for credit losses by considering various factors including the age of each outstanding invoice, each customer’s expected ability to pay, historical loss rates, and expectations of forward-looking loss estimates to determine whether the allowance is appropriate.

Amounts deemed uncollectible are written off against the allowance for credit losses.

Financing Receivables

The Company provides financing arrangements for certain qualified end-users to purchase its products and services.

Payment terms on these financing arrangements are generally up to five years .

Financing receivables are recorded at amortized cost, which approximates fair value.

Financing receivables, with contractual maturities of one year or less, are included in prepaid expenses and other current assets, while those with contractual terms exceeding one year are included in other long-term assets on the consolidated balance sheets.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company evaluates the allowance for credit losses by assessing the risks and losses inherent in the financing receivables on either an individual or a collective basis.

The Company's assessment considers various factors, including lifetime expected losses determined using customer risk profile, current economic conditions that may affect a customer's ability to pay, and forward-looking economic considerations.

Financing receivables deemed uncollectible are charged against the allowance for credit losses.

The allowance for credit losses on off-balance sheet credit exposure is estimated at each reporting period based on the contractual period over which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company.

The portion of the allowance for credit losses related to future disbursements is shown as a liability on the consolidated balance sheets, and the related expense for credit losses is reflected in the consolidated statements of operations.

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.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash equivalents, short-term investments, strategic investments, accounts receivable, accounts payable, accrued expenses, the Senior Notes, and investments for the Company’s deferred compensation plan.

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.

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

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.

These securities are marked-to-market each reporting period.

Refer to Note 2, Investments and Fair Value Measurements, regarding the fair value of the Company’s non-marketable securities and deferred compensation investments and Note 4, Debt, for the fair value of the Company’s Senior Notes.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and are non-interest bearing.

Accounts receivable are stated at their net realizable value, net of the allowance for credit losses.

The Company has a well-established collections history from its customers.

Credit is extended to customers based on an evaluation of their financial condition and other factors.

The Company generally does not require collateral from its customers;

however, the Company may require payment prior to commencing service in certain instances to limit credit risk.

Amounts deemed uncollectible are written off against the allowance for credit losses.

Segment Information

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer.

The CODM reviews financial information presented on a consolidated basis for the purposes of allocating resources and evaluating financial performance.

Accordingly, management has determined that the Company operates as one operating and reportable segment.

Business Combinations

7 unchanged sentences

Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statements of operations.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Goodwill and Intangible Assets

6 unchanged sentences

See Note 4, Balance Sheet Components, and Note 12, Acquisitions, to the consolidated financial statements for more information.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

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.

17 unchanged sentences

No impairment indicators were identified by the Company, and no impairment losses were recorded by the Company during the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Capitalized Internal-Use Software and Website Development Costs

The Company capitalizes certain development costs incurred in connection with its internal-use software and website development.

These capitalized costs are primarily related to the Company’s cloud-delivered solution for next-generation endpoint protection, as well as redefining, redesigning, and rebuilding crowdstrike.com.

These capitalized costs are primarily related to the Company’s cybersecurity platform, as well as redefining, redesigning, and rebuilding crowdstrike.com.

Costs incurred in the preliminary stages of development are expensed as incurred.

10 unchanged sentences

Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Deferred Contract Acquisition Costs

3 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 six months .

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

Deferred Revenue

12 unchanged sentences

(1) Identify the contract with a customer

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company considers the terms and conditions of contracts with customers and its customary business practices in identifying contracts under ASC 606.

5 unchanged sentences

(3) Determine the transaction price

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The transaction price is determined based on the consideration to which the Company is expected to be entitled in exchange for transferring services to the customer.

10 unchanged sentences

The Company’s Falcon Platform technology solutions are subscription SaaS offerings designed to continuously monitor, share, and mitigate risks from determined attackers.

Subscription revenues are primarily comprised of fees that give customers access to the ordered service, related support, and updates, if any, during the subscription term.

Customers do not have the right to take possession of the cloud-based software platform.

7 unchanged sentences

These options generally do not provide a material right as they are priced at the Company’s SSP.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Professional Services Revenue

11 unchanged sentences

The Company determines SSP based on its overall pricing objectives, taking into consideration the type of subscription or professional service and the number of endpoints.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Variable Consideration

9 unchanged sentences

Research and development costs are expensed when incurred, except for certain internal-use software development costs, which may be capitalized as noted above.

Research and development expenses consist primarily of personnel and related headcount costs, costs of professional services associated with the ongoing development of the Company’s technology, and allocated overhead.

Most advertising costs are expensed as incurred, except for certain production costs that are deferred and expensed at the first time the advertising takes place.

Research and development expenses consist primarily of personnel and related headcount costs, stock-based compensation expenses, costs of professional services associated with the ongoing development of the Company’s technology, and allocated overhead.

Most advertising costs are expensed as incurred, except for certain production costs that are deferred and expensed at the time the advertising first takes place.

The Company incurred $ 118.1 million, $ 79.9 million, and $ 53.8 million of advertising costs during the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023, respectively.

3 unchanged sentences

The stock-based compensation expense relating to stock options is recognized on a straight-line basis over the period during which the employee or director is required to provide service in exchange for the award, usually the vesting period, which is generally four years .

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Restricted stock units (“RSUs”) are generally subject to a service-based vesting condition.

8 unchanged sentences

The stock-based compensation expense relating to the Special PSU Awards is recognized using the accelerated attribution method over the longer of the derived service period and the explicit service period.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Employee Stock Purchase Plan (“ESPP”) grants are measured based on the fair value at grant date using the Black-Scholes option-pricing model.

9 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 $ 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.

The marketable securities were recorded at fair value based on quoted market prices and were $ 5.5 million and $ 2.3 million as of January 31, 2025 and January 31, 2024, respectively.

The deferred compensation liability was $ 5.5 million and $ 2.3 million as of January 31, 2025 and January 31, 2024, 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 fiscal years ended January 31, 2024 and January 31, 2023, respectively.

Changes in the fair value of the deferred compensation asset and liability were immaterial for the fiscal years ended January 31, 2025 and January 31, 2024.

Operating Leases

9 unchanged sentences

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

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

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.

4 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 $ 4.0 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, net of accumulated amortization, were $ 2.9 million and $ 4.0 million as of January 31, 2025 and January 31, 2024, 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.

3 unchanged sentences

Debt issuance costs related to the revolving credit facility are amortized over the term of the financing arrangement under the straight-line method.

The Company’s amortization of these costs was $ 1.6 million, $ 1.3 million, and $ 1.0 million for the fiscal years ended January 31, 2024, 2023, and 2022, respectively.

The Company’s amortization of these costs was $ 2.2 million, $ 1.6 million, and $ 1.3 million for the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023, respectively.

Foreign Currency Translation and Transactions

4 unchanged sentences

Revenue and expenses are translated at the average exchange rates during the period.

The resulting translation adjustments are recorded in accumulated other comprehensive loss.

The resulting translation adjustments are recorded in accumulated other comprehensive income (loss).

Foreign currency transaction gains or losses, whether realized or unrealized, are reflected in the consolidated statements of operations within other income (expense), net, and have not been material for all periods presented.

11 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.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Net Income (Loss) per Share

1 unchanged sentence

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.

On December 11, 2024, all of the Company’s outstanding shares of Class B common stock were automatically converted into an equal number of shares of Class A common stock pursuant to the provisions of the Amended and Restated Certificate of Incorporation.

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

1 unchanged sentence

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):

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 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.

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 Chief Operating Decision Maker (“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.

The Company adopted this guidance during the year ended January 31, 2025.

See Note 14, Segment Information for further details.

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures.

The standard requires additional disclosure of specific expense categories included in the expense captions presented on the statements of operations.

The new standard can be applied either prospectively or retrospectively, and is effective for annual periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

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

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

3 unchanged sentences

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

4 unchanged sentences

Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available in the circumstances.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The hierarchy is broken down into three levels as follows:

3 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):

8 unchanged sentences

Total assets $ 1,475,536 $ 2,490,097 $ — $ 3,965,633 $ 2,362,444 $ 793,190 $ — $ 3,155,634

_______________________________________

(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.

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

As of January 31, 2025, and 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 ) —

The total estimated fair value of the Company’s financing receivables approximates their carrying amounts as of January 31, 2025.

The fair value of the Company's financing receivables is considered to be a Level 3 measurement as unobservable inputs are used in determining discounted cash flows to estimate fair value.

Strategic Investments

The Company’s investments in privately held securities as of January 31, 2025, consisted of the following (in thousands):

Privately held equity securities Privately held debt and other securities Total

Initial total cost $ 68,140 $ 1,000 $ 69,140

Cumulative net gains 3,404 — 3,404

Carrying amount, end of period $ 71,544 $ 1,000 $ 72,544

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

The Company’s investments in privately held securities as of January 31, 2024, consisted of the following (in thousands):

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Privately held equity securities Privately held debt and other securities Total

Initial total cost $ 50,373 $ 1,000 $ 51,373

Cumulative net gains 4,871 — 4,871

Carrying amount, end of period $ 55,244 $ 1,000 $ 56,244

As of January 31, 2025, the cumulative net gains of $ 3.4 million are comprised of upward adjustments of $ 7.3 million, less downward adjustments and impairment of $ 3.9 million.

As of January 31, 2024, the cumulative net gains of $ 4.9 million are comprised of upward adjustments of $ 9.3 million, less downward adjustments and impairment of $ 4.4 million.

Gains and Losses on Strategic Investments

The components of gains and losses on strategic investments were as follows (in thousands):

Year Ended January 31,

2025 2024 2023

Unrealized gains recognized on privately held equity securities $ — $ — $ 4,758

Unrealized losses recognized on privately held equity securities including impairment ( 1,000 ) ( 1,459 ) ( 2,928 )

Unrealized gains (losses), net ( 1,000 ) ( 1,459 ) 1,830

Realized gains recognized on sales of privately held equity securities 6,975 3,936 —

Realized losses recognized on sales of privately held equity securities ( 654 ) — —

Realized gains, net 6,321 3,936 —

Gains on strategic investments, net $ 5,321 $ 2,477 $ 1,830

Unrealized gains (losses) recognized during the reporting period on

privately held equity securities still held at the reporting date $ ( 1,000 ) $ ( 1,459 ) $ 1,830

Unrealized gains recognized on privately held equity securities includes upward adjustments from equity securities accounted for under the measurement alternative while unrealized losses recognized on privately held equity securities includes downward adjustments and impairment.

Realized gains and losses recognized on sales of privately held equity securities reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

Financing Receivables

The Company’s short-term and long-term financing receivables were as follows (in thousands):

January 31, 2025

Short-term financing receivables, gross $ 9,579

Unearned income ( 2,339 )

Allowance for credit losses ( 76 )

Short-term financing receivables, net $ 7,164

Long-term financing receivables, gross $ 43,235

Unearned income ( 5,051 )

Allowance for credit losses ( 342 )

Long-term financing receivables, net $ 37,842

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company’s amortized cost basis of financing receivables categorized by internal risk rating and year of origination was as follows (in thousands):

Internal Risk Rating (1)

January 31, 2025

1 to 4 $ 18,413

5 to 6 27,011

Amortized cost basis of financing receivables $ 45,424

(1) Internal risk ratings are determined based on the end-user’s financial condition and are categorized as 1 through 9, with the lowest rating representing the highest quality.

There were no financing receivables prior to fiscal year ended January 31, 2025.

There was no significant activity in allowance for credit losses during the year ended January 31, 2025.

Past due amounts on financing receivables were not material as of January 31, 2025.

Balance Sheet Components

Prepaid Expenses and Other Current Assets

Prepaid expenses were $ 247.3 million and $ 144.9 million as of January 31, 2025 and January 31, 2024, respectively.

Other current assets were $ 67.1 million and $ 38.3 million as of January 31, 2025 and January 31, 2024, respectively.

Property and Equipment, Net

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Amortization expense associated with internal-use software and website development costs totaled $ 54.8 million, $ 37.3 million, and $ 21.5 million during the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023, respectively.

The net book value of capitalized internal-use software and website development costs was $ 106.9 million and $ 66.3 million as of January 31, 2024 and January 31, 2023, respectively.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

value of capitalized internal-use software and website development costs was $ 144.0 million and $ 106.9 million as of January 31, 2025 and January 31, 2024, respectively.

Intangible Assets, Net

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Total $ 208,755 $ 75,641 $ 133,114

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

January 31, 2024 Weighted-Average Remaining Useful Life

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Total amortization expense $ 133,114

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The change in goodwill during the fiscal year ended January 31, 2025 consisted of the following (in thousands):

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Goodwill as of January 31, 2025

__________________________________

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

(1) Goodwill acquired resulted from the acquisitions of Flow Security and A.S.

Adaptive Shield Ltd.

Refer to Note 12 for additional information.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Accrued Expenses

Accrued expenses consisted of the following (in thousands):

Web hosting services $ 40,706 $ 65,589

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

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 health benefits and claims 5,039 1,760

Accrued expenses $ 125,896 $ 137,884

Accrued Payroll and Benefits

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The A&R Credit Agreement extended the maturity date of April 19, 2022 to January 2, 2026.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

On January 6, 2022, the Company modified the A&R Credit Agreement (the “Amended A&R Credit Agreement”) among CrowdStrike, Inc., as borrower, CrowdStrike Holdings, Inc., as guarantor, and Silicon Valley Bank and the other lenders party thereto.

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The Company was in compliance with all of its financial covenants as of January 31, 2025.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Amended A&R Credit Agreement is secured by substantially all of the Company’s current and future consolidated assets, property and rights, including, but not limited to, intellectual property, cash, goods, equipment, contractual rights, financial assets, and intangible assets of the Company and certain of its subsidiaries.

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No amounts were outstanding under the Amended A&R Credit Agreement as of January 31, 2025.

On January 20, 2021, the Company issued $ 750.0 million in aggregate principal amount of 3.00 % Senior Notes maturing in February 2029.

The Senior Notes are guaranteed by the Company’s subsidiary, CrowdStrike, Inc.

and will be guaranteed by each of the Company’s existing and future domestic subsidiaries that becomes a borrower or guarantor under the A&R Credit Agreement.

On January 20, 2021, the Company issued $ 750.0 million in aggregate principal amount of 3.00 % Senior Notes maturing in February 2029 (the “Senior Notes”).

The Senior Notes are guaranteed by the Company’s subsidiaries, CrowdStrike, Inc.

and CrowdStrike Financial Services, Inc., and will be guaranteed by each of the Company’s existing and future domestic subsidiaries that becomes a borrower or guarantor under the A&R Credit Agreement.

The Senior Notes were issued at par and bear interest at a rate of 3.00 % per annum.

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As of January 31, 2025, the Company was in compliance with all of its financial covenants under the Indenture associated with the Senior Notes.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Based on the trading prices of the Senior Notes, the fair value of the Senior Notes was approximately $ 688.4 million and $ 671.2 million as of January 31, 2025 and January 31, 2024, respectively.

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

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company’s geographical breakdown of its income (loss) before provision for income taxes for the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023 is as follows (in thousands):

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State income taxes, net of federal benefits 2,289 4,118 944

Foreign tax rate differential

Effects of foreign operations

10,236 22,425 11,003

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Change in valuation allowance 152,608 28,810 102,892

Tax impact of restructuring — 5,340 57,236

Tax impact of foreign transactions 49,883 — 5,340

Other 17 ( 218 ) —

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The Company recognized income tax expense of $ 71.1 million, $ 32.2 million, and $ 22.4 million for the fiscal years January 31, 2025, January 31, 2024 and January 31, 2023, respectively.

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 year ended January 31, 2025 was primarily attributable to pre-tax foreign earnings, withholding taxes related to customer payments in certain foreign jurisdictions, intercompany sale of intellectual property from acquired entities and change in the realizability of deferred tax assets in certain foreign jurisdictions.

The Company transferred acquired intellectual property from foreign subsidiaries to the U.S.

Although the transfer of the intellectual property between consolidated entities did not result in any gain in the consolidated statement of operations, such transactions were taxable for tax purposes.

The tax expense for the fiscal years ended January 31, 2024 and January 31, 2023 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.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

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Capitalized research and development 473,889 320,708

Other, net 13,898 —

Gross deferred assets 1,466,650 1,171,295

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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.

In completing the assessment of the continued need for valuation allowance, we analyzed various factors including, but not limited to, cumulative pre-tax losses, excess tax benefits related to stock-based compensation, future reversal of existing temporary differences and tax planning strategies that are prudent and feasible.

During the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023, the valuation allowance increased by $ 234.7 million, $ 47.6 million, and $ 139.2 million, respectively.

The increases in the valuation allowance during the fiscal years ended January 31, 2025 and January 31, 2024 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.

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

As of January 31, 2025, January 31, 2024, and January 31, 2023 the valuation allowance for deferred taxes was $ 1.2 billion, $ 957.7 million, and $ 910.1 million, respectively.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

As of January 31, 2025, the Company had aggregate federal and California net operating loss carryforwards of $ 1.4 billion and $ 307.9 million, respectively, which may be available to offset future taxable income for income tax purposes.

The federal net operating losses are carried forward indefinitely, and California net operating loss carryforwards begin to expire in fiscal 2034 through fiscal 2045.

As of January 31, 2025, net operating loss carryforwards for other states totaled $ 716.0 million, which begin to expire in fiscal 2026 through fiscal 2045.

As of January 31, 2025, net operating loss carryforwards for the U.K.

totaled $ 78.0 million, which are carried forward indefinitely, and net operating loss carryforwards totaled immaterial amounts in certain foreign jurisdictions.

As of January 31, 2025, the Company had federal and California research and development (“R&D”) credit carryforwards of $ 165.1 million and $ 39.6 million, respectively.

The federal R&D credit carryforwards will begin to expire in fiscal 2036 though fiscal 2044.

The federal R&D credit carryforwards begin to expire in fiscal 2037 though fiscal 2045.

The California R&D credits are carried forward indefinitely.

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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.

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.

Cumulatively, the Company had incurred $ 3.0 million of interest and penalties related to unrecognized tax benefits as of January 31, 2025, and $ 1.4 million and an insignificant amount of interest and penalties related to unrecognized tax benefits as of January 31, 2024, and January 31, 2023, respectively.

During the fiscal year ended January 31, 2025, the net increase in unrecognized tax benefits was a result of certain taxable foreign transactions and R&D credits.

During the fiscal year ended January 31, 2024, and January 31, 2023 the net increase in unrecognized tax benefits was a result of R&D credits.

The potential change in unrecognized tax benefits during the next 12 months is not expected to be material.

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Balance as of February 1, 2022 $ 26,324

Increases in prior period tax positions

Decreases in prior period tax positions

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 )

1 unchanged sentence

Balance as of January 31, 2024 58,875

Increases in current period tax positions 66,354

Increases in prior period tax positions 890

Decreases in prior period tax positions ( 5,285 )

Increases in current period tax positions 18,538

Settlements with taxing authorities ( 2,882 )

Statute of limitations expirations ( 151 )

Impact from currency fluctuations ( 261 )

Balance as of January 31, 2025 $ 117,540

2 unchanged sentences

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.

If the Company repatriated these earnings, the tax impact of future distributions of foreign earnings would generally be limited to withholding tax from foreign jurisdictions, and the resulting income tax liability would be insignificant.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

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.

Operating Leases

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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.

Cash paid for amounts included in the measurement of operating lease liabilities were $ 15.4 million, $ 12.0 million, and $ 11.8 million for the fiscal years ended January 31, 2024, January 31, 2023, and January 31, 2022, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $ 19.5 million, $ 15.4 million, and $ 12.0 million for the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023, respectively.

Operating lease liabilities arising from obtaining operating right of-use assets were $ 6.8 million and $ 16.4 million for the fiscal years ended January 31, 2025 and January 31, 2024, respectively.

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Total lease cost $ 32,371 $ 27,654 $ 21,707

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.

Sublease income for the fiscal years ended January 31, 2025 and January 31, 2024 was immaterial .

There was no sublease income for the fiscal year ended January 31, 2023.

As of January 31, 2025, the Company has not entered into non-cancellable operating leases with terms greater than 12 months that have not yet commenced.

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Stock Options

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below.

The expected term represents the period that the Company’s share-based awards are expected to be outstanding.

The expected term assumptions were determined based on the vesting terms, exercise terms, and contractual lives of the options.

The expected stock price volatility is based upon comparable public company data.

The risk-free rate is based on the U.S.

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

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model.

Stock options granted during both fiscal years ended January 31, 2025 and January 31, 2024 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

Expected term (in years) 3.82 – 5.63

Risk-free interest rate 0.6 % – 1.0 %

Expected stock price volatility 36.1 % – 37.1 %

Dividend yield — %

The following table is a summary of stock option activity for the fiscal year ended January 31, 2025:

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Options exercisable at January 31, 2025 1,217 $ 9.93

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

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

There were no options that were unvested and exercisable as of January 31, 2025.

The aggregate intrinsic value of options vested and exercisable was $ 472.3 million, $ 451.0 million, and $ 247.2 million as of January 31, 2025, January 31, 2024, and January 31, 2023, respectively.

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The total intrinsic value of all options exercised was $ 170.4 million, $ 190.1 million, and $ 166.8 million during the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023, respectively.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The aggregate intrinsic value of stock options outstanding as of January 31, 2025, January 31, 2024, and January 31, 2023 was $ 485.3 million, $ 496.7 million, and $ 279.4 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.

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Total unrecognized stock-based compensation expense related to unvested options was $ 8.0 million as of January 31, 2025.

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

Early Exercise of Employee Options

The 2011 Stock Plan allows for the early exercise of stock options for certain individuals as determined by the board of directors.

The consideration received for an early exercise of an option is a deposit of the exercise price, and the related dollar amount is recorded as a liability for early exercise of unvested stock options in the consolidated balance sheets.

This liability is reclassified to additional paid-in capital as the awards vest.

If a stock option is early exercised, the unvested shares may be repurchased by the Company in case of employment termination or for any reason, including death and disability, at the price paid by the purchaser for such shares.

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, 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.

The Company includes unvested shares subject to repurchase in the number of shares outstanding in the consolidated balance sheets and statements of stockholders’ equity.

This expense is expected to be amortized over a weighted-average vesting period of 1.8 years.

Restricted Stock Units

RSUs granted under the 2019 Plan are generally subject to only a service-based vesting condition.

The service-based vesting condition is generally satisfied based on one of four vesting schedules:

(i) vesting of one-fourth of the RSUs on the first “Company vest date” (defined as March 20, June 20, September 20, or December 20) on or following the one-year anniversary of the vesting commencement date, with the remainder of the RSUs vesting in twelve equal quarterly installments thereafter, subject to continued service, (ii) vesting in sixteen equal quarterly installments, subject to continued service, (iii) vesting in eight equal quarterly installments, subject to continued service, or (iv) vesting in sixteen quarterly installments with 10 % in the first year, 15 % in the second year, 25 % in the third year, and 50 % in the fourth year, subject to continued service.

The service-based vesting condition is generally satisfied based on one of the following vesting schedules:

(i) vesting of one-fourth of the RSUs on the first “Company vest date” (defined as March 20, June 20, September 20, or December 20) on or following the one-year anniversary of the vesting commencement date, with the remainder of the RSUs vesting in twelve equal quarterly installments thereafter, subject to continued service, (ii) vesting in sixteen equal quarterly installments, subject to continued service, or (iii) vesting in sixteen quarterly installments with 10 % in the first year, 15 % in the second year, 25 % in the third year, and 50 % in the fourth year, subject to continued service.

The valuation of these RSUs is based solely on the fair value of the Company’s stock on the date of grant.

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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.

Notes to Consolidated Financial Statements

Total unrecognized stock-based compensation expense related to unvested PSUs was $ 76.0 million as of January 31, 2024.

Total unrecognized stock-based compensation expense related to unvested PSUs was $ 61.0 million as of January 31, 2025, which reflects the Company's updated assessment of the likelihood of satisfying the performance conditions.

This expense is expected to be amortized over a weighted-average vesting period of 1.1 years.

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In fiscal 2022 the Company’s board of directors granted 655,000 performance stock units (the “Special PSU Awards”) to certain executives under the 2019 Plan.

The Special PSU Awards will vest upon the satisfaction of the Company’s achievement of specified stock price hurdles, which are based on the average of the closing stock price per share of the Company’s Class A common stock during any 45 consecutive trading day period during the applicable performance period, and a service-based vesting condition.

The Special PSU Awards vest upon the satisfaction of the Company’s achievement of specified stock price hurdles, which are based on the average of the closing stock price per share of the Company’s Class A common stock during any 45 consecutive trading day period during the applicable performance period, and a service-based vesting condition.

The service condition applicable to each tranche of the Special PSU Awards will be satisfied in installments as follows, subject to continued employment with the Company through each applicable vesting date:

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The expected volatility was a blended volatility rate of 54.89 % - 55.36 %, which includes 50 % weight on the Company’s historical volatility calculated from daily stock returns over a 2.21 - 2.58 year look-back from the grant date and 50 % weight based on the Company’s implied volatility as of the grant date.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Total unrecognized stock-based compensation expense related to the unvested portion of the Special PSU Awards was $ 11.2 million as of January 31, 2025.

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10,454 $ 228.49

___________________________

(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

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If an employee elects to increase his or her contribution, the Company treats this as an accounting modification.

The ESPP also offers a two-year look-back feature, as well as a rollover feature that provides for an offering period to be rolled over to a new lower-priced offering if the offering price of the new offering period is less than that of the current offering period.

During the fiscal year ended January 31, 2023, there were ESPP rollovers because the Company’s closing stock price on the purchase date was lower than the Company’s closing stock price on the first day of the offering periods.

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

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

current offering period.

During the fiscal years ended January 31, 2025 and January 31, 2023, there were ESPP rollovers because the Company’s closing stock price on the purchase date was lower than the Company’s closing stock price on the first day of the offering periods.

As a result, these offering dates were rolled over to new 24-month offering periods through December 10, 2026, and December 12, 2024, respectively.

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.

The total incremental expense as a result of the rollover and contribution modifications was $ 12.4 million and $ 58.6 million, respectively, which will be recognized over the new or remaining offering periods.

There were no ESPP rollovers during the fiscal year ended January 31, 2024.

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.

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ESPP employee payroll contributions accrued as of January 31, 2025 and January 31, 2024 totaled $ 33.2 million and $ 22.3 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 fair value of employee stock purchase rights granted under the Company’s stock plan:

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 ESPP:

Year Ended January 31,

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Dividend yield — % — % — %

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Stock-Based Compensation Expense

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No single country other than the United States represented 10% or more of the Company’s total revenue during the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Contract Balances

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Ending balance $ 3,728,677 $ 3,054,099

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Remaining Performance Obligations

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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.

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

Commissions 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.

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The Company did no t recognize any material impairment losses of deferred contract acquisition costs during the year ended January 31, 2025.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The following table summarizes the activity of deferred contract acquisition costs (in thousands):

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Total deferred contract acquisition costs $ 847,950 $ 582,303

Commitments and Contingencies

July 19 Incident

On July 19, 2024, the Company released a content configuration update for its Falcon sensor that resulted in system crashes for certain Windows systems (the “July 19 Incident”).

The Company is subject to a number of legal proceedings in connection with the July 19 Incident, including:

• On July 30, 2024, a putative class action lawsuit was filed against the Company and certain of the Company’s officers in federal court in the Western District of Texas alleging violations of federal securities laws, including that the defendants made false or misleading statements.

The complainants seek certification of a class of all persons who purchased or otherwise acquired the Company’s securities during specified periods of time and are seeking unspecified monetary damages, costs and attorneys’ fees.

On January 21, 2025, an amended complaint was filed.

• On August 5, 2024, a putative class action lawsuit was filed against CrowdStrike, Inc.

in federal court in the Western District of Texas alleging, among other things, negligence and violations of the California Unfair Competition Law.

The complainants seek certification of a nationwide class, as well as sub-classes of certain California, Ohio, and Pennsylvania citizens, who had a flight delayed or canceled during a specified period of time and are seeking unspecified monetary damages, certain injunctive relief, costs and attorneys’ fees.

On November 6, 2024, this lawsuit was consolidated with the August 19, 2024 lawsuit described below, and interim class counsel was appointed.

On December 6, 2024, a consolidated class action complaint was filed.

On February 4, 2025, CrowdStrike, Inc.

filed a motion to dismiss the complaint.

• On August 19, 2024, a putative class action lawsuit was filed against the Company and CrowdStrike, Inc.

in federal court in the Western District of Texas alleging, among other things, negligence in the design and testing of the Falcon sensor and tortious interference between certain airline customers and their airline.

The complainants seek certification of a nationwide class (or alternatively a class of Iowa citizens) who had a flight delayed or canceled on a specified airline during a specific period of time and are seeking unspecified monetary damages, costs and attorneys’ fees.

On November 6, 2024, this lawsuit was consolidated with the lawsuit filed on August 5, 2024 described above and was administratively closed.

• On September 4, September 11, and September 20, 2024, three derivative lawsuits were filed against certain of the Company’s officers and directors, and against the Company as nominal defendant, in federal court in the Western District of Texas alleging breach of fiduciary duty under Delaware law and violations of federal securities laws, including that the defendants made false or misleading statements in violation of Sections 10(b) and 14(a) of the Exchange Act and SEC Rules 10b-5 and 14a-9.

One of the lawsuits also brings a claim against certain of the defendants for contribution under Sections 10(b) and 21D of the Exchange Act.

The complainants seek monetary and non-monetary relief purportedly on behalf of the Company.

On November 21, 2024, all three cases were consolidated and stayed pending resolution of the putative securities class action described above.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Commitments and Contingencies

Purchase Obligations

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

Fiscal 2026 163,323

Fiscal 2027 124,015

Fiscal 2028 118,754

Fiscal 2029 95,956

Thereafter 24,876

Total purchase commitments $ 747,631

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

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.

Patent and Trademark Office.

The TTAB dismissed all proceedings between the parties in July 2022.

• On October 25, 2024, Delta Airlines, Inc.

(“Delta”) filed a complaint against CrowdStrike, Inc.

in the Superior Court for Fulton County, Georgia, alleging, among other things, computer trespass, trespass to personalty, breach of contract, intentional misrepresentation/fraud by omission, strict-liability product defect, gross negligence, and deceptive and unfair business practices.

Delta is seeking unspecified monetary damages, attorneys’ fees and unspecified punitive damages.

The matter has been transferred to the Metro Atlanta Business Case Division.

On December 16, 2024, CrowdStrike, Inc.

filed a motion to dismiss.

Additionally, some customers and third parties have asserted claims or publicly threatened litigation against the Company.

The Company has also received inquiries from governmental authorities and other third parties related to the July 19 Incident.

The Company is cooperating and providing information in connection with these inquiries.

For any claims and legal proceedings for which the Company believes a liability is both probable and reasonably estimable, the Company records a liability in the period for which it makes this determination.

For claims and legal proceedings where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established.

While the Company believes it is reasonably possible that it could incur losses associated with the claims, proceedings and inquiries described above, it is not possible to estimate the amount of any loss or range of possible loss that might result from adverse judgments, settlements, penalties or other resolutions of these claims, proceedings and inquiries based on their early stage, and the lack of resolution on significant factual and legal issues.

Because the final outcome of any of these matters cannot be predicted with certainty, unfavorable or unexpected developments or outcomes could result in a material impact to the Company’s results of operations.

The Company expects to incur significant legal and professional services and other expenses associated with the July 19 Incident in future periods.

These expenses will be recognized as incurred.

Certain costs may be recoverable under the Company’s insurance policies in effect at the date of the July 19 Incident.

Any amounts recoverable under such policies will be reflected in future periods in which recovery is considered probable.

Amounts accrued and expenses incurred, net of insurance receivable recorded, relating to the July 19 Incident during fiscal years ended January 31, 2025 were as follows (in thousands):

Balance at January 31, 2024 $ —

Expenses incurred, net of insurance receivable recorded (1)

Payments made / cash received ( 38,917 )

Balance at January 31, 2025 $ 21,145

(1) These expenses were included in the Company’s consolidated statements of operations as sales and marketing expenses, research and development expenses, and general and administrative expenses.

Accruals were recorded in accrued expenses in the Company’s consolidated balance sheets.

Insurance receivable was recorded in prepaid expenses and other current assets in the Company’s consolidated balance sheets.

In addition to customer commitment packages, the Company has made an immaterial amount of settlement offers to certain customers in response to the July 19 Incident.

These amounts are, or will be, entirely offset by recoveries under the Company’s insurance policies.

Accordingly, there is no impact on the Company’s consolidated statement of operations for the fiscal year ended January 31, 2025.

The customer payables and insurance receivables were recorded as accrued expenses and as prepaid expenses and other current assets in the Company’s consolidated balance sheet as of January 31, 2025, respectively.

Other Legal Proceedings

In March 2022, Webroot, Inc.

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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.

entered into an

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

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.

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For any claims for which the Company believes a liability is both probable and reasonably estimable, the Company records a liability in the period for which it makes this determination.

There is no pending or threatened legal proceeding to which the Company is a party that, in the Company’s opinion, is reasonably possible to have a material effect on its consolidated financial statements;

Other than as discussed above, there is no pending or threatened legal proceeding to which the Company is a party that, in the Company’s opinion, is reasonably possible to have a material effect on its consolidated financial statements;

however, the results of litigation and claims are inherently unpredictable.

Regardless of the outcome, litigation can have an adverse impact on the Company’s business because of defense and settlement costs, diversion of management resources, and other factors.

In addition, the costs of litigation and the timing of these costs from

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

period to period are difficult to estimate, subject to change and could adversely affect the Company’s consolidated financial statements.

In addition, the costs of litigation and the timing of these costs from period to period are difficult to estimate, subject to change and could adversely affect the Company’s consolidated financial statements.

Purchase Obligations

A summary of non-cancellable purchase obligations in excess of one year as of January 31, 2025, with expected date of payment is as follows (in thousands):

Fiscal 2026 $ 491,027

Fiscal 2027 541,433

Fiscal 2028 558,559

Fiscal 2029 581,474

Fiscal 2030 432,481

Thereafter 87,058

Total purchase commitments $ 2,692,032

Unfunded Loan Commitments

The Company provides financing arrangements for certain qualified end-users to purchase its products and services.

When the Company enters into these financing arrangements with the end-users, the funds provided by the Company for the sales transactions do not always occur immediately upon signing, depending on the terms of the arrangements.

The Company estimates an allowance for credit losses on these off-balance sheet credit exposures at each reporting period on the contractual period over which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company.

As of January 31, 2025, the Company had non-cancellable unfunded commitments totaling approximately $ 94.2 million.

Warranties and Indemnification

The Company’s cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances.

The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights.

In addition, for its Falcon Complete customers, the Company offers a limited warranty, subject to certain conditions, to cover certain costs incurred by the customer in case of a cybersecurity breach.

The Company has entered into an insurance policy to reduce its potential liability arising from this limited warranty arrangement.

To date, the Company has not incurred any material costs because of such obligations and has not accrued any liabilities related to such obligations in the consolidated financial statements.

The Company has entered into an insurance policy to reduce its potential liability arising from such limited warranty arrangements.

The Company’s customer arrangements generally include certain provisions for indemnifying customers against losses suffered or incurred as a result of third-party claims that the Company’s products or services infringe a third party’s intellectual property rights.

From time to time, the Company has also agreed to certain other indemnifications and warranties.

The Company has not incurred any material costs because of such obligations and has not accrued any liabilities related to such obligations in the consolidated financial statements as of January 31, 2025 or January 31, 2024 .

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company has also agreed to indemnify its directors and certain executive officers for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request.

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Total property and equipment, net and operating lease right-of-use assets $ 831,403 $ 668,383

Adaptive Shield

On November 20, 2024, the Company acquired 100 % of the equity interest of A.S.

Adaptive Shield Ltd.

(“Adaptive Shield”), a SaaS-based cybersecurity company that offers customers comprehensive SaaS security posture management solutions.

The acquisition has been accounted for as a business combination.

The total consideration transferred consisted of $ 213.7 million in cash, net of $ 13.7 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 identifiable intangible assets, which include developed technology and customer relationships of $ 31.1 million, net tangible liabilities acquired of $ 7.7 million, and goodwill of $ 191.0 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 Adaptive Shield, planned growth in new markets, and synergies expected to be achieved from the integration of Adaptive Shield.

Goodwill is not deductible for income tax purposes.

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

Additionally, certain shares of Adaptive Shield stock held by Adaptive Shield employees were exchanged for shares of the Company’s 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 cost 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.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

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 $ 23,600 72

Customer relationships 7,500 72

Total intangible assets acquired $ 31,100

Acquisition costs incurred during the fiscal year ended January 31, 2025 were $ 2.7 million and are recorded in general and administrative 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 Adaptive Shield did not have a material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented.

Flow Security

On March 26, 2024, the Company acquired 100 % of the equity interest of Flow Security Ltd.

(“Flow Security”), a leading provider of data security solutions.

The acquisition has been accounted for as a business combination.

The total consideration transferred consisted of $ 96.4 million in cash, net of $ 0.8 million of cash acquired, and $ 0.5 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 developed technology of $ 13.5 million with a useful life of 72 months, net tangible liabilities acquired of $ 0.6 million, and goodwill of $ 84.0 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 Flow Security, planned growth in new markets, and synergies expected to be achieved from the integration of Flow Security.

Goodwill is not deductible for income tax purposes.

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

Additionally, certain shares of Flow Security stock held by Flow Security employees were exchanged for the right to receive shares of the Company’s 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 cost over the requisite service period.

Acquisition costs incurred during the fiscal year ended January 31, 2025 were $ 3.2 million and are primarily recorded in general and administrative 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 Flow Security did not have a material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented.

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.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The acquisition has been accounted for as a business combination.

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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 purchase price was allocated 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.

Additionally, certain shares of Bionic stock held by Bionic employees were exchanged for shares of the Company’s 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.

6 unchanged sentences

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.

Acquisition costs incurred during the fiscal year ended January 31, 2025 were immaterial.

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.

On October 3, 2022, the Company acquired 100 % of the equity interest of Reposify Ltd.

(“Reposify”), a privately-held company that provides an external attack surface management platform that scans the internet for exposed assets of an organization to detect and eliminate risk from vulnerable and unknown assets before attackers can exploit them.

The acquisition has been accounted for as a business combination.

The total consideration transferred consisted of $ 18.9 million, net of cash acquired of $ 0.5 million, and an immaterial amount representing the fair value of replacement equity awards attributable to pre-acquisition service.

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 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.

Goodwill was not deductible for income tax purposes.

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

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.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Net Income (Loss) Per Share Attributable to Common Stockholders

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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.

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 effect of 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 founders’ 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.

Diluted net loss per share is the same as basic net loss per share for the fiscal year ended January 31, 2025 and January 31, 2023 because the effects of potentially dilutive items were antidilutive given the Company’s net loss position during fiscal year ended January 31, 2025 and January 31, 2023.

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.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

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):

1 unchanged sentence

2025 2024 2023

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 income (loss) attributable to CrowdStrike $ ( 19,271 ) $ 89,327 $ ( 183,245 )

Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders, basic 244,750 238,637 233,139

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 )

Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders, dilutive 244,750 243,635 233,139

Net income (loss) per share attributable to CrowdStrike common stockholders, basic $ ( 0.08 ) $ 0.37 $ ( 0.79 )

Net income (loss) per share attributable to CrowdStrike common stockholders, diluted $ ( 0.08 ) $ 0.37 $ ( 0.79 )

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):

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2025 2024 2023

Shares of common stock subject to repurchase from outstanding stock options

RSUs and PSUs subject to future vesting 10,454 3,125 10,050

2 unchanged sentences

Potential common shares excluded from diluted net income (loss) per share 12,413 3,537 17,400

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 $ 18.4 million, contingent upon continued employment with the Company.

1 unchanged sentence

During the fiscal year ended January 31, 2025, 10,780 shares were issued to settle founder holdbacks at a weighted average price of $ 329.82 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.

As of January 31, 2025, the above table also excludes 575,747 outstanding shares of in progress PSUs and Special PSUs where pre-defined targets have not yet been achieved.

Segment Information

CrowdStrike’s Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment at the consolidated level.

Accordingly, the CODM uses consolidated net income (loss) to measure segment profit or loss, evaluate financial performance, and allocate resources.

Consolidated net income (loss) is evaluated on a monthly basis by comparing actual results against budgeted or forecasted net income (loss), facilitating the analysis of the Company’s financial trends.

Significant expenses within net income (loss) include cost of revenue for subscription and professional services, sales and marketing expenses, research and development expenses, and general and administrative expenses.

Other segment items within net income (loss) include interest expense, interest income, other income, net, and provision for income taxes, which are each separately disclosed and presented in the consolidated statements of operations.

See Note 9 for additional information about the Company’s revenue by geographic region, and Note 11 for additional information about the Company’s property and equipment, net and operating lease right-of-use assets by geographic region.

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