CrowdStrike Holdings CRWD · USD

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.

Revenue, Deferred Revenue and Remaining Performance Obligations The following table summarizes revenue by region based on the shipping address of customers who have contracted to use the Company’s platform or service (in thousands, except percentages): Year Ended January 31, 2025 2024 2023 Amount % Revenue Amount % Revenue Amount % Revenue United States $ 2,682,942 68 % $ 2,088,054 68 % $ 1,563,567 70 % Europe, Middle East, and Africa 619,483 16 % 467,928 15 % 327,929 15 % Asia Pacific 402,453 10 % 315,524 10 % 228,124 10 % Other 248,746 6 % 184,049 7 % 121,616 5 % Total revenue $ 3,953,624 100 % $ 3,055,555 100 % $ 2,241,236 100 % 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. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. The Company recognized revenue of $2,251.3 million and $1,718.5 million for the fiscal years ended January 31, 2025 and January 31, 2024, respectively, which was included in the corresponding contract liability balance at the beginning of the period. The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 – 60 days. Contract assets include amounts related to the contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. Changes in deferred revenue were as follows (in thousands): Year Ended January 31, 2025 2024 Beginning balance $ 3,054,099 $ 2,355,113 Additions to deferred revenue 4,628,202 3,754,541 Recognition of deferred revenue (3,953,624) (3,055,555) Ending balance $ 3,728,677 $ 3,054,099 Remaining Performance Obligations The Company’s subscription contracts with its customers have a typical term of one Costs to Obtain and Fulfill a Contract The Company capitalizes referral fees paid to partners and sales commissions and associated payroll taxes paid to internal sales personnel, contractors, or sales agents that are incremental to the acquisition of channel partner and direct customer contracts and would not have occurred absent the customer contract.

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.

Debt Secured Revolving Credit Facility In April 2019, the Company entered into a Credit Agreement with Silicon Valley Bank and other lenders, to provide a revolving line of credit of up to $150.0 million, including a letter of credit sub-facility in the aggregate amount of $10.0 million, and a swingline sub-facility in the aggregate amount of $10.0 million. On January 4, 2021, the Company amended and restated its existing credit agreement (the “A&R Credit Agreement” and the facility thereunder the “Revolving Facility”) among CrowdStrike, Inc., as borrower, CrowdStrike Holdings, Inc., as guarantor, and Silicon Valley Bank and the other lenders party thereto, providing the Company with a revolving line of credit of up to $750.0 million, including a letter of credit sub-facility in the aggregate amount of $100.0 million, and a swingline sub-facility in the aggregate amount of $50.0 million. The Company also has the option to request an incremental facility of up to an additional $250.0 million from one or more of the lenders under the A&R Credit Agreement. The A&R Credit Agreement is guaranteed by all of the Company’s material domestic subsidiaries. The A&R Credit Agreement extended the maturity date of April 19, 2022 to January 2, 2026. 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. There were no changes to the borrowing amounts or maturity date. Under the Amended A&R Credit Agreement, revolving loans are Alternate Base Rate (“ABR”) Loans. Outstanding ABR Loans incur interest at the highest of (a) the Prime Rate, as published by the Wall Street Journal, (b) the federal funds rate in effect on such day plus 0.50%, and (c) the Term Secured Overnight Finance Rate (the “Term SOFR”) for a one-month tenor in effect on such day plus 1.00%, in each case plus a margin between (0.25)% and 0.25%, depending on the senior secured leverage ratio. The Company will be charged a commitment fee of 0.15% to 0.25% per year for committed but unused amounts, depending on the senior secured leverage ratio. The financial covenants require the Company to maintain a minimum consolidated interest coverage ratio of 3.00:1.00 and a maximum total leverage ratio of 5.50:1.00 stepping down to 3.50:1.00 over time.

Income Taxes 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): Year Ended January 31, 2025 2024 2023 Domestic $ 62,385 $ 99,241 $ (195,042) International (7,851) 23,576 35,159 Income (loss) before provision for income taxes $ 54,534 $ 122,817 $ (159,883) The components of the provision for income taxes during the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023 are as follows (in thousands): Year Ended January 31, 2025 2024 2023 Current Federal $ 431 $ 272 $ — State 2,493 4,462 855 Foreign 78,109 30,885 20,241 Total current 81,033 35,619 21,096 Deferred Federal 323 (307) 135 State (204) (343) 89 Foreign (10,022) (2,737) 1,082 Total deferred (9,903) (3,387) 1,306 Provision for income taxes $ 71,130 $ 32,232 $ 22,402 The following table provides a reconciliation between income taxes computed at the federal statutory rate and the provision for income taxes during the fiscal years ended January 31, 2025 , January 31, 2024, and January 31, 2023 (in thousands): As of January 31, 2025 2024 2023 Provision for income taxes at statutory rate $ 11,452 $ 25,527 $ (33,777) State income taxes, net of federal benefits 2,289 4,118 944 Effects of foreign operations 10,236 22,425 11,003 Research and other credits (36,669) (21,182) (19,465) Stock-based compensation (125,590) (31,852) (47,335) Non-deductible expenses 6,904 4,604 2,800 Change in valuation allowance 152,608 28,810 102,892 Tax impact of foreign transactions 49,883 — 5,340 Other 17 (218) — Provision for income taxes $ 71,130 $ 32,232 $ 22,402 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, 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.

Stock-Based Compensation Stock Incentive Plan In May 2019, the Company’s board of directors adopted, and the stockholders approved the CrowdStrike Holdings, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) with the purpose of granting stock-based awards to employees, directors, officers, and consultants, including stock options, restricted stock awards, restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”). A total of 8,750,000 shares of Class A common stock were initially available for issuance under the 2019 Plan. The Company’s compensation committee administers the 2019 Plan. The number of shares of the Company’s common stock available for issuance under the 2019 Plan is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of: (i) two percent (2%) of outstanding shares of the Company’s capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as the Company’s board of directors may determine. The 2011 Plan was terminated on June 10, 2019, which was the business day prior to the effectiveness of the Company’s registration statement on Form S-1 used in connection with the Company’s IPO, and stock-based awards are no longer granted under the 2011 Plan. Any shares underlying stock options that expire, terminate, or are forfeited or repurchased under the 2011 Plan will be automatically transferred to the 2019 Plan. 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. Stock options granted during both fiscal years ended January 31, 2025 and January 31, 2024 were immaterial. The following table is a summary of stock option activity for the fiscal year ended January 31, 2025: Number of Weighted- (in thousands) Options outstanding at January 31, 2024 1,754 $ 9.37 Granted 30 $ 18.06 Exercised (514) $ 7.75 Canceled (19) $ 12.69 Options outstanding at January 31, 2025 1,251 $ 10.23 Options vested and expected to vest at January 31, 2025 1,251 $ 10.23 Options exercisable at January 31, 2025 1,217 $ 9.93 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.

Leases Operating Leases The Company has entered into non-cancellable operating lease agreements with various expiration dates through fiscal 2033. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. 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. The weighted-average remaining lease terms were 2.9 years and 3.7 years as of January 31, 2025 and January 31, 2024, respectively. The weighted-average discount rates were 5.5% and 5.7% as of January 31, 2025 and January 31, 2024, respectively. The components of lease costs were as follows (in thousands): Year Ended January 31, 2025 2024 2023 Lease cost Operating lease cost $ 17,326 $ 15,510 $ 11,084 Short-term lease cost 3,519 3,664 2,344 Variable lease cost 11,526 8,480 8,279 Total lease cost $ 32,371 $ 27,654 $ 21,707 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.

Acquisitions 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.