CrowdStrike believes that Bloomberg’s reporting for its October 25, 2024 story is misleading. CrowdStrike had a bona fide, signed, non-cancellable order placed by Carahsoft under its distribution agreement. CrowdStrike books all orders in compliance with U.S. Generally Accepted Accounting Principles (GAAP), and we stand by the accounting of the transaction. Any assertion that CrowdStrike “pre-booked” this transaction is false.
Despite CrowdStrike providing clear facts, Bloomberg chose to prioritize inaccurate allegations from unnamed sources who we believe include disgruntled, former employees who were not in the accounting department.
Here are some of the key facts that we provided:
- CrowdStrike is a channel-first company, meaning we work with resellers and distributors globally to bring our products to market.
- In October 2023, CrowdStrike received a bona fide, signed, non-cancellable purchase order from Carahsoft. That order referenced a specific federal agency, the IRS.
- The transaction was accounted for in compliance with U.S. GAAP, specifically Accounting Standards Codification (ASC) 606; and treated consistent with our publicly disclosed ARR definition. For accounting purposes, our customer was Carahsoft.
- All payments due under this transaction from Carahsoft to CrowdStrike are current, and no amounts are past due.
Bloomberg’s suggestion that there is anything questionable about the timing of this transaction — closing at the end of a quarter — ignores the sales dynamics of the tech industry. Anyone familiar with the industry knows that quarter-end is a busy time for software companies, with many deals closing before the deadline.
CrowdStrike is a mission-driven organization focused on protecting customers by stopping breaches. Trust, transparency and integrity are central to our culture and we pride ourselves on operating an ethical and upstanding business. We firmly believe the facts show that Bloomberg’s story is misleading and stand by the accounting of the transaction. We are proud of the work CrowdStrike is doing to create a more secure future.
