CRWD defines Magic # like this- Magic Number is calculated by performing the following calculation for the most recent four quarters and taking the average: annualizing the difference between a quarter’s Subscription Revenue and the prior quarter’s Subscription Revenue, and then dividing the resulting number by the previous quarter’s NonGAAP Sales & Marketing Expense. Magic Number = Average of previous four quarters: ((Quarter Subscription Revenue – Prior Quarter Subscription Revenue) x 4) / Prior Quarter Non-GAAP Sales & Marketing Expense.
Your calculation makes a little more sense to me intuitively and matches what I have in my notes from FY21. Do you know if they changed the definition of the term at some point?
Thank you Brad for detailed explanation.
great summary, thanks!
Your commitment to sharing is always appreciated. Thx, Brad!
Brad,
CRWD defines Magic # like this- Magic Number is calculated by performing the following calculation for the most recent four quarters and taking the average: annualizing the difference between a quarter’s Subscription Revenue and the prior quarter’s Subscription Revenue, and then dividing the resulting number by the previous quarter’s NonGAAP Sales & Marketing Expense. Magic Number = Average of previous four quarters: ((Quarter Subscription Revenue – Prior Quarter Subscription Revenue) x 4) / Prior Quarter Non-GAAP Sales & Marketing Expense.
Your calculation makes a little more sense to me intuitively and matches what I have in my notes from FY21. Do you know if they changed the definition of the term at some point?
Brad, Great information. I get a lot of value out of your trend tables, QoQ and YoY. Well done!