CrowdStrike Holdings (CRWD - Free Report) reported third-quarter fiscal 2023 non-GAAP earnings of 40 cents per share, beating the Zacks Consensus Estimate of 32 cents. The bottom line improved from the year-ago quarter’s figure of 17 cents.
The company added $198.1 million to its net new annual recurring revenues (ARR), taking the total ARR to $2.34 billion as of Oct 31, 2022, up 54% year over year.
Top-Line Details
CrowdStrike’s fiscal third-quarter revenues of $580.9 million surged 53% year over year and surpassed the consensus mark of $574.7 million. Subscription revenues jumped 53.3% year over year to $547.4 million.
The company added 1,460 net new subscription customers during the reported quarter. It had a total of 21,146 subscription customers as of Oct 31, 2022, reflecting year-over-year growth of 44%.
CRWD’s subscription customers, who adopted five or more cloud modules, soared to 60%, those with six or more cloud modules rose to 36%, and those with seven or more cloud modules jumped to 21% as of Oct 31, 2022.
Revenues from professional services climbed 45.7% year over year to $33.5 million.
CrowdStrike Price, Consensus and EPS Surprise
Operating Details
CrowdStrike’s non-GAAP gross margin contracted 100 basis points (bps) on a year-over-year basis at 75%. The non-GAAP subscription gross margin contracted 100 bps to 78% on a year-over-year basis.
Total non-GAAP operating expenses, as a percentage of revenues, were 60% compared with the prior-year quarter’s 63%.
The non-GAAP operating income was $89.7 million compared with $50.7 million in the year-ago quarter. The non-GAAP operating margin for the quarter was 15%, up 200 bps year over year.
Balance Sheet & Cash Flow
As of Oct 31, 2022, cash and cash equivalents were $2.47 billion compared with $2.32 billion as of Jul 31, 2022. CrowdStrike had long-term debt of $740.6 million.
During the fiscal third quarter, CRWD generated operating and free cash flows of $242.9 million and $174.1 million, respectively. During the first nine months of fiscal 2023, the company generated operating and free cash flow of $667.7 million and $467.4 million.
Outlook
Buoyed by the stellar third-quarter performance, CrowdStrike raised its guidance for fiscal 2023. Although the company’s management still expects revenues in the band of $2,223-$2,232 million, it now anticipates non-GAAP earnings in the band of $1.49-$1.52 per share, up from the prior range of $1.31-$1.33 per share.
The non-GAAP operating income for full fiscal 2023 is now projected in the range of $347.2-$353.8 million, higher than the previous band of $321.8-$328.5 million.
For the fourth quarter, CrowdStrike anticipates revenues between $619.1 million and $628.2 million. For the bottom line, the company expects to report non-GAAP earnings per share between 42 cents and 45 cents.
The non-GAAP operating income is expected in the band of $87.2-$93.7 million.
Zacks Rank & Stocks to Consider
CrowdStrike currently carries a Zacks Rank #3 (Hold). Shares of CRWD have lost 36.5% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Celestica (CLS - Free Report) , Fabrinet (FN - Free Report) and Zscaler (ZS - Free Report) . While Celestica flaunts a Zacks Rank #1 (Strong Buy), Fabrinet and Zscaler carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 60 days. For 2022, earnings estimates have moved 16 cents up to $1.86 per share in the past 60 days.
CLS' earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 11.8%. Shares of the company have moved up 6.1% in the past year.
The Zacks Consensus Estimate for Fabrinet's second-quarter fiscal 2023 earnings has been revised 16 cents northward to $1.89 per share over the past 30 days. For fiscal 2023, earnings estimates have improved 7.6% to $7.48 per share in the past 30 days.
FN’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 5.4%. Shares of the company have gained 16.1% in the past year.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved south by a penny to $1.17 per share in the past 30 days.
ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 61.1% in the past year.
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CrowdStrike Holdings (CRWD - Free Report) reported third-quarter fiscal 2023 non-GAAP earnings of 40 cents per share, beating the Zacks Consensus Estimate of 32 cents. The bottom line improved from the year-ago quarter’s figure of 17 cents.
The company added $198.1 million to its net new annual recurring revenues (ARR), taking the total ARR to $2.34 billion as of Oct 31, 2022, up 54% year over year.
Top-Line Details
CrowdStrike’s fiscal third-quarter revenues of $580.9 million surged 53% year over year and surpassed the consensus mark of $574.7 million. Subscription revenues jumped 53.3% year over year to $547.4 million.
The company added 1,460 net new subscription customers during the reported quarter. It had a total of 21,146 subscription customers as of Oct 31, 2022, reflecting year-over-year growth of 44%.
CRWD’s subscription customers, who adopted five or more cloud modules, soared to 60%, those with six or more cloud modules rose to 36%, and those with seven or more cloud modules jumped to 21% as of Oct 31, 2022.
Revenues from professional services climbed 45.7% year over year to $33.5 million.
CrowdStrike Price, Consensus and EPS Surprise
Operating Details
CrowdStrike’s non-GAAP gross margin contracted 100 basis points (bps) on a year-over-year basis at 75%. The non-GAAP subscription gross margin contracted 100 bps to 78% on a year-over-year basis.
Total non-GAAP operating expenses, as a percentage of revenues, were 60% compared with the prior-year quarter’s 63%.
The non-GAAP operating income was $89.7 million compared with $50.7 million in the year-ago quarter. The non-GAAP operating margin for the quarter was 15%, up 200 bps year over year.
Balance Sheet & Cash Flow
As of Oct 31, 2022, cash and cash equivalents were $2.47 billion compared with $2.32 billion as of Jul 31, 2022. CrowdStrike had long-term debt of $740.6 million.
During the fiscal third quarter, CRWD generated operating and free cash flows of $242.9 million and $174.1 million, respectively. During the first nine months of fiscal 2023, the company generated operating and free cash flow of $667.7 million and $467.4 million.
Outlook
Buoyed by the stellar third-quarter performance, CrowdStrike raised its guidance for fiscal 2023. Although the company’s management still expects revenues in the band of $2,223-$2,232 million, it now anticipates non-GAAP earnings in the band of $1.49-$1.52 per share, up from the prior range of $1.31-$1.33 per share.
The non-GAAP operating income for full fiscal 2023 is now projected in the range of $347.2-$353.8 million, higher than the previous band of $321.8-$328.5 million.
For the fourth quarter, CrowdStrike anticipates revenues between $619.1 million and $628.2 million. For the bottom line, the company expects to report non-GAAP earnings per share between 42 cents and 45 cents.
The non-GAAP operating income is expected in the band of $87.2-$93.7 million.
Zacks Rank & Stocks to Consider
CrowdStrike currently carries a Zacks Rank #3 (Hold). Shares of CRWD have lost 36.5% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Celestica (CLS - Free Report) , Fabrinet (FN - Free Report) and Zscaler (ZS - Free Report) . While Celestica flaunts a Zacks Rank #1 (Strong Buy), Fabrinet and Zscaler carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 60 days. For 2022, earnings estimates have moved 16 cents up to $1.86 per share in the past 60 days.
CLS' earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 11.8%. Shares of the company have moved up 6.1% in the past year.
The Zacks Consensus Estimate for Fabrinet's second-quarter fiscal 2023 earnings has been revised 16 cents northward to $1.89 per share over the past 30 days. For fiscal 2023, earnings estimates have improved 7.6% to $7.48 per share in the past 30 days.
FN’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 5.4%. Shares of the company have gained 16.1% in the past year.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved south by a penny to $1.17 per share in the past 30 days.
ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 61.1% in the past year.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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