CrowdStrike Holdings, Inc. (CRWD - Free Report) is slated to report fourth-quarter fiscal 2024 results on Mar 5. The cloud-based cybersecurity solution provider’s fourth-quarter performance is expected to have benefited from a positive demand environment, which is likely to have boosted the company’s subscription revenues.
Click here to know how CRWD’s overall fiscal fourth-quarter results are likely to be.
Subscription Growth to Boost Q4 Revenues
Stellar revenue growth in subscriptions might have contributed significantly to CrowdStrike’s fourth-quarter top line. The increasing number of people logging into employers' networks has triggered a greater need for security and might have spurred the demand for CRWD’s products in the fiscal fourth quarter. A strong pipeline of deals indicates the same.
CrowdStrike’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, is likely to have helped the company add new clients during the to-be-reported quarter. The AI-enabled Falcon Platform is the industry’s first multi-tenant, cloud-native, intelligent security solution that protects workloads across on-premise, cloud-based and virtualized environments running on a variety of endpoints such as desktops, laptops, servers, virtual machines and IoT devices.
CrowdStrike’s cloud-based Falcon platform currently provides 10 cloud modules via a software-as-a-service subscription model. The modules are separated into three categories — Endpoint Security, Security & IT Operations and Threat Intelligence.
As a result of its wide-scale offerings, CrowdStrike is one shop for almost all types of security solutions. This provides a competitive advantage over other rivals that have mostly limited types of solutions, such as Proofpoint, which specializes in identity theft protection, and FireEye and F5 Networks, which offer cloud-based proxy, firewall, sandboxing and advanced threat protection.
At the end of the third quarter of fiscal 2024, CrowdStrike’s subscription customers, who adopted five or more cloud modules, represented 63% of the total subscription customers, those with six or more cloud modules accounted for 42% and those with seven or more cloud modules represented 26%.
CrowdStrike’s subscription-based business model is expected to boost profitability in the fourth quarter. This business model generates recurring revenues and higher margins for the company (more than 70%) than the hardware-centric model. In the third quarter, contributions of subscription-based sales to the company’s total revenues were approximately 93%. The non-GAAP gross margin improved 230 basis points (bps) on a year-over-year basis to 77.8% in the third quarter.
Our fourth-quarter estimate for Subscription revenues is pegged at $788.9 million, indicating a year-over-year improvement of 31.9%. The company’s fourth-quarter non-GAAP gross margin is anticipated to improve 200 bps year over year to 77.4%, per our model.
Zacks Rank & Other Stocks to Consider
CrowdStrike currently sports a Zacks Rank #1 (Strong Buy). Shares of CRWD have soared 23.2% year to date (YTD).
Some other top-ranked stocks from the broader technology sector are NVIDIA Corporation (NVDA - Free Report) , Amazon.com (AMZN - Free Report) and Meta Platforms (META - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2025 earnings has been revised 16.4% upward to $23.22 per share in the past 30 days, suggesting year-over-year growth of 79.2%. The long-term estimated earnings growth rate for the stock stands at 29.7%. Shares of NVDA have jumped 66.1% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 39 cents to $4.06 per share in the past 30 days, which calls for an increase of 40% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 17.2% YTD.
The consensus mark for Meta’s 2024 earnings has been revised upward by 13% to $19.94 per share over the past 30 days, indicating a 34.1% increase from 2023. It has a long-term earnings growth expectation of 19.5%. In the trailing 12 months, META stock has surged 41.9% YTD.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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CrowdStrike Holdings, Inc. (CRWD - Free Report) is slated to report fourth-quarter fiscal 2024 results on Mar 5. The cloud-based cybersecurity solution provider’s fourth-quarter performance is expected to have benefited from a positive demand environment, which is likely to have boosted the company’s subscription revenues.
Click here to know how CRWD’s overall fiscal fourth-quarter results are likely to be.
Subscription Growth to Boost Q4 Revenues
Stellar revenue growth in subscriptions might have contributed significantly to CrowdStrike’s fourth-quarter top line. The increasing number of people logging into employers' networks has triggered a greater need for security and might have spurred the demand for CRWD’s products in the fiscal fourth quarter. A strong pipeline of deals indicates the same.
CrowdStrike’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, is likely to have helped the company add new clients during the to-be-reported quarter. The AI-enabled Falcon Platform is the industry’s first multi-tenant, cloud-native, intelligent security solution that protects workloads across on-premise, cloud-based and virtualized environments running on a variety of endpoints such as desktops, laptops, servers, virtual machines and IoT devices.
CrowdStrike’s cloud-based Falcon platform currently provides 10 cloud modules via a software-as-a-service subscription model. The modules are separated into three categories — Endpoint Security, Security & IT Operations and Threat Intelligence.
As a result of its wide-scale offerings, CrowdStrike is one shop for almost all types of security solutions. This provides a competitive advantage over other rivals that have mostly limited types of solutions, such as Proofpoint, which specializes in identity theft protection, and FireEye and F5 Networks, which offer cloud-based proxy, firewall, sandboxing and advanced threat protection.
At the end of the third quarter of fiscal 2024, CrowdStrike’s subscription customers, who adopted five or more cloud modules, represented 63% of the total subscription customers, those with six or more cloud modules accounted for 42% and those with seven or more cloud modules represented 26%.
CrowdStrike’s subscription-based business model is expected to boost profitability in the fourth quarter. This business model generates recurring revenues and higher margins for the company (more than 70%) than the hardware-centric model. In the third quarter, contributions of subscription-based sales to the company’s total revenues were approximately 93%. The non-GAAP gross margin improved 230 basis points (bps) on a year-over-year basis to 77.8% in the third quarter.
Our fourth-quarter estimate for Subscription revenues is pegged at $788.9 million, indicating a year-over-year improvement of 31.9%. The company’s fourth-quarter non-GAAP gross margin is anticipated to improve 200 bps year over year to 77.4%, per our model.
Zacks Rank & Other Stocks to Consider
CrowdStrike currently sports a Zacks Rank #1 (Strong Buy). Shares of CRWD have soared 23.2% year to date (YTD).
Some other top-ranked stocks from the broader technology sector are NVIDIA Corporation (NVDA - Free Report) , Amazon.com (AMZN - Free Report) and Meta Platforms (META - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2025 earnings has been revised 16.4% upward to $23.22 per share in the past 30 days, suggesting year-over-year growth of 79.2%. The long-term estimated earnings growth rate for the stock stands at 29.7%. Shares of NVDA have jumped 66.1% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 39 cents to $4.06 per share in the past 30 days, which calls for an increase of 40% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 17.2% YTD.
The consensus mark for Meta’s 2024 earnings has been revised upward by 13% to $19.94 per share over the past 30 days, indicating a 34.1% increase from 2023. It has a long-term earnings growth expectation of 19.5%. In the trailing 12 months, META stock has surged 41.9% YTD.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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