CrowdStrike (CRWD - Free Report) reported first-quarter fiscal 2020 non-GAAP earnings of 2 cents per share, which surpassed the Zacks Consensus Estimate by 133.3%. Notably, the company reported loss of 55 cents per share in the year-ago quarter.
Moreover, revenues of $178.1 million surged 85.3% year over year and also beat the consensus mark by 7.3%.
Geographically, the United States contributed 74% of revenues, 14% came from Europe, the Middle East and Africa markets, 8% from Asia-Pacific and 5% from other markets.
Top-Line Details
Subscription revenues jumped a whopping 88.7% year over year to $162.2 million. A 105% increase in subscription customers led to this impressive growth.
CrowdStrike added 830 net new subscription customers in the quarter under review. The company had a total of 6,261 subscription customers as of Apr 30, 2020.
Notably, CrowdStrike launched a Falcon Prevent for Home Use program that allowed company administrators to install Falcon Prevent on their employees’ home systems. These free-of-cost offerings were adopted by more than 250 customers in the reported quarter.
Moreover, CrowdStrike’s subscription customers that adopted four or more cloud modules increased to 55% and those with five or more cloud modules rose to more than 35% as of Apr 30, 2020.
Revenues from professional services soared 57.2% year over year to $15.9 million.
The company added $85.7 million to its net new Average Run Rate (ARR) year over year, achieving $600 million, up 88% from the year-ago quarter.
Dollar-based net retention rate exceeded 120% in the reported quarter.
Operating Details
CrowdStrike’s non-GAAP gross margin expanded 530 basis points (bps) on a year-over-year basis to 75.4%. Subscription gross margin expanded 540 bps to 78.3%. However, professional services gross margin contracted 40 bps to 45.3%.
Research & development (R&D) expenses as a percentage of revenues decreased 410 bps on a year-over-year basis to 20%. Moreover, general & administrative (G&A) expense declined 100 bps to 10.1%.
Further, sales & marketing (S&M) expenses as a percentage of revenues were 44.6%, significantly down from 57.6% reported in the year-ago quarter.
Total operating expenses as a percentage of revenues were 74.7% compared with 92.8% in the year-ago quarter
Non-GAAP operating income was $1.2 million against loss of $21.9 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Apr 30, 2020, cash and cash equivalents were $1 billion compared with $264.8 million as of Jan 31, 2020. The company converted its marketable securities to cash in the reported quarter.
Free cash flow was $87 million in the quarter under review against free cash outflow of $16.1 million in the year-ago quarter.
Key Q1 Highlights
The CrowdStrike Falcon endpoint protection platform was named a Leader in The Forrester Wave: Enterprise Detection And Response, Q1 2020 list.
Moreover, CrowdStrike earned the highest overall rating among vendors including VMware , Microsoft (MSFT - Free Report) and Broadcom (AVGO - Free Report) in 2020 Gartner Peer Insights Customers’ Choice for Endpoint Detection and Response (EDR). CrowdStrike earned an overall rating of 4.9 out of 5 from 106 verified customer reviews.
Additionally, the Zacks Rank #3 (Hold) company inked partnership deals with Computacenter and Veronym. These collaborations make the CrowdStrike Falcon platform widely available for enterprise customers across Germany and to small and medium-sized enterprises (SMEs) across Germany, Austria and Switzerland.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CrowdStrike successfully completed its second MITRE ATT&CK evaluation, which tests a vendor’s ability to detect attacker activity across the full spectrum of sophisticated attacks.
Guidance
For second-quarter fiscal 2021, CrowdStrike anticipates revenues between $185.8 million and $190.3 million. The company expects to report between 2 cents of loss per share and a break-even.
For fiscal 2021, CrowdStrike estimates revenues between $761.2 million and $772.6 million. Non-GAAP loss per share is estimated in the band of 8-5 cents per share.
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CrowdStrike (CRWD - Free Report) reported first-quarter fiscal 2020 non-GAAP earnings of 2 cents per share, which surpassed the Zacks Consensus Estimate by 133.3%. Notably, the company reported loss of 55 cents per share in the year-ago quarter.
Moreover, revenues of $178.1 million surged 85.3% year over year and also beat the consensus mark by 7.3%.
Geographically, the United States contributed 74% of revenues, 14% came from Europe, the Middle East and Africa markets, 8% from Asia-Pacific and 5% from other markets.
Top-Line Details
Subscription revenues jumped a whopping 88.7% year over year to $162.2 million. A 105% increase in subscription customers led to this impressive growth.
CrowdStrike added 830 net new subscription customers in the quarter under review. The company had a total of 6,261 subscription customers as of Apr 30, 2020.
Notably, CrowdStrike launched a Falcon Prevent for Home Use program that allowed company administrators to install Falcon Prevent on their employees’ home systems. These free-of-cost offerings were adopted by more than 250 customers in the reported quarter.
Moreover, CrowdStrike’s subscription customers that adopted four or more cloud modules increased to 55% and those with five or more cloud modules rose to more than 35% as of Apr 30, 2020.
Revenues from professional services soared 57.2% year over year to $15.9 million.
The company added $85.7 million to its net new Average Run Rate (ARR) year over year, achieving $600 million, up 88% from the year-ago quarter.
Dollar-based net retention rate exceeded 120% in the reported quarter.
Operating Details
CrowdStrike’s non-GAAP gross margin expanded 530 basis points (bps) on a year-over-year basis to 75.4%. Subscription gross margin expanded 540 bps to 78.3%. However, professional services gross margin contracted 40 bps to 45.3%.
Research & development (R&D) expenses as a percentage of revenues decreased 410 bps on a year-over-year basis to 20%. Moreover, general & administrative (G&A) expense declined 100 bps to 10.1%.
Further, sales & marketing (S&M) expenses as a percentage of revenues were 44.6%, significantly down from 57.6% reported in the year-ago quarter.
Total operating expenses as a percentage of revenues were 74.7% compared with 92.8% in the year-ago quarter
Non-GAAP operating income was $1.2 million against loss of $21.9 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Apr 30, 2020, cash and cash equivalents were $1 billion compared with $264.8 million as of Jan 31, 2020. The company converted its marketable securities to cash in the reported quarter.
Free cash flow was $87 million in the quarter under review against free cash outflow of $16.1 million in the year-ago quarter.
Key Q1 Highlights
The CrowdStrike Falcon endpoint protection platform was named a Leader in The Forrester Wave: Enterprise Detection And Response, Q1 2020 list.
Moreover, CrowdStrike earned the highest overall rating among vendors including VMware , Microsoft (MSFT - Free Report) and Broadcom (AVGO - Free Report) in 2020 Gartner Peer Insights Customers’ Choice for Endpoint Detection and Response (EDR). CrowdStrike earned an overall rating of 4.9 out of 5 from 106 verified customer reviews.
Additionally, the Zacks Rank #3 (Hold) company inked partnership deals with Computacenter and Veronym. These collaborations make the CrowdStrike Falcon platform widely available for enterprise customers across Germany and to small and medium-sized enterprises (SMEs) across Germany, Austria and Switzerland.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CrowdStrike successfully completed its second MITRE ATT&CK evaluation, which tests a vendor’s ability to detect attacker activity across the full spectrum of sophisticated attacks.
Guidance
For second-quarter fiscal 2021, CrowdStrike anticipates revenues between $185.8 million and $190.3 million. The company expects to report between 2 cents of loss per share and a break-even.
For fiscal 2021, CrowdStrike estimates revenues between $761.2 million and $772.6 million. Non-GAAP loss per share is estimated in the band of 8-5 cents per share.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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