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CrowdStrike's (CRWD) Q1 Earnings & Revenues Top Estimates

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CrowdStrike (CRWD - Free Report) reported first-quarter fiscal 2022 non-GAAP earnings of 10 cents per share, beating the Zacks Consensus Estimate by 66.7%. Quarterly earnings moved up from the year-ago quarter’s figure of 2 cents.

CrowdStrike Holdings Inc. Price, Consensus and EPS Surprise

 

CrowdStrike Holdings Inc. Price, Consensus and EPS Surprise

CrowdStrike Holdings Inc. price-consensus-eps-surprise-chart | CrowdStrike Holdings Inc. Quote

 

Top-Line Detail

CrowdStrike’s fiscal first-quarter revenues of $302.8 million surged 70% year over year and beat the consensus mark of $251 million. Subscription revenues surged 73% year over year to $281.2 million.

An 82% increase in subscription customers led to this impressive growth. CrowdStrike added 1,524 net new subscription customers during the reported quarter. The company had a total of 11,420 subscription customers as of Apr 30, 2021, including 119 from the acquisition of Humio.

Moreover, CrowdStrike’s subscription customers who adopted four or more cloud modules increased to 64%, those with five or more cloud modules rose to 50% and for six or more cloud modules the metric jumped to 27% as of Apr 30, 2021.

Revenues from professional services soared 36% year over year to $21.6 million.

The company added $143.8 million to its net new annual recurring revenue (ARR), achieving $1.19 billion, up 74% from the year-ago quarter’s levels.

The dollar-based net retention rate exceeded 120% at the end of the first quarter.

Operating Details

CrowdStrike’s non-GAAP gross margin expanded 150 basis points (bps) on a year-over-year basis to 77%. Subscription gross margin advanced 100 bps to 79%.

Total non-GAAP operating expenses, as a percentage of revenues, were 67% compared with the prior-year quarter’s 75%.

Non-GAAP operating income was $29.8 million against a loss of $6.7 million in the year-ago quarter. Non-GAAP operating margin for the quarter was 10%, up 900 bps year over year.

Balance Sheet & Cash Flow

As of Apr 30, 2021, cash and cash equivalents were $1.68 billion compared with $1.92 billion as of Jan 31, 2020.

During fiscal first quarter, the company generated operating and free cash flows of $147.5 million and $117.3 million, respectively.

Guidance

Management noted that generation of cash flows are typically the lowest in the second quarter due to expenses, seasonality of new hires and the midyear ESPP purchase. For second-quarter fiscal 2022, CrowdStrike anticipates revenues between $318.3 million and $324.4 million. As far as the bottom line is concerned, the company expects to report earnings per share (EPS) between 7 cents and 9 cents.

For fiscal 2022, management raised its revenue guidance in the range of $1,347-$1,365.7 million from the previous range of $1,310.4-$1,320.7 million. Moreover, the company now anticipates non-GAAP EPS of 35-41 cents, instead of 27-30 cents.

Zacks Rank & Stocks to Consider

CrowdStrike currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include Silicon Motion Technology Corporation (SIMO - Free Report) , Lam Research Corporation (LRCX - Free Report) and LG Display Co., Ltd. (LPL - Free Report) , all sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Silicon Motion Technology Corporation, Lam Research and LG Display is currently pegged at 8%, 32.8% and 32.56%, respectively.

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