We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CrowdStrike (CRWD) Soars 24% as Q4 Earnings Crush Estimates
Read MoreHide Full Article
CrowdStrike Holdings, Inc. (CRWD - Free Report) shares jumped nearly 24% on Tuesday’s extended trading session after the cloud-based cybersecurity solution provider reported better-than-expected fourth-quarter fiscal 2024 results. Fourth-quarter revenues and earnings both witnessed a significant improvement on a year-over-year basis as well.
CrowdStrike’s fourth-quarter non-GAAP earnings increased more than twofold to 95 cents per share from the year-ago quarter’s earnings of 47 cents. Quarterly earnings also surpassed the Zacks Consensus Estimate of 82 cents and came ahead of management’s previous guidance of 81-82 cents. The robust bottom-line performance was mainly driven by higher revenues and better cost management.
CrowdStrike’s fiscal fourth-quarter revenues of $845.3 million rose 33% year over year and surpassed the consensus mark of $839.1 million. The top line was also higher than the company’s earlier guidance of $836.6-$840 million. The strong adoption of the Falcon platform and better sales execution mainly aided top-line growth in the fourth quarter.
Subscription revenues (94% of the total revenues) jumped 33% year over year to $795.9 million. Professional services revenues (6% of the total revenues) rose 26% year over year to $49.4 million. Our estimates for the Subscription and Professional Services segments were pegged at $788.9 million and $47.8 million, respectively.
As of Jan 31, 2024, annual recurring revenues (ARR) were $3.44 billion, up 34% year over year. The company added $281.9 million to its net new ARR in the reported quarter. Our fourth-quarter projections for ARR and net new ARR were $3.43 billion and $354 million, respectively.
CrowdStrike ended the quarter with record deal volumes. During the reported quarter, the company closed more than 250 deals greater than $1 million in value, more than 490 deals greater than $500,000 in deal value and more than 1,900 deals greater than $100,000 in deal value.
CrowdStrike’s subscription customers, who adopted five or more cloud modules, represented 64% of the total subscription customers, those with six or more cloud modules accounted for 43%, and those with seven or more cloud modules represented 27% as of Jan 31, 2024. Deals with eight or more modules doubled on a year-over-year basis. CRWD ended the fourth quarter with more than 29,000 subscription customers, which excludes smaller customers served through managed security service provider partners.
Operating Details
CrowdStrike’s non-GAAP gross profit increased 37.6% to $661.2 million in the fourth quarter from $480.6 million in the year-ago quarter. The non-GAAP gross margin improved 300 basis points (bps) on a year-over-year basis to 78%. The strong gross margin performance was primarily driven by the company’s ability to command stable pricing, supported by the exceptional customer value delivered by its Falcon platform, as well as its continued investments in data center and workload optimization.
The non-GAAP subscription gross profit soared 38% year over year to $638.6 million, while the gross margin expanded 300 bps to 80% on a year-over-year basis. The non-GAAP professional gross profit jumped 25% to $22.6 million, while the gross margin remained flat at 46% on a year-over-year basis.
CrowdStrike’s total non-GAAP operating expenses increased 16.4% to $448 million from $385 million in the year-ago quarter. However, as a percentage of revenues, non-GAAP operating expenses declined to 53% from 60% in the year-ago quarter.
Non-GAAP sales and marketing (S&M) expenses jumped 19.9% year over year to $243.5 million. Non-GAAP research and development (R&D) expenses surged 10.4% year over year to $151.8 million. Non-GAAP general and administrative (G&A) expenses increased 18.6% year over year to $52.7 million. As a percentage of revenues, S&M, R&D and G&A expenses contracted by 300 bps, 400 bps and 100 bps to 29%, 18% and 6%, respectively.
The non-GAAP operating income surged more than twofold to $213.1 million from $95.6 million in the year-ago quarter, mainly driven by higher revenues. The non-GAAP operating margin for the quarter improved to 25% from 15% in the previous year’s quarter, which primarily benefited from a higher gross margin and lower operating expenses as a percentage of revenues.
Balance Sheet & Cash Flow
As of Jan 31, 2024, cash and cash equivalents were $3.47 billion. CrowdStrike had a long-term debt of $742.5 million.
In the fiscal fourth quarter, CRWD generated operating and free cash flows of $347 million and $283 million, respectively. In full fiscal 2024, it generated operating and free cash flows of $1.17 billion and $938.2 million, respectively.
Guidance
CrowdStrike initiated guidance for the first quarter and fiscal 2025. For the fiscal first quarter, CrowdStrike anticipates revenues between $902.2 and $905.8 million. The non-GAAP operating income is expected in the band of $188.1-$190.8 million. Non-GAAP net income is forecasted to be in the $220.4-$223.1 million range. For the bottom line, the company expects non-GAAP earnings in the range of 89-90 cents per share.
For fiscal 2025, CRWD expects revenues between $3,924.9 million and $3,989 million. The non-GAAP operating income for fiscal 2025 is projected in the band of $863.6-$913, while non-GAAP net income is anticipated in the range of $940.3-$989.7 million. Non-GAAP earnings are anticipated in the band of $3.77-$3.97 per share.
Zacks Rank & Other Stocks to Consider
CrowdStrike currently sports a Zacks Rank #1 (Strong Buy). Shares of CRWD have soared 16.5% year to date (YTD).
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 73.8% YTD.
The consensus mark for Meta’s 2024 earnings has been revised upward by 39 cents 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 38.5% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 4 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 14.6% YTD.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
CrowdStrike (CRWD) Soars 24% as Q4 Earnings Crush Estimates
CrowdStrike Holdings, Inc. (CRWD - Free Report) shares jumped nearly 24% on Tuesday’s extended trading session after the cloud-based cybersecurity solution provider reported better-than-expected fourth-quarter fiscal 2024 results. Fourth-quarter revenues and earnings both witnessed a significant improvement on a year-over-year basis as well.
CrowdStrike’s fourth-quarter non-GAAP earnings increased more than twofold to 95 cents per share from the year-ago quarter’s earnings of 47 cents. Quarterly earnings also surpassed the Zacks Consensus Estimate of 82 cents and came ahead of management’s previous guidance of 81-82 cents. The robust bottom-line performance was mainly driven by higher revenues and better cost management.
CrowdStrike’s fiscal fourth-quarter revenues of $845.3 million rose 33% year over year and surpassed the consensus mark of $839.1 million. The top line was also higher than the company’s earlier guidance of $836.6-$840 million. The strong adoption of the Falcon platform and better sales execution mainly aided top-line growth in the fourth quarter.
CrowdStrike Price, Consensus and EPS Surprise
CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike Quote
Top Line in Detail
Subscription revenues (94% of the total revenues) jumped 33% year over year to $795.9 million. Professional services revenues (6% of the total revenues) rose 26% year over year to $49.4 million. Our estimates for the Subscription and Professional Services segments were pegged at $788.9 million and $47.8 million, respectively.
As of Jan 31, 2024, annual recurring revenues (ARR) were $3.44 billion, up 34% year over year. The company added $281.9 million to its net new ARR in the reported quarter. Our fourth-quarter projections for ARR and net new ARR were $3.43 billion and $354 million, respectively.
CrowdStrike ended the quarter with record deal volumes. During the reported quarter, the company closed more than 250 deals greater than $1 million in value, more than 490 deals greater than $500,000 in deal value and more than 1,900 deals greater than $100,000 in deal value.
CrowdStrike’s subscription customers, who adopted five or more cloud modules, represented 64% of the total subscription customers, those with six or more cloud modules accounted for 43%, and those with seven or more cloud modules represented 27% as of Jan 31, 2024. Deals with eight or more modules doubled on a year-over-year basis. CRWD ended the fourth quarter with more than 29,000 subscription customers, which excludes smaller customers served through managed security service provider partners.
Operating Details
CrowdStrike’s non-GAAP gross profit increased 37.6% to $661.2 million in the fourth quarter from $480.6 million in the year-ago quarter. The non-GAAP gross margin improved 300 basis points (bps) on a year-over-year basis to 78%. The strong gross margin performance was primarily driven by the company’s ability to command stable pricing, supported by the exceptional customer value delivered by its Falcon platform, as well as its continued investments in data center and workload optimization.
The non-GAAP subscription gross profit soared 38% year over year to $638.6 million, while the gross margin expanded 300 bps to 80% on a year-over-year basis. The non-GAAP professional gross profit jumped 25% to $22.6 million, while the gross margin remained flat at 46% on a year-over-year basis.
CrowdStrike’s total non-GAAP operating expenses increased 16.4% to $448 million from $385 million in the year-ago quarter. However, as a percentage of revenues, non-GAAP operating expenses declined to 53% from 60% in the year-ago quarter.
Non-GAAP sales and marketing (S&M) expenses jumped 19.9% year over year to $243.5 million. Non-GAAP research and development (R&D) expenses surged 10.4% year over year to $151.8 million. Non-GAAP general and administrative (G&A) expenses increased 18.6% year over year to $52.7 million. As a percentage of revenues, S&M, R&D and G&A expenses contracted by 300 bps, 400 bps and 100 bps to 29%, 18% and 6%, respectively.
The non-GAAP operating income surged more than twofold to $213.1 million from $95.6 million in the year-ago quarter, mainly driven by higher revenues. The non-GAAP operating margin for the quarter improved to 25% from 15% in the previous year’s quarter, which primarily benefited from a higher gross margin and lower operating expenses as a percentage of revenues.
Balance Sheet & Cash Flow
As of Jan 31, 2024, cash and cash equivalents were $3.47 billion. CrowdStrike had a long-term debt of $742.5 million.
In the fiscal fourth quarter, CRWD generated operating and free cash flows of $347 million and $283 million, respectively. In full fiscal 2024, it generated operating and free cash flows of $1.17 billion and $938.2 million, respectively.
Guidance
CrowdStrike initiated guidance for the first quarter and fiscal 2025. For the fiscal first quarter, CrowdStrike anticipates revenues between $902.2 and $905.8 million. The non-GAAP operating income is expected in the band of $188.1-$190.8 million. Non-GAAP net income is forecasted to be in the $220.4-$223.1 million range. For the bottom line, the company expects non-GAAP earnings in the range of 89-90 cents per share.
For fiscal 2025, CRWD expects revenues between $3,924.9 million and $3,989 million. The non-GAAP operating income for fiscal 2025 is projected in the band of $863.6-$913, while non-GAAP net income is anticipated in the range of $940.3-$989.7 million. Non-GAAP earnings are anticipated in the band of $3.77-$3.97 per share.
Zacks Rank & Other Stocks to Consider
CrowdStrike currently sports a Zacks Rank #1 (Strong Buy). Shares of CRWD have soared 16.5% year to date (YTD).
Some other top-ranked stocks from the broader technology sector are NVIDIA Corporation (NVDA - Free Report) , Meta Platforms (META - Free Report) and Amazon.com (AMZN - Free Report) . Currently, NVIDIA and Meta each sport a Zacks Rank #1, while Amazon has a Zacks Rank #2 (Buy). 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 73.8% YTD.
The consensus mark for Meta’s 2024 earnings has been revised upward by 39 cents 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 38.5% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 4 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 14.6% YTD.