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CrowdStrike (CRWD - Free Report) reported fourth-quarter fiscal 2020 non-GAAP loss of 2 cents per share, which surpassed the Zacks Consensus Estimate by 75%. Moreover, the loss was narrower than the prior-year quarter’s loss of 60 cents per share.
The company’s revenues of $152.1 million surged 89% year over year. Moreover, the figure beat the Zacks Consensus Estimate of $136 million.
The top line was primarily driven by a growing customer base. Increase in demand for the Security Cloud platform was a positive.
CrowdStrike Holdings Inc. Price, Consensus and EPS Surprise
Subscription revenues jumped a whopping 90% year over year to $138.5 million. A 116% increase in subscription customers drove the impressive growth of this segment.
Revenues from professional services rose 77.5% year over year to $13.6 million.
The company added $99 million to its net new Average Run Rate (ARR) year over year, achieving $600 million.
Geographically, the United States contributed 73% of revenues, 14% came from Europe, the Middle East and Africa markets, 9% from Asia-Pacific and 4% from other markets.
Notably, the disintegration of Symantec led several of its customers to shift to CrowdStrike during the quarter.
Margins
Additionally, CrowdStrike’s non-GAAP gross margin expanded 600 basis points (bps) on a year-over-year basis to 73%.
Non-GAAP operating margin expanded 31 bps.
Balance Sheet
CrowdStrike exited the fiscal fourth quarter with cash, cash equivalents and marketable securities of approximately $912.1 million compared with $191.6 million at the end of the prior-year quarter.
The company’s balance sheet does not have any long-term debt.
It generated cash flow from operations of $66.1 million compared with $15.8million in the prior-year quarter. Free cash flow came in at $50.7 million.
Guidance
For first-quarter fiscal 2021, CrowdStrike anticipates revenues between $164.3 million and $167.6 million. Non-GAAP net loss per share is estimated to be 7-6 cents.
For fiscal 2021, the company estimates revenues between $723.33 million and $733.5 million.
Non-GAAP loss per share is estimated in a band of 14-10 cents.
Zacks Rank & Other Stocks to Consider
CrowdStrike currently sports a Zacks Rank #1 (Strong Buy).
Long-term earnings growth rate for HP, Microsoft and Comtech is currently pegged at 2%, 13.22% and 5%, respectively.
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CrowdStrike's (CRWD) Q4 Earnings & Revenues Beat Estimates
CrowdStrike (CRWD - Free Report) reported fourth-quarter fiscal 2020 non-GAAP loss of 2 cents per share, which surpassed the Zacks Consensus Estimate by 75%. Moreover, the loss was narrower than the prior-year quarter’s loss of 60 cents per share.
The company’s revenues of $152.1 million surged 89% year over year. Moreover, the figure beat the Zacks Consensus Estimate of $136 million.
The top line was primarily driven by a growing customer base. Increase in demand for the Security Cloud platform was a positive.
CrowdStrike Holdings Inc. Price, Consensus and EPS Surprise
CrowdStrike Holdings Inc. price-consensus-eps-surprise-chart | CrowdStrike Holdings Inc. Quote
Quarterly Details
Subscription revenues jumped a whopping 90% year over year to $138.5 million. A 116% increase in subscription customers drove the impressive growth of this segment.
Revenues from professional services rose 77.5% year over year to $13.6 million.
The company added $99 million to its net new Average Run Rate (ARR) year over year, achieving $600 million.
Geographically, the United States contributed 73% of revenues, 14% came from Europe, the Middle East and Africa markets, 9% from Asia-Pacific and 4% from other markets.
Notably, the disintegration of Symantec led several of its customers to shift to CrowdStrike during the quarter.
Margins
Additionally, CrowdStrike’s non-GAAP gross margin expanded 600 basis points (bps) on a year-over-year basis to 73%.
Non-GAAP operating margin expanded 31 bps.
Balance Sheet
CrowdStrike exited the fiscal fourth quarter with cash, cash equivalents and marketable securities of approximately $912.1 million compared with $191.6 million at the end of the prior-year quarter.
The company’s balance sheet does not have any long-term debt.
It generated cash flow from operations of $66.1 million compared with $15.8million in the prior-year quarter. Free cash flow came in at $50.7 million.
Guidance
For first-quarter fiscal 2021, CrowdStrike anticipates revenues between $164.3 million and $167.6 million. Non-GAAP net loss per share is estimated to be 7-6 cents.
For fiscal 2021, the company estimates revenues between $723.33 million and $733.5 million.
Non-GAAP loss per share is estimated in a band of 14-10 cents.
Zacks Rank & Other Stocks to Consider
CrowdStrike currently sports a Zacks Rank #1 (Strong Buy).
A few other similar-ranked stocks in the broader technology sector are HP Inc. (HPQ - Free Report) , Microsoft Corporation (MSFT - Free Report) and Comtech Telecommunications Corp. (CMTL - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for HP, Microsoft and Comtech is currently pegged at 2%, 13.22% and 5%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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