uploads///CROWDSTRIKE Stock

CrowdStrike’s Stellar Results Boosts Stock over 16.0%


Jul. 22 2019, Published 9:30 a.m. ET

CrowdStrike Holdings (CRWD) stock rose 16.0% on Friday, the day after the cybersecurity company announced its fiscal 2020 first-quarter results. Its revenue and EPS rose YoY (year-over-year) to $96.1 million and -$0.47, respectively, from $47.3 million and -$0.73. Wall Street expected CRWD to post revenue of $96.08 million and EPS of -$0.47 in the first quarter.

CrowdStrike’s subscription revenue rose 116.0% YoY to $86 million and accounted for 89.5% of total sales. Its annual recurring revenue also rose, by 114.0% to $364.6 million. The company’s loss from operations fell YoY to $25.8 million from $33.1 million, and its net loss fell YoY from $33.6 million to $26.0 million.

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CEO George Kurtz stated, “We are pleased with the strong start to the year. We achieved 103% year-over-year revenue growth in the first quarter, which is consistent with the preliminary results that we shared in our IPO prospectus. As the pioneer of cloud native endpoint security, CrowdStrike provides the only endpoint protection platform built from the ground up to stop breaches, while reducing security sprawl with its single-agent architecture.” He added, “Our continued innovation strengthens our category leadership in the Security Cloud and positions us as the fundamental endpoint platform for the future.”

CrowdStrike added 543 new customers in the first quarter and now has a subscriber base of 3,059. The earnings release was CrowdStrike’s first since its IPO on June 14.

CrowdStrike expects revenue of $430.2 million–$436.4 million in fiscal 2020

Wall Street expects CrowdStrike to post revenue of $96.63 million and EPS of -$0.29 in the second quarter, and revenue of $408.03 million and EPS of -$0.98 in 2020. CrowdStrike expects sales of $103.0 million–$104.0 million in the second quarter, and adjusted EPS between -$0.24 and -$0.23. In fiscal 2020, the company expects revenue of $430.2 million–$436.4 million and EPS between -$0.72 and -$0.70.

Its robust guidance drove its stock higher. Shortly after CrowdStrike’s results, RBC Capital Markets analyst Matthew Hedberg raised the stock’s price target to $80 from $70. The stock has created massive investor wealth since its IPO, doubling to $84.55 from its IPO price of $34.


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