CrowdStrike Q1 earnings beat estimates: stock slides on muted guidance

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on Jun 4, 2024
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  • CrowdStrike reported its financial results for the first quarter today.
  • Here's what its CEO George Kurtz said in a press release on Tuesday.
  • CrowdStrike stock is now up close to 20% versus the start of 2024.

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CrowdStrike Holdings Inc (NASDAQ: CRWD) is trading down in extended hours on Tuesday even though it reported market-beating financial results for its first quarter.

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CrowdStrike stock loses as outlook fails to impress

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The stock is taking a hit because $CRWD issued muted guidance for the future. It forecasts revenue to fall between $958.3 million and $961.2 million in the current quarter on up to 99 cents of per-share earnings.

Analysts, in comparison, were at million and per share, respectively. Burt Podbere – the chief financial officer of CrowdStrike Holdings said in a press release today:

Financial highlights included record gross margin, significant year-over-year operating leverage, record free cash flow and a rule of 68 on a free cash flow basis, showcasing our focus on profitably scaling the business to $10 billion ending ARR and beyond.

The cybersecurity firm ended its fourth quarter with $3.65 billion in annual recurring revenue (ARR) – up 33%. $CRWD is now up close to 20% versus the start of 2024.

Notable figures in CrowdStrike Q1 earnings report

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  • Earned $42.8 million versus the year-ago $0.5 million
  • Per-share earnings also improved from break-even to 17 cents
  • Adjusted EPS printed at 93 cents as per the earnings report
  • Revenue jumped 33% year-over-year to $921 million
  • Consensus was 89 cents a share on $905 million in revenue

CrowdStrike said its subscription gross margin remained roughly flat at 78% in Q1. CEO George Kurtz said on Tuesday:

The Falcon platform’s differentiated architecture creates a wide competitive moat and uniquely enables CrowdStrike to solve the industry’s biggest cybersecurity, IT and data problems. Customers of all sizes are standardizing on the Falcon platform to achieve better security outcomes and lower their TCO.

$CRWD Q1 business highlights

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CrowdStrike ended its first fiscal quarter with $3.7 billion in cash and equivalents.

The Nasdaq listed firm expanded its strategic partnership with both Amazon Web Services and Google Cloud in Q1. $CRWD also announced two new partnerships last week – one with Cloudflare and the other with eSentire as Invezz reported here.

Ahead of the earnings print, famed investor and Mad Money host Jim Cramer acknowledged the negative sentiment on enterprise software but said CrowdStrike Holdings was “the one company that seems to be immune” to it.

$CRWD, he added, is the “last remaining domino, and I don’t think that domino is going to fall”. CrowdStrike stock does not, however, pay a dividend at writing.

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