The 365-day forecast on Jan. 18th, 2023 strongly recommended CRWD stock. On the date of the forecast, CRWD prices started at $101.00 and this position closed at $283.11 one year later.
CrowdStrike Holdings, Inc. (NASDAQ: CRWD) is a cloud-based cybersecurity company that provides endpoint protection, threat intelligence, and cyberattack response services to businesses worldwide. The company’s headquarters are located in Sunnyvale, California. CrowdStrike primarily sells subscriptions to its Falcon platform and cloud modules through its direct sales team that leverages its network of channel partners. One of the most significant challenges is the increasing sophistication of cyberattacks. As cybercriminals become more advanced, they are developing new techniques to bypass traditional security measures. CrowdStrike has responded to this challenge by developing advanced threat intelligence and machine learning algorithms to detect and prevent cyberattacks.
The company has also been recognized as a leader in endpoint protection platforms by Gartner. CrowdStrike’s success can be attributed to its innovative approach to cybersecurity and its ability to stay ahead of the curve in a rapidly evolving industry. The company has faced several challenges in the cybersecurity industry but has responded by developing advanced threat intelligence and machine learning algorithms to detect and prevent cyberattacks. CrowdStrike has experienced significant growth since its inception and has been recognized as a leader in endpoint protection platforms by Gartner. Overall, CrowdStrike is a promising company with a bright future in the cybersecurity industry
On January 18th, 2023, our AI-powered stock forecast predicted that CRWD was a strong buy trading at only $101.00 for the 1-year time horizon. The stock recommendation resulted in a triple-digit profit of 180.31% with the stock price closing at $283.11 on January 18th, 2024.
CrowdStrike has experienced significant growth since its inception. In 2022, the company’s revenue was $2.24 billion, an increase of 54.40% compared to the previous year’s $1.45 billion. A distinguishing factor contributing to CrowdStrike's financial success is its subscription-based revenue model. With the majority of its revenue derived from subscription services, the company ensures a recurring and stable income stream. The subscription gross margin has remained resilient. This not only underscores the strength of the business model but also enhances the predictability of future earnings.
The global cybersecurity market is poised for continuous expansion, driven by the escalating frequency and sophistication of cyber threats. CrowdStrike is well-positioned to capitalize on this growth, given its innovative solutions and established market presence. The company's relentless focus on research and development ensures that it remains at the forefront of technological advancements, further expanding its addressable market. While CrowdStrike has gained significant traction in the North American market, there exists substantial untapped potential in international markets. The company's strategic initiatives to expand its footprint globally, coupled with the increasing awareness of cybersecurity threats on a global scale, position CrowdStrike for considerable growth in regions beyond its current stronghold.
CrowdStrike's Q3 Fiscal Year 2024 Recap: A Strategic Triumph
CrowdStrike Holdings, Inc. (Nasdaq: CRWD) has unveiled its financial results for the third quarter of fiscal year 2024, culminating in an extraordinary performance that surpassed expectations and set new industry standards. The company's comprehensive press release on November 28, 2023, provided a detailed account of its financial achievements, strategic milestones, and future outlook, solidifying its position as an eminent force in the cybersecurity sector.
Financial Highlights:
Revenue Growth and Annual Recurring Revenue (ARR):
Total revenue for the quarter reached an impressive $786.0 million, marking a substantial 35% increase from the corresponding period in the previous fiscal year.
The Annual Recurring Revenue (ARR) surged to a monumental $3.15 billion as of October 31, 2023, reflecting a remarkable 35% year-over-year growth. This figure includes a net new ARR of $223.1 million added in the quarter, emphasizing CrowdStrike's ability to consistently expand its recurring revenue base.
Subscription Revenue and Gross Margin:
Subscription revenue, a key driver of CrowdStrike's financial success, experienced a robust 34% increase, reaching $733.5 million in the third quarter.
GAAP subscription gross margin demonstrated strength, standing at an impressive 78%, showcasing the company's operational efficiency. Moreover, the non-GAAP subscription gross margin reached an enviable 80%, underscoring CrowdStrike's commitment to maintaining a high-margin business model.
Profitability Metrics:
Notably, the company reported GAAP income from operations of $3.2 million, a significant turnaround from the loss of $56.4 million in the same quarter of the previous fiscal year.
The non-GAAP income from operations soared to $175.7 million, more than doubling the figure from the third quarter of fiscal 2023. This exceptional improvement signifies CrowdStrike's relentless pursuit of operational excellence.
Net Income and Cash Flow:
CrowdStrike achieved a GAAP net income attributable to the company of $26.7 million, a notable positive swing from the loss of $55.0 million in the third quarter of fiscal 2023.
The company reported substantial net cash generated from operations at $273.5 million, underscoring robust cash flow dynamics. Free cash flow reached an impressive $239.0 million, showcasing CrowdStrike's ability to convert its operational success into substantial free cash flow.
Cash Reserves:
As of October 31, 2023, CrowdStrike boasted a robust financial position with Cash, Cash Equivalents, and Short-term Investments totaling $3.17 billion, providing ample liquidity for future strategic initiatives.
Strategic Achievements and Market Positioning:
Module Adoption and Industry Recognitions:
CrowdStrike's module adoption rates, a testament to its product portfolio's efficacy, were 63%, 42%, and 26% for five or more, six or more, and seven or more modules, respectively, as of October 31, 2023.
The company achieved a perfect 100% coverage score across protection, visibility, and analytic detections in MITRE Engenuity ATT&CK®: Evaluations Enterprise Round 5, solidifying its standing as a leader in the cybersecurity space.
Market Leadership and Cloud Sales Milestone:
CrowdStrike made history as the first cybersecurity independent software vendor (ISV) founded for the cloud to exceed $1 billion in software sales through AWS Marketplace, showcasing its strong market position and cloud-native focus.
The company's recognition as a leader in various reports, including The Forrester Wave™ and Frost & Sullivan's Frost Radar, reaffirms its industry leadership and technological prowess.
Product Innovations and Acquisitions:
CrowdStrike unveiled a series of innovative offerings during the seventh annual Fal.Con cybersecurity conference, including Data Protection, Exposure Management, IT Automation innovations, and the 'Raptor' release powered by Falcon LogScale.
The acquisition of Bionic, a pioneer in Application Security Posture Management (ASPM), further extended CrowdStrike's Cloud Native Application Protection Platform (CNAPP), enhancing its risk visibility and protection capabilities.
Financial Outlook and Guidance:
CrowdStrike's forward-looking guidance for the fourth quarter of fiscal 2024 and the fiscal year 2024 reflects the company's confidence in its ability to sustain its growth trajectory.
Q4 FY24 Guidance:
Total revenue is expected to range between $836.6 million and $840.0 million.
Non-GAAP income from operations is projected to be between $186.5 million and $189.0 million.
Non-GAAP net income attributable to CrowdStrike is forecasted to fall within the range of $199.6 million and $202.1 million.
Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted, is anticipated to be between $0.81 and $0.82.
Full Year FY24 Guidance:
Total revenue guidance for the fiscal year 2024 has been increased to a range of $3,046.8 million to $3,050.2 million.
Non-GAAP income from operations is expected to range between $633.6 million and $636.2 million.
Non-GAAP net income attributable to CrowdStrike is projected to be between $715.2 million and $717.7 million.
Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted, is anticipated to be in the range of $2.95 to $2.96.
Conclusion:
CrowdStrike's exemplary Q3 fiscal year 2024 results underscore its financial resilience, operational prowess, and strategic acumen in navigating the complex cybersecurity landscape. The company's ability to achieve record milestones in revenue, profitability, and cash flow, coupled with its strategic initiatives and product innovations, positions it favorably for sustained growth. With an upwardly revised full-year guidance, CrowdStrike demonstrates confidence in its ability to capitalize on the burgeoning demand for advanced cybersecurity solutions, solidifying its status as a trailblazer in the industry. Investors should keenly observe this cybersecurity juggernaut as it continues to fortify its position as a leader in the digital defense realm.
Remember to always exercise discretion when studying the market. Before putting any financial plans into action, you should always conduct your due diligence and seek assistance from a licensed financial advisor.
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Sources: 1. CrowdStrike Holdings Investor Relations, "CrowdStrike Reports Third Quarter Fiscal Year 2024 Financial Results" (2023)
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