CrowdStrike Holdings Inc. (NASDAQ: $CRWD) is an American cybersecurity tech company founded in 2011 that offers cloud security, threat analysis, and cyberattack response solutions via its CrowdStrike Falcon platform.
On Tuesday, March 5, 2024, CrowdStrike released its fourth-quarter and fiscal 2024 results to a positive market reception.
CrowdStrike Fourth Quarter Results
In the fourth quarter of fiscal 2024, CrowdStrike reported an EPS of $0.95, 15.85% better than the analysts’ estimate of $0.82.
Revenue in the quarter was reported at $845.3 million, beating the consensus estimate of $839.11 million by 0.74% and increasing Y/Y by 33% compared to $637.4 million the previous year. In the quarter, subscription revenue increased 33% to $795.9 million, compared to $598.3 million the previous year.
Annual Recurring Revenue (ARR) also saw a Y/Y increase of 34% to $3.44 billion as of January 31, 2024, with $281.9 million net new ARR added in the fourth quarter.
Its Q424 GAAP subscription gross margin grew to 78%, compared to 75% the previous year, while it increased to 80% compared to 77% the previous year on a non-GAAP basis.
Income from operations (GAAP) for the quarter came in at $29.7 million, a major turnaround from the $61.5 million loss recorded the previous year. Meanwhile, non-GAAP income from operations came in at $213.1 million, compared to $95.6 million the previous year.
CrowdStrike ended Q424 with net cash from operations of $347 million, a massive improvement from the $237.3 million last year, while free cash flow in Q424 came in at $283 million, compared to 209.5 million last year.
Full Year Fiscal 2024 highlights
Full-year revenue came in at $3.06 billion, a 36% Y/Y increase compared to $2.24 billion the previous year, with subscription revenue increasing 36% to $2.87 billion compared to $2.11 billion last year.
GAAP subscription gross margin improved to 78% in fiscal 2024 compared to 76% last year, while it increased to 80% compared to 78% the previous year on a non-GAAP basis.
The company’s full-year GAAP loss from operations contracted to $2 million, compared to a $190.1 million loss last year. Meanwhile, CrowdStrike recorded $660.3 million in non-GAAP income from operations, an improvement from the $355.6 million last year.
The company’s full-year non-GAAP EPS was $3.09 on a net income of $751.8 million, compared to $1.54 on a non-GAAP net income of $368.4 million the previous fiscal year.
The company’s full-year net generated cash flow from operations was $1.17 billion, compared to $941 million last year, while fiscal 2024 free cash flow came in at $938.2 million compared to a free cash flow of $676.8 million last year.
As of January 31, 2024, CrowdStrike had $3.47 billion in cash and cash equivalents.
CrowdStrike Provides Guidance
For the first quarter of fiscal 2025, CrowdStrike forecasts an EPS of $0.80-$0.90, above the consensus estimate of $0.82 at the midpoint. It also forecasts revenue of $902.2-$905.8 million in Q125, above estimates of $898.8 million at the midpoint.
For the fiscal year 2025, ending January 31, 2025, CrowdStrike expects an EPS of $3.77-$3.97, above estimates of $3.76 at the midpoint. It forecasts revenue of $3.92-$3.99 billion for FY25, above the consensus estimate of $3.94 at the midpoint.
CrowdStrike Stock Performance
Following the revenue and earnings beat in the fourth quarter, CRWD stock saw a massive increase in pre-market trading. The stock was up 24.01% to $370.39 per share as of 6:49 AM EST. As of Tuesday, March 5, 2024, closing, the stock is up 20.52% year-to-date and 133.22% in the past 12 months.
If the pre-market gains hold, the stock will likely set a new 52-week high, surpassing its current 52-week high of $338.45 per share. It would also bring its market share close to $88 billion, closing the gap with Palo Alto, the largest cybersecurity firm in the US with a market cap of $94 billion.
As of Tuesday’s closing price, CRWD stock was higher than the 50-day moving average of $292.89 and 200-day moving average of $202.35.
CRWD Stock Forecast
36 Wall Street analysts give CRWD stock a consensus strong buy rating. They forecast the stock will have an average price of $339.57 per share in the next 12 months. They have set a broad range for the stock, with the most optimistic projecting $400, while the most bearish expect $270 per share. Based on the last closing price, CRWD stock’s average price target is a 14.12% upside.
Should You Buy CRWD Stock?
CrowdStrike’s upbeat guidance for fiscal 2025 signals a rising demand for cybersecurity solutions, which has sent cybersecurity stocks rising. The company reported a rise in revenue and non-GAAP net income, which it expects to continue in fiscal 2025.
During an earnings call, the CFO of CrowdStrike said their forecast assumes economic headwinds. As such, it signals the company’s projections have accounted for any headwinds, which makes it a safe bet for investors looking for growth.
Based on its upbeat guidance and the revenue and earnings beat in the fourth quarter, CRWD stock would be a great addition to your portfolio.
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