CrowdStrike Stock Value Spikes After Reporting Strong Q1 FY2020

Crowdstrike (NASDAQ: CRWD), a cloud-based cybersecurity protection firm, had a huge start to its fiscal year 2020, reporting total revenue of $96.1 million, a

CrowdStrike Stock Value Spikes After Reporting Strong Q1 FY2020

Source: Crowdstrike

CrowdStrike (NASDAQ: CRWD), a cloud-based cybersecurity technology and consulting firm, had a huge start to its fiscal year 2020, reporting total revenue of $96.1 million, a 103% increase year-over-year. The Sunnyvale, California-based company also reported subscription revenue of $86.0 million, a 116% increase year-over-year. In addition, CrowdStrike reported record annual recurring revenue of $364.6 million, an increase of 114% year-over-year.

Our success to-date and rapid growth are the results of close to a decade-long mission to stop breaches and pioneer a new category, the security cloud. Nearly every breach youve ever heard of had two things in common. The victims had both a firewall and an antivirus solution, said George Kurtz, CrowdStrike co-founder and CEO, in a July 18 earnings call.

Today, companies and government agencies face the constant threat of cyberattacks from a variety of threat actors, ranging from highly advanced nation states to organized crime, activists and even terrorist organizations. These attacks aim to not only steal money and intellectual property, but increasingly they seek to disrupt and destroy. Using highly sophisticated tools and techniques, todays cyber adversaries run circles around fossilized legacy technologies, Kurtz added.

This is what led us to start CrowdStrike back in 2011. We set out to create a modern endpoint security platform with a cloud native architecture, built from the ground up to stop breaches. Like other cloud disruptors, CrowdStrike started with a clean slate to build not only a scalable cloud architecture, but also a scalable, frictionless and highly efficient business model, explained Kurtz.

Other financial highlights from the quarter include:

  • GAAP subscription gross margin was 72%, compared to 62% for the same period last year.
  • GAAP loss from operations was $25.8 million, an improvement over a $33.1 million loss for Q1 FY2019.
  • GAAP net loss was $26.0 million, or $0.47 per share, compared to a $33.6 million loss for the same period last year.
  • Net cash generated from operations was $1.4 million, down from $6.4 million in Q1 FY2019.
  • As of April 30, 2019, cash, cash equivalents and marketable securities was $175.1 million.

This is the companys first earnings report since Crowdstrike held its initial public offering on June 12. The companys stock has doubled in that short time, says CNBC.

Operational highlights include:

  • The company added 543 net new subscription customers during the quarter, bringing total subscribers to 3,059 as of April 30.
  • The company raised $659.1 million in net proceeds from its IPO, which closed on June 14.
  • CrowdStrike announced the CrowdStrike Store, which opens up the companys Falcon platform to third-party applications.
  • The company also announced the cybersecuritys first endpoint detection and response solution for mobile devices – Falcon for Mobile.
  • CrowdStrike was named a leader in The Forrester Wave for Cybersecurity Incident Response Services.

The company offered the following guidance for the second quarter:

  • Total revenue between $103.0 million and $104.0 million
  • Non-GAAP loss from operations between $28.6 million and $29.1 million
  • Non-GAAP net loss between $30.0 million and $30.5 million

Guidance for the full year is as follows:

  • Total revenue between $430.2 million and $436.4 million
  • Non-GAAP loss from operations between $110.4 million and $113.4 million
  • Non-GAAP net loss between $103.2 million and $105.9 million

Early investors were certainly impressed with the earnings report. The day before the report – July 17 – stock value closed at $71.00 per share. On July 18, they increased slightly to $72.75 per share before jumping to $83.52 per share on July 19. As of 5:38 p.m. EDT yesterday, CrowdStrikes stock value was $87.46 per share. This is more than double the companys IPO price of $34 per share.

CrowdStrike Stock Value Spikes After Reporting Strong Q1 FY2020

Source: Google

Insider Take:

According to Market Watch, CrowdStrikes earnings report came in better than anticipated in terms of revenue and outlook but also in the number of subscribers. Market Watch reports that more than half of CrowdStrikes customers have come on board in the last five quarters – impressive growth for any subscription-based company. CrowdStrike is posting big numbers just 6 weeks after its IPO, something other tech companies havent achieved at this level. They are certainly a company to watch this year.

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