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CrowdStrike's (CRWD) Q1 Earnings & Revenues Beat Estimates

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Zacks Equity Research
·5 min read
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  • CRWD
    Watchlist
  • AVT
  • ADI
  • ACLS

CrowdStrike Holdings CRWD reported first-quarter fiscal 2023 non-GAAP earnings of 31 cents per share, beating the Zacks Consensus Estimate of 23 cents per share. The bottom line improved from the year-ago quarter’s figure of 10 cents.

The company added $190.5 million to its net new annual recurring revenue (ARR), taking the total ARR to $1.92 billion as of Apr 30, 2022, up 61% year over year.

Top-Line Details

CrowdStrike’s fiscal first-quarter revenues of $487.8 million surged 61% year over year and surpassed the consensus mark of $465.1 million. Subscription revenues jumped 63.5% year over year to $459.8 million.

CrowdStrike Price, Consensus and EPS Surprise

CrowdStrike Price, Consensus and EPS Surprise
CrowdStrike Price, Consensus and EPS Surprise

CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike Quote

The company added 1,620 net new subscription customers during the reported quarter. It had a total of 17,945 subscription customers as of Apr 30, 2022, reflecting year-over-year growth of 57%.

CrowdStrike’s subscription customers who adopted four or more cloud modules soared to 71%, those with five or more cloud modules rose to 59%, and those with six or more cloud modules jumped to 35% as of Apr 30, 2022.

Revenues from professional services climbed 29.6% year over year to $28 million.

Geographically, 71% of total revenues stemmed from the United States, while 29% came from outside the country.

Operating Details

CrowdStrike’s non-GAAP gross margin remained flat on a year-over-year basis at 77%. Non-GAAP subscription gross margin remained flat at 79% on a year-over-year basis.

Total non-GAAP operating expenses, as a percentage of revenues, were 60% compared with the prior-year quarter’s 67%.

Non-GAAP operating income was $83 million compared with $29.8 million in the year-ago quarter. Non-GAAP operating margin for the quarter was 17%, up 700 bps year over year.

Balance Sheet & Cash Flow

As of Apr 30, 2022, cash and cash equivalents were $2.15 billion compared with $2 billion as of Jan 31, 2022. CrowdStrike has a long-term debt of $739.9 million.

During the fiscal first quarter, the company generated operating and free cash flows of $215 million and $157.5 million, respectively. Free cash flow accounted for 32% of revenues in the same period.

Outlook

Buoyed by the stellar first-quarter performance, CrowdStrike anticipates revenues between $512.7 million and $516.8 million for the second quarter of fiscal 2023. As far as the bottom line is concerned, the company expects to report non-GAAP earnings per share between 27 cents and 28 cents.

Non-GAAP operating income is expected to be $70.4-$73.3 million.

For fiscal 2023, CrowdStrike raised its guidance. The company’s management currently estimates its revenues in the band of $2,190.5-$2,205.8 million, compared with the previously projected band of $2,133.1-$2,163.2 million. The company now anticipates non-GAAP earnings to be $1.18-$1.22 per share, up from the prior range of $1.03-$1.13 per share.

Non-GAAP operating income for the full fiscal 2023 is now projected to be $306.5-$317.8 million, higher than the previous band of $289.2-$311.8 million.

Zacks Rank & Other Key Picks

CrowdStrike currently carries a Zacks Rank #2 (Buy). Shares of CRWD have declined 15.9% in the past year.

Some other top-ranked stocks from the broader Computer and Technology sector are Avnet AVT, Analog Devices ADI and Axcelis Technologies ACLS, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 60 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 60 days.

Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have rallied 11.4% in the past year.

The Zacks Consensus Estimate for Analog Devices' third-quarter fiscal 2022 earnings has been revised 5 cents upward to $2.42 per share over the past 30 days. For fiscal 2022, earnings estimates have moved 16 cents north to $9.24 per share in the past 30 days.

Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.7%. Shares of ADI have increased 2.3% in the past year.

The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past 30 days. For 2022, The Zacks Consensus Estimate for Axcelis' earnings has moved 41 cents north to $4.40 per share in the past 30 days.

Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have surged 54.8% in the past year.


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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
 
Avnet, Inc. (AVT) : Free Stock Analysis Report
 
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