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CrowdStrike's (CRWD) Q4 Earnings & Revenues Top Estimates

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CrowdStrike CRWD reported fourth-quarter fiscal 2020 non-GAAP earnings of 13 cents per share, beating the Zacks Consensus Estimate by 44.44%. Quarterly earnings also marked a significant improvement from the year-ago quarter’s earnings per share of 2 cents.

CrowdStrike Holdings Inc. Price, Consensus and EPS Surprise

CrowdStrike Holdings Inc. Price, Consensus and EPS Surprise
CrowdStrike Holdings Inc. Price, Consensus and EPS Surprise

CrowdStrike Holdings Inc. price-consensus-eps-surprise-chart | CrowdStrike Holdings Inc. Quote

Top-Line Details

CrowdStrike’s fiscal fourth-quarter revenues of $264.9 million surged 74% year over year and beat the consensus mark of $251 million. Subscription revenues jumped a whopping 77% year over year to $244.7 million.

An 82% increase in subscription customers led to this impressive growth. CrowdStrike added 1,480 net new subscription customers during the reported quarter. The company had a total of 9,896 subscription customers as of Jan 31, 2021.

Moreover, CrowdStrike’s subscription customers who adopted four or more cloud modules increased to 63%, those with five or more cloud modules rose to more than 47% and for six or more cloud modules the metric jumped to 24% as of Jan 31, 2021.

Revenues from professional services soared 49% year over year to $20.3 million.

The company added $143 million to its net new average run rate (ARR), achieving $1.05 billion, up a whopping 75% from the year-ago quarter.

The dollar-based net retention rate exceeded 125% at the end of fiscal 2021.

Notably, CrowdStrike added Salesforce CRM as a customer during the fourth quarter.

Operating Details

CrowdStrike’s non-GAAP gross margin expanded 380 basis points (bps) on a year-over-year basis to 77%. Subscription gross margin advanced 300 bps to 80%. Moreover, the professional services gross margin increased to 49% from the year-ago quarter’s 42%.

Total non-GAAP operating expenses, as a percentage of revenues, were 64% compared with the prior-year quarter’s 78%.

Non-GAAP operating income was $34.4 million against the loss of $6.7 million reported in the year-ago quarter. Non-GAAP operating margin for the quarter was 13%.

Balance Sheet & Cash Flow

As of Jan 31, 2021, cash and cash equivalents were $1.92 billion compared with $1.06 billion as of Oct 31, 2020.

During the fiscal fourth quarter, the company generated operating and free cash flows of $114.5 million and $97.4 million, respectively.

Full-Year Fiscal 2021 Highlights

Total revenues of $874.4 million increased 82% year over year, with subscription revenues of $804.7 million growing 84% and professional services revenues of $69.8 million increasing 55%.

Non-GAAP earnings of 27 cents also significantly improved from a loss per share of 42 cents in fiscal 2020.

CrowdStrike generated operating and free cash flows of $356.6 million and $292.9 million, respectively.

Guidance

For first-quarter fiscal 2022, CrowdStrike anticipates revenues between $287.8 million and $292.1 million. As far as the bottom line is concerned, the company expects to report earnings per share between 5 cents and 6 cents.

Management expects Humio to contribute approximately $2 million to acquired net new ARR in the first quarter of fiscal 2022.

For fiscal 2022, management issued its revenue guidance range at $1,310.4 -$1,320.7 million. The company anticipates non-GAAP earnings per share of 27-30 cents.

Zacks Rank & Other Stocks to Consider

CrowdStrike currently carries a Zacks Rank #2 (Buy).

A couple of other top-ranked stocks in the broader technology sector are Skyworks Solutions SWKS and Micron Technology MU, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Skyworks Solutions and Micron are currently pegged at 18.98% and 9.21%, respectively.

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