CrowdStrike (CRWD) Q1 Earnings and Revenue Exceed Estimates – June 3, 2022

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CrowdStrike Holdings (CRWD Free Report) reported fiscal 2023 first-quarter non-GAAP earnings of 31 cents per share, beating Zacks’ consensus estimate of 23 cents per share. Net income improved from the year-ago quarter figure of 10 cents.

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

Front line details

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

The company added 1,620 net new subscriber customers in the current quarter. It had a total of 17,945 subscribed customers as of April 30, 2022, reflecting 57% year-over-year growth.

CrowdStrike customers who adopted four or more cloud modules jumped to 71%, those with five or more cloud modules jumped to 59%, and those with six or more cloud modules jumped to 35% as of April 30, 2022.

Professional services revenue climbed 29.6% year over year to $28 million.

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

Operation details

CrowdStrike’s non-GAAP gross margin was flat year over year at 77%. Non-GAAP subscription gross margin was flat at 79% year-over-year.

Total non-GAAP operating expenses as a percentage of revenue were 60% compared to 67% in the prior year quarter.

Non-GAAP operating profit was $83 million, compared to $29.8 million in the year-ago quarter. Non-GAAP operating margin for the quarter was 17%, up 700 basis points year-over-year.

Balance sheet and cash flow

As of April 30, 2022, cash and cash equivalents were $2.15 billion, compared to $2 billion as of January 31, 2022. CrowdStrike has long-term debt of $739.9 million.

During the first fiscal quarter, the company generated operating cash flow and free cash flow of $215 million and $157.5 million, respectively. Free cash flow represented 32% of sales over the same period.

Outlook

Building on the stellar first quarter performance, CrowdStrike forecasts revenue between $512.7 million and $516.8 million for the second quarter of fiscal 2023. Regarding net income, the company expects to release non-GAAP earnings per share between 27 cents and 28 cents.

Non-GAAP operating profit is expected to be between $70.4 million and $73.3 million.

For fiscal 2023, CrowdStrike has raised its guidance. Company management currently estimates revenue in the range of $2,190.5-2,205.8 million, compared to the previously projected range of $2,133.1-2,163.2 million. The company now expects non-GAAP earnings to be $1.18 to $1.22 per share, up from the previous range of $1.03 to $1.13 per share.

Non-GAAP operating profit for the full year 2023 is now expected to be between $306.5 and $317.8 million, higher than the previous range of $289.2 to $311.8 million .

Zacks ranking and other key picks

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

Some other top-ranked stocks of the set IT and technology sector are Avnet (AVT free report), Analog devices (ADI free report) and Axcelis Technologies (ACLS Free Report), each sporting a Zacks Rank #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

Zacks’ consensus estimate for Avnet’s earnings in the fourth quarter of fiscal 2022 has been revised 55 cents north 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 have exceeded the Zacks consensus estimate in each of the previous four quarters, with the average surprise being 21.2%. Shares of AVT have risen 11.4% over the past year.

Zacks’ consensus estimate for Analog Devices’ third-quarter fiscal 2022 earnings was revised up 5 cents 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.

Earnings for Analog Devices have exceeded the Zacks consensus estimate in each of the previous four quarters, with the average surprise being 7.7%. ADI shares are up 2.3% over the past year.

Zacks’ consensus estimate for Axcelis’ second-quarter 2022 earnings was revised up 3 cents to 99 cents per share in the past 30 days. For 2022, the Zacks consensus estimate for Axcelis earnings has moved 41 cents north to $4.40 per share over the past 30 days.

Axcelis’ earnings have exceeded the Zacks consensus estimate in each of the previous four quarters, with the average surprise being 23.5%. ACLS shares have jumped 54.8% over the past year.

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