CRWD - Q420
Supplemental numbers: https://ir.crowdstrike.com/static-files/4747d3dd-3208-4636-9…
vinegar on pandemic impact: https://discussion.fool.com/crwd-possibly-benefitting-from-covid…
CC transcript: https://www.fool.com/earnings/call-transcripts/2020/03/19/cr…
CC notes (Edyboom): https://discussion.fool.com/4056/great-earnings-conference-notes…
Revenue 152.1M +89% !!
- Sub Rev 138.5M +90% !!
ARR 600.5M +92% !!
Adj Gross Margin 73% +600bps
- Adj Sub GM 77% +700bps, +100bps seq
Adj Op Loss -6.7M (vs -28.0M)
… margin -4.4% (vs -34.8%), +860bps seq !!!
Adj Loss -3.9M (vs -28.0M) !!
Adj EPS -0.02 (vs -0.60) !!
Opex 118.4M +98%
CFFO 66.1M (vs 15.8M) !!
FCF 50.7M (vs -0.1M) !!
… margin 33.3% !!!, +2770bps seq !!!
Custs 5431 +116% ^^, +400bps seq
Revenue 481.4M +93%
- Sub Rev 436.3M +99%
Adj Op Loss 65.6M (vs -115.8M)
Adj Loss 62.6M (vs -119M)
Adj EPS -0.42 (vs -2.65)
CFFO 99.9M (vs -23.0M)
FCF 12.5M (vs -65.6M)
- CTO/co-founder left in Feb to start non-profit https://www.cyberscoop.com/dmitri-alperovitch-crowdstrike-co…
- VP of Tech Strategy (started in 2016, ex-Intel Security) promoted to CTO https://ir.crowdstrike.com/news-releases/news-release-detail…
- 73% of rev from US, 14% EMEA, 9% APAC
- 33% of custs have 5+ modules
- launched Falcon Spotlight App for Security Ops in the ServiceNow store, integrating Falcon endpoint vulnerability data with response workflows in ServiceNow
- expanded Falcon platform EPP & EDR onto workloads & containers running on GCP and Azure clouds (already did AWS, so now have all 3 major IaaS)
- AWS Marketplace channel going extremely well; +32% seq, is cutting sales cycle 50%
- added product Endpoint Recovery Services, to accelerate incident response (IR) and remediation, minimize downtime after intrusion https://www.crowdstrike.com/press-releases/crowdstrike-intro…
- Fed govt rev up +200%
- recently published their Global Threat Report 2020, a deeply detailed technical report highlighting the cybersecurity trends they are seeing: https://go.crowdstrike.com/rs/281-OBQ-266/images/Report2020C…
CEO: “… regardless of the spending environment cybersecurity is not a discretionary purchase for organizations. Cybersecurity is mission critical to both the public and private sector. Endpoint or workload security is also essential to protecting a remote workforce. While the impact to the macroeconomy from the coronavirus is unfolding in real time, we know it is forcing companies to conduct business differently and rapidly shift to a remote workforce. With our cloud native platform, our lightweight agent that is easily deployed at scale and our frictionless go-to-market engine, CrowdStrike is uniquely positioned to meet their cybersecurity needs. … we are seeing strong success with our strategy to land bigger with more modules and we are also seeing an acceleration in new logo business which further accelerated in Q4 as the dynamics in the competitive landscape shifted in our favor. We view these two trends as positive developments and very healthy long-term indicators for our business, but they have a natural trade-off on expansions in the near term. … In Q4 we continued to recognize operating leverage in our SaaS model and the benefits of scale, even as we increased investments in our global reach and cloud platform.”
My stance: Wow. Top line growth is holding steady at this level, and even bumped up +100bps from last Q. Margins moving extremely quickly to positive. Such an impressive Q, I had to add an extra “!” for those margin gains. Customer growth is ACCELERATING (112% last Q to 116% this Q). This is clearly a stock with a tailwind, with the massive number of people working remotely having all those devices in the field needing protection (along with ZS, NET, OKTA for protecting network traffic).
I may have broken my ! key on this report.
long CRWD 11%