CRWD Q1 results

Investment Analysis Clubs Saul’s Investing Discussions
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Link to the full press release: https://ir.crowdstrike.com/news-releases/news-release-detail…

CrowdStrike Reports First Quarter Fiscal Year 2022 Financial Results
June 3, 2021 at 4:05 PM EDT
PDF Version
Achieves ending ARR of $1.19 billion driven by net new ARR of $144 million
Adds 1,524 net new subscription customers
Delivers record operating and free cash flow for the second consecutive quarter
SUNNYVALE, Calif.–(BUSINESS WIRE)–Jun. 3, 2021-- CrowdStrike Holdings, Inc. (Nasdaq: CRWD), a leader in cloud-delivered endpoint and cloud workload protection, today announced financial results for the first quarter fiscal year 2022, ended April 30, 2021.

“CrowdStrike kicked off the new fiscal year with strong momentum and delivered outstanding first quarter results that exceeded our expectations. We saw strength in multiple areas of the business, added $144 million in net new ARR in the quarter and grew ending ARR 74% year-over-year to exceed $1.19 billion. The CrowdStrike name has become synonymous with best-in-class cybersecurity protection and a platform that just works. Customers of all sizes are increasingly choosing CrowdStrike as their security platform of record with 1,524 net new subscription customers added in the quarter and half of total subscription customers now adopting at least five cloud modules. We believe the robust demand environment driven by secular trends, such as digital and security transformation, cloud adoption and a heightened threat environment, provides a runway for long-term sustainable growth,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer.

Commenting on the company’s financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “In the first quarter, we continued to recognize strong operating leverage in our SaaS model and delivered record operating and free cash flow even as we increased investments in our global reach and cloud platform. We believe the investments we are making today will lead to sustained growth over the long-term and maintain our pole position as the trusted security partner of choice.”

First Quarter Fiscal 2022 Financial Highlights

Revenue: Total revenue was $302.8 million, a 70% increase, compared to $178.1 million in the first quarter of fiscal 2021. Subscription revenue was $281.2 million, a 73% increase, compared to $162.2 million in the first quarter of fiscal 2021.
Annual Recurring Revenue (ARR) increased 74% year-over-year and grew to $1.19 billion as of April 30, 2021, of which $143.8 million was net new ARR added in the quarter, including $3.6 million from the acquisition of Humio.
Subscription Gross Margin: GAAP subscription gross margin was 77% in the first quarter of fiscal 2022 and fiscal 2021. Non-GAAP subscription gross margin was 79%, compared to 78% in the first quarter of fiscal 2021.
Income/Loss from Operations: GAAP loss from operations was $31.3 million, compared to $22.6 million in the first quarter of fiscal 2021. Non-GAAP income from operations was $29.8 million, compared to $1.2 million in the first quarter of fiscal 2021.
Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $85.0 million, including $48.8 million in tax costs related to the intellectual property integration from the Humio acquisition. This compares to $19.2 million in the first quarter of fiscal 2021. GAAP net loss per share attributable to CrowdStrike common stockholders was $0.38, compared to $0.09 in the first quarter of fiscal 2021. Non-GAAP net income attributable to CrowdStrike was $23.3 million, compared to $4.5 million in the first quarter of fiscal 2021. Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted, was $0.10, compared to $0.02 in the first quarter of fiscal 2021.
Cash Flow: Net cash generated from operations was a record $147.5 million, compared to $98.6 million in the first quarter of fiscal 2021. Free cash flow was a record $117.3 million, compared to $87.0 million in the first quarter of fiscal 2021.
Cash and Cash Equivalents was $1.68 billion as of April 30, 2021.

Lee

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June Investor PowerPoint Presentation Link: https://ir.crowdstrike.com/static-files/547e5c92-3594-4eef-9…

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GUIDANCE AND BEAT (in Mills.)
On 3/16/21 at Q4 they guided for 292.1 max, and they delivered 302.8, a 3.7% beat over guidance, a 14% Qon Q growth and 70% YoY.
I was hoping for a bigger beat, more like 5%. Oh, well, here is where we are.

They are now guiding Q2 at 324.4, a 7% QonQ growth and 63% YoY (growth is slowing). They revised their Full Year from 1320.7 to 1365.7, thus expecting 56% FY on FY growth.

CUSTOMERS

In the Land and Expand, at first glance they did a lot of Expanding.

They Landed 1524 new customers (including 119 from Humio), so essentially the same number as last Q (which added 25% more customers QonQ)

Total customers increased 15% from 9896 to 11420, and they are expanding; 4,5,6 modules customers are now 64%, 50%, 27% VERSUS last Q 63%, 47%, 24%.

Nice Expanding over the last 3 Q.

That’s about it for the quick glance at earnings. I will listen to the Earning Call and re read all the docs.

I am long CRWD at 21% of our portfolio, I need to crunch the numbers and allow for some statistical thinking to see if I should retain such a large chunk.

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Page 23 of the investor presentation above is an interesting depiction of the growth in cloud spend and provides a clear picture of the growing opportunity. CRWD are the clear market leader so I am not concerned with slightly slowing rate of GROWTH in revenue. The law of large numbers has to kick in at some point at this scale

Long CRWD 15%

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I am not a native speaker and I hope you guys understand my poor english ha.

-CRWD’s EPS and operation cost(%) have improved steadily in the past. But the operation cost(%) increased for the first time in this quarter, and then EPS did not increase for the first time either.

-For a company whose annual run rate will be between 1.3bn-1.5bn this year, the growth rate slowing is inevitable. In the past, the quarterly high end average beat was around 3%-9%. If we estimate the average beat is around 6% for Q222. Then Q222 YOY will also be close to 70%. However, QOQ will be 11~12%. And it will be around 55% growth in Q1 next year after multipled four times. The growth pace of CRWD this year is estimated to be a decreasing pace gradually from 70% to 55%.

I viewed CRWD with the highest standard. The above two concerns plus that the tone of the CEO in CC was not as euphoric as that in the past CC, which made feel that CRWD seems to be on the end of it’s J curve. I think it’s hard for the stock price to surge markly in next quarters. Large-scale security incidents have been reported frequently in the United States this year (previous Russian hackers, recent oil pipelines, and slaughterhouses news), and perhaps CRWD’s performance can be better. But who knows.

CRWD is still a good company, but Q122 report hinted some problems. It is still my largest holding but I may not have the same confidence for it as before. I trimmed my position from 21% to 15% after-market and plan to buy more LSPD, SNOW, and ROKU instead.

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