A quick note, CRWD treats SBC as a direct dollar add to FCF. So if they give out 5 dollars of SBC then they add 5 dollars to FCF.
Ethan, I’m sorry but I don’t have a clue what that means. FCF is cash in the bank. It’s Operating Cash Flow less Capex, and plus or minus interest received or paid. It has nothing to do with SBC. If a company says they have $19.43 million in FCF it means they put $19,430,000 in the bank, and their level of Cash should be up by 19.43 million dollars. SBC just doesn’t figure in in any way.
SBC potentially dilutes us, the stockholders, but it doesn’t cost the company anything, NOT A PENNY. I don’t like excess SBC any more than you do, but NO COMPANY “treats SBC as a direct dollar add to FCF”. Putting those words “treats SBC as a direct dollar add to FCF” together simply doesn’t have any meaning. SBC is simply not a cash expense or add for the company.
Best,
Saul