I know we don’t often look at guidance since companies always sandbag, and therefore we can’t expect to get accuracy from the outlook numbers. However, sometimes we can see trends.
Crowdstrike has only reported twice as a public company.
In July they reported Q1, and they lost 47 cents per share, but guided to $(0.24) – $(0.23) for Q2.
In September they reported Q2, and of course they beat and only lost 18 cents per share, and they guided to $(0.12) – $(0.11) for Q3.
Wow, that’s some pretty rapidly improving losses! I don’t know what will happen in Q3, but I would be surprised if their EPS loss wasn’t less than 10 cents per share. And for Q4, who knows, they could even guide to a gain! It will also be interesting to see how this trend continues into 2020, but you have to think they’ve put themselves in a good position! With the market seeming to lose patience with companies burning cash, Crowdstrike seems like they could flip the script in that regard.
This was something I only noticed in the last few days. I just wanted to share in case there were CRWD skeptics out there. I definitely think the huge increase in share price we’ve seen in the last week or so (from roughly $45 to roughly $56) is simply a reversal of some of the (political) FUD that drove them down from $100/share. I wouldn’t be surprised to see them gain a lot more on a good report.
Crowdstrike will report Q3 on December 5th after markets close.