Naughty and Nice ER Review: CRWD

Note: CRWD reported FQ4 2022 back on March 9 and is not scheduled to report again until early June. Since I want to establish a baseline for CRWD performance I am using that March 9th report. My intention is to review the company again subsequent to the June report. I might actually do it.

The Best Evil Nottingham Sheriff in the history of Robin Hood Movies: Alan Rickman

CrowdStrike Holdings - Cloud-Native Security Platform.

https://www.crowdstrike.com/

CRWD reported FQ4 on March 9:

https://seekingalpha.com/pr/18703916?source=content_type%3Ar…

https://seekingalpha.com/article/4494248-crowdstrike-holding…

A Few Data Points:

Current Price: $156.29
Range: 130 - 298.48
About 47.6% Below its High
Market Cap: $36.2B (Give or Take)
YTD Momentum: -21%
EV/Revenue: 21.5

  • Revenue: Total revenue was $431.0 million, a 63% increase, compared to $264.9 million in the fourth quarter of fiscal 2021: ATTA BOY!

Note: This is the 5th straight QTR of declining Revenue Growth; however, to their credit, the Beat amount was one of the highest ever: Then you have to take into account the law of large numbers - or something like that.

  • Annual Recurring Revenue (ARR) increased 65% year-over-year and grew to $1.73 billion as of January 31, 2022, of which $216.9 million was net new ARR added in the quarter: ATTA BOY!

  • Subscription revenue was $405.4 million, a 66% increase, compared to $244.7 million in the fourth quarter of fiscal 2021: ATTA BOY!

  • Non-GAAP subscription gross margin was 79%, compared to 80% in the fourth quarter of fiscal 2021: ATTA BOY!

  • Non-GAAP income from operations was $80.4 million, compared to $34.4 million in the fourth quarter of fiscal 2021: ATTA BOY!

  • Non-GAAP net income was $70.4 million, compared to $31.6 million in the fourth quarter of fiscal 2021: ATTA BOY!

  • Cash Flow: Net cash generated from operations was $159.7 million, compared to $114.5 million in the fourth quarter of fiscal 2021. Free cash flow was $127.3 million, compared to $97.4 million in the fourth quarter of fiscal 2021: ATTA BOY!

  • Added 1,638 net new subscription customers in the quarter for a total of 16,325 subscription customers as of January 31, 2022, representing 65% growth year-over-year: ATTA BOY!

  • CrowdStrike’s subscription customers that have adopted four or more modules, five or more modules and six or more modules increased to 69%, 57%, and 34%, respectively, as of January 31, 2022: ATTA BOY!

Guidance: ATTA BOY!

At the time of the report the stock was at the $169 per share level; thereafter, the stock rose over several days to the $240 level before plummeting downward during a very, very bad market week. Note that guidance for the next QTR clocks in around 53% at the high end; however chunking into the mix an average Beat on Revenue by $15 puts it in the $58-69% range.

Recent Article:

https://seekingalpha.com/article/4506304-crowdstrike-by-the-…

CRWD ER SCORE: ATTA BOYS 10/OH POOPS 0

LIST and RANKING Assignment: NICE #3

Yeah…Yeah…Yeah I heard all about the hand wringing about the $5B revenue stuff but just don’t care. Company will blow by that number as well. Sure they are slowing down - but how much more rock solid can you get? May be drifting down the roster but still a very strong Bench player. White Tent all the way.

All the Best,

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