It’s time to talk about a strong cyber security name. Here is the breakdown on $CRWD, otherwise known as CrowdStrike.
Current Price: $195.02
52/Wk High: $251.28
52/Wk Low: $35.50
Market Cap: $43.2 Billion
Read below for the breakdown!
CrowdStrike is a major cloud security company which provides a series of endpoint security solutions through the cloud. The company’s main focuses are within antivirus protection, EDR solutions, and much more.
Crowdstrike’s core platform called Falcon collects data in realtime and protects systems from viruses, therefore being deemed an anti-virus cloud software.
Throughout just the past year alone, Crowdstrike has seen significant upside, with the stock being continually boosted by solid growth numbers. In fact, in just the past year $CRWD has rallied over 410%, leaving investors to wonder if CrowdStrike is still a buy.
Digging into the numbers CrowdStrike beat Q4 2021 expectations with an EPS of $0.13, much better than the analysts EPS consensus estimate of $0.08. On a year over year basis, EPS improved by 750%.
Revenues also impressed, increasing by 74% year over year to a strong $264.9 million. For comparison, the Q4 2020 revenues level was $152.1 million.
Breaking down revenues, subscription revenues jumped by 77% to a strong $244.7 million on the quarter, much better when compared to the Q4 2020 subscription revenues level of $138.5 million.
Annual recurring revenues (ARR) also impressed, jumping 75% year over year to a strong $1.05 billion. On a quarterly basis, $142.7 million in ARR was added throughout the quarter.
Shifting into margins the numbers were solid, with subscription gross margin on a GAAP basis totaling 78%, which is up from the Q4 2020 level of 75%.
As for income, CrowdStrike reported a net loss on a GAAP basis of $19 million, which is much better than the $28.4 million net loss from Q4 2020. On the flip side, income from operations totaled a loss of $15.8 million but was a major improvement from the $31.1 million operating loss from Q4 2020.
Cash flows were strong as well throughout Q4, with operations generating a whopping $114.5 million, much better than the $66.1 million a year ago.
Taking a quick look at the full year, revenues increased by 84% year over year to a strong $874.4 million while subscription gross margin increased by 3% to 77%.
Rounding out earnings, CrowdStrike added 1,480 new subscription customers throughout the quarter, bringing CrowdStikes total subscription customer count to a large 9,896. The jump in subscription customers represents an 82% increase year over year.
Guidance for Q1 2022 was solid as well with leadership expecting revenues to land within a range of $287.8 million to $292.1 million. Management is also expecting a positive Q1 non-GAAP net income of $10.8 million to $13.9 million.
As for FY 2022, revenues are expected to total $1.3104 billion to $1.3207 billion and non-GAAP net income is projected to be $63.8 million to $71.4 million.
Shifting into the balance sheet the numbers are solid.
Total Debt: None
Total Liabilities: $936 Million
Total Assets: $1.750 Billion
Cash & Short Term Inv: $1.060 Billion
On a valuation basis, CrowdStrike does trade at a premium.
Forward Price to Earnings: 742.96x
Price to Sales: 62.50x
Price to Book: 56.07x
Management has room to be more effective.
Return on Equity: -11.49%
Return on Assets: -4.48%
Return on Invested Capital: -6.67%
Given the numbers the analysts are bullish with a mean price target of $252.74/share, representing a 29.89% upside.
The high price target is $295.00/share, representing a 51.61% upside, while the low price target is $221.00/share, representing a 13.58% gain.
On a technical basis, CrowdStrike could be presenting opportunity. According to the six-month charts the MACD is attempting to cross back to the upside within a tight range around -5.418.
The six-month charts are also indicating an RSI of 43.34 and CCI of -49.9963, both of which are on the low end.
In short, CrowdStrike is a strong company with consistent customer, revenue, and subscription growth, that is within a booming industry.
EAT - SLEEP - PROFIT
Disclaimer: This is not direct financial advice, simply an opinion based on independent research.