First up is CrowdStrike, a leader in the cybersecurity world. CrowdStrike’s line of products, featuring its Falcon Endpoint Protection, offers users the industry standard in digital security for online and network protection. The company’s product line includes a wide range of cloud modules through the Software-as-a-Service subscription model.
CrowdStrike won’t report its next quarterly numbers until the end of this month, but we can get a feel for the company’s strong niche by looking at its last quarterly release, for fiscal 2Q23.
To start with, the company has recorded powerful gain in revenue and earnings in recent quarters. The most recent report showed $535.2 million at the top line, an increase of 58% year-over-year; the gain was driven by a 60% y/y increase in subscription revenue, to $506.2 million. Annual recurring revenue (ARR), an important indicator of future income, rose to $2.14 billion in fiscal Q2, up 59% y/y.
The company’s top line gains unsurprisingly came along with solid additions to the customer base. CrowdStrike reported a record quarterly gain of 1,741 new customers in its 2Q23 release.
These gains all led to the fifth quarter in a row of sequential EPS gains. The non-GAAP EPS was reported at 36 cents, up from 31 cents in fiscal Q2 and more than double the year-ago figure.
Lastly, the company showed an impressive cash flow in the quarter. Cash from operations rose 94% and hit a total of $210 million. This included an 84% y/y gain in free cash flow, to $136 million.
At the same time that the company has been posting solid financial results, its share price has also suffered from the twin blows in increasing inflation and increasing interest rates. CRWD stock is 30% down so far this year.
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