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CrowdStrike Holdings (CRWD - Free Report) reported fourth-quarter fiscal 2022 non-GAAP earnings of 30 cents per share, beating the Zacks Consensus Estimate of 20 cents per share. The bottom line improved from the year-ago quarter’s figure of 13 cents.
The company added $216.9 million to its net new annual recurring revenue (ARR), taking the total ARR to $1.73 billion as of Jan 31, 2022, up 65% year over year.
Top-Line Details
CrowdStrike’s fiscal fourth-quarter revenues of $431 million surged 63% year over year and beat the consensus mark of $412.3 million. Subscription revenues jumped 66% year over year to $405.4 million.
The company added 1,638 net new subscription customers during the reported quarter. It had a total of 16,325 subscription customers as of Jan 31, 2022, reflecting year-over-year growth of 65%.
CrowdStrike’s subscription customers who adopted four or more cloud modules increased to 69%, those with five or more cloud modules rose to 57%, and those with six or more cloud modules jumped to 34% as of Jan 31, 2022.
Revenues from professional services climbed 26.2% year over year to $25.6 million.
Geographically, 72% of total revenues stemmed from the United States, while 128% came from outside the country.
Operating Details
CrowdStrike’s non-GAAP gross margin remained flat on a year-over-year basis at 77%. Non-GAAP subscription gross margin was 79%, down 100 bps from the previous year’s reported figure.
Total non-GAAP operating expenses, as a percentage of revenues, were 58% compared with the prior-year quarter’s 64%.
Non-GAAP operating income was $80.4 million compared with $34.4 million in the year-ago quarter. Non-GAAP operating margin for the quarter was 19%, up 600 bps year over year.
Balance Sheet & Cash Flow
As of Jan 31, 2022, cash and cash equivalents were $2 billion compared with $1.91 billion as of Oct 31, 2021. CrowdStrike has a long-term debt of $739.5 million.
During the fiscal fourth quarter, the company generated operating and free cash flows of $159.7 million and $127.3 million, respectively.
During the full fiscal 2022, the company generated operating and free cash flow of $574.8 million and $441.8 million, respectively. Free cash flow accounted for 30% of revenues in the same period.
Full-Year Highlights
For the full fiscal 2022, CrowdStrike reported revenues of $1.45 billion, indicating a surge of 66% year over year. It reported non-GAAP earnings of 67 cents per share compared with the prior year’s 27 cents per share.
CrowdStrike’s non-GAAP gross margin rose by 100 bps to 77% in the full fiscal 2022. Non-GAAP subscription margin remained flat year over year at 79%.
Total non-GAAP operating expenses, as a percentage of revenues, dropped 600 bps to 63% for full fiscal 2022.
Non-GAAP operating income was $196.2 million compared with fiscal 2021’s $62.4 million. Consequently, the margin expanded 700 bps to 14% in fiscal 2022.
Outlook
Buoyed by the stellar fourth-quarter performance, CrowdStrike anticipates revenues between $458.9 million and $465.4 million for the first quarter of fiscal 2023. As far as the bottom line is concerned, the company expects to report non-GAAP earnings per share between 22 cents and 24 cents.
Non-GAAP operating income is expected to be $61.7-$66.4 million.
For fiscal 2023, CrowdStrike’s management estimates its revenue in the band of $2,133.1-$2,163.2 million. The company anticipates non-GAAP earnings to be $1.03-$1.13 per share.
Non-GAAP operating income for the full fiscal 2023 is projected to be $289.2-$311.8 million.
Zacks Rank & Other Key Picks
CrowdStrike currently carries a Zacks Rank #2 (Buy). Shares of CRWD declined 12.9% in the past year.
The Zacks Consensus Estimate for AMD’s first-quarter fiscal 2022 earnings has been revised upward by 23 cents to 91 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved south by a penny to $3.99 per share in the past 30 days.
AMD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 17%. Shares of AMD have gained 34.4% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised a couple of cents upward to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 12.4% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 64.9% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have declined 0.6% in the past year.
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CrowdStrike (CRWD) Q4 Earnings & Revenues Surpass Estimates
CrowdStrike Holdings (CRWD - Free Report) reported fourth-quarter fiscal 2022 non-GAAP earnings of 30 cents per share, beating the Zacks Consensus Estimate of 20 cents per share. The bottom line improved from the year-ago quarter’s figure of 13 cents.
The company added $216.9 million to its net new annual recurring revenue (ARR), taking the total ARR to $1.73 billion as of Jan 31, 2022, up 65% year over year.
Top-Line Details
CrowdStrike’s fiscal fourth-quarter revenues of $431 million surged 63% year over year and beat the consensus mark of $412.3 million. Subscription revenues jumped 66% year over year to $405.4 million.
The company added 1,638 net new subscription customers during the reported quarter. It had a total of 16,325 subscription customers as of Jan 31, 2022, reflecting year-over-year growth of 65%.
CrowdStrike Price, Consensus and EPS Surprise
CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike Quote
CrowdStrike’s subscription customers who adopted four or more cloud modules increased to 69%, those with five or more cloud modules rose to 57%, and those with six or more cloud modules jumped to 34% as of Jan 31, 2022.
Revenues from professional services climbed 26.2% year over year to $25.6 million.
Geographically, 72% of total revenues stemmed from the United States, while 128% came from outside the country.
Operating Details
CrowdStrike’s non-GAAP gross margin remained flat on a year-over-year basis at 77%. Non-GAAP subscription gross margin was 79%, down 100 bps from the previous year’s reported figure.
Total non-GAAP operating expenses, as a percentage of revenues, were 58% compared with the prior-year quarter’s 64%.
Non-GAAP operating income was $80.4 million compared with $34.4 million in the year-ago quarter. Non-GAAP operating margin for the quarter was 19%, up 600 bps year over year.
Balance Sheet & Cash Flow
As of Jan 31, 2022, cash and cash equivalents were $2 billion compared with $1.91 billion as of Oct 31, 2021. CrowdStrike has a long-term debt of $739.5 million.
During the fiscal fourth quarter, the company generated operating and free cash flows of $159.7 million and $127.3 million, respectively.
During the full fiscal 2022, the company generated operating and free cash flow of $574.8 million and $441.8 million, respectively. Free cash flow accounted for 30% of revenues in the same period.
Full-Year Highlights
For the full fiscal 2022, CrowdStrike reported revenues of $1.45 billion, indicating a surge of 66% year over year. It reported non-GAAP earnings of 67 cents per share compared with the prior year’s 27 cents per share.
CrowdStrike’s non-GAAP gross margin rose by 100 bps to 77% in the full fiscal 2022. Non-GAAP subscription margin remained flat year over year at 79%.
Total non-GAAP operating expenses, as a percentage of revenues, dropped 600 bps to 63% for full fiscal 2022.
Non-GAAP operating income was $196.2 million compared with fiscal 2021’s $62.4 million. Consequently, the margin expanded 700 bps to 14% in fiscal 2022.
Outlook
Buoyed by the stellar fourth-quarter performance, CrowdStrike anticipates revenues between $458.9 million and $465.4 million for the first quarter of fiscal 2023. As far as the bottom line is concerned, the company expects to report non-GAAP earnings per share between 22 cents and 24 cents.
Non-GAAP operating income is expected to be $61.7-$66.4 million.
For fiscal 2023, CrowdStrike’s management estimates its revenue in the band of $2,133.1-$2,163.2 million. The company anticipates non-GAAP earnings to be $1.03-$1.13 per share.
Non-GAAP operating income for the full fiscal 2023 is projected to be $289.2-$311.8 million.
Zacks Rank & Other Key Picks
CrowdStrike currently carries a Zacks Rank #2 (Buy). Shares of CRWD declined 12.9% in the past year.
Some other top-ranked stocks from the broader computer and technology sector are Advanced Micro Devices (AMD - Free Report) and Axcelis Technologies (ACLS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Analog Devices (ADI - Free Report) carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AMD’s first-quarter fiscal 2022 earnings has been revised upward by 23 cents to 91 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved south by a penny to $3.99 per share in the past 30 days.
AMD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 17%. Shares of AMD have gained 34.4% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised a couple of cents upward to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 12.4% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 64.9% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have declined 0.6% in the past year.