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CrowdStrike (CRWD) Q3 Earnings and Revenues Beat Estimates
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CrowdStrike (CRWD - Free Report) reported third-quarter fiscal 2024 results, wherein both revenues and earnings surpassed the Zacks Consensus Estimate and marked significant year-over-year improvements.
CrowdStrike reported third-quarter fiscal 2024 non-GAAP earnings of 82 cents per share, beating the Zacks Consensus Estimate by 10.8% and jumping 105% year over year.
The company’s fiscal third-quarter revenues of $786 million rose 35% year over year and surpassed the consensus mark by 1.14%.
Subscription revenues (93.3% of the total revenues) jumped 34% year over year to $733.5 million. Professional services revenues (6.7% of the total revenues) rose 56.8% year over year to $52.55 million. Our estimates for the Subscription and Professional Services segments were pegged at $733.2 million and $42.7 million, respectively.
Annual recurring revenues (ARR) increased 35% year over year to $3.15 billion. The company added $223 million to its net new ARR in the reported quarter. Our third-quarter projections for ARR and net new ARR were $3.19 billion and $381.4 million, respectively.
CrowdStrike’s subscription customers, who adopted five or more cloud modules, represented 63% of the total subscription customers, those with six or more cloud modules accounted for 42% and those with seven or more cloud modules represented 26% as of Oct 31, 2023.
Operating Details
CrowdStrike’s non-GAAP gross margin improved 300 basis points (bps) on a year-over-year basis to 78%.
The non-GAAP subscription gross margin expanded 200 bps to 80% on a year-over-year basis. The non-GAAP professional gross margin improved 300 bps to 44%.
Non-GAAP sales and marketing expenses jumped 23.4% year over year to $243.2 million. Non-GAAP research and development expenses surged 31.1% year over year to $142.9 million. Non-GAAP general and administrative expenses increased 17.6% year over year to $50 million.
The non-GAAP operating income was $175.7 million, up 95.8% year over year. The non-GAAP operating margin for the quarter improved 700 bps to 22%.
Balance Sheet & Cash Flow
As of Oct 31, 2023, cash and cash equivalents were $3.17 billion. CrowdStrike had a long-term debt of $742.1 million.
In the fiscal third quarter, CRWD generated operating and free cash flows of $273.5 million and $239 million, respectively.
Updated Fiscal 2024 Guidance
For fiscal 2024, CRWD now expects revenues between $3,046.8 million and $3,050.2 million, up from the previous guidance range of $3,030.7-$3,042.9 million. Non-GAAP earnings are now anticipated in the band of $2.95-$2.96 per share, up from the earlier forecasted range of $2.80-$2.84 per share. The non-GAAP operating income for fiscal 2024 is now projected in the band of $633.6-$636.2 million compared with the earlier guidance range of $601.3-$610.5 million.
For the fiscal fourth quarter, CrowdStrike anticipates revenues between $836.6 and $840.0 million. The non-GAAP operating income is expected in the band of $186.5-$189 million. For the bottom line, the company expects non-GAAP earnings in the range of 81-82 cents per share.
Zacks Rank and Other Stocks to Consider
Currently, CRWD carries a Zacks Rank #2 (Buy). Shares of CrowdStrike have rallied 101.7% year to date.
The Zacks Consensus Estimate for NVDA’s fourth-quarter fiscal 2024 earnings has been revised by 11 cents northward to $3.87 per share in the past seven days. For fiscal 2024, earnings estimates have increased by 11 cents to $11.01 in the past seven days.
NVIDIA's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 18.99%. Shares of NVDA have rallied 227.2% year to date.
The Zacks Consensus Estimate for NetEase's fourth-quarter 2023 earnings has been revised upward by 10 cents to $1.73 per share in the past 60 days. For fiscal 2023, earnings estimates have increased by 42 cents to $6.96 per share in the past 60 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 16.63%. Shares of NTES have gained 57.2% year to date.
The Zacks Consensus Estimate for Dropbox's fourth-quarter 2023 earnings has remained unchanged for the past 90 days at 48 cents per share. For fiscal 2023, earnings estimates have been revised 7 cents upward to $1.96 per share in the past 30 days.
DBX’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 13.14%. Shares of DBX have climbed 25.6% year to date.
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CrowdStrike (CRWD) Q3 Earnings and Revenues Beat Estimates
CrowdStrike (CRWD - Free Report) reported third-quarter fiscal 2024 results, wherein both revenues and earnings surpassed the Zacks Consensus Estimate and marked significant year-over-year improvements.
CrowdStrike reported third-quarter fiscal 2024 non-GAAP earnings of 82 cents per share, beating the Zacks Consensus Estimate by 10.8% and jumping 105% year over year.
The company’s fiscal third-quarter revenues of $786 million rose 35% year over year and surpassed the consensus mark by 1.14%.
CrowdStrike Price, Consensus and EPS Surprise
CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike Quote
Subscription revenues (93.3% of the total revenues) jumped 34% year over year to $733.5 million. Professional services revenues (6.7% of the total revenues) rose 56.8% year over year to $52.55 million. Our estimates for the Subscription and Professional Services segments were pegged at $733.2 million and $42.7 million, respectively.
Annual recurring revenues (ARR) increased 35% year over year to $3.15 billion. The company added $223 million to its net new ARR in the reported quarter. Our third-quarter projections for ARR and net new ARR were $3.19 billion and $381.4 million, respectively.
CrowdStrike’s subscription customers, who adopted five or more cloud modules, represented 63% of the total subscription customers, those with six or more cloud modules accounted for 42% and those with seven or more cloud modules represented 26% as of Oct 31, 2023.
Operating Details
CrowdStrike’s non-GAAP gross margin improved 300 basis points (bps) on a year-over-year basis to 78%.
The non-GAAP subscription gross margin expanded 200 bps to 80% on a year-over-year basis. The non-GAAP professional gross margin improved 300 bps to 44%.
Non-GAAP sales and marketing expenses jumped 23.4% year over year to $243.2 million. Non-GAAP research and development expenses surged 31.1% year over year to $142.9 million. Non-GAAP general and administrative expenses increased 17.6% year over year to $50 million.
The non-GAAP operating income was $175.7 million, up 95.8% year over year. The non-GAAP operating margin for the quarter improved 700 bps to 22%.
Balance Sheet & Cash Flow
As of Oct 31, 2023, cash and cash equivalents were $3.17 billion. CrowdStrike had a long-term debt of $742.1 million.
In the fiscal third quarter, CRWD generated operating and free cash flows of $273.5 million and $239 million, respectively.
Updated Fiscal 2024 Guidance
For fiscal 2024, CRWD now expects revenues between $3,046.8 million and $3,050.2 million, up from the previous guidance range of $3,030.7-$3,042.9 million. Non-GAAP earnings are now anticipated in the band of $2.95-$2.96 per share, up from the earlier forecasted range of $2.80-$2.84 per share. The non-GAAP operating income for fiscal 2024 is now projected in the band of $633.6-$636.2 million compared with the earlier guidance range of $601.3-$610.5 million.
For the fiscal fourth quarter, CrowdStrike anticipates revenues between $836.6 and $840.0 million. The non-GAAP operating income is expected in the band of $186.5-$189 million. For the bottom line, the company expects non-GAAP earnings in the range of 81-82 cents per share.
Zacks Rank and Other Stocks to Consider
Currently, CRWD carries a Zacks Rank #2 (Buy). Shares of CrowdStrike have rallied 101.7% year to date.
Some other top-ranked stocks from the broader technology sector are NVIDIA (NVDA - Free Report) , NetEase (NTES - Free Report) and Dropbox (DBX - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVDA’s fourth-quarter fiscal 2024 earnings has been revised by 11 cents northward to $3.87 per share in the past seven days. For fiscal 2024, earnings estimates have increased by 11 cents to $11.01 in the past seven days.
NVIDIA's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 18.99%. Shares of NVDA have rallied 227.2% year to date.
The Zacks Consensus Estimate for NetEase's fourth-quarter 2023 earnings has been revised upward by 10 cents to $1.73 per share in the past 60 days. For fiscal 2023, earnings estimates have increased by 42 cents to $6.96 per share in the past 60 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 16.63%. Shares of NTES have gained 57.2% year to date.
The Zacks Consensus Estimate for Dropbox's fourth-quarter 2023 earnings has remained unchanged for the past 90 days at 48 cents per share. For fiscal 2023, earnings estimates have been revised 7 cents upward to $1.96 per share in the past 30 days.
DBX’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 13.14%. Shares of DBX have climbed 25.6% year to date.