-71% p.a.
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Introduction to our strategy no description yet Quick Summary Metric Value Return % p.a. -71 Days active 511 …
tickers: CRWD
source: Motley Fool
tickers affected by this
| ticker | polarity | why? |
|---|---|---|
| CRWD | positively | The positive fiscal first-quarter earnings and strong revenue growth reported by CrowdStrike (CRWD) indicate the company’s continued success in the cybersecurity industry. This could lead to increased investor confidence and potentially drive the stock price higher. |
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summary
CrowdStrike Shares Surge as Revenue Soars. Is It Too Late to Buy the Stock?
Shares of cybersecurity company CrowdStrike (NASDAQ: CRWD) soared after the company reported strong fiscal first-quarter earnings. The stock has more than doubled over the past year and is up around 900% over the past five years. Let’s take a closer look at the company’s most recent results and whether it’s too late to buy the stock. For its first quarter, CrowdStrike saw its revenue grow 33% to $921 million, well ahead of its earlier forecast. Subscription revenue climbed 34% to $872.2 million, and its annual recurring revenue (ARR) rose 33% to $3.65 billion. The company’s adjusted earnings per share (EPS) surged from $0.57 a year ago to $0.93. Operating cash flow came in at $383.2 million, and free cash flow was $322.5 million. CrowdStrike ended the quarter with nearly $3 billion in net cash and short-term investments. The company continues to strike deals that include more of its cybersecurity modules. Over 65% of CrowdStrike’s customers have five or more modules, while 28% have seven or more. The number of deals with eight or more modules surged by 95%. The number of deals that included its Cloud, Identity, or Falcon next-gen SIEM modules more than doubled year over year. Looking ahead, CrowdStrike forecast Q2 revenue to come in a range of $958.3 million to $961.2 million, with adjusted EPS of between $0.98 to $0.99. For its full fiscal year, it is looking for revenue to be between $3.98 billion to $4.01 billion and EPS of between $3.93 to $4.03. Overall, this was a great quarterly report from CrowdStrike that separated it from its cybersecurity peers. Wells Fargo analyst Andrew Nowinski contrasted the company’s quarter with its rivals, pointing out that “every single one of … [its] peers has put up pretty mediocre results this quarter.” While CrowdStrike has proven to be among the best cybersecurity companies, its stock is trading at a premium valuation. With a forward price-to-sales multiple of nearly 21 times, it is one of the priciest cybersecurity stocks. Although the stock is trading at a lower valuation than in the past, its growth has also slowed down. With slower revenue growth, a lower multiple may be warranted. Therefore, it may be prudent to wait on the sidelines and consider buying the stock on a price dip at these valuation levels.
