CrowdStrike Posts 400% Earnings Growth in Q1, Raises FY22 Guidance

CrowdStrike Holdings, Inc. (CRWD) delivered triple-digit earnings growth in the fiscal first quarter with the addition of 1,524 net new subscription customers and continued customer demand.

CrowdStrike provides cloud workload and endpoint security, threat intelligence, and cyberattack response services.

The company reported earnings of $0.10 per share in Q1, up 400% compared to the prior-year quarter, and outpaced analysts’ estimates of $0.06 per share.

Revenue climbed 70% to $302.8 million from the year-ago period and beat the Street’s estimates of $291.49 million. Subscription revenue grew 73% to $281.2 million. (See CrowdStrike stock analysis on TipRanks)

At quarter-end, Annual Recurring Revenue (ARR) grew 74% year-over-year to $1.19 billion, including $143.8 million of net new ARR.

George Kurtz, CrowdStrike’s co-founder and CEO said, “We believe the robust demand environment driven by secular trends, such as digital and security transformation, cloud adoption and a heightened threat environment, provides a runway for long-term sustainable growth,”

For the fiscal second quarter, the company forecasts total revenue and earnings to fall in the range of $318.3 million to $324.4 million and $0.07 – $0.09 per share, respectively. The Street estimates revenue of $310.19 million and earnings of $0.06 per share.

For Fiscal 2022, the company now projects total revenue to be in the range of $ 1,347 million to $1,365.7 million, and earnings in the range of $0.35 – $0.41 per share. Analysts’ estimates for revenue and earnings are pegged at $1.32 billion and $0.30 per share, respectively.

Following the results, Robert W. Baird analyst Jonathan Ruykhaver lifted the price target on the stock to $250 (from $235) implying 19% upside potential.

Maintaining a Buy rating on the stock, Ruykhaver said, “Overall, we continue to see meaningful room for growth for CrowdStrike in both endpoint security and emerging markets like cloud workload security and like the long-term outlook given innovation and a proven history of execution.”

Consensus among analysts is a Strong Buy based on 17 Buys and 2 Holds. The average analyst price target stands at $252.74 and implies upside potential of 20.3% to current levels. Shares have exploded 125% over the past year.

TipRanks data shows that financial blogger opinions are 98% Bullish on CRWD, compared to a sector average of 69%.

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