CrowdStrike Holdings Inc. (CRWD) Tops Q4 EPS by 6c, Revenues Beat; Offers Q1 & FY20 Revenue Guidance Above Consensus

CrowdStrike Holdings Inc. (NASDAQ: CRWD) reported Q4 EPS of ($0.02), $0.06 better than the analyst estimate of ($0.08). Revenue for the quarter came in at $152.1 million versus the consensus estimate of $137.74 million.

Fourth Quarter Fiscal 2020 Financial Highlights

• Revenue: Total revenue was $152.1 million, an 89% increase, compared to $80.5 million in the fourth quarter of fiscal 2019. Subscription revenue was $138.5 million, a 90% increase, compared to $72.8 million in the fourth quarter of fiscal 2019.
• Annual Recurring Revenue (ARR) increased 92% year-over-year and grew to $600.5 million as of January 31, 2020, of which $98.7 million was net new ARR added in the quarter.
• Subscription Gross Margin: GAAP subscription gross margin was 75%, compared to 70% in the fourth quarter of fiscal 2019. Non-GAAP subscription gross margin was 77%, compared to 70% in the fourth quarter of fiscal 2019.
• Loss from Operations: GAAP loss from operations was $31.1 million, compared to $31.2 million in the fourth quarter of fiscal 2019. Non-GAAP loss from operations was $6.7 million, compared to $28.0 million in the fourth quarter of fiscal 2019.
• Net Loss: GAAP net loss was $28.4 million, compared to $31.3 million in the fourth quarter of fiscal 2019. GAAP net loss per share was $0.14, compared to $0.67 in the fourth quarter of fiscal 2019. Non-GAAP net loss was $3.9 million, or $0.02 on a per share basis, compared to a loss of $28.0 million, or $0.60 on a per share basis, in the fourth quarter of fiscal 2019.
• Cash Flow: Net cash generated from operations was $66.1 million, compared to $15.8 million in the fourth quarter of fiscal 2019. Free cash flow was positive $50.7 million, compared to negative $0.1 million in the fourth quarter of fiscal 2019.
• Cash, cash equivalents and marketable securities increased to $912.1 million as of January 31, 2020.

“CrowdStrike delivered a record-setting fourth quarter to conclude an exceptional fiscal year. With ARR reaching $600 million, we continued to see broad strength in multiple areas of the business during the quarter, including 90% year-over-year subscription revenue growth, record net new ARR and an acceleration in net new customers. Throughout this past year, we continued to execute on the increasing demand we see in the market and the Security Cloud vision we pioneered. Looking into fiscal 2021 and beyond, the powerful combination of our cloud-native platform and frictionless go-to-market positions us well as the fundamental endpoint platform for the future,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer.

Commenting on the company's financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “Fourth quarter results well exceeded our expectations. Our continued robust growth along with our relentless focus on execution and strong unit economics drove improved operating leverage, positive cash flow from operations and positive free cash flow for the quarter and year.”

GUIDANCE:

CrowdStrike Holdings Inc. sees Q1 2021 EPS of ($0.07)-($0.06), versus the consensus of ($0.08). CrowdStrike Holdings Inc. sees Q1 2021 revenue of $164.3-167.6 million, versus the consensus of $149.91 million.

CrowdStrike Holdings Inc. sees FY2021 EPS of ($0.14)-($0.10), versus the consensus of ($0.53). CrowdStrike Holdings Inc. sees FY2021 revenue of $723.3-733.5 million, versus the consensus of $467.08 million.

For earnings history and earnings-related data on CrowdStrike Holdings Inc. (CRWD) click here.

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