CrowdStrike Holdings Inc

CrowdStrike Holdings, Inc. (NASDAQ: CRWD) is a global cybersecurity company that provides cloud-delivered protection of endpoints, cloud workloads, identity and data. The Company’s Falcon platform is designed for cybersecurity consolidation, purpose-built to stop breaches. The platforms collect and integrates data from across the enterprise, including endpoints, cloud workloads, identities, and third-party sources

Recent Business and Financial Updates

• First Quarter Fiscal 2025 Financial Highlights
  • Revenue: Total revenue for the first quarter of fiscal 2025 was USD 921.0 million, representing a 33% increase from USD 692.6 million in the same period of fiscal 2024. Subscription revenue rose by 34% to USD 872.2 million, up from USD 651.2 million in the first quarter of the previous fiscal year.
  • Annual Recurring Revenue (ARR): ARR grew by 33% year-over-year, reaching USD 3.65 billion as of April 30, 2024. Net new ARR added during the quarter amounted to USD 211.7 million.
  • Subscription Gross Margin: The GAAP subscription gross margin was consistent at 78% for both the first quarters of fiscal 2025 and 2024. The non-GAAP subscription gross margin also remained stable at 80% for the same periods.
  • Income/Loss from Operations: GAAP income from operations was USD 6.9 million, a significant improvement from a loss of USD 19.5 million in the first quarter of fiscal 2024. Non-GAAP income from operations increased to USD 198.7 million from USD 115.9 million in the prior year’s first quarter.
  • Net Income Attributable to CrowdStrike: GAAP net income attributable to CrowdStrike was USD 42.8 million, compared to USD 0.5 million in the first quarter of fiscal 2024. GAAP net income per diluted share was USD 0.17, compared to USD 0.00 in the same period of the previous year. Non-GAAP net income attributable to CrowdStrike rose to USD 231.7 million, compared to USD 136.4 million in the first quarter of fiscal 2024. Non-GAAP net income per diluted share was USD 0.93, up from USD 0.57 in the previous year’s first quarter.
  • Cash Flow: Net cash generated from operations was USD 383.2 million, compared to USD 300.9 million in the first quarter of fiscal 2024. Free cash flow increased to USD 322.5 million from USD 227.4 million in the same period of the prior fiscal year. As of April 30, 2024, cash and cash equivalents totaled USD 3.70 billion.
• Recent Highlights
  • Module Adoption Rates: CrowdStrike reported module adoption rates of 65%, 44%, and 28% for customers with five or more, six or more, and seven or more modules, respectively, as of April 30, 2024.
  • Product and Partnership Developments: The company launched Falcon Next-Gen SIEM to enhance AI-native SOC capabilities, and introduced Falcon Application Security Posture Management (ASPM) and new Cloud Detection and Response (CDR) innovations. It also launched Falcon for Defender to bolster Microsoft Defender deployments, expanded partnerships with Amazon Web Services (AWS) and Google Cloud, and announced strategic collaborations with NVIDIA and Tata Consultancy Services (TCS). CrowdStrike also partnered with HCLTech to enhance managed detection and response (MDR) solutions with its AI-native Falcon XDR platform.
  • Industry Recognition: CrowdStrike was named a leader in The Forrester Wave™: Extended Detection and Response Platforms, Q2 2024 report, positioned as a Leader in the IDC MarketScape: Worldwide Managed Detection and Response Services (MDR) 2024 Vendor Assessment, and recognized as an Overall Leader in the KuppingerCole Leadership Compass, Identity Threat Detection and Response (ITDR) 2024: IAM Meets the SOC. The company also received Frost & Sullivan's 2024 Global Customer Value Leadership Award for Best Practices in Cloud Security.
• Financial Outlook
• Second Quarter Fiscal 2025 Guidance:
  • Total revenue: USD 958.3 million to USD 961.2 million
  • Non-GAAP income from operations: USD 208.3 million to USD 210.5 million
  • Non-GAAP net income attributable to CrowdStrike: USD 245.7 million to USD 247.8 million
  • Non-GAAP net income per diluted share: USD 0.98 to USD 0.99
  • Weighted average shares used in computing non-GAAP net income per diluted share: 250 million
• Full Year Fiscal 2025 Guidance:
  • Total revenue: USD 3,976.3 million to USD 4,010.7 million
  • Non-GAAP income from operations: USD 890.1 million to USD 916.5 million
  • Non-GAAP net income attributable to CrowdStrike: USD 985.6 million to USD 1,012.0 million
  • Non-GAAP net income per diluted share: USD 3.93 to USD 4.03
  • Weighted average shares used in computing non-GAAP net income per diluted share: 251 million

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 14.33,  inside oversold zone and downward trending, with expectations of a support if the important levels of USD 190-USD 200 sustain. Additionally, the stock's current positioning is below both 21-Day SMA and 50-Day SMA, which can act as a short to medium term resistance levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘BUY’ rating has been given to CrowdStrike Holdings, Inc. (NASDAQ: CRWD) at the current market price of USD 204.22 as of August 05, 2024, at 06:50 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is August 05, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.s

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.