Education
About Us
Working with TipRanks
Follow Us
CrowdStrike Holdings (CRWD)
NASDAQ:CRWD
Top Page
CrowdStrike Holdings
(NASDAQ:CRWD)78Outperform
Positive Factors
Market Position
CrowdStrike has positioned itself in the heart of growing demand for cloud security by addressing key security risks from a different angle than most competitors.
Product Development
CrowdStrike launched a new MDR offering with SonicWall and achieved FedRAMP authorization for three key modules, enhancing its product offerings.
Negative Factors
Regulatory Investigation
There is a DoJ investigation into CrowdStrike’s deal with Carahsoft, which introduces speculative concerns about the company.
CrowdStrike Holdings (CRWD) vs. S&P 500 (SPY)
Market Cap
$96.10B
Dividend YieldN/A
Average Volume (3M)3.66M
Price to Earnings (P/E)770.5
Beta (1Y)2.09
Revenue Growth31.35%
EPS GrowthN/A
CountryUS
Employees7,925
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)0.51
Shares Outstanding233,851,230
10 Day Avg. Volume4,534,182
30 Day Avg. Volume3,661,326
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)25.20
Price to Cash Flow (P/CF)72.30
P/FCF Ratio102.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$421.61Price Target Upside8.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering34
CrowdStrike Holdings Business Overview & Revenue Model
Company DescriptionFounded in 2011, CrowdStrike Holdings, Inc. provides cloud-delivered solution for next-generation endpoint protection. It offers cloud modules on its Falcon platform through an SaaS subscription-based model. The company offers its services in the United States, Australia, Germany, India, Romania, and the United Kingdom.
How the Company Makes MoneyCrowdStrike makes money primarily through the sale of its subscription-based cybersecurity products and services. The company's key revenue stream is its cloud-native Falcon platform, which offers various modules for endpoint protection, threat intelligence, and IT security operations. Customers subscribe to these modules on a recurring basis, providing CrowdStrike with a steady stream of subscription revenue. Additionally, the company generates income from professional services, including incident response and proactive services, which help organizations manage and mitigate cyber threats. Significant partnerships with technology providers and system integrators also contribute to its earnings by expanding its market reach and enhancing its product offerings.
CrowdStrike Holdings Financial Statement Overview
Summary
CrowdStrike Holdings demonstrates strong financial performance with impressive revenue growth and robust cash flow generation. The high gross profit margin indicates efficient cost management. However, the company faces challenges in achieving higher profitability due to operational expenses impacting net income. The balance sheet is solid with low leverage, but high liabilities warrant careful monitoring.Income Statement
CrowdStrike Holdings has demonstrated impressive revenue growth with a TTM (Trailing-Twelve-Months) revenue of $3.74 billion, marking a significant increase from previous periods. The company's gross profit margin is high at approximately 75.2%, indicative of efficient cost management. However, the net profit margin is relatively low at 3.39% due to negative EBIT, which suggests challenges in managing operating expenses.85
Very Positive
Balance Sheet
The balance sheet of CrowdStrike shows a solid equity position with a Stockholders' Equity of $3.06 billion and a low debt-to-equity ratio of 0.26, indicating minimal leverage risk. The equity ratio stands at 39.3%, reflecting a balanced asset financing structure. Despite these strengths, the company has a high level of total liabilities, which could pose potential risks if not managed properly.78
Positive
Cash Flow
The company exhibits strong cash flow performance with a TTM free cash flow of $1.12 billion, showing healthy growth from previous years. The operating cash flow to net income ratio is robust at 10.91, indicating efficient cash conversion from earnings. The free cash flow to net income ratio is also strong at 8.81, demonstrating effective capital expenditure management.88
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.95B | 3.06B | 2.24B | 1.45B | 874.44M | 481.41M | Gross Profit |
| 2.96B | 2.30B | 1.64B | 1.07B | 644.89M | 339.79M | EBIT |
| -120.43M | -2.00M | -190.11M | -142.55M | -92.53M | -146.06M | EBITDA |
| 138.35M | 293.83M | -40.75M | -65.98M | -46.17M | -115.83M | Net Income Common Stockholders |
| -19.27M | 89.33M | -182.28M | -232.38M | -92.63M | -141.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.47B | 3.47B | 2.71B | 2.00B | 1.92B | 912.06M | Total Assets |
| 6.65B | 6.65B | 5.03B | 3.62B | 2.73B | 1.40B | Total Debt |
| 792.87M | 792.87M | 783.62M | 774.72M | 778.99M | 0.00 | Net Debt |
| -2.58B | -2.58B | -1.67B | -1.22B | -1.14B | -264.80M | Total Liabilities |
| 4.31B | 4.31B | 3.54B | 2.58B | 1.86B | 662.30M | Stockholders Equity |
| 2.30B | 2.30B | 1.46B | 1.03B | 870.57M | 742.11M |
| Cash Flow | Free Cash Flow | ||||
| 1.10B | 929.10M | 674.57M | 441.10M | 292.72M | 12.46M | Operating Cash Flow |
| 1.38B | 1.17B | 941.01M | 574.78M | 356.57M | 99.94M | Investing Cash Flow |
| -536.09M | -340.65M | -556.66M | -564.52M | 495.43M | -629.63M | Financing Cash Flow |
| 106.71M | 93.16M | 66.48M | 72.53M | 800.13M | 706.14M |
CrowdStrike Holdings Technical Analysis
Positive
390.16
Price Trends
386.14
Positive
359.68
Positive
333.39
Positive
Market Momentum
-1.34
Positive
45.66
Neutral
22.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWD, the sentiment is Positive. The current price of 390.16 is below the 20-day moving average (MA) of 416.23, above the 50-day MA of 386.14, and above the 200-day MA of 333.39, indicating a neutral trend. The MACD of -1.34 indicates Positive momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 22.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRWD.
CrowdStrike Holdings Risk Analysis
CrowdStrike Holdings disclosed 60 risk factors in its most recent earnings report. CrowdStrike Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CrowdStrike Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $121.61B | 104.16 | 19.68% | ― | 13.86% | -46.44% | |
80 Outperform | $29.74B | ― | -2.54% | ― | 30.77% | 79.05% | |
79 Outperform | $24.33B | 29.66 | 30.32% | ― | 6.22% | 6.15% | |
79 Outperform | $81.88B | 47.12 | 116.83% | ― | 12.27% | 54.69% | |
78 Outperform | $96.10B | 770.46 | 4.14% | ― | 31.35% | ― | |
61 Neutral | $6.47B | ― | -17.67% | ― | 34.38% | 24.90% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
CRWD
CrowdStrike Holdings
390.16
60.59
18.38%
CHKP
Check Point
221.22
63.47
40.23%
FTNT
Fortinet
106.48
35.16
49.30%
PANW
Palo Alto Networks
184.38
44.95
32.24%
ZS
Zscaler
193.82
-8.60
-4.25%
S
SentinelOne
19.90
-6.86
-25.64%
CrowdStrike Holdings Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 0.00% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record free cash flow, significant growth in key business areas, and successful customer engagement through the Falcon Flex model. However, there are challenges with slight net new ARR decline and operating margin pressure due to ongoing investments.Highlights
Record-Breaking Free Cash Flow
Achieved a record free cash flow of $1.07 billion for FY 2025, exceeding $1 billion for the first time, with a free cash flow margin of 27% of revenue.
Significant Growth in Cloud, Identity, and Next-Gen SIEM Businesses
Ending ARR for cloud security, identity protection, and next-gen SIEM grew nearly 50% year over year, reaching over $1.3 billion.
Falcon Flex Model Success
Falcon Flex deal value reached $2.5 billion, growing 80% quarter over quarter and more than 10 times year over year, showing strong customer commitment to the platform.
Strong Partner and Marketplace Performance
CrowdStrike became the first cybersecurity ISV to achieve over $1 billion in deal value on AWS Marketplace in a calendar year.
Record Total Contract Value
Achieved a total contract value of $6 billion for FY 2025, increasing 40% year over year.
High Customer Retention
Gross dollar retention remained high at 97%, indicating strong customer commitment to the Falcon platform.
Lowlights
Net New ARR Decline
Net new ARR for Q4 was $224 million, which when adjusted for CCP impact, suggests a slight year-over-year decline.
Operating Margin Pressure
Guidance for FY 2026 indicates an operating margin of approximately 21%, reflecting ongoing investments and amortization of sales and marketing costs.
GAAP Net Loss
Reported a GAAP net loss of $92.3 million for the quarter, impacted by tax expenses related to acquisitions and incident-related expenses.
Company Guidance
During CrowdStrike Holdings, Inc.'s Q4 2025 earnings call, the company reported strong financial metrics, highlighting a net new ARR of $224 million, significantly surpassing expectations and culminating in an ending ARR of $4.24 billion for FY 2025. The company’s cloud security, identity protection, and next-gen SIEM businesses collectively achieved over $1.3 billion in ARR, marking nearly 50% growth year over year. Gross dollar retention remained solid at 97%, while free cash flow hit a record $1.07 billion, representing 27% of revenue. CrowdStrike also became the first cybersecurity ISV to surpass $1 billion in AWS Marketplace sales within a single calendar year. The total contract value for FY 2025 reached $6 billion, a 40% year-over-year increase, underscoring the company's expanding market share and customer commitment to the Falcon platform. Looking towards FY 2026, CrowdStrike anticipates revenue growth between 20% and 22%, alongside expected operating and free cash flow margin improvements in the second half, setting a robust foundation for future growth.CrowdStrike Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
CrowdStrike Announces Retirement of Chief Security Officer
Neutral
Feb 20, 2025
On February 14, 2025, CrowdStrike Holdings announced that Shawn Henry, the current Chief Security Officer, will retire from his role and as an executive officer effective March 31, 2025. He will transition to an Executive Advisor to the CEO, focusing on cybersecurity advocacy, which signals a strategic shift in leadership and could impact the company’s operational focus and stakeholder relations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.