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CrowdStrike Holdings (CRWD)
NASDAQ:CRWD
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CrowdStrike Holdings
(NASDAQ:CRWD)
73Outperform
Positive Factors
Cloud Security Strength
Cloud Security has been particularly strong, growing at the same rate and scale as closest competitors.
Platform Adoption
Falcon Flex is increasingly becoming a tool for CRWD to accelerate platform adoption with faster procurement and easier platform consumption.
Revenue Growth Potential
CRWD can grow total revenue to $9.5B+ in CY28/FY29, representing a 25%+ CAGR the next four years.
Negative Factors
Growth Deceleration
Reported ARR growth decelerated to 23% y/y from 27% y/y last quarter, and billings decelerated to 17% y/y from 36% y/y last quarter.
Market Competition
CRWD added 'legacy SIEM vendors' as a category of competitors, indicating increased market competition.
Outage Impact
Results for the next few quarters will continue to be impacted by customer commitment packages, driven by the outage.
CrowdStrike Holdings (CRWD) vs. S&P 500 (SPY)
Market Cap
$79.72B
Dividend YieldN/A
Average Volume (3M)5.04M
Price to Earnings (P/E)721.6
Beta (1Y)1.94
Revenue Growth29.39%
EPS Growth-119.62%
CountryUS
Employees10,118
SectorTechnology
Sector Strength40
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.08
Shares Outstanding247,873,410
10 Day Avg. Volume3,759,437
30 Day Avg. Volume5,037,328
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)22.71
Price to Cash Flow (P/CF)64.90
P/FCF Ratio64.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$421.13Price Target Upside30.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering35
CrowdStrike Holdings Business Overview & Revenue Model
Company DescriptionCrowdStrike Holdings, Inc. provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. It offers threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, and log management. The company primarily sells subscriptions to its Falcon platform and cloud modules through its direct sales team that leverages its network of channel partners. It serves customers worldwide. The company was incorporated in 2011 and is based in Austin, Texas.
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 exhibits strong revenue growth and cash flow generation, key for a high-growth software company. Despite negative profitability metrics, the company is on a path towards profitability with effective cost management and liquidity. The balance sheet is healthy, with manageable leverage and strong equity, positioning the company well for future growth.Income Statement
CrowdStrike Holdings shows a strong revenue growth trend with a TTM revenue of $3.95 billion, up significantly from $3.06 billion last year. The gross profit margin remains robust at 74.9%, indicating effective cost management despite a negative net profit margin of -0.5%. The company is close to breakeven, showcasing potential for future profitability. However, EBIT and EBITDA margins are low due to negative EBIT, which suggests ongoing operational challenges.82
Very Positive
Balance Sheet
The balance sheet reflects strong liquidity, with cash and short-term investments exceeding total debt, leading to a negative net debt position. The equity ratio stands at 37.7%, indicating a solid equity foundation. However, the debt-to-equity ratio is 24.1%, suggesting moderate leverage. The return on equity is negative due to a net loss, highlighting the need for improved profitability to enhance shareholder value.78
Positive
Cash Flow
Cash flow performance is robust, with a strong operating cash flow of $1.38 billion in TTM. Free cash flow has grown significantly from the previous year, indicating effective cash management. The operating cash flow to net income ratio shows efficient conversion of earnings into cash. The company maintains a healthy free cash flow to net income ratio, underscoring its ability to generate cash despite net losses.88
Very Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.95B | 3.06B | 2.24B | 1.45B | 874.44M | Gross Profit |
| 2.96B | 2.30B | 1.64B | 1.07B | 644.89M | EBIT |
| -120.43M | -2.00M | -190.11M | -142.55M | -92.53M | EBITDA |
| 294.80M | 293.83M | -40.75M | -65.98M | -46.17M | Net Income Common Stockholders |
| -19.27M | 89.33M | -182.28M | -232.38M | -92.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.32B | 3.47B | 2.71B | 2.00B | 1.92B | Total Assets |
| 8.70B | 6.65B | 5.03B | 3.62B | 2.73B | Total Debt |
| 788.90M | 792.87M | 783.62M | 774.72M | 778.99M | Net Debt |
| -3.53B | -2.58B | -1.67B | -1.22B | -1.14B | Total Liabilities |
| 5.38B | 4.31B | 3.54B | 2.58B | 1.86B | Stockholders Equity |
| 3.28B | 2.30B | 1.46B | 1.03B | 870.57M |
| Cash Flow | Free Cash Flow | |||
| 1.13B | 929.10M | 674.57M | 441.10M | 292.72M | Operating Cash Flow |
| 1.38B | 1.17B | 941.01M | 574.78M | 356.57M | Investing Cash Flow |
| -536.59M | -340.65M | -556.66M | -564.52M | 495.43M | Financing Cash Flow |
| 107.21M | 93.16M | 66.48M | 72.53M | 800.13M |
CrowdStrike Holdings Technical Analysis
Negative
321.63
Price Trends
384.65
Negative
370.63
Negative
333.98
Negative
Market Momentum
-5.18
Negative
47.59
Neutral
27.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWD, the sentiment is Negative. The current price of 321.63 is below the 20-day moving average (MA) of 355.70, below the 50-day MA of 384.65, and below the 200-day MA of 333.98, indicating a bearish trend. The MACD of -5.18 indicates Negative momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 27.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRWD.
CrowdStrike Holdings Risk Analysis
CrowdStrike Holdings disclosed 59 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $101.68B | 86.76 | 23.38% | ― | 13.86% | -46.44% | |
73 Outperform | $79.72B | 721.64 | -0.69% | ― | 29.39% | -119.62% | |
73 Outperform | $27.03B | ― | -1.21% | ― | 27.77% | 89.39% | |
70 Outperform | $65.14B | 37.48 | 338.74% | ― | 12.27% | 54.69% | |
67 Neutral | $16.22B | 1,777.39 | -5.91% | ― | 33.10% | -20.31% | |
57 Neutral | $18.57B | 9.42 | -13.42% | 2.72% | 5.01% | -23.43% | |
55 Neutral | $33.50B | ― | -8.71% | ― | 28.76% | 58.13% |
* Technology Sector Average
Performance Comparison
CRWD
CrowdStrike Holdings
321.63
7.90
2.52%
FTNT
Fortinet
84.71
16.32
23.86%
PANW
Palo Alto Networks
153.57
19.28
14.36%
CYBR
CyberArk Software
306.46
47.19
18.20%
ZS
Zscaler
174.67
-9.04
-4.92%
NET
Cloudflare
97.08
1.75
1.84%
CrowdStrike Holdings Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -17.56% | 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.