Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

In today's video, I discuss recent updates impacting CrowdStrike (CRWD 0.03%). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the market prices of March 6, 2024. The video was published on March 7, 2024. ...

da-kuk CrowdStrike (CRWD) issued a gangbuster Q4 2024 set of earnings results. CEO George Kurtz remarked on the call that it was "...an exceptionally strong and record fourth quarter with net new ARR growth accelerating to 27% YoY, reaching a new high of $282M and ending ARR growing 34% YoY to reach $3.44B." The robust report and sanguine outlook came after its rival, Palo Alto Networks (PANW) disappointed investors the previous month. So, there are a lot of moving parts and conflicting narratives around cy ...

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) Conference Call Summary Company Overview - **Company**: CrowdStrike Holdings, Inc. - **Event**: Morgan Stanley Technology, Media & Telecom Conference - **Date**: March 7, 2024 - **Key Executive**: George Kurtz, CEO and Co-Founder Key Highlights Financial Performance - **Annual Recurring Revenue (ARR)**: Nearly $3.5 billion, growing 34% year-on-year [2] - **Record Net New ARR**: Increased by 27% [2] - **Profitability**: Achieved record GAAP and non-GAAP profitability [2] - **S&P 500 Eligibility**: CrowdStrike is now eligible for inclusion in the S&P 500 [2] - **New Product ARR**: $850 million ARR from newer products, including cloud security, next-gen SIEM, and identity protection, doubling year-on-year [2] Growth and Market Position - **Revenue Guidance**: Projecting 30% revenue growth for the year, positioning CrowdStrike among a select few public software companies achieving this at scale [4] - **Free Cash Flow Margin**: Over 30% [4] - **Market Leadership**: CrowdStrike is recognized as a leader in the endpoint protection market with an 18% market share [59] Product Strategy and Innovation - **Single Agent Architecture**: Emphasizes a single platform with best-of-breed technologies, reducing deployment friction and enhancing user experience [9][10] - **Cloud Security**: Public cloud ARR surpassed $400 million, with net new ARR growing 200% [11] - **Identity Protection**: The identity protection module has grown from less than $7 million ARR at acquisition to over $300 million ARR, doubling year-on-year [18] - **Next-Gen SIEM (LogScale)**: Surpassed $150 million in ARR with over 1,000 customers, leveraging endpoint data for enhanced security insights [25][29] Competitive Landscape - **Market Dynamics**: CrowdStrike is positioned to capitalize on dissatisfaction with legacy DLP vendors and the need for modern data protection solutions [46] - **Regulatory Impact**: Increased regulatory scrutiny is driving demand for robust security solutions, with companies prioritizing security at the board level [68] Future Outlook - **Generative AI**: Recognized as a potential force multiplier for both attackers and defenders, with CrowdStrike focusing on leveraging AI for enhanced threat detection and incident response [51] - **Charlotte AI**: Aimed at automating SOC tasks, significantly reducing the time required for threat analysis and response [53][54] Additional Insights - **Customer Engagement**: The CrowdStrike Store and Marketplace initiatives are enhancing customer integration and sales efficiency [65] - **Incident Response**: CrowdStrike's incident response capabilities are critical in real-time breach situations, providing immediate deployment and support [50] Conclusion CrowdStrike is demonstrating strong financial growth, innovative product development, and a strategic focus on addressing market needs in cybersecurity. The company is well-positioned to leverage its technological advantages and capitalize on emerging trends in the cybersecurity landscape.

CrowdStrike (CRWD 10.76%) is getting a lot of love from Wall Street this month. Analysts are scrambling to update their models after the company defied the dour outlook for cybersecurity stocks, beating estimates and raising guidance in its latest report released Tuesday. As a result, CrowdStrike received at least 26 price target increases so far this week. Furthermore, of the 49 analysts that cover the stock, 46 rate it a buy or strong buy, and not one recommends selling.Can CrowdStrike stock get to $435?T ...

Investing in a promising tech start-up can have massive disruptive potential but also poses the risk of loss if the developing company fails to deliver. Many investors remain reserved until the company grabs a firm hold of the market, offers a scalable and diverse portfolio, and embarks on the path to growth before investing. However, investing before all this can have enormous benefits for early-bird investors. This tech start-up stock has concluded the transition from obscure to omnipotent, with green sig ...

Job cuts have been a reoccurring theme over the last few years, but if you know where to look there are plenty of companies that are still hiring. Of course, the COVID-19 pandemic precipitated a deep recession in certain sectors, particularly those related to services. But after countries got a handle of the pandemic another problem arose, inflation. In the United States, inflation reached above 9% in the summer of 2022, forcing the U.S. Federal Reserve to raise interest rates 11 times. An elevated federal ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Shares of CrowdStrike (CRWD 14.16%) charged sharply higher on Wednesday, gaining as much as 22.7% in early trading. As of 10:46 a.m. ET, the stock was still up 14.6%. The catalyst that sent the cloud-based cybersecurity specialist higher was quarterly results that far outpaced expectations.Blockbuster resultsCrowdStrike reported the results for its fiscal 2024 second quarter (ended Jan. 31), and investors were taken aback. Revenue of $845 million grew 33% year over year, driven higher by growing customer si ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) CrowdStrike provides a cloud-native, AI-powered cybersecurity platform, the Falcon XDR, operating on a SaaS subscription model to stop breaches - CrowdStrike positions itself as a leader in the **"Security Cloud"** category, leveraging its **AI-native Falcon XDR platform** to provide comprehensive cybersecurity solutions through a single, lightweight agent[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) Fiscal Year 2022-2024 Financial Performance | Metric | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $3.1 billion | $2.2 billion | $1.5 billion | | *YoY Growth* | *36%* | *54%* | - | | **Subscription Revenue** | $2.9 billion | $2.1 billion | $1.4 billion | | *YoY Growth* | *36%* | *55%* | - | | **Net Income (Loss)** | $89.3 million | ($183.2 million) | ($234.8 million) | Annual Recurring Revenue (ARR) Growth | As of | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | | :--- | :--- | :--- | :--- | | **ARR** | $3.4 billion | $2.6 billion | $1.7 billion | | *YoY Growth* | *34%* | *48%* | - | - The company's growth strategy includes acquiring new customers, expanding within the existing customer base (evidenced by a **119% dollar-based net retention rate**), entering new markets with additional cloud modules, and expanding internationally[61](index=61&type=chunk) - As of January 31, 2024, the company had **29,000 subscription customers**, a **26% increase** from the previous year, and employed **7,925 full-time employees**[61](index=61&type=chunk)[76](index=76&type=chunk)[101](index=101&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces various risks including managing rapid growth, market adoption of cloud security, intense competition, operational failures, cyberattacks, and compliance with complex regulations - Business and Industry Risks: The company faces challenges in managing its **rapid growth**, **maintaining profitability** after a history of losses, and depends on the market's adoption of **cloud-based SaaS security solutions**[130](index=130&type=chunk)[132](index=132&type=chunk)[135](index=135&type=chunk) - Competition and Performance Risks: **Intense competition** from legacy and alternative security providers could lead to loss of market share. Any **failure of the Falcon platform** to detect or prevent security incidents could harm the company's brand and reputation[143](index=143&type=chunk)[147](index=147&type=chunk) - Operational and Cybersecurity Risks: CrowdStrike is a **direct target for cyberattacks**. A **breach of its own systems** could severely damage its reputation. The company also relies on **third-party data centers (primarily AWS)**, making it vulnerable to service disruptions beyond its control[150](index=150&type=chunk)[153](index=153&type=chunk) - Legal and Regulatory Risks: The company must comply with **complex and evolving data privacy laws** globally (e.g., GDPR, CCPA), and failure to do so could result in significant fines. It also faces risks from **intellectual property infringement claims** by others[187](index=187&type=chunk)[193](index=193&type=chunk) - Financial and Stock-Related Risks: The **dual-class stock structure** concentrates voting power with pre-IPO stockholders, including executives and directors. The market price of the Class A common stock may be **volatile**, and the company does **not intend to pay dividends** in the foreseeable future[225](index=225&type=chunk)[233](index=233&type=chunk)[237](index=237&type=chunk) [Unresolved Staff Comments](index=56&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are **no unresolved staff comments**[283](index=283&type=chunk) [Cybersecurity](index=57&type=section&id=Item%201C.%20Cybersecurity) CrowdStrike integrates cybersecurity risk management into its enterprise risk program, overseen by the Audit Committee, with no material incidents identified in fiscal 2024 - Cybersecurity risk management is a **core part of the company's enterprise risk program**, with oversight from the **Board's Audit Committee** and daily management by the **CISO**[285](index=285&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk) - The company's strategy includes **regular testing** of its incident response plan, **penetration testing**, **third-party audits**, and **mandatory employee training** to mitigate risks[287](index=287&type=chunk) - In fiscal 2024, the company did not identify any **cybersecurity threats or incidents that had a material effect in fiscal 2024** on its business strategy, results of operations, or financial condition[289](index=289&type=chunk) [Properties](index=58&type=section&id=Item%202.%20Properties) The company's principal executive offices are leased in Austin, Texas, with management deeming current facilities sufficient for present needs - The principal executive office is a leased space of approximately **47,618 square feet** in **Austin, Texas**, with the lease expiring in **2030**[294](index=294&type=chunk) - CrowdStrike believes its existing facilities are **adequate for current operational needs** but may add or expand facilities in the future to support growth[295](index=295&type=chunk) [Legal Proceedings](index=58&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course litigation but believes no pending legal proceedings will have a material adverse effect on its business or financials - The company is subject to various legal claims in the ordinary course of business but does not believe any **no pending proceedings will have a material adverse effect**[296](index=296&type=chunk)[297](index=297&type=chunk) [Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[298](index=298&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=59&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) CrowdStrike's Class A common stock trades on Nasdaq under 'CRWD', with no dividends planned, and has significantly outperformed major indices since its IPO - Class A common stock is traded on the **Nasdaq** under the symbol **"CRWD"**. There is **no public market for Class B common stock**[301](index=301&type=chunk) - The company has **never paid cash dividends** and **does not plan to in the foreseeable future**, intending to reinvest earnings into the business[303](index=303&type=chunk) Stock Performance Comparison (June 12, 2019 - January 31, 2024) | Company/Index | 6/12/19 (Base) | 1/31/24 (End) | Cumulative Return | | :--- | :--- | :--- | :--- | | **CrowdStrike Holdings, Inc.** | $100.00 | $504.31 | **+404.31%** | | S&P 500 | $100.00 | $190.27 | +90.27% | | S&P Information Technology | $100.00 | $294.24 | +194.24% | | Nasdaq 100 | $100.00 | $250.05 | +150.05% | [[Reserved]](index=60&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved - **None**[636](index=636&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) CrowdStrike achieved 36% revenue growth to $3.06 billion in fiscal 2024, shifting to a net income of $89.3 million, driven by subscription growth and strong operating cash flow Key Financial Metrics (Fiscal 2024 vs. 2023) | Metric | Fiscal 2024 (in millions) | Fiscal 2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $3,055.6 | $2,241.2 | 36% | | **Gross Profit** | $2,299.8 | $1,640.0 | 40% | | **Gross Margin** | 75% | 73% | +2 p.p. | | **Net Income (Loss)** | $89.3 | ($183.2) | N/A | | **Net Cash from Operations** | $1,166.2 | $941.0 | 24% | Key Performance Indicators (as of Jan 31, 2024) | Metric | Value (in billions) | YoY Change | | :--- | :--- | :--- | | **Annual Recurring Revenue (ARR)** | $3.44 | +34% | | **Dollar-Based Net Retention Rate** | 119% | -6 p.p. | - Revenue growth was driven by acquiring new customers and expanding sales to existing customers. Subscription revenue increased by **36%** to **$2.87 billion**[340](index=340&type=chunk) - Operating expenses increased across the board, with **Sales and Marketing up 26% to $1.14 billion**, **R&D up 26% to $768.5 million**, and **G&A up 24% to $392.8 million**, primarily due to increased headcount and employee-related costs[346](index=346&type=chunk)[347](index=347&type=chunk)[348](index=348&type=chunk) - The company's liquidity remains strong with **$3.4 billion in cash and cash equivalents**, supported by **$1.2 billion in net cash provided by operating activities** in fiscal 2024[372](index=372&type=chunk)[377](index=377&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=76&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to interest rate, foreign currency, and inflation risks, with foreign currency fluctuations potentially increasing operating loss by $75.8 million in fiscal 2024 - Interest Rate Risk: The company's investments and debt are exposed to interest rate fluctuations. However, a hypothetical **100 basis point change** in rates is **not expected to materially impact** the fair market value of its portfolio[409](index=409&type=chunk)[410](index=410&type=chunk) - Foreign Currency Risk: With nearly all sales in USD but some operating expenses in foreign currencies, the company is exposed to currency fluctuations. A hypothetical **10% adverse change** in the USD exchange rate would have increased the operating loss by an estimated **$75.8 million** in fiscal 2024[411](index=411&type=chunk) - Inflation Risk: Management does **not believe that inflation had a material effect** on the business during the last three fiscal years[412](index=412&type=chunk) [Financial Statements and Supplementary Data](index=77&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2022-2024, along with the independent auditor's report and detailed financial notes - The independent auditor, PricewaterhouseCoopers LLP, issued an **unqualified opinion** on the consolidated financial statements and the **effectiveness of internal control over financial reporting** as of January 31, 2024[418](index=418&type=chunk)[419](index=419&type=chunk) Consolidated Balance Sheet Highlights (as of Jan 31, 2024) | Account | Amount (in thousands) | | :--- | :--- | | **Total Assets** | **$6,646,520** | | Cash and cash equivalents | $3,375,069 | | Accounts receivable, net | $853,105 | | Goodwill | $638,041 | | **Total Liabilities** | **$4,309,431** | | Deferred revenue (current & noncurrent) | $3,054,099 | | Long-term debt | $742,494 | | **Total Stockholders' Equity** | **$2,337,089** | Consolidated Statement of Operations Highlights (FY 2024) | Account | Amount (in thousands) | | :--- | :--- | | **Total Revenue** | **$3,055,555** | | Gross Profit | $2,299,832 | | Total Operating Expenses | $2,301,827 | | **Net Income Attributable to CrowdStrike** | **$89,327** | | **Diluted EPS** | **$0.37** | - The critical audit matter identified by the auditor was related to **Revenue Recognition**, specifically the **identification and evaluation of terms and conditions in customer contracts**, due to the high degree of subjectivity and effort involved[426](index=426&type=chunk)[427](index=427&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=115&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants regarding accounting principles, financial disclosure, or auditing scope - **None reported**[636](index=636&type=chunk) [Controls and Procedures](index=115&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of January 31, 2024, with no material changes in Q4 fiscal 2024 - Management concluded that the company's disclosure controls and procedures were **effective as of January 31, 2024**[638](index=638&type=chunk) - Management's report on internal control over financial reporting concluded that these controls were **effective as of January 31, 2024**, a conclusion **audited and confirmed by PricewaterhouseCoopers LLP**[639](index=639&type=chunk)[640](index=640&type=chunk) - **No material changes** to internal control over financial reporting occurred during the fourth quarter of fiscal 2024[641](index=641&type=chunk) [Other Information](index=116&type=section&id=Item%209B.%20Other%20Information) During Q4 fiscal 2024, one director terminated a Rule 10b5-1 trading plan, while two officers adopted new plans for stock sales Officer and Director Trading Plan Activity (Q4 FY2024) | Name and Title | Action | Date | Plan Type | | :--- | :--- | :--- | :--- | | Godfrey Sullivan, Director | Termination | Dec 12, 2023 | Rule 10b5-1 | | Shawn Henry, CSO | Adoption | Dec 20, 2023 | Rule 10b5-1 | | Burt Podbere, CFO | Adoption | Dec 29, 2023 | Rule 10b5-1 | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=116&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - **Not applicable**[646](index=646&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=117&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[649](index=649&type=chunk) [Executive Compensation](index=117&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[650](index=650&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=117&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners and management is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[651](index=651&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=117&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[652](index=652&type=chunk) [Principal Accountant Fees and Services](index=117&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required for this item is **incorporated by reference from the forthcoming 2024 Proxy Statement**[653](index=653&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=118&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements from Item 8 and incorporates the Exhibit Index by reference, with schedules omitted as not applicable - This item references the **financial statements in Item 8** and the **Exhibit Index**[656](index=656&type=chunk)[658](index=658&type=chunk) [Form 10-K Summary](index=118&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has indicated that there is no Form 10-K summary - **None**[659](index=659&type=chunk)