Group 1: CrowdStrike Holdings, Inc. - CrowdStrike reported better-than-expected earnings for the first quarter and raised its full-year guidance [2] - The company expects second-quarter revenue to be between $1.145 billion and $1.152 billion, lower than the estimated $1.23 billion [2] - Anticipated second-quarter adjusted earnings are projected to be between 82 cents and 84 cents per share, compared to estimates of 92 cents per share [2] - Following the earnings report, CrowdStrike shares fell 7% to $454.70 in pre-market trading [2] Group 2: Other Companies - Asana, Inc. shares dipped 8.4% to $17.40 after reporting first-quarter results [5] - Outset Medical Inc. shares declined 6.8% to $18.09 after naming Renee Gaeta as CFO [5] - Merus NV shares fell 5.5% to $59.01 after pricing a $300 million public offering at $57 per share [5] - Quidelortho Corp shares decreased 4.3% to $29.00 in pre-market trading [5] - ATAI Life Sciences NV shares dropped 3.4% to $2.27 after a decline of more than 5% on Tuesday [5] - Doximity Inc. shares fell 2.7% to $52.06 after gaining around 4% on Tuesday [5]

Revenue and Growth - Annual Recurring Revenue (ARR) reached $4.4 billion as of April 30, 2025, representing a year-over-year growth of 22% compared to $3.6 billion in 2024, which had a growth of 33%[166]. - Total revenue increased by $182.4 million, or 20%, for the three months ended April 30, 2025, compared to the same period in 2024, reaching $1,103.4 million[191]. - Subscription revenue accounted for 95% of total revenue for both the three months ended April 30, 2025, and April 30, 2024, with a 20% increase to $1,050.8 million[192]. - The dollar-based net retention rate was consistent with expectations as of April 30, 2025, reflecting customer renewals, expansion, contraction, and churn[168]. - The company expects seasonal patterns in net new ARR generation, typically greater in the second half of the year, especially in Q4[232]. Expenses and Profitability - The company incurred approximately $36.0 million to $53.0 million in charges related to a strategic plan, with $6.6 million recognized in the first quarter of fiscal 2026[151]. - Total cost of revenue increased by $64.1 million, or 29%, for the three months ended April 30, 2025, totaling $289.1 million[194]. - Gross profit for the three months ended April 30, 2025, was $814.3 million, a 17% increase from $696.0 million in the same period of 2024[196]. - Research and development expenses rose by $98.9 million, or 42%, for the three months ended April 30, 2025, totaling $334.1 million[199]. - Sales and marketing expenses increased by $89.5 million, or 26%, for the three months ended April 30, 2025, reaching $439.6 million[198]. - General and administrative expenses increased by $61.5 million, or 59%, for the three months ended April 30, 2025[183]. - Subscription gross margin slightly decreased by 1 percentage point to 77% for the three months ended April 30, 2025[196]. - Professional services gross margin decreased by 17 percentage points to 11% for the three months ended April 30, 2025[197]. - Net income (loss) attributable to CrowdStrike was $(110.2) million for the three months ended April 30, 2025, compared to $42.8 million in the same period of 2024, representing a decrease of $153.0 million[188]. Cash Flow and Financial Position - Net cash provided by operating activities was $384.1 million for the three months ended April 30, 2025, compared to $383.2 million in the same period of 2024[211]. - The company had $4.6 billion in cash and cash equivalents as of April 30, 2025, along with $750 million available under its Revolving Facility[206]. - Deferred revenue as of April 30, 2025, was $3.8 billion, with $2.7 billion expected to be recognized as revenue in the next 12 months[209]. - The company has non-cancellable purchase commitments totaling $2.7 billion as of April 30, 2025, with remaining terms in excess of 12 months[223]. - The company reported a decrease in other income (expense), net by $11.6 million, or 151%, primarily due to a decrease in gains on strategic investments[203]. Strategic Initiatives and Market Position - The company plans to continue investing significantly in research and development to enhance technology platform and product functionality[161]. - Following the July 19 Incident, the company has experienced delays in creating sales opportunities and longer sales cycles, which are expected to continue affecting key metrics and results of operations[162]. - The company’s go-to-market strategy includes a low friction land-and-expand model, allowing customers to easily add additional cloud modules after initial deployment[154]. - The flexibility and scalability of the Falcon platform enable the company to target organizations of all sizes, presenting significant growth opportunities[155]. - As of April 30, 2025, the company had a backlog of approximately $3.0 billion, which is not recorded in deferred revenue[230]. Employee and Organizational Information - The company had 10,363 full-time employees as of April 30, 2025, with no labor union representation in the U.S.[234].

Core Insights - CrowdStrike Holdings (CRWD) reported $1.1 billion in revenue for the quarter ended April 2025, marking a year-over-year increase of 19.8% and an EPS of $0.73, down from $0.93 a year ago [1] - The revenue was slightly below the Zacks Consensus Estimate by -0.10%, while the EPS exceeded the consensus estimate by +10.61% [1] Financial Performance Metrics - Annual recurring revenue (ARR) reached $4,435.6 million, surpassing the seven-analyst average estimate of $4,414.2 million [4] - Remaining Performance Obligations (RPO) stood at $6.8 billion, exceeding the $6.07 billion average estimate from two analysts [4] - Subscription revenue was reported at $1.05 billion, matching the 13-analyst average estimate and reflecting a year-over-year increase of +20.5% [4] - Professional services revenue was $52.67 million, above the $49.90 million estimate from 13 analysts, representing a +7.8% change year-over-year [4] - Non-GAAP subscription gross profit was $840.77 million, slightly below the nine-analyst average estimate of $843.70 million [4] - Non-GAAP professional services gross profit was $16.37 million, compared to the $17.71 million estimate from nine analysts [4] - GAAP professional services gross profit was $5.90 million, below the five-analyst average estimate of $9.07 million [4] - GAAP subscription gross profit was reported at $808.39 million, compared to the $823.81 million average estimate from five analysts [4] Stock Performance - CrowdStrike shares have returned +8.1% over the past month, outperforming the Zacks S&P 500 composite's +4.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - CrowdStrike Holdings reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, but down from $0.93 per share a year ago, representing an earnings surprise of 10.61% [1] - The company posted revenues of $1.1 billion for the quarter ended April 2025, slightly missing the Zacks Consensus Estimate by 0.10%, compared to revenues of $921.04 million a year ago [2] - Over the last four quarters, CrowdStrike has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - CrowdStrike shares have increased approximately 40% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.80 on revenues of $1.16 billion, and for the current fiscal year, it is $3.44 on revenues of $4.78 billion [7] Group 3: Industry Context - The Zacks Security industry is currently ranked in the top 7% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Image source: The Motley Fool. Tuesday, June 3, 2025 at 5 p.m. ET CALL PARTICIPANTS Chief Executive Officer and Founder — George Kurtz Chief Financial Officer — Burt Podbere Need a quote from one of our analysts? Email [email protected] RISKS Burt Podbere disclosed, "The company received a request for information from the DOJ and the SEC relating to revenue recognition and reporting of ARR for certain transactions, the July 19 outage, and related matters." Burt Podbere stated, "GAAP net loss attributable to ...

Financial Data and Key Metrics Changes - The company achieved net new ARR of $194 million, exceeding expectations and contributing to an ending ARR of over $4.4 billion, reflecting a 22% year-over-year growth [6][35]. - Subscription gross margin stood at 80%, showcasing the efficiency of the AI platform, while total gross margin was reported at 78% [7][36]. - Free cash flow reached $279 million, representing 25% of revenue, with a record cash flow from operations of $384 million [7][37]. Business Line Data and Key Metrics Changes - The Falcon Flex model has shown significant adoption, with a total account deal value of $3.2 billion across 820 accounts, growing 31% sequentially and more than six times year-over-year [7][9]. - The next-gen SIEM business delivered triple-digit ending ARR growth, indicating strong market demand and successful displacement of legacy products [25][26]. - The cloud business experienced strong growth, with net new and total ARR accelerating year-over-year, supported by the launch of new technologies [21][22]. Market Data and Key Metrics Changes - The geographic revenue mix for Q1 consisted of approximately 67% from the U.S. and 33% from international markets, indicating a balanced global presence [35]. - The MSSP channel contributed over 15% of Q1 deal value, reflecting significant growth in this area compared to previous years [28][102]. Company Strategy and Development Direction - The company is focused on consolidating point products and enhancing customer experience through the Falcon Flex subscription model, which is driving faster adoption and increased spending [8][11]. - There is a strong emphasis on AI-driven solutions, with the introduction of Charlotte AI to enhance security operations and automate processes [19][81]. - The strategic realignment plan aims to optimize investments in key growth areas such as cloud, identity, exposure management, and next-gen SIEM [40][41]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving sequential net new ARR growth in Q2 and a reacceleration in the back half of FY 2026, driven by strong demand for the Falcon platform and Falcon Flex [34][38]. - The company anticipates a continued need for cybersecurity solutions in an increasingly complex threat environment, positioning itself as a leader in protecting AI agents and workloads [31][82]. - The share repurchase authorization of up to $1 billion reflects management's confidence in long-term growth prospects and cash flow generation capabilities [33][34]. Other Important Information - The company reported a GAAP net loss of $110.2 million, which included $39.7 million in expenses related to outages [37]. - The company expects a temporary divergence between ARR and subscription revenue due to the impact of customer choice programs [39]. Q&A Session Summary Question: Insights on Falcon Flex and its impact on sales - Management noted that Falcon Flex has significantly changed the sales approach, focusing on outcomes rather than individual modules, leading to faster adoption and increased ARR [48][52]. Question: Divergence between revenue growth and ARR growth - Management explained that the divergence is due to amortization impacts from customer choice programs, which affect revenue recognition differently than ARR [56][57]. Question: Budgeting for reflex deals - The company highlighted that discussions around budget adjustments occur during demand planning, allowing customers to replace point products and achieve better outcomes [61][64]. Question: Changes in sales compensation and market response - Management reported positive feedback from the sales force and customers, indicating a successful transition back to business following previous disruptions [68][71]. Question: Trends in the macro environment - Management emphasized strong execution and customer demand, particularly for next-gen SIEM, despite external market noise [93]. Question: Competitive positioning in the next-gen SIEM market - The company identified Splunk and QRadar as key legacy competitors being displaced, with a focus on delivering better value and performance [97][99]. Question: Momentum in the MSSP channel - Management discussed significant growth in the MSSP channel, highlighting the ease of deployment and strong demand from customers [102][103]. Question: Vision for identity management space - The company aims to deepen its capabilities in identity management, responding to customer demand for consolidated solutions that save costs [108][109].

Financial Data and Key Metrics Changes - The company achieved net new ARR of $194 million, exceeding expectations and bringing total ending ARR to over $4.4 billion, a 22% increase year-over-year [5][32] - Subscription gross margin was reported at 80%, indicating strong efficiency of the AI platform [5][34] - Free cash flow reached $279 million, representing 25% of revenue, with a quarter-on-quarter growth of double digits [5][35] - Total revenue for the quarter was $1.1 billion, reflecting a 20% growth compared to the same quarter last year [33] Business Line Data and Key Metrics Changes - The Falcon Flex model has shown significant success, with a total account value of $3.2 billion across 820 accounts, growing 31% sequentially and more than six times year-over-year [5][6] - The company reported a sustained gross retention rate of 97%, indicating strong customer commitment to the Falcon platform [5][34] - The next-gen SIEM business delivered triple-digit ending ARR growth, showcasing its disruptive impact on legacy products [23] Market Data and Key Metrics Changes - The geographic revenue mix consisted of approximately 67% from the U.S. and 33% from international markets, indicating a balanced global presence [33] - The MSSP business has grown rapidly, now representing over 15% of total deal value, highlighting the increasing importance of managed service providers [26] Company Strategy and Development Direction - The company is focusing on consolidating point products and enhancing the Falcon platform to meet evolving market demands, particularly in AI and cybersecurity [4][29] - The strategic realignment plan aims to optimize investments in key growth areas such as cloud, identity, exposure management, and next-gen SIEM [38] - The company has authorized up to $1 billion in share repurchases, reflecting confidence in long-term growth prospects and cash flow generation capabilities [31][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving sequential net new ARR growth in Q2 and accelerating growth in the back half of FY 2026, driven by strong demand for the Falcon platform [31][36] - The company anticipates a divergence between ARR and subscription revenue due to the impact of the CCP program, which is expected to normalize in the future [37] - The management highlighted the necessity of cybersecurity in the AI age, positioning the company as a leader in protecting autonomous AI agents [15][29] Other Important Information - The company launched new technologies such as AI model scanning and AI security dashboard to address the growing demand for AI tools while managing associated risks [20] - The Falcon platform's capabilities are being enhanced to provide better protection for identities, workloads, and data, aligning with market needs [100] Q&A Session Summary Question: Insights on Falcon Flex and its impact on sales - Management noted that Falcon Flex has significantly changed the sales approach, focusing on outcomes rather than module-by-module sales, leading to increased customer adoption and spending [47][50] Question: Divergence between revenue growth and ARR growth - The divergence is attributed to the amortization impacts of the CCP program, which affects revenue recognition differently than ARR [54][55] Question: Budgeting for reflex deals - Customers typically reassess their budgets based on the value received from Falcon Flex, leading to discussions on replacing point products and planning phased rollouts [58][60] Question: Changes in sales compensation and market response - The salesforce has responded positively to the new compensation structures and the focus on innovation, leading to increased customer engagement and adoption rates [64][67] Question: Free cash flow margin expectations - The company expects to achieve a free cash flow margin of over 30% next year, driven by the success of Falcon Flex and larger deals [83][85] Question: Trends in the macro environment - The company has executed well despite market noise, with strong demand for next-gen SIEM and overall positive customer engagement [88][89] Question: Competitive positioning in the MSSP channel - The company has strengthened its relationships with managed service providers, leading to significant growth in this channel and improved competitive positioning [96][98] Question: Vision for identity management space - The company aims to deepen its capabilities in identity management, responding to customer demand for more comprehensive solutions [100][101]

Core Insights - CrowdStrike's shares fell 7% after issuing a weaker-than-expected revenue forecast despite a nearly 20% increase in revenue for the fiscal first quarter [1][2] - The company reported a net loss of $110.2 million, or 44 cents per share, compared to a net income of $42.8 million, or 17 cents per share in the same quarter last year [1] - CrowdStrike raised its full-year earnings guidance while maintaining its revenue expectations, projecting adjusted earnings per share of $3.44 to $3.56 and revenue of $4.74 billion to $4.81 billion [3] Financial Performance - For the fiscal first quarter, revenue was $1.10 billion, matching expectations, while adjusted earnings per share were 73 cents, exceeding the expected 65 cents [5] - The company anticipates adjusted earnings per share of 82 to 84 cents for the current quarter, with revenue projected between $1.14 billion and $1.15 billion, slightly below analyst expectations [2] Strategic Actions - CrowdStrike announced a $1 billion share buyback program, reflecting confidence in its future and commitment to its mission [3][4] - As of the latest close, CrowdStrike's stock has increased by 43% in 2025, significantly outperforming the S&P 500 index, which gained less than 2% [4]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights across sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Financial Performance - Ending ARR reached $444 billion, a 22% year-over-year increase[8,37] - Net New ARR was $194 million[8,29,37] - Subscription revenue totaled $1103 billion[29,37] - Free cash flow was $279 million, representing a 25% margin[8,34,37] Platform Adoption - Customers adopting 6+ modules reached 48%[24] - Customers adopting 7+ modules reached 32%[24] - Customers adopting 8+ modules reached 22%[24] Market Opportunity - The CY25 Total Addressable Market (TAM) for the AI-Native Security Platform is estimated at $116 billion[13,14] - The CY29 Total Addressable Market (TAM) for the AI-Native Security Platform is projected to reach $250 billion[14] Flex Program - Accounts adopting the Flex model represent over $32 billion of total deal value[37] - Average Flex customer deal size is greater than $1 million[37]