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]

Core Insights - CrowdStrike Holdings, Inc. reported strong Q1 FY2026 results, with net new Annual Recurring Revenue (ARR) of $194 million, exceeding management expectations, and ending ARR of $4.44 billion, reflecting a 22% year-over-year growth [4][12][49] - The company emphasized the success of its FalconFlex subscription model, which has driven significant customer engagement and rapid expansion, with over $3.2 billion in total deal value across more than 820 accounts [6][12][25] - Management expressed confidence in achieving long-term margin targets and accelerating net new ARR growth, supported by investments in AI-driven automation and strategic partnerships, including a collaboration with Microsoft [12][14][45] Financial Performance - Total revenue for Q1 FY2026 reached $1.1 billion, a 20% increase year-over-year, with subscription revenue also growing by 20% to $1.05 billion [4][50] - Non-GAAP operating income was reported at $201.1 million, with a non-GAAP operating margin of 18%, exceeding company guidance [5][51] - Free cash flow for the quarter was $279.4 million, representing 25% of revenue, despite a $61 million impact from outage-related expenses [5][53] Customer Metrics - The subscription gross margin stood at 80%, indicating strong platform efficiency, while the gross retention rate was 97%, highlighting high customer loyalty [4][5] - Over 48% of subscription customers are using six or more Falcon modules, demonstrating deep platform adoption [7][50] - The FalconFlex model has resulted in an average deal size exceeding $1 million ARR, with a 31-month average contract length [6][25] Strategic Initiatives - The company announced a strategic realignment plan aimed at enhancing operational efficiency and targeting a non-GAAP operating margin of at least 24% by FY2027 [8][56] - A share repurchase authorization of up to $1 billion reflects management's confidence in the company's long-term strategy and cash flow strength [9][48] - The CCP program is expected to create a temporary separation between ARR and subscription revenue recognition, impacting revenue by approximately $11 million in Q1 FY2026 and $10 million to $15 million in subsequent quarters [10][55] Market Position and Future Outlook - CrowdStrike is positioned as a leader in the cybersecurity software market, with a focus on AI-driven solutions to address evolving threats, particularly in the context of increasing AI agent proliferation [12][33] - The company anticipates continued strong demand for its Falcon platform, with expectations for sequential net new ARR growth to double compared to the previous fiscal year [54][67] - Management highlighted the importance of consolidating point products and enhancing customer experience through the FalconFlex model, which is expected to drive further growth [12][63]

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]