Core Insights - CrowdStrike's shares fell over 6% following disappointing revenue guidance for the current quarter [1] - The company expects revenue between $1.14 billion and $1.15 billion, below the $1.16 billion analyst estimate [2] - Adjusted earnings per share are projected between 82 cents and 84 cents, slightly above the LSEG estimate of 81 cents [2] Financial Performance - Despite weaker guidance, CrowdStrike exceeded earnings estimates with adjusted earnings per share of 73 cents, surpassing the expected 65 cents [5] - Revenue grew approximately 20% year-over-year, but 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, from the previous year [6] - CrowdStrike announced a $1 billion share repurchase plan [6] Operational Challenges - The company is still experiencing repercussions from a significant outage last July, which affected flights and hospital procedures [3] - The termination of the customer commitment packages incentive program resulted in a revenue reduction of about $11 million for the quarter [4] - CrowdStrike anticipates a further revenue impact of $10 million to $15 million through the end of the fiscal year [4] Market Sentiment - Analyst Peter Levine from Evercore ISI downgraded CrowdStrike shares to "in line," citing a combination of full valuation and recurring one-time events as factors affecting upside potential [5] - There is growing investor frustration regarding unresolved issues within the company [5]

Company Performance - CrowdStrike Holdings shares are down nearly 7% after reporting a beat on earnings and meeting revenue expectations but providing a weak outlook [4] - Dollar Tree shares are down nearly 1.5% due to warnings that tariffs could impact future earnings [4] - Hewlett Packard Enterprise shares are up by 7.5% in premarket trading despite lowering its top-end sales outlook, indicating a stabilization in its outlook [4] - Wells Fargo shares are indicated higher by 2.5% after the Federal Reserve lifted restrictions on the bank's asset cap following a scandal involving fake customer accounts [4] Economic Indicators - The latest ADP Employment reading showed only 37,000 new jobs added, significantly below the forecast of 111,000, which may jeopardize estimates for the upcoming official employment report [5] - Markets are currently quiet, with investors awaiting the next employment report on Friday [5][6] Trade Policy and Market Sentiment - President Trump has set a deadline for countries to submit their best trade proposals, with the administration planning to review and counter these proposals to settle trade disputes before the next month's deadline [2] - The market is looking for a deal with a major trading partner, as the current trade surplus with the UK was around $11.9 billion in 2024, which may empower companies to forecast growth [3] - Overall market sentiment remains cautious as investors await clarity on trade proposals and potential tariff decisions from Washington [8]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience analyzing companies in tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - The Investing Group Deep Value Returns, led by Michael, offers insights through its concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [3] - The group provides "hand-holding" support for both new and experienced investors, fostering an active and kind community accessible via chat [3]

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to start June, consider joining Out Fox The Street . Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationsh ...

Core Viewpoint - CrowdStrike Holdings is considered overvalued at a price-to-earnings ratio of 122 times its adjusted trailing earnings, despite its impressive growth performance [1][6]. Group 1: Valuation and Growth - CrowdStrike's price-to-sales (P/S) ratio is 28.1, significantly higher than the S&P 500's 3.2, indicating a premium valuation [2]. - The company has achieved an average revenue growth rate of 40% over the past three years, compared to the S&P 500's 6.3% [2]. - In the most recent quarter, CrowdStrike's revenues grew by 20% to $1.1 billion, outperforming the S&P 500's growth rate [2]. Group 2: Profitability - Reported operating income for the last twelve months was -$252 million, resulting in a negative operating margin of -6.1% [3]. - On an adjusted basis, the operating margin was 20.3%, excluding stock-based compensation and one-time expenses [3]. - The company generated an operating cash flow of $1.4 billion, leading to a cash flow-to-sales ratio of 33.4%, which is significantly better than the S&P 500's 15.7% [3]. Group 3: Financial Stability - CrowdStrike has a debt of $785 million against a market capitalization of $122 billion, resulting in a low debt-to-equity ratio of 0.6% [4]. - Cash and cash equivalents amount to $4.6 billion, representing 53% of total assets, which is substantially higher than the S&P 500's 14.8% [4]. Group 4: Market Resilience - CrowdStrike's stock has shown greater volatility during market downturns, with a 58.3% decline during the 2022 Inflation Shock, compared to the S&P 500's 25.4% [5]. - During the 2020 Covid pandemic, the stock fell by 50.0%, again worse than the S&P 500's 33.9% decline [5]. - Although the stock recovered to pre-crisis levels, its higher volatility indicates weaker resilience during market crashes [5]. Group 5: Future Outlook - Current consensus estimates project average sales growth of 21% over the next couple of years, a slowdown from the previous three-year average of 40% [7]. - Given the high valuation and potential for a broader market downturn, it is suggested that now may not be the best time to invest in CrowdStrike stock [8].

Group 1 - CrowdStrike reported Q1 earnings of $0.73 per share on sales of $1.10 billion, exceeding consensus estimates of $0.65 earnings per share on the same sales figure [1] - The company's Q1 revenue increased nearly 20%, but the adjusted operating margin fell 500 basis points year-over-year to 18% due to rising costs in professional services and higher R&D spending [3] - Despite the positive Q1 results, CrowdStrike's stock fell about 7% in extended trading, attributed to a weaker-than-expected Q2 outlook [1][2] Group 2 - CrowdStrike anticipates Q2 earnings of $0.82 per share on revenue of around $1.14 billion, which is below street expectations of $0.81 earnings per share and $1.16 billion in revenue [2] - The company raised its full-year earnings guidance to $3.44 to $3.56 in adjusted earnings per share, above the consensus of $3.43, while maintaining its sales outlook of $4.74 billion to $4.81 billion, aligning with the consensus of $4.77 billion [4] - A $1 billion share buyback program was announced, which may indicate confidence in the company's long-term prospects [4] Group 3 - CrowdStrike's stock has surged 40% this year, significantly outperforming the S&P 500 index's 2% rise, but the stock's lofty valuations may have contributed to investor unease following the minor Q2 revenue forecast miss [5] - The critical question remains whether CRWD stock is overvalued at current levels of $460, necessitating a comparison of its valuation with recent operating performance and financial condition [6]

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]