CrowdStrike (NASDAQ: CRWD) has been among the hottest tech stocks in recent years. The company went public in June 2019 and priced its initial public offer (IPO) at $34. CRWD stock then touched a record high of $298 last November and is currently trading at $161.4, valuing it at $37.5 billion by market cap.
While CrowdStrike shares are down 45% from record highs, the stock has returned 178.4% to investors in the last three years. In this period, the S&P 500 Index surged by 49%.
As with most other companies, the upcoming earnings will be a crucial driver of CrowdStrike’s stock price, at least in the near term.
When is CrowdStrike’s earnings date?
CrowdStrike is scheduled to report its earnings for fiscal Q1 of 2023 (ended in April) on Thursday, June 2nd at 5 pm Eastern Time.
How can I listen to CrowdStrike’s earnings call?
To listen to the call and access the earnings transcript, as well as the shareholder’s letter and the company’s financial statements for the quarter, all you need to do is go to CrowdStrike’s investor relations page.
What to expect from CrowdStrike’s Q1 earnings?
Analysts tracking CrowdStrike expect the company to report revenue of $463.27 million and adjusted earnings of $0.23 per share. In the year-ago period, it reported revenue of $302.8 million and adjusted earnings of $0.10 per share. CrowdStrike has beaten consensus earnings estimates in each of the last four quarters, contributing to the company’s outsized returns.
Further, Wall Street expects CrowdStrike’s revenue to rise by 48.4% year-over-year to $2.15 billion, while earnings are forecast to expand by 64% to $1.1 per share in fiscal 2023.
CrowdStrike is part of the rapidly growing cybersecurity market. The company offers endpoint and cloud workload security solutions that provide it with access to huge data sets from devices connected to its network. It also leverages artificial intelligence solutions to identify and prevent cyberattacks. Over the years, CrowdStrike has expanded its suite of products and solutions to include threat intelligence, managed services, and identity protection.
Due to this network effect, CrowdStrike has increased sales from $249.8 million in fiscal 2019 to $1.45 billion in fiscal 2022. The company ended Q4 of fiscal 2022 with 16,325 customers, an increase of 65% year-over-year. Additionally, its net retention rate stood at 124%, which suggests existing customers have increased spending by 24% on the CrowdStrike platform in the last fiscal.
CrowdStrike also increased free cash flow by 51% year-over-year to $442 million in 2022, suggesting it has enough flexibility to reinvest in product development or consider inorganic growth via acquisitions. At the end of the quarter ended in January, the company had $2 billion in cash on its balance sheet and just $739 million in long-term debt.
CrowdStrike expects its total market opportunity to touch $67 billion by 2024, providing enough room to grow its top line in the next few years. Similar to most other tech stocks, CrowdStrike also enjoys high operating leverage, which means its profit margins will expand at a higher rate compared to revenue over time. Analysts expect CrowdStrike stock to increase earnings at an annual rate of 70% in the next five years.
Despite a robust balance sheet and enticing growth prospects, CrowdStrike remains vulnerable amid a broader market sell-off as the stock trades at a premium. CRWD stock is valued at 17.5x forward sales and a price to forward earnings multiple of 147x. Alternatively, analysts expect CRWD stock to increase by 56% in the next 12-months.
Writer at MyWallSt
Aditya took an interest in the stock market during the financial crash of 2008-09. His favorite stocks include Roku and Apple as both companies enjoy a leadership position in their respective verticals and are poised to beat the broader markets consistently going forward.