Read the CrowdStrike report for 4 neighborhood 2021 of the year

Read the CrowdStrike report for 4 Quarter 2021

CrowdStrike (Nasdaq: CRWD) — American holding company, providing its customers with protection against all types of cyber threats. The main product of the company is its own IT platform Falcon, which offers secure cloud solutions for various sectors.

In mid-March, CrowdStrike presented some very compelling data for 4 quarter and gave a strong outlook for the next fiscal year. Basic moments:

  1. Revenue increased by 63%, up to 0.431 billion, — against market consensus of 0.412 billion.
  2. Net loss per share increased by more than 2 times from -0.09 to -0.18 $. At the same time, the adjusted indicator turned out to be in the positive zone and amounted to 0,31 $ when forecasting 0,20 $.
  3. At the end of January 2022, the company had accumulated about $2 billion in cash on its accounts..
  4. Management announces excellent outlook for next year: revenue will grow to 2.13 billion, adjusted net earnings per share - up to 1,13 $.

Sales structure of the company

CrowdStrike International Business. The company provides its services on almost all continents, and receives the main income from subscriptions to the Falcon platform, which bring about 95% of the total result. The remaining 5% are for additional services, such as malware analysis, assessment of the damage suffered by customers from cyber attacks and much more.

Sales geography of CrowdStrike:

  1. USA - 73%.
  2. Europe, Middle East and Africa - 13%.
  3. Asia - 10%.
  4. Other countries - 4%.

In the fourth quarter, CrowdStrike increased its sales by 63% from $0.265 billion to $0.431 billion thanks to strong growth in subscription revenue. This segment added 65% to 0.405 billion due to increased demand from customers. Additional services showed the growth of everything 25%, increasing to 0.025 billion.

Sales structure of the company, billion dollars

4к2021 4к2022 The change
Subscription revenue 0,245 0,405 65%
Extras 0,020 0,025 25%
total revenues 0,265 0,431 63%

Key metrics

CrowdStrike Management Identifies Two Key Operating Metrics: subscription customers и ARR. The first value calculates the total audience of the service — how many corporate clients subscribed and got access to the Falcon platform.

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The second parameter is annual recurring revenue, or ARR, - is one of the most important indicators for subscription services. This value allows you to determine the annual value of contracts with customers, provided, that any agreement, which expires within the following 12 Months, extended under existing conditions.

Last year, CrowdStrike managed to increase ARR by 65% ​​to 1.73 billion thanks to strong results in two markets: Endpoints (endpoint) and cloud computing. Subscription customers also grew by 65% to 16 325 customers amid increased demand.

Dynamics of Subscription Customers

Number of clients Growth dynamics compared to last year
2018 1242 176%
2019 2516 103%
2020 5431 116%
2021 9896 82%
2022 16 325 65%

Dynamics ARR, billion dollars

2018 0,141
2019 0,312
2020 0,600
2021 1,050
2022 1,730

0,141

Dynamics of the global endpoint market until 2025, billion dollars

2020 8,200
2021 9,485
2022 11,192
2023 13,431
2024 16,251
2025 19,826

8,2

Profit

CrowdStrike's fourth-quarter net income fell to -0.042 billion from -0.019 billion amid strong growth in cost and operating expenses, which year-on-year added 69 And 60% respectively. Adjusted net income, on the other hand, increased by more than 2 times from 0.031 to 0.070 billion.

Regarding free cash flow, then in the last quarter of last year he added 31% from 0.097 to 0.127 billion due to strong growth in operating cash flow, which has increased by 39% up to 0.160 billion.

Key financial results of the company, billion dollars

4к2021 4к2022 The change
Revenue 0,265 0,431 63%
EBITDA −0,006 −0,008 −33%
Net profit −0,019 −0,042 −121%
FCF 0,097 0,127 31%
net debt −1,181 −1,257 6%
Adjusted net income 0,031 0,070 126%

Management forecasts and comparison with competitors

Following the release of current financial results, CrowdStrike management also announced its guidance for the first quarter and for the full year ahead.. Let's start next quarter:

  1. Revenue in the first quarter will grow by 51-53% to 0.459-0.465 billion.
  2. Adjusted operating profit will be 0.062-0.066 billion.
  3. Adjusted net income will increase by more than 2 times from 0.023 to 0.052-0.057 billion. Net earnings per share will range from 0,22 to 0,24 $.
  4. The weighted average number of CrowdStrike shares will be 240 million pieces.
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Forecast for next year:

  1. Revenue for the next four quarters will grow by 47-49% from 1.452 to 2.133-2.163 billion against the market forecast of 2 billion.
  2. Adjusted operating profit will be 0.289-0.312 billion.
  3. Adjusted net income will increase by 70% from 0.161 to 0.251-0.274 billion. Net earnings per share will range from 1,03 to 1,13 $, while Wall Street expected 0,9 $.
  4. The weighted average number of CrowdStrike shares will be 243 million units.

Comparison with competitors, billion dollars

EV / EBITDA P / S Rates of growth net debt
CrowdStrike Otric. 28,92 63% −1,257
Octa Otric. 16,86 63% 1,572
Palo Alto Networks Otric. 10,71 29% 1,751
SentinelOne Otric. 37,68 133% −1,665
Zscaler Otric. 31,73 62% 0,531

What's the bottom line?

CrowdStrike posted very strong fourth quarter financial results along with excellent guidance for next year: revenue increased by 63%, adjusted net profit — on 126%. The market reacted positively to such shock indicators.: The company's shares after the publication of the report rose by more than 12%.

Now it is better to wait for the correction, than buying stocks. The estimate in P / S < 20 or EV / S < 20, on which the company was trading before the coronavirus crisis in 2019 - it is interesting to buy shares at 127 $ and below.

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