EPS of $0.22 increased by 204.8% from previous year
Gross margin of 75.2%
Net income of 53.70M
""Free is never free. Customers understand the difference between product pricing and the total lifetime cost of operating inferior technology."" - George Kurtz
CrowdStrike Holdings Inc (CRWD) demonstrated remarkable performance in Q4 2024, achieving record revenue of $845.3 million, marking a YoY growth of 33%. This quarter's net income reached $53.7 million, translating to $0.22 per diluted share, both figures surpassing expectations and underscoring the firm's operational efficiency and competitive edge in the cybersecurity landscape. Management highlighted a substantial increase in net new Annual Recurring Revenue (ARR), recording $282 million, which reflects a 27% year-over-year growth, affirming the company's significant market traction and customer demand for its Falcon platform. Moreover, CrowdStrike's cash flow from operations totaled $347 million, indicating robust free cash flow generation at 33% of revenue, which will bolster investments and growth strategies moving into fiscal year 2025.
Key Performance Indicators
Revenue
845.34M
QoQ: 7.55% | YoY:32.63%
Gross Profit
636.08M
75.20% margin
QoQ: 7.63% | YoY:37.75%
Operating Income
31.10M
QoQ: 883.21% | YoY:150.57%
Net Income
53.70M
QoQ: 101.38% | YoY:209.74%
EPS
0.22
QoQ: 100.00% | YoY:204.76%
Revenue Trend
Margin Analysis
Key Insights
**Revenue:** $845.3 million, up 33% YoY
**Net Income:** $53.7 million with a diluted EPS of $0.22, represents a 209.74% increase from last year.
**Operating Margin:** 25%, a 10 percentage point improvement YoY.
**Free Cash Flow:** $283 million, 33% of revenue with a Rule of 66 achievement.
**ARR:** Closed at $3.44 billion, up 34% YoY, with record contributions from all solutions, including cloud security growing nearly 200%.
The highlights reflect strong operational leverage, improved margins, and successful execution of strategic initiatives that have fortified CrowdStrike's position as a market leader in cybersecurity solutions.
Financial Highlights
Financial Performance Highlights:
- Revenue: $845.3 million, up 33% YoY
- Net Income: $53.7 million with a diluted EPS of $0.22, represents a 209.74% increase from last year.
- Operating Margin: 25%, a 10 percentage point improvement YoY.
- Free Cash Flow: $283 million, 33% of revenue with a Rule of 66 achievement.
- ARR: Closed at $3.44 billion, up 34% YoY, with record contributions from all solutions, including cloud security growing nearly 200%.
The highlights reflect strong operational leverage, improved margins, and successful execution of strategic initiatives that have fortified CrowdStrike's position as a market leader in cybersecurity solutions.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
845.34M
32.63%
7.55%
Gross Profit
636.08M
37.75%
7.63%
Operating Income
31.10M
150.57%
883.21%
Net Income
53.70M
209.74%
101.38%
EPS
0.22
204.76%
100.00%
Key Financial Ratios
currentRatio
1.67
grossProfitMargin
75.2%
operatingProfitMargin
3.68%
netProfitMargin
6.35%
returnOnAssets
0.81%
returnOnEquity
2.33%
debtEquityRatio
0.34
operatingCashFlowPerShare
$1.44
freeCashFlowPerShare
$1.13
priceToBookRatio
30.58
priceEarningsRatio
327.99
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Key Insights from Management:
- George Kurtz, CEO: "CrowdStrike delivered an exceptional fourth quarter that far exceeded our expectations. It was another quarter of records... Our execution and discipline across the business, coupled with overwhelmingly positive market feedback, gives me strong conviction in our fiscal year 2025 momentum."
- Burt Podbere, CFO: "Operating income grew 86% year-over-year to reach a record $660.3 million, or 22% of revenue, and net income attributable to CrowdStrike and EPS more than doubled to reach a record $751.8 million or $3.09 per diluted share."
- Kurtz emphasized the importance of the threat landscape, stating, "The state of the threat landscape has never been more elevated. We expect continued deal scrutiny throughout this coming year."
These reflections underlie the company’s strategic positioning amid a challenging macroeconomic backdrop, supporting robust future expectations.
"Free is never free. Customers understand the difference between product pricing and the total lifetime cost of operating inferior technology."
— George Kurtz
"What we've seen in the past with other competitors, we know free isn't free. And what customers are saying is more consoles, more point products masquerading as platforms create fatigue in their environment."
— George Kurtz
Forward Guidance
Looking ahead, CrowdStrike projects Q1 FY 2025 total revenue between $902.2 million and $905.8 million, reflecting a year-over-year growth rate of 30% to 31%. Management has outlined a focus on maintaining operational excellence while navigating a stable, yet scrutinized, market landscape. Burt Podbere noted, "We are increasing our pace of hiring in FY 2025 as we continue to invest in our innovation engine and go to market functions to scale the business to $10 billion of ARR and beyond." This indicates sustained growth ambitions and readiness to capitalize on market opportunities moving forward.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
CRWD Focus
75.20%
3.68%
2.33%
327.99%
SPLK
84.90%
32.60%
57.60%
15.20%
ADBE
87.40%
34.50%
8.98%
46.98%
PLTR
82.10%
10.80%
2.69%
100.53%
ZS
78.00%
-4.55%
-1.17%
-450.80%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The investment outlook for CrowdStrike appears favorable amidst the current industry's shift towards integrated cybersecurity solutions. The projected revenue growth and strong balance sheet indicate a capacity for ongoing investment in innovation and expansion. Additionally, the anticipated adaptation of newer technologies such as Charlotte AI positions CrowdStrike at the forefront of market trends, enabling it to capture greater market share. Investors should monitor the execution of its growth strategy, macroeconomic conditions, and competitive pressures carefully.
Key Investment Factors
Growth Potential
CrowdStrike remains poised for growth with its focus on integrated cybersecurity solutions and continuous product innovations that attract larger enterprises. The anticipated acquisition of Flow Security adds significant capabilities in data protection, tapping into a rapidly expanding cloud data security market worth $8 billion by 2028.
Profitability Risk
Market competition poses a significant risk, with alternative solutions promoted by larger, established tech firms potentially affecting CrowdStrike’s pricing power. The ongoing macroeconomic conditions may lead to scrutiny in spending on cybersecurity solutions, impacting new deal closures.
Financial Position
CrowdStrike's financial position is formidable with cash and cash equivalents totaling $3.47 billion and a low debt ratio of 0.256. This balance sheet strength supports further investments in innovation and market expansion, mitigating risks associated with economic downturns.
SWOT Analysis
Strengths
Robust revenue growth with record net new ARR.
Strong gross margins driven by highly valued Falcon platform.
Established brand reputation and market leadership in cybersecurity.
Weaknesses
Dependence on subscription revenue with potential volatility in renewals amidst economic uncertainties.
High costs associated with R&D and customer acquisition potentially affecting profitability.
Opportunities
Expansion into cloud security market and new product offerings like Flow Security.
Growing demand for comprehensive cybersecurity solutions from organizations due to increasing threats.
Threats
Intense competition amongst established vendors in the cybersecurity space, particularly from larger tech companies.
Economic downturns impacting corporate spending on security solutions.