Wed, Jun 4, 10:03 AM (14 days ago)
### Summary of CrowdStrike Holdings, Inc. (CRWD) Q1 2025 Financial Performance **Revenue and Profit Margins:** - **Total Revenue:** $1.10 billion, up 20% year-over-year (YoY). - **Subscription Revenue:** $1.05 billion, up 20% YoY. - **Professional Services Revenue:** $52.7 million, up 8% YoY. - **Gross Profit:** $814.3 million, up 17% YoY. - **Gross Margin:** 74%, down 2 percentage points YoY. - **Operating Loss:** $124.7 million, compared to an operating income of $6.9 million in Q1 2024. - **Net Loss:** $110.9 million, compared to a net income of $46.3 million in Q1 2024. **Cash Flow:** - **Net Cash Provided by Operating Activities:** $384.1 million, up slightly from $383.2 million in Q1 2024. - **Net Cash Used in Investing Activities:** $101.8 million, up from $51.1 million in Q1 2024. - **Net Cash Provided by Financing Activities:** $2.1 million, down from $2.5 million in Q1 2024. **Earnings Changes:** - **Earnings Per Share (EPS):** -$0.44, compared to $0.18 in Q1 2024. - **Diluted EPS:** -$0.44, compared to $0.17 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by new customer acquisitions and additional sensors and modules sold to existing customers. - **Operating Expenses:** Increased significantly due to higher stock-based compensation, research and development, and general and administrative expenses. - **Cash Flow:** Positive operating cash flow indicates strong liquidity, but increased investing activities suggest significant capital expenditures. **Trends and Uncertainties:** - **Growth Opportunities:** Expansion into new markets and continued innovation in cybersecurity solutions. - **Challenges:** Increased competition, regulatory pressures, and the impact of the July 19 Incident on customer trust and sales cycles. - **Future Operations Impact:** Continued investment in R&D and sales and marketing to drive growth, but potential for increased operating losses if expenses outpace revenue growth. **Future Outlook:** - **Strategic Plan:** Announced a plan to evolve operations for greater efficiency, with expected charges of $36.0 million to $53.0 million. - **Share Repurchase Program:** Authorized up to $1.0 billion for repurchasing Class A common stock. - **Debt and Liquidity:** Strong liquidity position with $4.6 billion in cash and cash equivalents, but potential for increased debt if strategic investments are made. **Conclusion:** CrowdStrike Holdings, Inc. (CRWD) reported a mixed quarter with strong revenue growth but significant operating and net losses. The company is investing heavily in growth initiatives but faces challenges from increased competition and regulatory pressures. The strategic plan and share repurchase program indicate a focus on operational efficiency and shareholder value, but the impact of the July 19 Incident remains a key uncertainty.