Key Stats for CrowdStrike Stock
- Today’s Price Change: -8%
- Current Share Price: $450
- 52-Week High: $491
- CRWD Stock Price Target: $429
What Happened?
CrowdStrike (CRWD) stock declined approximately 8% despite reporting first-quarter earnings that beat analyst expectations, as investors focused on weaker-than-expected revenue guidance for the current quarter.
The cybersecurity company reported adjusted earnings of $0.73 per share, beating estimates of $0.66 per share, while revenue of $1.10 billion met consensus expectations.
The CRWD stock decline occurred after CrowdStrike provided Q2 revenue guidance of $1.14-$1.15 billion, which fell short of analyst expectations of $1.16 billion, representing a modest miss on the midpoint.
This guidance reflects the ongoing impact of the company’s major software outage last summer, which continues to affect specific metrics and customer relationships.
Despite the revenue guidance miss, CrowdStrike demonstrated strong operational performance in Q1 with net new Annual Recurring Revenue (ARR) of $194 million, ahead of internal expectations, growing total ARR to $4.44 billion.
The company’s innovative Falcon Flex subscription model continued to gain traction, adding $774 million in total account value during the quarter and bringing the total Flex deal value to $3.2 billion across more than 820 accounts.
Management highlighted the accelerating adoption of Falcon Flex, with 39 customers already completing “re-Flex” deals after initially burning through their subscriptions faster than expected.
These re-Flex customers are demonstrating the power of the platform consolidation model, with one Fortune 100 technology customer expanding from an initial $12 million contract to over $100 million through Flex adoption.
See CrowdStrike’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
What the Market Is Telling Us
The adverse reaction to CRWD stock suggests that investors remain sensitive to any signs of growth deceleration following a challenging period after the July 2024 outage.
While CrowdStrike has largely moved past the immediate impact of that incident, with customers and partners refocusing on the company’s innovative platform capabilities, investors appear cautious about the near-term growth trajectory.
However, the underlying business fundamentals remain strong, with gross retention at 97% and a subscription gross margin of 80%.
CrowdStrike’s expanding platform ecosystem continues to drive customer consolidation, with subscription customers adopting 6, 7, and 8+ modules representing 48%, 32%, and 22%, respectively, demonstrating deep platform stickiness.
The market opportunity for CrowdStrike continues expanding as AI-driven threats and the emergence of autonomous AI agents create new security challenges.
Management highlighted how billions of future AI agents will require the same protection as traditional endpoints, representing a massive new addressable market for CRWD’s AI-native security platform.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
