Latest news with #CCP-related
The Star
3 days ago
- Business
- The Star
CrowdStrike shares drop as Windows-outage fallout hits forecast
FILE PHOTO: CrowdStrike logo is seen in this illustration taken July 29, 2024. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) -CrowdStrike shares slumped 7% in premarket trading after the cybersecurity company forecast its second-quarter revenue below analysts' estimates, weighed down by its customer retention efforts following a Windows-related outage last year. Following the outage caused by faulty update to its "Falcon Sensor" software in July 2024, the company introduced incentive packages that included discounts and flexible payment terms to reassure and retain customers. CEO George Kurtz said in March that CrowdStrike wrapped up the Customer Commitment Packages (CCP) program at the end of fourth quarter. The program reduced revenue growth because subscriptions lasted longer due to extensions offered by the company. It also impacted new opportunities, as these incentives provided additional features at no extra cost. Finance chief Burt Podbere said CCP-related initiatives reduced revenue by about $11 million in the first quarter, with an expected continued impact of $10 million to $15 million per quarter for the remainder of the fiscal year. The Austin, Texas-based company reported loss per share of 44 cents in the quarter ended April 30, compared with a profit per share of 17 cents a year earlier. If premarket losses hold, CrowdStrike could lose more than $8 billion from its market value of $121.74 billion, despite its stock having surged around 43% this year. "We believe CRWD is taking share from other vendors across their product offerings," Truist Securities said. At least 18 brokerages raised their price target after the company's first quarter revenue came in-line with estimates, while adjusted profit per share exceeded the target. The results follow the company's announcement last month that it would layoff about 500 employees in a bid to streamline operations and work toward its goal of $10 billion in annual recurring revenue. CrowdStrike trades at 123.69 times the estimates of its earnings for the next 12 months, compared with 54.01 times for rival Palo Alto Networks and 81.56 times for Zscaler. (Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)
Yahoo
3 days ago
- Business
- Yahoo
CrowdStrike shares drop as Windows-outage fallout hits forecast
(Reuters) -CrowdStrike shares slumped 7% in premarket trading after the cybersecurity company forecast its second-quarter revenue below analysts' estimates, weighed down by its customer retention efforts following a Windows-related outage last year. Following the outage caused by faulty update to its "Falcon Sensor" software in July 2024, the company introduced incentive packages that included discounts and flexible payment terms to reassure and retain customers. CEO George Kurtz said in March that CrowdStrike wrapped up the Customer Commitment Packages (CCP) program at the end of fourth quarter. The program reduced revenue growth because subscriptions lasted longer due to extensions offered by the company. It also impacted new opportunities, as these incentives provided additional features at no extra cost. Finance chief Burt Podbere said CCP-related initiatives reduced revenue by about $11 million in the first quarter, with an expected continued impact of $10 million to $15 million per quarter for the remainder of the fiscal year. The Austin, Texas-based company reported loss per share of 44 cents in the quarter ended April 30, compared with a profit per share of 17 cents a year earlier. If premarket losses hold, CrowdStrike could lose more than $8 billion from its market value of $121.74 billion, despite its stock having surged around 43% this year. "We believe CRWD is taking share from other vendors across their product offerings," Truist Securities said. At least 18 brokerages raised their price target after the company's first quarter revenue came in-line with estimates, while adjusted profit per share exceeded the target. The results follow the company's announcement last month that it would layoff about 500 employees in a bid to streamline operations and work toward its goal of $10 billion in annual recurring revenue. CrowdStrike trades at 123.69 times the estimates of its earnings for the next 12 months, compared with 54.01 times for rival Palo Alto Networks and 81.56 times for Zscaler.
Reuters
3 days ago
- Business
- Reuters
CrowdStrike shares drop as Windows-outage fallout hits forecast
June 4 (Reuters) - CrowdStrike (CRWD.O), opens new tab shares slumped 7% in premarket trading after the cybersecurity company forecast its second-quarter revenue below analysts' estimates, weighed down by its customer retention efforts following a Windows-related outage last year. Following the outage caused by faulty update to its "Falcon Sensor" software in July 2024, the company introduced incentive packages that included discounts and flexible payment terms to reassure and retain customers. CEO George Kurtz said in March that CrowdStrike wrapped up the Customer Commitment Packages (CCP) program at the end of fourth quarter. The program reduced revenue growth because subscriptions lasted longer due to extensions offered by the company. It also impacted new opportunities, as these incentives provided additional features at no extra cost. Finance chief Burt Podbere said CCP-related initiatives reduced revenue by about $11 million in the first quarter, with an expected continued impact of $10 million to $15 million per quarter for the remainder of the fiscal year. The Austin, Texas-based company reported loss per share of 44 cents in the quarter ended April 30, compared with a profit per share of 17 cents a year earlier. If premarket losses hold, CrowdStrike could lose more than $8 billion from its market value of $121.74 billion, despite its stock having surged around 43% this year. "We believe CRWD is taking share from other vendors across their product offerings," Truist Securities said. At least 18 brokerages raised their price target after the company's first quarter revenue came in-line with estimates, while adjusted profit per share exceeded the target. The results follow the company's announcement last month that it would layoff about 500 employees in a bid to streamline operations and work toward its goal of $10 billion in annual recurring revenue. CrowdStrike trades at 123.69 times the estimates of its earnings for the next 12 months, compared with 54.01 times for rival Palo Alto Networks (PANW.O), opens new tab and 81.56 times for Zscaler (ZS.O), opens new tab.
Yahoo
3 days ago
- Business
- Yahoo
CrowdStrike Holdings Inc (CRWD) Q1 2026 Earnings Call Highlights: Strong ARR Growth and ...
Net New ARR: $194 million, surpassing expectations. Ending ARR: $4.44 billion, up 22% year-over-year. Subscription Gross Margin: 80%. Gross Retention Rate: 97%. Free Cash Flow: $279.4 million, 25% of revenue. Total Revenue: $1.10 billion, up 20% year-over-year. Subscription Revenue: $1.05 billion, up 20% year-over-year. Professional Service Revenue: $52.7 million. Total Gross Margin: 78%. Non-GAAP Operating Income: $201.1 million, 18% operating margin. Non-GAAP Net Income: $184.7 million, $0.73 per diluted share. Cash and Cash Equivalents: $4.61 billion. Q2 Revenue Guidance: $1,144.7 million to $1,151.6 million, 19% growth. FY26 Revenue Guidance: $4,743.5 million to $4,805.5 million, 20% to 22% growth. FY26 Non-GAAP Net Income Guidance: $878.7 million to $909.7 million. Warning! GuruFocus has detected 6 Warning Sign with CRWD. Release Date: June 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CrowdStrike Holdings Inc (NASDAQ:CRWD) reported a strong start to fiscal year 2026 with net new ARR of $194 million, surpassing expectations. The company achieved a subscription gross margin of 80%, showcasing the efficiency of its AI platform. CrowdStrike Holdings Inc (NASDAQ:CRWD) maintained a high gross retention rate of 97%, indicating strong customer loyalty. The Falcon Flex model has been a significant success, with $774 million added in total Falcon Flex account value, growing 31% sequentially. The company announced a $1 billion share repurchase authorization, reflecting confidence in its long-term strategy and growth prospects. CrowdStrike Holdings Inc (NASDAQ:CRWD) reported a GAAP net loss of $110.2 million, which included $39.7 million of expenses related to outages. There is a temporary divergence between ARR and subscription revenue due to the CCP program, impacting revenue recognition. The company expects a near-term impact on subscription revenue due to CCP-related programs, with an estimated $10 million to $15 million impact per quarter. CrowdStrike Holdings Inc (NASDAQ:CRWD) faces ongoing challenges in educating partners and sales force on the new go-to-market motion around demand planning. The company incurred $26 million in cash charges related to a strategic realignment plan, impacting Q2 financials. Q: Can you elaborate on which products are benefiting most from the adoption of Falcon Flex and how the sales motion is changing with its broader adoption? A: George Kurtz, CEO: Falcon Flex has been a significant success, particularly benefiting Next-Gen SIEM, Cloud, and Identity products. It changes our sales approach from selling individual modules to focusing on outcomes and demand planning with customers, leading to faster adoption and increased ARR. Q: Why is there a divergence between revenue growth and ARR growth, and what drives the expected ARR growth acceleration in the second half? A: Burt Podbere, CFO: The divergence is due to the CCP program and related partner programs affecting revenue recognition. The expected ARR growth acceleration is driven by momentum in products like Next-Gen SIEM, Identity, Cloud, and the success of Falcon Flex, which is seeing increased adoption and larger deal sizes. Q: How do customers manage budget when they burn through their Falcon Flex usage faster than expected, and how does the ROI conversation change? A: George Kurtz, CEO: We work with customers on demand planning and business value assessments to replace point products and save money. Flex offers the best discounts and removes procurement friction, allowing customers to see tangible ROI and financial benefits, leading to faster adoption and increased usage. Q: How has the sales go-to-market effort changed, and what has been the response from the sales force? A: George Kurtz, CEO: The focus has returned to innovation and solving customer problems. The sales force and customers have moved past previous disruptions, and there is strong demand for our products, particularly Falcon Flex, which is seeing faster adoption than anticipated. Q: Can you provide guidance on free cash flow margin for this year and what underpins confidence in a 30%-plus margin next year? A: Burt Podbere, CFO: We expect a 27% exit rate on Q4 free cash flow margin this year. Confidence in next year's 30% margin is driven by larger, longer, and bigger deals, as well as the rapid adoption and success of Falcon Flex, which is converting into increased revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
