Latest news with #CrowdStrikeHoldingsInc
Yahoo
2 days ago
- Business
- Yahoo
CrowdStrike Says DOJ, SEC Sent Inquiries on Firm Accounting
(Bloomberg) -- CrowdStrike Holdings Inc. said US officials have asked for information related to the accounting of deals it's made with some customers and said the cybersecurity firm is cooperating with the inquiry. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access LA City Council Passes Budget That Trims Police, Fire Spending NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Austin, Texas-based company said in a filing Wednesday that it has gotten 'requests for information' from the US Department of Justice and the Securities and Exchange Commission 'relating to the company's recognition of revenue and reporting of ARR for transactions with certain customers.' ARR refers to annual recurring revenue, a measure of earnings from subscriptions. The company said the federal officials have also sought information related to a CrowdStrike update last year that crashed Windows operating systems around the world. 'The company is cooperating and providing information in response to these requests,' the filing states. US prosecutors and regulators have been investigating a $32 million deal between CrowdStrike and a technology distributor, Carahsoft Technology Corp., to provide cybersecurity tools to the Internal Revenue Service, Bloomberg News first reported in February. The IRS never purchased or received the products, Bloomberg News earlier reported. The investigators are probing what senior CrowdStrike executives may have known about the $32 million deal and are examining other transactions made by the cybersecurity firm, Bloomberg News reported in May. Asked for comment about the filing, CrowdStrike spokesperson Brian Merrill said, 'As we have told Bloomberg repeatedly, this is old news and we stand by the accounting of the transaction.' A lawyer for Carahsoft previously declined to comment on the federal investigations, and representatives didn't respond to subsequent requests for comment about them. (Updates with CrowdStrike comment in the seventh paragraph.) Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P.
Yahoo
2 days ago
- Business
- Yahoo
CrowdStrike Says DOJ, SEC Sent Inquiries on Firm's Accounting
(Bloomberg) -- CrowdStrike Holdings Inc. said US officials have asked for information related to the accounting of deals it's made with some customers and said the cybersecurity firm is cooperating with the inquiry. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access LA City Council Passes Budget That Trims Police, Fire Spending NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Austin, Texas-based company said in a filing Wednesday that it has gotten 'requests for information' from the US Department of Justice and the Securities and Exchange Commission 'relating to the company's recognition of revenue and reporting of ARR for transactions with certain customers.' ARR refers to annual recurring revenue, a measure of earnings from subscriptions. The company said the federal officials have also sought information related to a CrowdStrike update last year that crashed Windows operating systems around the world. 'The company is cooperating and providing information in response to these requests,' the filing states. US prosecutors and regulators have been investigating a $32 million deal between CrowdStrike and a technology distributor, Carahsoft Technology Corp., to provide cybersecurity tools to the Internal Revenue Service, Bloomberg News first reported in February. The IRS never purchased or received the products, Bloomberg News earlier reported. The investigators are probing what senior CrowdStrike executives may have known about the $32 million deal and are examining other transactions made by the cybersecurity firm, Bloomberg News reported in May. CrowdStrike spokesperson Brian Merrill didn't immediately provide additional comment on the corporate filing Wednesday. 'As we have stated previously, we stand by the accounting of the transaction,' Merrill said in a May 8 email. A lawyer for Carahsoft previously declined to comment on the federal investigations, and representatives didn't respond to subsequent requests for comment about them. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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.
Yahoo
28-05-2025
- Business
- Yahoo
Barclays Lifts CrowdStrike (CRWD) PT to $500 Ahead of FQ1 2026 Earnings
Barclays analyst Trevor Young has increased the price target on CrowdStrike Holdings Inc. (NASDAQ:CRWD) to $500 from $475, while maintaining an Overweight rating on the shares. This adjustment comes ahead of CrowdStrike's FQ1 2026 earnings report, which is expected to come out on Tuesday, June 3. Barclays models FQ1 net new ARR of $175 million, with an optimistic scenario suggesting that this figure could exceed $200 million. Security personnel at their consoles, monitoring a global network of threats in real-time. In FQ4 2025, the company's net new ARR reached $224 million, which contributed to an ending ARR of $4.24 billion for FY2025. Total revenue for FQ4 was $1.06 billion, with subscription revenue exceeding $1 billion. Cloud Security, Identity Protection, and Next-Gen SIEM ARR surpassed $1.3 billion, and demonstrated ~50% year-over-year growth. The company achieved a record $1.07 billion in free cash flow for the full fiscal year, which represented 27% of revenue. However, the company noted a decline in growth from existing customers, with upselling decreasing from 21% growth in FQ1 to 15% by year-end. For FY2026, CrowdStrike anticipates total revenue to be in the range of $4.7 to $4.8 billion, which shows a growth rate of 20% to 22%. CrowdStrike Holdings Inc. (NASDAQ:CRWD) provides cybersecurity solutions in the US and internationally. While we acknowledge the potential of CRWD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRWD and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
05-03-2025
- Business
- Yahoo
CrowdStrike Holdings Inc (CRWD) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic ...
Net New ARR (Annual Recurring Revenue): $224 million in Q4, ending FY 2025 at $4.24 billion. Cloud Security, Identity Protection, and Next-Gen SIEM ARR: Over $1.3 billion, growing nearly 15% year over year. Gross Dollar Retention: 97%. Free Cash Flow: $240 million in Q4; $1.07 billion for the full year, or 27% of revenue. Total Contract Value: $6 billion, increased 40% year over year. Revenue: $1.06 billion in Q4, with subscription revenue over $1 billion. Operating Income: $837.7 million for FY 2025, or 21% of revenue. Net Income: Non-GAAP net income of $261.0 million in Q4, or $1.03 per diluted share. Cash and Cash Equivalents: $4.32 billion. Subscription Gross Margin: Over 80% of revenue. Operating Margin: 21% in Q4. Customer Growth: Trusted by more than 74,000 organizations, growing more than 30% year-over-year. Guidance for FY 2026 Revenue: $4,743.5 million to $4,805.5 million, reflecting a growth rate of 20% to 22%. Guidance for FY 2026 Non-GAAP Net Income: $851.2 million to $883.0 million. Warning! GuruFocus has detected 2 Warning Sign with CRWD. Release Date: March 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CrowdStrike Holdings Inc (NASDAQ:CRWD) reported a Q4 net new ARR of $224 million, surpassing expectations and closing FY 2025 with $4.24 billion in ending ARR. The company achieved a record free cash flow of $1.07 billion for the fiscal year, representing 27% of revenue. CrowdStrike Holdings Inc (NASDAQ:CRWD) became the first cybersecurity ISV to cross $1 billion in deal value on AWS Marketplace in a single calendar year. The Falcon Flex subscription model has been a significant success, with accounts adopting Falcon Flex reaching $2.5 billion in total deal value, growing 80% quarter over quarter. The company's cloud security business grew over 45% in Q4, with ending ARR surpassing $600 million, highlighting strong demand for its cloud security solutions. Despite strong performance, the net new ARR was down about 1% year over year, indicating some challenges in maintaining growth momentum. The company faced a GAAP net loss of $92.3 million in Q4, impacted by tax expenses related to acquisitions and incident-related expenses. There is a noted decline in growth from existing customers, with upselling to existing customers decreasing from 21% growth in Q1 to 15% by year-end. The company anticipates cash impacts of approximately $73 million for outage-related costs in Q1 of FY26, affecting short-term financial performance. Operating margin guidance for FY26 reflects upfront investments and amortized costs from the Customer Commitment Program, which may pressure margins in the near term. Q: How is Falcon Flex driving better value for customers, and can you provide examples of how current customers are growing their spending with CrowdStrike through Falcon Flex? A: George Kurtz, CEO, explained that Falcon Flex was developed in response to customer demand for more consolidation with CrowdStrike. It allows customers to access the entire product catalog and add new modules without a procurement cycle. For example, a large transportation company consolidated three vendors into Falcon Flex, increasing their ARR by 67%. Customers are ahead of schedule in their demand plans, indicating strong adoption of Falcon Flex. Q: Can you discuss the growth rates of emerging products like Cloud and Identity, and how customers are consuming these products? A: George Kurtz, CEO, noted that Identity and Cloud have been significant drivers of customer adoption, especially as part of the Customer Commitment Program (CCP). These products are critical for protection, and as CCP elements phase out, there is an opportunity to renew and expand usage, which is seen as a positive development. Q: How did you approach guidance for the year, considering factors like the pause in external demand generation and enterprise sales cycles? A: Burt Podbere, CFO, explained that the guidance considers the conclusion of the CCP program and the opportunity to upsell customers who are already using and benefiting from CrowdStrike's products. The company is optimistic about reacceleration in the second half of the year, driven by strong customer relationships and new product offerings. Q: Can you provide more details on the pricing and competitive environment for AI security, particularly regarding Charlotte AI? A: George Kurtz, CEO, highlighted that Charlotte AI is integrated into workflows and is being adopted by customers, including level three analysts who find it particularly useful. The AI capabilities are saving customers time and effort, and the company is committed to leading in the Agentic AI space. Q: What is the growth outlook for CrowdStrike on AWS Marketplace over the next two to three years? A: George Kurtz, CEO, expressed optimism about continued growth on AWS Marketplace, noting that it is a preferred procurement method for customers. The company sees opportunities for expansion outside North America and in various cloud environments, which will drive further growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
