Breaking doubts! CrowdStrike's performance explodes, "AI + cybersecurity" may become a revenue weapon.

Zhitong App learned that on the morning of March 6th, Beijing time, CrowdStrike Holdings Inc. (CRWD.US), a US cybersecurity service provider, announced its performance for the fourth quarter of the fiscal year 2024 ending on January 31. The data showed that the company's performance completely dispelled market doubts about enterprise-side network security spending. Both total revenue and earnings per share in Q4 exceeded Wall Street analysts' expectations. The performance outlook for Q1 of the fiscal year 2025 provided by CrowdStrike was very strong and also surpassed expectations, reflecting customers' strong demand for the company's expanding suite of AI-based network security products. Thanks to the strong performance and optimistic outlook, the company's stock price surged over 27% in after-hours trading.

In the fourth quarter of the fiscal year 2024, CrowdStrike reported a non-GAAP adjusted earnings per share of 95 cents, surpassing the average Wall Street analyst expectation of 83 cents. Total revenue for the fourth quarter also exceeded expectations, reaching $8.453 billion, a 33% year-on-year increase, compared to analysts' average expectation of about $8.39 billion. Subscription revenue for Q4 was $7.96 billion, an increase of approximately 33% compared to the same period last year. As of January 31, CrowdStrike's annual recurring revenue (ARR) increased by 34% year-on-year to $3.44 billion, with $281.9 million being the net ARR added in the fourth quarter.

In the fourth quarter of the fiscal year 2024, CrowdStrike's GAAP operating profit turned from a loss to a profit, with an operating profit of $29.7 million, compared to an operating loss of $61.5 million in the fourth quarter of the fiscal year 2023. The non-GAAP operating profit for Q4 was $2.131 billion, compared to $956 million in the fourth quarter of the fiscal year 2023.

CrowdStrike generated approximately $347 million in net cash from operating activities in Q4, compared to $273.3 million in the fourth quarter of the fiscal year 2023; Q4 free cash flow was about $283 million, compared to $209.5 million in the fourth quarter of the fiscal year 2023.

Q1 and Full-Year 2025 Outlook Exceed Expectations

For the first quarter of the fiscal year 2025, the company expects a non-GAAP earnings per share range of $0.89 to $0.90, higher than the average Wall Street analyst expectation of $0.82. The company forecasts a total revenue range of $9.022 billion to $9.058 billion for Q1, far exceeding the average analyst expectation of $8.40 billion.

CrowdStrike also projects an earnings per share range of $3.77 to $3.97 for the full fiscal year 2025, higher than the average analyst expectation of $3.76; CrowdStrike expects a total revenue range of $39.2 billion to $39.9 billion for the full fiscal year 2025, with the midpoint of the range surpassing the average analyst expectation of $39.4 billion.In the fiscal year 2024, the total revenue is expected to be around $3.06 billion.

Based in Austin, Texas, USA, this company is making headlines in the cybersecurity sector with its outstanding performance, amidst volatile stock prices in the cybersecurity industry. Despite the increasing number of high-profile cyberattacks, investors remain concerned about corporate spending control in cybersecurity. Particularly, after Palo Alto Networks Inc (PANW.US) lowered its annual revenue forecast last month, causing a 28% drop in stock price on the earnings report day, citing "spending fatigue" among customers.

In their earnings report, CrowdStrike CEO George Kurtz attributed the "exceptionally strong" performance in the fourth quarter to the company's approach of integrating security products on a single platform. The company also announced the acquisition of Flow Security, a provider of cloud data security solutions.

CEO Kurtz highlighted that unlike their competitor Palo Alto, CrowdStrike's products operate "on a single platform, a single agent, and an integrated workflow." During an investor conference call, Kurtz emphasized that an "unnamed financial services company" replaced their original Palo Alto cloud products in a high seven-figure deal.

In after-hours trading on the New York Stock Exchange, CrowdStrike's stock price surged over 27%. If this momentum continues, the company's stock price may hit a historic high when the New York Stock Exchange opens on Wednesday. Other cybersecurity companies, including SentinelOne Inc. (S.US), Palo Alto Networks, ZScaler (ZS.US), and Fortinet Inc. (FTNT.US), all saw their stock prices rise in after-hours trading following CrowdStrike's strong performance. SentinelOne's stock price even rose over 9% in after-hours trading.

"AI + Cybersecurity" Expected to Become CrowdStrike's New Revenue Engine

Statistics show that after a staggering 140% surge in 2023, one of the leading "AI tech stocks" in the US market, CrowdStrike, has seen a 16% increase in its stock price year-to-date. This is mainly due to investors' anticipation of a continued surge in global corporate investment in cybersecurity and the expectation that CrowdStrike's valuation will rise further by integrating AI technology into the cybersecurity sector amidst the global AI investment frenzy.

CrowdStrike, currently dedicated to integrating AI technology into the field of cybersecurity, is undoubtedly one of the biggest winners in the frenzy of AI investments in the US stock market. In 2024, CrowdStrike's stock price outperformed the vast majority of popular tech stocks, such as Microsoft, Google, and Amazon.

CrowdStrike is striving to fully integrate artificial intelligence technology into its cybersecurity products, especially through the introduction of an AI security analyst named "Charlotte." This feature aims to empower every user of the CrowdStrike Falcon® platform, enabling them to quickly create workflows based on AI assistance. By asking questions and interacting with Charlotte, this virtual AI analyst, users can instantly understand real-time network security vulnerabilities, threat factors, and other security issues, significantly enhancing the platform's effectiveness and user experience.

Furthermore, CrowdStrike's CrowdStrike Falcon is a platform that integrates various security markets into a single lightweight agent architecture, including enterprise workload security, managed security services, security and vulnerability management, IT operations management, threat intelligence services, identity protection, and log management, demonstrating its advanced and leading position in utilizing AI and cloud technologies for cybersecurity protection. The CrowdStrike Falcon® platform is supported by CrowdStrike Security Cloud and advanced artificial intelligence technology, ensuring scalable deployment and effective defense against modern network threats.