When BlackBerry (TSX:BB) and analysts covering the stock wondered how Crowdstrike (NASDAQ:CRWD) enjoyed a high premium, they now know why. The security solutions firm reported a 103% Y/Y revenue growth. Subscriptions grew and revenue for Q2 is above the consensus estimates. Though the company still loses money, the business is growing at a solid pace.
Crowdstrike reported revenue of $96.1M, up 103% Y/Y. Subscription revenue grew 86% to 116% as GAAP loss fell to $25.8 million, down from $33.1 million last year. At this pace, expect the company reporting positive FCF and profits within a few quarters.
Outlook
The company expects revenue in the range of $430.2M - $436.4M in the full-year 2020. It will still lose up to $106M non-GAAP or an EPS loss of $(0.72) to $(0.70).
Markets bid CRWD stock 14.8% higher on July 19, and set a $17.5-billion market cap. This is over four times bigger than BlackBerry, whose Cylance integration is still underway. Still, Crowdstrike has a small share float that easily squeezed short-sellers.
Related Investments
Crowdstrike is disrupting the business and has a management team that is leading the company’s growth. No company in this sector is growing as fast as Crowdstrike. Symantec (NASDAQ:SYMC) is already trading at a lower market cap. And that is after the stock jumped as Broadcom (NASDAQ:AVGO) considered buying it.
