CrowdStrike Holdings, Inc. (CRWD) CEO George Kurtz on Q1 2023 Results – Earnings Call Transcript
EPS of $0.31 beats by $0.08 | Revenue of $487.83M (61.08% Y/Y) beats by $23.48M
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) Q1 2023 Results Conference Call June 2, 2022 5:00 PM ET
About CRWD
– Market Cap: $37.12B
– PE(FWD): 143.48
– Sector: Information Technology
Company Participants
Maria Riley – VP, IR
George Kurtz – President, CEO and Co-Founder
Burt Podbere – CFO
George Kurtz(CEO):
I will start today’s call by summarizing three key points.
- 3개 키 포인트를 이야기하고자 한다.
First, fiscal 2023 is off to a fantastic start. We believe our Q1 results exemplify that we have a winning formula that includes scale, growth, profitability and free cash flow.
- 우선, 2023 회계연도는 환상적인 출발을 보이고 있다. 1분기 결과가 규모, 성장, 수익성 및 잉여 현금 흐름 측면에서 우리는 winning formula 를 가지고 있다고 확신한다.
Second, we saw strength across the platform, including a record quarter for modules deployed in the public cloud and over 100% year-over-year ending ARR growth for our emerging product group, which includes our Discover, Spotlight, Identity Protection and Log Management modules.
- 둘째, 퍼블릭 클라우드에서 크라우드스트라이크 제품을 많이 사용하고 있으며 전년 대비 100% 이상 성장함.
third, we are seeing more and more customers standardize on the Falcon platform. The number of customers adopting 6 or more and 7 or more modules, both grew more than 100% year-over-year.
- 팔콘 제품의 다양한 모듈을 선택하는 사용자들이 증가함.
we delivered net new ARR of $190 million, topping our expectations. We delivered ending ARR growth of 61% year-over-year to exceed $1.9 billion, record non-GAAP operating profit of $83 million and free cash flow margin of 32%.
- 우리는 1억 9,000만 달러의 net new ARR을 달성하여 우리의 기대치를 뛰어 넘었다. 우리는 전년 대비 61%의 ending ARR 성장을 달성하여 19억 달러를 초과했고 non-GAAP 영업 이익은 8,300만 달러를 기록했으며 잉여 현금 흐름 마진은 32%를 달성했다.
Given our market opportunity, platform, subscription business model and high unit economics, we believe we have the ability to continue to grow at scale, generate cash and invest in initiatives that will further widen the gap between CrowdStrike and the competition, especially at a time when companies are forced to reduce their spending and hiring plans.
- 다른 경쟁자들보다 더 빠르고 지속적인 성장을 해 나갈수 있는 자신감이 있음을 이야기함.
Q & A 세션:
Rob Owens
I was wondering if you could address some of the competitive dynamics around cloud and when it represents a tip of the spear versus selling into the installed base, if we were looking at that net new ARR that cloud touches. Thanks.
George Kurtz
Yes. So, when you think about our cloud offerings, a couple of points that I highlighted in the call is that we have both, agent and agentless. And that is the ability to actually gather cloud information at scale without an agent, understand the posture of what’s happening, understand misconfigurations and go beyond what our competitors do is we actually look for active attacks with our Indicator of Attack technology applied to it. And then you combine that with our agent and our Cloud Workload Protection. And that really is like the ultimate package. CNAPP, we talked about that in the call as well, and that has been well received.
And as we pointed out in the April investor call, we’ve had many lands in just cloud organizations, particularly in big financial services companies, land in the cloud and then actually be able to cross-sell it into the internal network. So overall, we continue to iterate very rapidly, got great capabilities there, and it’s been really well received by our customers.
Roger Boyd
Congrats on the results. Just on e-commerce, you noted a record e-commerce quarter as you added a bunch of new triable solutions. Can you just talk about how that might be benefiting your sales efficiency. You noted the strong magic number in the quarter and how you see that benefiting margins this year and beyond? Thanks.
George Kurtz
Yes. So, as we’ve talked about in the April update to investors, we spent many, many years working on our e-commerce platform, and we’re starting to really see the fruits of our labor there with a magic number of 1.4 with the increase in the number of trials that we can actually run through the e-commerce platform. It’s incredibly efficient, not only to gain new customers, but also to continue to cross-sell into the customer base. And with 22 modules, it’s important to be able to prioritize what customers are looking for, for our channel partners as well as our sales team. So, we spent a lot of time and effort there. We’re seeing the fruits of it. It certainly has been a great addition to growing our SMB business as well. We take credit card sales. It’s very easy to get the product up and running and buy from us. And I think that is a unique differentiation point between us and our competition. Burt?
Burt Podbere
Yes. No, it’s definitely part of the equation when we think about our long-term operating margin target model. So, as I think about hitting the 20% to 22% long-term model, that’s a piece of it, right? I think, we spend as much time on go-to-market execution and flighting how that is all going to work just as much as we do on the tech. And for us, that’s a bet that I think where we think is very, very derisked. And I think that we’ve got lots of examples where we’ve seen success of companies that are able to fight it well, not in security. And so, we believe that we’ve got a great opportunity.
Fatima Boolani
I’m on. Are you there? Sorry about that. Thanks for being patient with us tonight, just popping around a couple of calls. George, maybe one for you to start. I still get this question from investors with a sense of lingering fear about the business maybe having seen some tailwinds from the — maybe the sharp growth in endpoint volumes that a lot of corporations sort of realized over the course of the pandemic. And so, I’m curious if you can share some data points or anecdotes to help assuage some of the concerns around that front with respect to corporate endpoint volumes sort of moderating from here. And then I have a follow-up, please.
George Kurtz
Sure. As we talked about over the course of the pandemic and prior earnings calls, we, certainly, in the beginning, saw some buying for people that were working at home. But that was short-lived. And I think on the back side, two years plus in the pandemic and coming out of it, I think if you look across the growth quarter-over-quarter, again, it’s reflective in a strong demand environment and not related to anything that’s pandemic. So, as we talked about before, digital transformation is happening, security transformation is moving to cloud. Those are all long-term sustainable trends. And after pretty much the first quarter or so of the pandemic, there’s not much to talk about in terms of corporate endpoints.
My thought:
내 생각에는 크라우드스트라이크는 사이버 보안 분야 최고 성장주임. 물론 PE가 너무 높아서 지금과 같은 인플레이션 환경에서 투자는 조금 조심해야 하지만 장기적 안목으로 본다면 계속 홀드하면서 조금씩 매수해 나가는 건 좋다고 생각함.
출처:
CrowdStrike Holdings, Inc. (CRWD) CEO George Kurtz on Q1 2023 Results – Earnings Call Transcript