Crowdstrike Stock Earnings: Is This a Buy The Dip Moment?

after nvidia's earnings report we now have crowd strike now here the the story is a bit different right nvidia's expectations were quite high they delivered but the stock is currently down after hours if you miss that video it's going to be in the top right corner with crowd strike of course all the attention was towards well the impact of that outage back in July how big of an impact would it be in that quarter plus a guidance well actually for a quarter a bit across the board guidance was hit of course they lowered the expectations as well but right now at the time of making this video the stock is up around 3 to 4% or so now as you can see here before the reported earnings the expectations were that Revenue would grow 31% or so year over year for this quarter for next quarter around 28.6% growth year over-ear now of course now we know that next quarter is going to grow it's going to be a bit less than that overall for their fiscal year they were expected to grow around 30 31% or so now growth is expected to be around 27% 28% I mean despite the huge impact of that outage or the presumed impact growing 27% year-over year still quite good now of course we know this is not a cheap company right we know this is a market cap of $64.3 billion but a forward PE of 65.7 times definitely not the cheapest out there if you wanted to see even more valuation metrics here is for p if that price to sales price to free cash flow and price earnings to growth yes price earnings to growth is let's say bit cheaper than all the rest here it's just above two but all the rest despite being down quite a lot still I mean the last three months it's down close to 24% or so valuation wasse yeah it's it's still an issue but then again it has never been cheap even even before right even when it dropped 50% or so forward B was 52 2.7 times EV toida 45.5 times price to sales here 12.5 times so it was always expensive no matter what so let's have a look at what has happened during the quarter and let's hear what the management told us if you enjoy this type of videos leave it a thumbs up subscribe if you have not would really appreciate that if you want to support me even further do check out the link down in the description and in the pin comment to get the top 10 best stocks to buy now or go to full.com investor thank you very much all right let's start with a couple of comments here so working with customers to recover from the July 19th incident we emerge as an even more resilient and even more customer obsessed crowd strike continuing to aggressively invest in Innovation our second quarter demonstrates the resilience of our business and platform remember some analysts already said well thought that that incident would impact the quarter all right so our second quarter demonstrates the resilience of our business and platform with the three platforms here eclipsing $1 billion in Combined ending ARR in response to Rising Point product complexity and an elevated threat environment organizations are increasingly focused on consolidating their cyber security vendors into a streamlined platform that delivers better security outcomes which is cross strike Falcon of course we've heard this with every other company as well Sentinel one paloalto networks they all say the same thing our vision and mission of stopping breaches remains unchanged commenting on the company's Financial result the CFO said for the second quarter we deliver strong growth in Revenue operating profit and net income demonstrating our focused execution our Market opportunity remains unchanged and we believe our continued commitment to customers and Innovation will drive even more Falcon platform adoption protecting our customers from rapidly evolving cyber threats and enabling us to achieve our long-term targets and so the quarter EIC Lance here ending ARR grew 32% year-over-year to 3.86 billion net newr increased 11% year-over year to $218 million as for operating margin was at 24% up 2 percentage points year over-ear free cash flow was up 44% year-over year to $272 million the luted earnings per share increased 41% $14 and free cash flow margin and Rule of 40 so free cash flow margin of 28% world of 40 of 60 as for the adoption of the Falcon platform so we've got 65% of customers with five or more modules 45% with six or more modules 29% seven or more and 48% of the well this is representing ending AR over $100,000 eight or more modules then as we've seen before so across all three platforms here over a billion dollar ending AR for the quarter that increased 85% year over-year again this is still amazing how fast this company is growing and I mean this despite everything that has happened growth is not really slowing down that much and of course the company is becoming more profitable over time now this is still on a non-gaap basis so subscription gross profit increased 35% year over-year dut at earnings per share increase 41% operated income 46% year-over-year growth and free cash flow as we've seen before 44% year-over-year growth this is quarter and then first half of fisc 2025 as well overall tremendous growth AC across the board so Financial Outlook cross TR is providing the following guidance for the fiscal third quarter and full fiscal year cross Revenue guidance for the fiscal 2025 includes an estimated $30 million subscription Revenue impact in each of the remaining fiscal quarters as a result of incentives related to our customer commitment package in addition fiscal 2025 Revenue guidance includes an estimated impact in the high single digigit Millions to Professional Services Revenue in the second half of fiscal 2025 as results of incentives related to our customer commitment package so yeah lower guidance and that of course is a Miss based on analyst expectations if we look at revenue for the next quarter it's not going to be over a billion dollars or at least that's the guidance right now so lower than what we've seen before but still I mean it's not such a big impact but then again when we listen to Sentinel 1's earnings call and report yesterday they basically told us already look even if customers want to change it's going to take a while it takes 9 to 12 months or so they're not just going to leave crowd strike and leave their organizational vulnerable no I don't think that will happen so again it remains to be seen what the long-term impacts will be of that outage so total revenue between 99979.89116 189 to$ 3.90 billion in Revenue and so right now if we look at the stock the stock did rebound close to 35% since the bottom here that Black Monday August 5ifth up 35% if you manage to time that bottom perfectly congratulations to you by the way this is on the daily if we switch here quickly to the weekly we can see this RSI is low SL neutral-ish overall the stock right now sits at $268.5 after hours which is just above the 20-day moving average the 200 day one sits at $285.83 so overall pretty good quarter I think I mean the expectations were quite low everybody was expecting a doomsday report but no the report was quite good guidance yes was a small Miss okay we saw this one coming but the question now is is is it going to be just the next quarter in this fiscal year or is it going to be a thing that will last for the next 12 months or so I guess I guess I guess we're going to have to wait right 3 months from now we're going to talk about this again and see if anything has improved or not improved at all remains to be seen of course if something gets mentioned in the earnings call that makes or breaks the stock check out the pin comment I will put it there so overall that's it do share your thoughts and opinions down in the comment section below what you do think about the quarter let me know down there like subscribe do all of that and I see you all in the next one bye-bye okay [Music]