Crowdstrike

This quarter brought in 1.39 billion dollars in revenue, up 26% from a year ago, and the money customers commit to paying every year climbed 24% to 5.51 billion dollars. New business added in the quarter hit a record 256 million dollars, up 32%, and management was confident enough to raise its full-year growth target to 27.7%, which would be faster than last year.

CrowdStrike generated a record 591 million dollars of cash from its business this quarter and 468 million dollars of free cash flow, nearly double the 279 million dollars a year ago. It now holds 4.55 billion dollars in the bank, and customers keep buying deeper into the platform, with 51% now using six or more of its security tools.

The bottom line showed a 27.8 million dollar profit, but the core business still ran a 30.6 million dollar operating loss for the quarter. Across the past year, margins are slightly negative at about negative 0.6%. The main culprit is how heavily CrowdStrike pays employees in stock, which quietly chips away at what shareholders keep.

The company is valued near 193 billion dollars while guiding to under 6 billion dollars of revenue for the full year. That is a steep price that already assumes years of fast growth. If new business slows even slightly, the stock could drop hard simply because expectations are so high.