Company Profile
Founded in 2011, CrowdStrike is reinventing cybersecurity for the cloud era and changing the way customers deliver and experience cybersecurity.
Asset structure analysis
CrowdStrike’s fiscal year 2024 ends on January 31, 2024.
CrowdStrike’s total assets as of January 31, 2024 and January 31, 2023 were $6.65 billion and $5.9 billion, respectively.
CrowdStrike’s total assets increased by 12.7% year-on-year in 2024, mainly driven by business growth.
CrowdStrike’s total current assets were $4.76 billion and $3.6 billion as of January 31, 2024 and January 31, 2023, respectively.
In fiscal year 2024, current assets accounted for 71.6% of total assets.
CrowdStrike’s assets are very liquid.
Cash and cash equivalents reached $3.38 billion on January 31, 2024, accounting for 50.8% of total assets.
at January 31, 2024, short-term investment was $100 million.
Liquidity and Solvency Analysis
CrowdStrike’s current liabilities as of January 31, 2024 were $2.7 billion.
In 2024, the current ratio was 1.76.
Many software companies have a large amount of deferred revenue. Deferred revenue does not need to be repaid. they only needs to provide services to customers.
CrowdStrike has 2.27 billion in deferred revenue, which is very high.
CrowdStrike disclosed that the user retention rate reached 119%, which is a very high retention rate.
The reason for the high retention rate is that the product is very competitive, or the user’s sunk cost is very high. In any case, this is a huge advantage for the company and it can obtain strong cash flow.
The deferred revenue of the non-current portion was $780 million in 2024.
CrowdStriked’s total deferred revenue was $3.05 billion.
Total liabilities, as of January 31, 2024, were $4.3 billion.
If total deferred revenue is subtracted from total liabilities, the liability becomes $1.25 billion.
We can see that CrowdStrike’s debt ratio is extremely low.
We’re very excited that CrowdStrikede balance sheet is fantastic.
Profitability Analysis
If flames are used to describe CrowdStrike’s balance sheet, then an iceberg is appropriate to describe CrowdStrike’s income statement.
This brings us to another company: Workday. Stock compensation seriously harms shareholders.
CrowdStrike’s revenues reached $3.06 billion, $2.24 billion, and $1.45 billion in 2024, 2023, and 2022, respectively.
Revenues in 2024 increased by 36.6%, compared to 2023.
Revenues in 2023 increased by 54.5%, compared to 2022.
CrowdyStrike’s gross profit reached $2.3 billion, $1.64 billion, and $1.07 billion in 2024, 2023, and 2022, respectively.
CrowdStrike’s gross profit margin was 75%, 73%, and 73.8% in 2024, 2023, and 2022, respectively.
Everything looks beautiful.
Then, there is disappointment.
Operating profit has been in the red for the past three years.
CrowdStrike’s operating losses were $2 million, $200 million, and $140 million in 2024, 2023, and 2022, respectively.
CrowdStrike’s stock compensation expenses were $630 million, $530 million, and $310 million in 2024, 2023, and 2022, respectively.
Stock-based compensation expenses in 2024 accounted for 20.6% of revenues.
Stock-based compensation expenses in 2023 consisted of 23.7% of revenues.
Stock-based compensation expenses in 2022 accounted for 21.3% of revenues.
Stock-based compensation expenses that are too high would lower the company’s valuation, thereby harming shareholder interests.
Cash flow analysis
Net cash provided by operating activities was $1.17 billion, $940 million, and $570 million in 2024, 2023, and 2022, respectively.
CrowdStrike’s free cash flow was $990 million, $700 million, and $450 million in 2024, 2023, and 2022, respectively.
Over the past three years, CrowdStrike has neither repurchased shares nor paid dividends.
Summary
The balance sheet is very healthy.
Stock-based compensation expenses contributed to CrowdStrike’s operating loss.
Under the current compensation structure, CrowdStrike is not an investment candidate.
Disclaimer: The content is for reference only and does not constitute investment advice.
