CRWD Q3 Earnings Call Highlights (This company is en fuego!!)
$232.5M revenues represents 86% increaseNet new ARR of $117m in the quarter grew ARR to record $907m – 81% increaseGross Margins increased to 77% from 74%Free Cashflow increased to $76m from only $7m in prior year quarter
Over $1b in cash1186 new customers in the quarter give them 8416 subscription customersPurchased a complimentary company called Preempt Security
Announced 4 new module additions to give them 16 productsMassively increased TAM with new modules and platforms61% of customers have 4 or more modules
New milestone: 22% of customers have 6 or more modulesDBNRR >120%Processing over 4 trillion threats a week providing real time protectionInvesting in zero trust and cloud network heavilyDisplacing legacy and next generation vendorsPartnered with OKTA and OKTA is a new customer of CRWDKey Wins: Target – Less than 10 day Falcon install Healthcare company – thousands of deployments of multiple modules in 3 daysRaising guidance for 2021Q4 $250m Rev $236m weighted shares$860m full year revenue
CEO – Entering Q4 with record pipeline and extreme optimismSee a favorable landscape and continued and sustainable trends
I’ve been pounding my fists on the table for over 18 months now…and I think CRWD is just hitting their stride! Largest holding after todays 15% surge by far…and planning to hold it all!
Cheers!
DOCU – accelerating growth. Added to position today during normal hours and I am adding after hours. It is my 3rd largest holding after CRWD and NET at around 14% of the portfolio. Up 7% AH. CRWD and DOCU are far more than making up for ZM disappointment. Call in 30 minutes and will post earnings shortly.
DOCU Q3 Earnings: $383m Revenues represents 53.5% growth, which is accelerating quickly
39.9%
37.6%
38.8%
45.2%
53.5%
Billings of $440.4m is a 64% increase after guidance of only 45%…Swung to positive CFFO of $57m from NEGATIVE the year beforePlethora of new exciting products with increased guidance70,000 new customers!!! (So many I feel like that is a mistake?) This is what you call the WHOLE enchilada!!
Earnings Call additional Highlights:CEO: We have a clear path to $5-10B Revenue based on current trajectory and offerings
Will be awhile before Non-signature part of the business will have a meaningful impact for a business like ours that has surpassed $1b and is approaching $2b
Highest rate of billings growth in history!!
Huge TAM, big accelerant with Covid, have built a massive growth in sales capacity“We anticipate that our growth will be much higher after Covid than pre-covid, but probably NOT as high as during covid.” – paraphrased from CEO Lot of growth will be seen through sales partnering they’ve been doing.
NET, NET…nothing not to like here! Very solid company, solid fundamentals, great earnings and strong balance sheet…I am continuing to add to this company as a core position and it is my 3rd largest holding now. This one will continue to execute and grow for quite a few years to come…with or without Covid.
DOCU: Hard to pick ANYTHING apart through the first 3 Q’s:
Total Revenue: 39%, 45%, 54% ($382.9M)
Subscription Revenue: 39%, 47%, 54% ($366.6M)
Billings: 59% 61%, 64% ($440.4M)
Contract Liabilities – Current: 43%, 55%, 62% ($686.2M)
Total Customers: 31%, 40%, 46% (822,000 !!!)
Enterprise Customers: 48%, 55%, 64% (113,000 !!!)
Subscription Revenue/Total: 95%, 95%, 96%
Operating Expenses as a % of Revenue: 71%, 68%, 66%
Net Retention Rate: 119%, 120%, 122%
Gross Profit: 37%, 45%, 54% (301.93M)
Subscription Gross Profit: 36%, 44%, 53% ($306.6M)
Operating Margin: 8%, 10%, 13% ($49.1M)
Net Margin: 8%, 10%, 12% ($46.1M)EPS: $.12, $.17, $.22
I’ll be shifting some more ZM to DOCU
User comment:
That makes sense. It’s hard to see, other than general market buoyancy, what will take zoom above current levels given Monday’s reaction to their results
