CRWD Earnings Release
https://ir.crowdstrike.com/news-releases/news-release-details/crowdstrike-reports-fiscal-first-quarter-2021-financial-results
Zoom Video Communications EPS beats by $0.10, beats on revenue
https://seekingalpha.com/news/3579808-zoom-video-communications-eps-beats-0_10-beats-on-revenue
This is WAY better than Christmas!! ZM: Beat, beat, beat & raise!! Zoom knocked the doors off! They did more in Q1 than the entire last year and then raised guidance for Q2. Customer growth grew 354%!? Revenue grew an incredible and unheard of 169% q/q. They actually quadrupled their earnings guidance from the expected .11 cents to .44-.46 cents!? Never seen anything like it in a company that size. They can thank Covid-19. Right place at the right time.
CRWD: 105% Y/Y subscription growth. 89% overall revenue growth. GM’s increased to 77% from 72% last quarter. CFFO exploded. Crushed earnings expectations. Significantly increased next quarter guidance. In spite of the incredible growth, positive earnings and multiple surprises to the upside. Looking forward to this earnings call in a few minutes. Don’t want to “complain” about 89% revenue growth, but just on par with last quarters growth…was hoping for some acceleration. That said, its up 4% after hours and on top of about 25% growth the past week. ZM wins the growth award this quarter…hard to compete with that newly minted verb and noun in Websters dictionary! All that said, CRWD may likely be up more tomorrow than ZM, as ZM had far higher expectations. Incredible quarters on both sides. Cheers!
CrowdStrike +3.9% after Q1’s beat-and-raise
https://seekingalpha.com/news/3579833-crowdstrikeplus-3_9-after-q1s-beat-and-raise
CrowdStrike Reports Fiscal First Quarter 2021 Financial Results
https://ir.crowdstrike.com/news-releases/news-release-details/crowdstrike-reports-fiscal-first-quarter-2021-financial-results
We are in the final stretch of earnings season folks:
SMAR : Today 6/3MDB: Tomorrow 6/4
Thankfully, cause I’m exhausted from the adrenaline/cortisol rush. Both of these companies have run up nicely already and Mongo stock in particular has been absolutely screaming with multiple analyst upgrades and several indications of benefiting from the COVID-19 acceleration of the digital transformation and the WFH phenomenon. While I love the concept of SMAR, I’m not sure they have a significant moat, or have a lot more to run higher, or that they will benefit significantly from the work from home trend. I will monitor them through the earnings, but I’m looking to lighten the load on that particular stock unless they completely blow it out of the water today.
Yesterdays earnings calls (CRWD and ZM) were the crème de la crème, exhibiting some of the most incredible growth I’ve ever seen in my short 51 years. I expect both of those companies to continue exemplary growth for the foreseeable future.
The market as a whole is certainly frothy and I am also surprised to see it come back so quickly. That said, the fiscal and monetary stimulus that has been applied by the Govt and Fed is unprecedented. I might equate it with a massive steroid injection into the stock market that is giving it out of this world and unsustainable performance in the short term. When you put literally trillions of dollars into the economy in only a few short months, it has to go somewhere. With interest rates at zero, and fear causing people to save and not spend, there is no incentive to put the money into a bank. It’s impossible to see where or when this rocketship lands, but I’m sure books will be written about it one day. Best wishes to all of you for continued health as things open up again over the summer. I will leave you with a question: when the dust has settled, the crisis has been averted, and we come out on the other side of all this, how will you have handled it? What will you have accomplished during this difficult period? Will you be proud of your actions? Will you have regrets? (Rhetorical question, so to speak… please don’t post answers to this group…. but feel free to text me separately if you wish).
A quote to ponder posted yesterday by a lifelong great friend, and fellow adventurer & Abalone diver, Arne:
Be well! Cheers!
