Break the doubt! CrowdStrike (CRWD.US) performance exploded: "AI+ network security" could become a profit-making weapon.

In the morning of March 6th Beijing time, the American cybersecurity services provider CrowdStrike Holdings Inc. (CRWD.US) announced its fourth quarter performance for the fiscal year 2024 ending on January 31st. The data showed that the company's performance surpassed market doubts about enterprise endpoint cybersecurity spending. Both total revenue and earnings per share for Q4 exceeded Wall Street analysts' expectations. CrowdStrike's performance outlook for Q1 of fiscal year 2025 was also very strong, surpassing expectations, reflecting strong demand from customers for the company's expanding suite of AI-based cybersecurity products. Thanks to strong performance and optimistic outlook, the company's stock price surged over 27% in after-hours trading. For the fourth quarter of fiscal year 2024, CrowdStrike reported a non-GAAP adjusted earnings per share of 95 cents, surpassing the average Wall Street analyst expectation of 83 cents. Total revenue for the fourth quarter also exceeded expectations, reaching $845.3 million, a 33% increase year-over-year, compared to analysts' average expectation of about $839 million. Q4 subscription revenue was $796 million, an increase of about 33% compared to the same period last year. As of January 31st, CrowdStrike's annual recurring revenue (ARR) increased by 34% year-over-year to $3.44 billion, with $281.9 million of net ARR added in the fourth quarter. For the fourth quarter of fiscal year 2024, CrowdStrike's GAAP operating profit turned from a loss to a profit, reaching $29.7 million, compared to a $61.5 million loss in the fourth quarter of fiscal year 2023. The non-GAAP operating profit was $213.1 million, compared to $95.6 million in the fourth quarter of fiscal year 2023. CrowdStrike generated approximately $347 million in net cash from operating activities in Q4, compared to $273.3 million in the fourth quarter of fiscal year 2023; free cash flow in Q4 was approximately $283 million, compared to $209.5 million in the fourth quarter of fiscal year 2023. Outlook for Q1 and full fiscal year 2025 exceeds expectations For the first quarter of fiscal year 2025, the company expects a non-GAAP earnings per share range of $0.89 - $0.90, higher than the average Wall Street analyst expectation of $0.82. The company expects total revenue for Q1 in the range of $902.2 million to $905.8 million, far exceeding the average analyst expectation of $840 million. CrowdStrike also expects full-year earnings per share for fiscal year 2025 to be in the range of $3.77 to $3.97, higher than the average analyst expectation of $3.76; the company expects total revenue for the full fiscal year 2025 to be in the range of $3.92 billion to $3.99 billion, with the midrange exceeding the average analyst expectation of $3.94 billion, while total revenue for the full fiscal year 2024 was approximately $30.6 billion. This Austin-based company in Texas has seen its stock price soar over 27% in after-hours trading following the release of its better-than-expected performance results amidst sharp fluctuations in cybersecurity stocks. Despite an increase in high-profile cybersecurity attacks, investors still express lingering concerns about corporate client spending control. Particularly, last month, cybersecurity company Palo Alto Networks Inc. (PANW.US) saw its stock plummet 28% at the closing of the financial report day after lowering its annual revenue forecast, citing "expenditure fatigue" in cybersecurity. In the performance report, CrowdStrike CEO George Kurtz attributed the "exceptionally strong" performance in the fourth quarter to the company's approach of integrating security products on a single platform. The company also announced its agreement to acquire Flow Security, a company providing cloud data security solutions. CEO Kurtz also highlighted during an investor call that unlike competitor Palo Alto, CrowdStrike's products operate on a single platform, agent, and integrated workflow. Kurtz pointed out that an "unnamed financial services company" replaced its original Palo Alto cloud products in a high-seven figure deal. In after-hours trading on the New York Stock Exchange, CrowdStrike's stock price surged over 27%, and if this strong increase continues, the company's stock price could hit a new high when trading opens in New York on Wednesday. Other cybersecurity companies, including SentinelOne Inc. (S.US), Palo Alto Networks, ZScaler (ZS.US), and Fortinet Inc (FTNT.US), all saw their stock prices rise in after-hours trading as a result of CrowdStrike's strong performance, with SentinelOne's stock price rising over 9% after hours. "The combination of AI and cybersecurity" is expected to become a new revenue engine for CrowdStrike Statistics show that after a more than 140% surge in 2023, the stock price of CrowdStrike, one of the "AI bull stocks" in the US, has risen by 16% year-to-date, mainly because investors expect global investments in cybersecurity by enterprises to continue to rise and anticipate CrowdStrike's valuation to increase as it incorporates AI technology into the cybersecurity field amidst a global AI investment frenzy. Currently committed to integrating AI technology into the cybersecurity field, CrowdStrike is considered one of the biggest winners in the US market around the AI investment frenzy. CrowdStrike's stock performance in 2024 has surpassed that of the vast majority of popular tech stocks such as Microsoft, Google, and Amazon.CrowdStrike is striving to fully integrate artificial intelligence technology into its network security products, especially by introducing an artificial intelligence security analyst named "Charlotte". This feature aims to empower every user of the CrowdStrike Falcon platform, enabling them to quickly create workflows based on AI assistance. By asking questions and interacting with Charlotte, the virtual AI analyst, users can instantly understand real-time network security vulnerabilities, threats, and other security issues, significantly enhancing the platform's effectiveness and user experience. In addition, CrowdStrike's CrowdStrike Falcon is a platform that integrates a single lightweight agent architecture with multiple security markets, including enterprise workload security, managed security services, security and vulnerability management, IT operations management, threat intelligence services, identity protection, and log management, showcasing its advanced capabilities and leadership in utilizing AI and cloud technology for network security protection. The CrowdStrike Falcon platform is supported by CrowdStrike Security Cloud and advanced artificial intelligence technology, ensuring scalable deployments and effective defense against modern network threats.