136 Million Reasons This Unstoppable Growth Stock Stands Out From the Crowd
CrowdStrike Holdings (NASDAQ: CRWD) is really starting to stand out in the crowded cloud security field. While its growing technology edge is one factor, an even bigger one for investors is its ability to generate free cash, which tallied nearly $136 million in its latest quarter. That's significantly higher than its rivals, as it's converting revenue to cash at a much higher rate.
CrowdStrike's second-quarter numbers were exceptional. The cloud-based cybersecurity company posted $535 million of revenue, a 58% increase from the prior year. Meanwhile, non-GAAP net income soared from $25.9 million to $85.9 million.
The company is really starting to hit its stride as it scales. While subscription gross margin has leveled off at 79% over the last two fiscal years, it's seeing improved operating leverage as sales and marketing, research and development, and general and administrative costs become a smaller percentage of its revenue. As a result, its operating margin doubled from the 2021 to 2022 fiscal years, going from 7% to 14%. Meanwhile, it improved to 17% during the first half of its 2023 fiscal year.
Source Fool.com
