Yahoo Finance CrowdStrike Holdings, Inc. (NASDAQ:CRWD) Is Expected To Breakeven In The Near Future
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CrowdStrike Holdings, Inc. provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. On 31 January 2023, the US$35b market-cap company posted a loss of US$183m for its most recent financial year. As path to profitability is the topic on CrowdStrike Holdings' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for CrowdStrike Holdings
CrowdStrike Holdings is bordering on breakeven, according to the 43 American Software analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$180m in 2026. Therefore, the company is expected to breakeven roughly 3 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 39% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving CrowdStrike Holdings' growth isn’t the focus of this broad overview, but, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with CrowdStrike Holdings is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in CrowdStrike Holdings' case is 50%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of CrowdStrike Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at CrowdStrike Holdings, take a look at CrowdStrike Holdings' company page on Simply Wall St. We've also put together a list of important factors you should further examine:
Valuation: What is CrowdStrike Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether CrowdStrike Holdings is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CrowdStrike Holdings’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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