When Can We Expect A Profit From CrowdStrike Holdings, Inc. (NASDAQ:CRWD)?

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 solutions for endpoint and cloud workload protection in the United States, Australia, Germany, India, Israel, Romania, and the United Kingdom. The US$42b market-cap company posted a loss in its most recent financial year of US$93m and a latest trailing-twelve-month loss of US$212m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which CrowdStrike Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for CrowdStrike Holdings

Consensus from 31 of the American Software analysts is that CrowdStrike Holdings is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$430m in 2025. Therefore, the company is expected to breakeven roughly 3 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 44%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of CrowdStrike Holdings' upcoming projects, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. CrowdStrike Holdings currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in CrowdStrike Holdings' case is 77%. Note that a higher debt obligation 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 compiled a list of pertinent factors you should look at:

1. 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.
2. 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.
3. 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.

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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.