Table of Contents

• 1. Dell & Workday — Brief Earnings Snapshots

  • a. Dell

    • Results:

    • Balance Sheet:

    • Guidance & Valuation:

  • b. Workday

    • Results:

    • Balance Sheet:

    • Guidance & Valuation:

• 2. CrowdStrike (CRWD) – Detailed Earnings Review

  • a. CrowdStrike 101

  • b. Demand

  • c. Profits & Margins

  • d. Balance Sheet

  • e. Guidance & Valuation

  • f. Call & Release Highlights

  • g. Take

1. Dell & Workday — Brief Earnings Snapshots

a. Dell

Results:

• Missed revenue estimate by 1.2% & missed guidance by 0.4%.

• Beat $2.00 EPS estimate & beat identical guidance by $0.15 each.

• Missed $1.40 GAAP EPS estimate by $0.18.

• Missed $1.3 billion free cash flow (FCF) estimate by about $600 million.

• Missed 22.3% gross profit margin (GPM) estimates by 50 basis points (bps; 1 basis point = 0.01%).

Balance Sheet:

• $6.6 billion in cash & equivalents.

• $25 billion in total debt.

• Stock comp dollars fell 13% Y/Y. Guided to about 0.2% Q/Q dilution.

• Dividends rose 17% Y/Y.

Guidance & Valuation:

Q4 revenue guidance missed by 2.8% while $2.50 Q4 EPS guidance missed by $0.14. It lowered annual growth forecasts from 10% Y/Y to 9% Y/Y. It raised its annual EPS guidance by a penny due to the Q3 beat.

EPS is expected to compound at a 16% clip over the next two years.

b. Workday

Results:

• Slightly beat subscription revenue guidance by 0.2%.

• Beat revenue estimates by 1.4%.

• Beat 25.5% EBIT margin estimates by 80 bps & beat 25.3% EBIT margin guidance by about 100 bps.

• Beat $1.76 EPS estimates by $0.13.

• Missed $508 million operating cash flow (OCF) estimates by about $100 million. This metric is very lumpy on a quarterly basis.

Balance Sheet:

• $6.2B in cash & equivalents.

• $3 billion in debt.

• Diluted share count rose by 0.8% Y/Y.

Guidance & Valuation:

• Lowered Q4 subscription revenue guidance by 0.8%, which represents a slight lowering of annual revenue guidance.

• Slightly lowered Q4 EBIT margin guidance, but reiterated full year margin expectations.

EPS is expected to compound at a 19% clip for the next two years.

2. CrowdStrike (CRWD) – Detailed Earnings Review

a. CrowdStrike 101

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