CrowdStrike’s Stock Surges Following Earnings Beat and Bullish Full-Year Guidance

CrowdStrike shares surged by as much as 21% in after-hours trading on Tuesday following the cybersecurity company’s release of quarterly results that surpassed both revenue and earnings expectations. Additionally, the company issued robust guidance for the upcoming quarter and full year.

According to data compiled from analysts by LSEG, formerly Refinitiv, CrowdStrike’s performance compared as follows with consensus estimates:

– Earnings per share: Adjusted at 95 cents versus an expected 82 cents.
– Revenue: $845 million compared to an anticipated $839 million.

Crowdstrike Holdings Inc
CrowdStrike’s shares soar 21% post-earnings, beating estimates and providing robust guidance. (Credits: Google Finance)

For the period ending January 31, CrowdStrike reported a net income of $54 million, translating to 22 cents per share. This marked a significant improvement from the $48 million loss, or 20 cents per share loss, recorded in the corresponding period of the previous year.

Chief Financial Officer Burt Podbere noted in the earnings release that CrowdStrike has now achieved GAAP net income for the past four consecutive quarters. The company experienced a 36% year-over-year increase in full-year revenue, climbing from $2.24 billion to $3 billion.

In addition to its financial performance, CrowdStrike revealed plans to acquire Flow Security through a cash-and-stock transaction, the financial terms of which were not disclosed. This acquisition is set to conclude in the company’s fiscal first quarter, marking a continuation of CrowdStrike’s recent uptick in merger and acquisition activity.

Co-founder and CEO George Kurtz expressed confidence in CrowdStrike’s position within the cybersecurity landscape, stating, “CrowdStrike is cybersecurity’s consolidator of choice, innovator of choice, and platform of choice to stop breaches.”

Acquisition of Flow Security further strengthens CrowdStrike’s position, enhancing its cybersecurity capabilities. (Credits: Crowdstrike)

Looking ahead, CrowdStrike guided fiscal first-quarter revenue ranging between $902 million and $906 million, surpassing a consensus estimate of $899 million. The company also expects earnings per share for the period to fall between 89 cents and 90 cents, exceeding the consensus estimate of 82 cents.

Podbere reiterated the company’s commitment to achieving $10 billion in annual recurring revenue by 2030, highlighting CrowdStrike’s progress as it reached $3.4 billion in annual recurring revenue in January.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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