CrowdStrike Stock Rallies as Profits and Revenue Blow Past Guidance
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CrowdStrike stock was trading sharply higher in late trading Wednesday after the cloud-based security software company posted stronger-than-expected financial results.
For its fiscal third quarter ended October 31, CrowdStrike (ticker: CRWD) reported revenue of $232.5 million, up 86% from a year ago, and well ahead of its guidance range of $210.6 million to $215 million. The company posted non-GAAP earnings of 8 cents a share, topping its guidance range of between break-even and a loss of a penny a share. Annual recurring revenue was $907.4 million, up 81% from the same point a year earlier.
For the January quarter, CrowdStrike sees revenue of $245.5 million to $250.5 million, with a non-GAAP profit of 8 to 9 cents a share, ahead of the previous Street consensus at $230.3 million and a penny a share.
CrowdStrike boosted its full-year forecast to revenue between $855 million and $860 million and non-GAAP profits of 21 to 22 cents a share, from a previous forecast of $809.1 million to $826.7 million and non-GAAP profits of 2 to 8 cents a share.
“Broad-based demand and strength in multiple areas of the business fueled our rapid 87% year-over-year subscription revenue growth, record net new ARR of $117 million and record 1,186 net new subscription customers,” CEO George Kurtz said in a statement.
CFO Burt Podbere added that CrowdStrike posted non-GAAP operating profitability for the third consecutive quarter and generated positive operating and free cash flow for the fifth consecutive quarter.
In late trading, CrowdStrike shares have spiked 11.1%, to $157.60.
Write to Eric J. Savitz at eric.savitz@barrons.com