CrowdStrike reported third quarter earnings that topped Wall Street estimates and guidance for the upcoming quarter in line with expectations but this wasn’t enough to impress investors who likely wanted to see a stronger performance from the cybersecurity company.
Shares of the stock fell 2.2% to US$207.98 shortly following the release of its earnings report.
For the quarter ended October 31, 2023, CrowdStrike said its revenue grew 35% year-over-year from $580.9 million to $786 million.
Adjusted earnings per share were $0.82, up from $0.40 in the year-ago quarter.
Analysts had expected revenue of 777.18 million and adjusted EPS of $0.74.
Annual recurring revenue (ARR) increased 35% year-over-year to $3.15, in line with estimates. New ARR was $223 million, above the midpoint of analysts’ forecast range of $220 million to $225 million.
“CrowdStrike’s record third quarter exceeded expectations, delivering new milestones across the business,” CrowdStrike CEO George Kurtz said in a statement.
On its ARR surpassing $3 billion, he noted that CrowdStrike was the “only pure cybersecurity software vendor in history to achieve this milestone.”
CrowdStrike CFO Burt Podbere added: “Our relentless focus on operational excellence drove record operating margin, net income and free cash flow, while at the same time, we continued aggressively investing in our innovation engine to flight the company to achieve its vision of reaching $10 billion in ARR over the next five to seven years.”
For the fourth quarter, CrowdStrike guided adjusted EPS of $0.81 to $0.82 and revenue between $836.6 million and $840 million compared to Street estimates of $0.77 and $836.5 million, respectively.
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