CrowdStrike Holdings Inc (NASDAQ:CRWD) got a warm reception from analysts with its quarterly numbers, which came in well ahead of their forecasts.
Net new annual recurring revenue (NNARR) from the cybersecurity group came in at a record $282 million, up 27% year-on-year, beating the Street expectations.
This was driven by continued momentum in their Cloud, Identity, and LogScale segments, said broker Wedbush, with the top and bottom line figures also delivering beats.
Revenue guidance for the new fiscal year was "slightly above" existing estimates, said Wedbush, while Bank of America felt the guidance was "impressive," with $904 million for the first quarter and $3.96 billion for the year versus the Street's $899 million/$3.94 billion.
"As sales cycles normalize and deal sizes continue to improve, we believe these guidance targets could ultimately prove conservative over the next few quarters," said BoA.
Wedbush was of a similar view, with its analysis showing that the informal ARR guidance "seems a little conservative" and that NNARR could end up growing around 17%, accelerating from 6% over the past year.
Wedbush reiterated its 'Outperform' rating and raised its price target to $390 from $350.
BofA also reiterated a 'Buy', increased estimates and raised its price target to $400 from $365.