CrowdStrike Holdings Inc (NASDAQ:CRWD) shares gained 7% on Wednesday morning after the cybersecurity company’s first quarter earnings topped estimates and it raised its outlook for the full year revenue and profit guidance.
The company, which reported its latest earnings afterhours on Tuesday, now expects full-year revenue in the range of $3.98 billion to $4.01 billion, compared to its earlier guidance of $3.92 billion to $3.99 billion.
It also guided earnings per share (EPS) of $3.93 to $4.03, up from its earlier forecast of $3.77 to $3.97.
Both measures are ahead of Wall Street estimates of revenue of $3.97 billion and EPS of $3.90.
Meanwhile, revenue for the quarter was up 33% year-over-year to $921 million, above Street expectations of $904.8 million.
Subscription revenue increased 34% from the year-ago quarter to $872.2 million.
Annual Recurring Revenue (ARR) was $3.65 billion, up 33% year-over-year with $211.8 million of this net new ARR added during the quarter.
Adjusted EPS increased to $0.93 from $0.57, beating estimates of $0.89 by $0.04.
“The CrowdStrike team delivered another exceptional quarter driven by strong execution and platform adoption as customers increasingly consolidate on the Falcon platform,” CrowdStrike CFO Burt Podbere commented.
“In addition to our strong top-line performance, financial highlights included record gross margin, significant year-over-year operating leverage, record free cash flow of $322 million or 35% of revenue and a rule of 68 on a free cash flow basis, showcasing our focus on profitably scaling the business to $10 billion ending ARR and beyond.”
Shares of CrowdStrike traded up 7% at $327 per share mid-morning on Wednesday.