CrowdStrike Holdings Inc (NASDAQ:CRWD) shares fell 6.1% to $342 after hours even though earnings and revenue for the past quarter were higher than Wall Street expected, but the outlook for the next quarter was unclear.
Adjusted earnings per share for the cybersecurity group's third quarter rose 13% to $0.93 on revenue that swelled 29% to $1.01 billion.
Both these figures beat the Street consensus of $0.81 EPS and $983 million of revenue, per FactSet.
Annual recurring revenue (ARR) surpassed $4 billion in the quarter, which CEO George Kurtz said meant that CrowdStrike was "the fastest and only pure play cybersecurity software company to reach this reported milestone".
Gross customer retention was 97%, which Kurtz said customers "remain committed to the technological superiority of the Falcon platform and the benefits of cybersecurity consolidation" despite July's global outage sparked by an update from the company.
CFO Burt Podbere said the quarter results reflected "a strong finish and quarter-over-quarter increase in pipeline, despite expected headwinds from the July 19th incident".
Podbere said there has been "incredible success" with customer commitment packages, which he said were a sign that clients were choosing to deepen their relationship with CrowdStrike.
Following the global outage in July caused by a faulty software update, shares in the cybersecurity group had recovered from below $215 to hit $375 earlier this week.
As for guidance, the fourth quarter is expected to see $1.029-1.035 billion of revenue and $0.84-0.86 earnings per share.
Analysts at BMO said the results were "reasonable" but "net new ARR upside and implied January quarter ARR likely fell slightly short of consensus expectations".
"The ongoing headwinds from more customer commitment packages will likely move consensus ARR estimates lower for the next few quarters."