CrowdStrike Holdings Inc (NASDAQ:CRWD) reported better-than-expected first-quarter profit on Monday and authorized a $1 billion share repurchase, buoyed by growing demand for its AI-powered cybersecurity platform.
Adjusted earnings per share rose to $0.73, topping analysts’ estimates of $0.66, while revenue grew 20% to $1.1 billion, matching expectations. Subscription revenue also climbed 20% to $1.05 billion.
The company’s annual recurring revenue (ARR) reached $4.44 billion, up 22%, with net new ARR at $193.8 million. Free cash flow, however, fell to $279.4 million from $322.5 million a year earlier.
For the current quarter, CrowdStrike forecast revenue of $1.14 billion to $1.15 billion and adjusted EPS of $0.82 to $0.84. Full-year revenue is projected between $4.74 billion and $4.81 billion, largely in line with estimates.
Despite the upbeat report, CrowdStrike shares fell 6.4% in after-hours trading, or $31, after hitting an all-time high earlier in the day, as investors reacted to revenue guidance that narrowly missed some expectations.
“We exceeded expectations on ARR and earnings,” CFO Burt Podbere said.
CEO George Kurtz added the company’s innovation and platform scale are pushing it toward $10 billion in ARR.