CrowdStrike Stock Dips As Investors Mull Earnings Beat, Revenue Outlook

Cybersecurity firm CrowdStrike Holdings (CRWD) reported second-quarter earnings and revenue Tuesday that topped analyst estimates. CrowdStrike stock fell in extended trading as investors mulled the size of the beat and its October-quarter guidance.


Sunnyvale, Calif.-based CrowdStrike’s earnings came in at an adjusted 11 cents a share, up 266% from a year earlier. Revenue jumped 70% to $337.7 million, including acquisitions, the company said.

Analysts had projected CrowdStrike earnings of 7 cents on revenue of $323.2 million for the period ended July 31. A year earlier, the cybersecurity firm earned 3 cents a share on revenue of $199 million.

Annual recurring revenue increased 70% to $1.34 billion from a year earlier, topping estimates of $1.3 billion. Net new annual recurring revenue totaled $150.6 million, topping buy-side estimates of $140 million, according to an RBC Capital report.

CrowdStrike stock fell 3.1% to 272.25 on the stock market today.

CrowdStrike Stock: Revenue Guidance Tops Estimates

The cybersecurity firm added 1,660 net new subscription customers in the quarter. CrowdStrike said it had 13,080 subscription customers as of July 31, representing 81% growth year over year.

For its third quarter ending in October, CrowdStrike forecast revenue of $361.5 million at the mid-point of guidance. Analysts had projected $351 million. CrowdStrike said it expects profit of 9 cents a share, in line with estimates.

Heading into the CrowdStrike earnings report, the cybersecurity stock owned a Relative Strength Rating of 94 out of a best-possible 99.

Also, CrowdStrike stock is extended from an entry point of 251.38, according to IBD Stock Check-up. In addition, CRWD stock recently was added to the Nasdaq 100 index.

The cybersecurity company uses machine learning, one form of artificial intelligence, and a specialized database to detect malware on laptops, mobile phones and other devices that access corporate networks.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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