CrowdStrike Holdings (CRWD) reported October-quarter earnings and revenue that topped analyst estimates while growth in a key metric edged by views. The cybersecurity firm’s revenue outlook for CRWD stock also edged by estimates amid the cybersecurity stock’s big gains in 2023.
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On the stock market today, CrowdStrike stock dipped 2.4% to 207.21 in extended trading.
CrowdStrike earnings for the third quarter rose 105% to 82 cents a share on an adjusted basis. Revenue, including acquisitions, climbed 35% to $786 million. Analysts polled by FactSet had projected earnings of 74 cents a share on revenue of $777 million.
A year earlier, the Sunnyvale, Calif.-based firm earned 40 cents a share on revenue of $581 million.
CRWD Stock: Focus On Recurring Revenue
With CrowdStrike, Wall Street focuses on annual recurring revenue, or ARR, a key financial metric tied to subscription services growth.
During the third quarter, ARR increased 35% to $3.15 billion. Analysts had predicted ARR of $3.14 billion.
For the current quarter ending in January, CrowdStrike predicted revenue of $838.3 million at the mid-point of guidance, just above estimates of $837 million.
For fiscal 2024, CrowdStike management has guided net new ARR growth to be flat to modestly higher.
Heading into the CrowdStrike earnings report, the cybersecurity stock had jumped 101% in 2023.
CrowdStrike competes versus Microsoft (MSFT) and others in “endpoint” market. Endpoint security tools detect malware on laptops, mobile phones and other devices that access corporate networks.
Further, CrowdStrike is building a broad, threat-detection cybersecurity platform. It’s called XDR, or extended detection and response. It monitors endpoints as well as web/email gateways, web application firewalls and cloud business workloads. XDR rivals include Palo Alto Networks (PANW).
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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