CrowdStrike Holdings (CRWD) on Tuesday reported first quarter earnings that topped estimates as a key growth metric edged by Wall Street targets. The cybersecurity company hiked its full-year revenue guidance for CrowdStrike stock.
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CrowdStrike earnings for the April quarter climbed 63% to 93 cents a share on an adjusted basis. Revenue, including acquisitions, rose 33% to $921 million.
Meanwhile, analysts polled by FactSet had projected earnings of 89 cents a share on revenue of $905 million.
A year earlier, the Sunnyvale, Calif.-based firm earned 57 cents a share on revenue of $693 million.
CrowdStrike Stock: Focus On Recurring Revenue
With CrowdStrike, Wall Street focuses on annual recurring revenue, or ARR. It’s a key financial metric tied to subscription services growth.
In Q1, ARR increased 33% to $3.65 billion. Analysts had predicted ARR of $3.63 billion.
On the stock market today, CrowdStrike stock rose more than 4% to 320.66 in extended trading. Heading into the CrowdStrike earnings report, shares had sold off for four straight trading sessions. Cybersecurity companies have turned in mixed earnings results for the March/April ending quarters.
For the current quarter ending in July, CrowdStrike predicted revenue in a range of $958.3 million to $961.2 million, just above estimates for $955 million.
Also, CrowdStrike raised full year revenue guidance to $3.993 billion at the midpoint, up 30.7% year-over-year, versus its earlier outlook of $3.957 billion.
Heading into the CrowdStrike earnings report, CRWD stock had climbed 21% thus far in 2024.
The stock had an IBD Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Checkup. CRWD stock holds an entry point of 358.84 from a cup base.
CrowdStrike competes with Microsoft (MSFT) and others in the “endpoint” market. Endpoint security tools detect malware on laptops, mobile phones and other devices that access corporate networks.
Also, CrowdStrike is building a broad, threat-detection cybersecurity platform called XDR, or extended detection and response. It monitors endpoints as well as web/email gateways, web application firewalls and cloud business workloads.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
