CrowdStrike Holdings (CRWD) late Tuesday reported January-quarter profit and revenue that beat consensus estimates. Also, the cybersecurity firm’s revenue guidance came in well above Wall Street targets, sending CRWD stock higher.
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CrowdStrike earnings for the fourth quarter rose 57% to 47 cents a share on an adjusted basis. Revenue, including acquisitions, jumped 48% to $637.4 million.
CrowdStrike stock analysts polled by FactSet had projected CrowdStrike earnings of 43 cents a share on revenue of $625 million for the period ended Jan. 31.
A year earlier, the Sunnyvale, Calif.-based cybersecurity firm earned 30 cents a share on revenue of $431 million.
For the current quarter ending in April, CrowdStrike forecast revenue of $676.5 million, topping estimates of $663.3 million.
CRWD Stock Pops Higher
“We see revenue growth guidance as a good starting point in a challenging macro environment, with an opportunity to build from here,” said RBC Capital analyst Matthew Hedberg in a report. “Fiscal 2024 operating income and net income guidance were all ahead versus consensus estimates.”
CrowdStrike stock rose 6.2% to 132.70 in extended trading on the stock market today.
CrowdStrike’s Key Financial Metric
With CrowdStrike, Wall Street focuses on annual recurring revenue, or ARR. It’s a financial metric tied to subscription services growth.
In the fourth quarter, ARR increased 48% to $2.56 billion. Analysts had predicted ARR of $2.515 billion.
Heading into the CrowdStrike earnings report, CRWD stock had climbed 21% thus far in 2023. But CRWD stock owned an IBD Relative Strength Rating of only 22 out of a best-possible 99, according to IBD Stock Checkup.
The cybersecurity company uses machine learning, a form of artificial intelligence, in its products. Meanwhile, it uses a specialized database to detect malware on laptops, mobile phones and other devices that access corporate networks.
In addition, CrowdStrike stock is one of many cybersecurity stocks to watch.
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