CRWD Stock: CrowdStrike Earnings Top Estimates, Revenue Outlook Well Above Views

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.

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

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