CRWD Stock Jumps As Fiscal 2023 Outlook Handily Beats Estimates

CrowdStrike Holdings (CRWD) on Wednesday reported January-quarter profit and revenue that handily beat estimates. CRWD stock jumped as fiscal 2023 guidance came in well above expectations.

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Sunnyvale, Calif.-based CrowdStrike reported fourth-quarter earnings after the market close. CrowdStrike stock popped 12.5% to near 191 in extended trading on the stock market today. That came after Wednesday’s regular session in which CRWD stock surged 8.3%.

CrowdStrike earnings came in at 30 cents a share, up 130% from a year earlier, on an adjusted basis. Also, revenue jumped 63% to $431 million, including acquisitions, the company said. Analysts had projected CrowdStrike earnings of 20 cents on revenue of $411 million for the period ended Jan. 31.

A year earlier, the cybersecurity firm earned 13 cents a share on revenue of $265 million.

Key Financial Metric For CRWD Stock

Wall Street also focuses on annual recurring revenue, or ARR. It’s a financial metric tied to subscription customer growth.

During the quarter, ARR increased 65% to $1.73 billion. That also topped estimates for 60% growth to $1.683 billion. From new customers, ARR rose to $217 million, topping estimates of $169 million.

For fiscal 2023, management forecast earnings of $1.08 per share and revenue in a range of $2.13 billion to $2.16 billion for CRWD stock. Further, analysts had projected earnings of 90 cents on revenue of $2 billion.

Heading into the CrowdStrike earnings report, the cybersecurity stock had retreated 17% in 2022. It also owned a Relative Strength Rating of only 23 out of a best-possible 99, according to IBD Stock checkup.

The cybersecurity company uses machine learning, one form of artificial intelligence. It also uses a specialized database to 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.

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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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