CrowdStrike Stock Dips As Investors Mull Earnings Beat, Revenue Outlook

 CrowdStrike Stock Dips As Investors Mull Earnings Beat, Revenue Outlook

Cybersecurity firm CrowdStrike Holdings (CRWD) reported second-quarter earnings and revenue Tuesday that topped analyst estimates. CrowdStrike stock fell in extended trading as investors mulled the size of the beat and its October-quarter guidance.




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Sunnyvale, Calif.-based CrowdStrike’s earnings came in at an adjusted 11 cents a share, up 266% from a year earlier. Revenue jumped 70% to $337.7 million, including acquisitions, the company said.

Analysts had projected CrowdStrike earnings of 7 cents on revenue of $323.2 million for the period ended July 31. A year earlier, the cybersecurity firm earned 3 cents a share on revenue of $199 million.

Annual recurring revenue increased 70% to $1.34 billion from a year earlier, topping estimates of $1.3 billion. Net new annual recurring revenue totaled $150.6 million, topping buy-side estimates of $140 million, according to an RBC Capital report.

CrowdStrike stock fell 3.1% to 272.25 on the stock market today.

CrowdStrike Stock: Revenue Guidance Tops Estimates

The cybersecurity firm added 1,660 net new subscription customers in the quarter. CrowdStrike said it had 13,080 subscription customers as of July 31, representing 81% growth year over year.

For its third quarter ending in October, CrowdStrike forecast revenue of $361.5 million at the midpoint of guidance. Analysts had projected $351 million. CrowdStrike said it expects profit of 9 cents a share, in line with estimates.

Heading into the CrowdStrike earnings report, the cybersecurity stock owned a Relative Strength Rating of 94 out of a best-possible 99.

Also, CrowdStrike stock is extended from an entry point of 251.38, according to IBD Stock Checkup. In addition, CRWD stock recently was added to the Nasdaq 100 index.

The cybersecurity company uses machine learning, one form of artificial intelligence, and a specialized database to detect malware on laptops, mobile phones and other devices that access corporate networks.

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IBD offers a broad range of growth stocklists, such as Leaderboard. Investors also can create watchlists for issues like CrowdStrike stock, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

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

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