CrowdStrike Holdings Inc. declined in the extended session Tuesday after the cybersecurity company reported quarterly results that topped Wall Street estimates and hiked its outlook for the year.
shares fell 3% after hours, following a 1.9% decline in the regular session to close at $281.
The company reported a fiscal second-quarter loss of $57.3 million, or 25 cents a share, compared with a loss of $29.9 million, or 14 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 11 cents a share, compared with 3 cents a share in the year-ago period.
Revenue rose to $337.3 million from $199 million in the year-ago quarter. Annual recurring revenue, a software-as-a-service metric that shows how much revenue the company can expect based on subscriptions, increased 70% to $1.34 billion for the quarter.
Analysts surveyed by FactSet had forecast CrowdStrike to report earnings of 9 cents a share on revenue of $323.2 million, based on the company’s outlook of 7 cents to 9 cents a share on revenue of $318.3 million to $324.4 million. Analysts also estimated ARR at $1.3 billion.
“The success of our platform strategy and our growing brand leadership have led to a groundswell of customers turning to CrowdStrike as their trusted security platform of record,” said George Kurtz, CrowdStrike co-founder and chief executive, in a statement. “We believe that our extensible Falcon platform, purpose built to leverage the power of the cloud, collecting data once and reusing it many times, is a fundamental cornerstone to building a durable growth business over the long term.”
CrowdStrike expects adjusted fiscal third-quarter earnings of 8 cents to 10 cents a share on revenue of $358 million to $365.3 million, while analysts forecast earnings of 9 cents a share on revenue of $351 million, according to FactSet.
“In the second quarter, we once again achieved strong growth at scale and delivered exceptional unit economics, drove leverage and remained capital-efficient, generating strong operating- and free-cash flow,” said Burt Podbere, CrowdStrike’s financial chief, in a statement. “Given our strong performance and growing momentum in the market, and reflecting our view of a continued robust demand environment, we are raising our guidance for fiscal year 2022.”
For the year, the company forecast adjusted earnings of 43 cents to 49 cents on revenue of $1.39 billion to 1.41 billion, while the Street expects 40 cents a share on revenue of $1.36 billion.
As of Tuesday’s close, the stock is up more than 120% over the past 12 months, compared with a 29% rise by the S&P 500 index
a 30% gain by the tech-heavy Nasdaq Composite Index
and a 31% gain by the ETFMG Prime Cyber Security ETF