CrowdStrike stock slips following earnings beat, raised outlook

 CrowdStrike stock slips following earnings beat, raised outlook

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.

CrowdStrike 
CRWD,
-1.88%

 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 
SPX,
-0.13%
,
  a 30% gain by the tech-heavy Nasdaq Composite Index 
COMP,
-0.04%
,
  and a 31% gain by the ETFMG Prime Cyber Security ETF 
HACK,
-0.22%
.

Recently, CrowdStrike shares rallied after the cybersecurity company’s stock was added to the Nasdaq 100 Index
NDX,
-0.14%
.

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