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CrowdStrike posts better-than-expected earnings, but its stock slips

By Emily Bary

CEO calls out 'increased win rates and record pipeline'

CrowdStrike Holdings Inc. exceeded expectations with its latest quarterly results Tuesday, but shares of the cybersecurity company were edging lower in the extended session.

The company recorded fiscal third-quarter net income of $26.7 million, or 11 cents a share, whereas it logged a net loss of $55.0 million, or 24 cents a share, in the year-earlier period.

On an adjusted basis, CrowdStrike (CRWD) posted earnings per share of 82 cents, up from 40 cents a year before, while analysts were modeling 74 cents.

CrowdStrike's revenue surged to $786 million, from $581 million a year ago, and came in ahead of the FactSet consensus of $777 million.

See also: CrowdStrike's stock has surged this year, and a new bull sees further upside

The company reported $3.15 billion in ending annual recurring revenue, up 35% on a year-over-year basis. Analysts had been looking for $3.14 billion in ARR.

Net new annual recurring revenue came in at $223.1 million.

"Our single-platform architecture and unique data advantage unites security and IT teams in solving cybersecurity's mission-critical challenges, driving increased win rates and record pipeline," Chief Executive George Kurtz said in a release.

For the fiscal fourth quarter, CrowdStrike anticipates $836 million to $840 million in revenue, along with 81 cents to 82 cents in adjusted EPS. The FactSet consensus was for $837 million and 78 cents, respectively.

CrowdStrike's report comes an afternoon after fellow cybersecurity company Zscaler Inc. (ZS) posted better-than-expected results.

Shares of CrowdStrike were off about 1% in Tuesday's after-hours trading after closing up 1% in the regular session.

-Emily Bary

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11-28-23 1621ET

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