CrowdStrike, a leading cybersecurity company, experienced a significant surge in its shares, rising as much as 21% in after-hours trading on Tuesday. The boost followed the company’s earnings report, which surpassed analyst expectations both in terms of revenue and earnings, along with issuing robust guidance for the upcoming quarter and full year.
According to data from LSEG, formerly known as Refinitiv, CrowdStrike outperformed consensus estimates in the following key metrics:
Earnings per share: Adjusted earnings of 95 cents compared to an expected 82 cents
Revenue: $845 million compared to an expected $839 million
For the period ending January 31, CrowdStrike reported a net income of $54 million, or 22 cents per share, a significant improvement from the $48 million loss, or a loss of 20 cents per share, recorded in the same period the previous year.
Chief Financial Officer Burt Podbere highlighted that CrowdStrike has now achieved GAAP net income for four consecutive quarters. Additionally, the company reported a remarkable 36% year-over-year increase in full-year revenue, climbing from $2.24 billion to $3 billion.
In addition to its strong financial performance, CrowdStrike announced its acquisition of Flow Security in a cash-and-stock deal, the terms of which were not disclosed. The acquisition, scheduled to conclude in the company’s fiscal first quarter, underscores CrowdStrike’s commitment to expanding through strategic mergers and acquisitions.
CrowdStrike’s co-founder and CEO, George Kurtz, emphasized the company’s position as the cybersecurity industry’s preferred consolidator, innovator, and platform to combat breaches.
Looking ahead, CrowdStrike provided optimistic guidance for its fiscal first quarter, projecting revenue between $902 million and $906 million, surpassing the consensus estimate of $899 million. The company also expects earnings per share for the period to range between 89 cents and 90 cents, exceeding the consensus estimate of 82 cents.
Podbere reiterated CrowdStrike’s ambitious goal of achieving $10 billion in annual recurring revenue by 2030. The company recently reached a milestone of $3.4 billion in annual recurring revenue in January, underscoring its strong growth trajectory and market leadership in the cybersecurity sector.
