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CrowdStrike Holdings Inc., a prominent player in the cybersecurity sector, witnessed a significant surge in its shares, climbing as much as 21% in after-hours trading on Tuesday following the release of its quarterly earnings report. The company exceeded analyst expectations both in terms of revenue and earnings and provided robust guidance for the upcoming quarter and full year.
Compared to consensus estimates compiled by LSEG, formerly known as Refinitiv, CrowdStrike delivered the following results:
- Earnings per share: 95 cents (adjusted) vs. expected 82 cents
- Revenue: $845 million vs. expected $839 million
For the period ending January 31, CrowdStrike reported a notable improvement in net income, recording $54 million, or 22 cents per share, compared to a loss of $48 million, or 20 cents per share, in the same period the previous year. This marks the fourth consecutive quarter in which the company has reported GAAP net income, according to Chief Financial Officer Burt Podbere.
The company’s full-year revenue experienced a substantial 36% year-over-year increase, rising from $2.24 billion to $3 billion, reflecting CrowdStrike’s continued growth and market strength.
In addition to its impressive financial performance, CrowdStrike announced its intention to acquire Flow Security in a cash-and-stock transaction, with the deal expected to close in the company’s fiscal first quarter. This move underscores CrowdStrike’s commitment to strategic expansion through mergers and acquisitions.
CEO George Kurtz emphasized CrowdStrike’s position as a leader in the cybersecurity landscape, describing the company as the “consolidator of choice, innovator of choice, and platform of choice to stop breaches.”
Looking ahead, CrowdStrike provided optimistic guidance for its fiscal first quarter, projecting revenue in the range of $902 million to $906 million, surpassing analysts’ consensus estimate of $899 million. Similarly, the company expects earnings per share for the period to be between 89 cents and 90 cents, outperforming the consensus estimate of 82 cents.
Podbere reiterated CrowdStrike’s ambitious target of achieving $10 billion in annual recurring revenue by 2030, underscoring the company’s long-term growth strategy. With annual recurring revenue already reaching $3.4 billion as of January, CrowdStrike remains on a trajectory of strong expansion and market dominance in the cybersecurity sector.