CrowdStrike: Strong Demand Fuels Earnings Beat

CrowdStrike (CRWD:US) moved higher after the cybersecurity software company posted better-than-expected fourth-quarter results and offered a first-quarter forecast that also came in ahead of the analyst consensus. 

Investors were mostly focused on the net new annual recurring revenue (ARR), which came in especially strong ($221.7 million vs $175.9 million expected). Overall, ARR now stands at $2.56 billion, ahead of the $2.51 billion consensus. 

The company reported a profit per share of $0.47 on revenue of $637.4 million, ahead of the consensus for earnings of $0.43 per share on sales of $624.8 million.The number of total subscription customers exceeded 23,000 in the fourth quarter. 

For this quarter, CRWD expects EPS between $0.50 and $0.51 on sales of $674.9 million - $678.2 million, both better than the consensus. For FY24, the company sees EPS at $2.30 (the midpoint of the guidance range), easily topping the $2.01 consensus. CrowdStrike also said that full-year sales could top $3 billion for the first time ever. 

“CrowdStrike’s growing market share showcases customers' recognition of the Falcon platform’s technology leadership and advanced AI that drives better security outcomes, consolidation and lower TCO,” said George Kurtz, CrowdStrike’s president, chief executive officer and co-founder.

Overall, CrowdStrike stock trades almost 24% higher year-to-date. Late last year, Congressman Ro Khanna was selling CRWD shares, including the sale reported on December 05 when the price closed at $118.33.