CrowdStrike Holdings reported first quarter earnings that topped estimates as a key growth metric edged by Wall Street targets. The cybersecurity company hiked its full-year revenue guidance for CrowdStrike stock.
The company reported Q1 earnings after the market close on Tuesday. CrowdStrike earnings for the April quarter climbed 63% to 93 cents a share on an adjusted basis. Revenue, including acquisitions, rose 33% to $921 million.
Meanwhile, analysts polled by FactSet had projected earnings of 89 cents a share on revenue of $905 million.
A year earlier, the Sunnyvale, Calif.-based firm earned 57 cents a share on revenue of $693 million.
CrowdStrike Stock: Recurring Revenue Beats
With CrowdStrike, Wall Street focuses on annual recurring revenue, or ARR. It's a key financial metric tied to subscription services growth.
In Q1, ARR increased 33% to $3.65 billion. Analysts had predicted ARR of $3.63 billion.
"We believe CrowdStrike's cloud platform remains very differentiated, its go-to-market is unrivaled, and the company is demonstrating greater success extending beyond traditional endpoint security markets," said Mizuho Securities analyst Gregg Moskowitz in a report.
On the stock market today, CrowdStrike stock popped 8.9% to 332.94 in early trading. Heading into the CrowdStrike earnings report, shares had sold off for four straight trading sessions.
Cybersecurity companies have turned in mixed earnings results for the March/April ending quarters.
"The company continues to see success in its broader platform with emerging products," said RBC Capital analyst Matthew Hedberg in a report. "Despite a choppier macro in the broader software landscape, CrowdStrike continues to execute and consolidate cyber wallet share."
CRWD Stock: Guidance Raised
For the current quarter ending in July, CrowdStrike predicted revenue in a range of $958.3 million to $961.2 million, just above estimates for $955 million.
Also, CrowdStrike raised full year revenue guidance to $3.993 billion at the midpoint, up 30.7% year-over-year, versus its earlier outlook of $3.957 billion.
Heading into the CrowdStrike earnings report, CRWD stock had climbed 21% thus far in 2024.
The stock had an IBD Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Checkup. CRWD stock holds an entry point of 358.84 from a cup base.
CrowdStrike competes with Microsoft and others in the "endpoint" market. Endpoint security tools detect malware on laptops, mobile phones and other devices that access corporate networks.
Also, CrowdStrike is building a broad, threat-detection cybersecurity platform called XDR, or extended detection and response. It monitors endpoints as well as web/email gateways, web application firewalls and cloud business workloads.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
