With Wall Street focused on the impact of July’s global IT outage on subscription growth, CrowdStrike Holdings (CRWD) on Tuesday delivered third-quarter earnings and revenue that topped estimates. CrowdStrike stock dipped as a key financial metric met views.
The Sunnyvale, Calif.-based cybersecurity firm reported October-ended quarterly earnings after the market close.
CrowdStrike Earnings Top Estimates
CrowdStrike earnings climbed 13% to 93 cents a share on an adjusted basis. Revenue, including acquisitions, rose 29% to $1.01 billion.
Analysts polled by FactSet had predicted earnings of 81 cents a share, down 1%, on revenue of $983 million.
↑
X
Is Tide Turning For CRWD Stock As Tech Troubles Fade Away?
With CrowdStrike, Wall Street analysts focus on annual recurring revenue, or ARR. It’s a key financial metric tied to subscription services growth.
Amid the IT outage, caused by a defective software update, analysts expected lower growth for “net new” ARR because of delays in signing contracts and expectations that many customers will seek price discounts when renewing contracts to help cover the cost of business disruptions.
CrowdStrike Stock: Key Metric In-Line
In Q3, total ARR increased 27% to $4.02 billion. Analysts had predicted total ARR of $4.01 billion.
On the stock market today, CrowdStrike stock fell more than 2% to 354.24 in extended trading. Heading into the CrowdStrike earnings report, shares were up 42% in 2024, down from a 56% gain on July 9, before the IT outage.
Further, CrowdStrike competes with Palo Alto Networks (PANW), SentinelOne (S), Microsoft (MSFT) 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. Palo Alto and CrowdStrike are building out cloud platforms as the industry consolidates.
Also, CRWD stock is among cybersecurity stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE:
Learn The Best Trading Rules At Investor’s Corner
Want To Trade Options? Try Out These Strategies
Monitor IBD’s “Breaking Out Today” List For Companies Hitting New Buy Points
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
