CrowdStrike Holdings Inc. witnessed a remarkable 24% surge in its shares during Tuesday’s extended session following the release of an optimistic forecast alongside its impressive quarterly results.
For the fiscal first quarter, CrowdStrike projects total revenue ranging between $902.2 million and $905.8 million, with adjusted earnings per share estimated at 89 cents to 90 cents. Analysts surveyed by FactSet had anticipated revenue of $900 million and earnings of 82 cents per share, on average.
Looking ahead to the full fiscal year, CrowdStrike’s management expects revenue in the range of $3.925 billion to $3.989 billion, with adjusted EPS forecasted to be between $3.77 and $3.97. The revenue projection surpasses the consensus estimate of $3.938 billion at the midpoint, while the earnings outlook exceeds the FactSet consensus of $3.76.
The surge in CrowdStrike’s stock during the extended session followed a roughly 5% decline in Tuesday’s regular session. The cybersecurity sector has seen some volatility recently, notably after Palo Alto Networks Inc. provided a cautious outlook in mid-February and Zscaler Inc. experienced a negative stock reaction to its recent results.
In the fourth quarter, CrowdStrike reported net income of $53.7 million, or 22 cents per share, compared to a net loss of $47.5 million, or 20 cents per share, in the same period last year.
CrowdStrike’s adjusted earnings per share nearly doubled to 95 cents from 47 cents, surpassing analysts’ expectations of 82 cents, according to FactSet. Revenue also saw a significant increase to $845.3 million from $637.4 million, outperforming analysts’ estimates of $839.1 million.
The company reported a 34% year-over-year growth in ending annual recurring revenue (ARR), with net new ARR growth accelerating to 27%.
CrowdStrike’s Chief Financial Officer, Burt Podbere, expressed confidence in the company’s achievements, stating that they remain focused on profitably scaling the business to $10 billion ARR and beyond.
In addition to its strong financial performance, CrowdStrike announced plans to acquire Flow Security, a move aimed at enhancing its cloud-data protection capabilities. George Kurtz, the company’s chief executive, emphasized the significance of this acquisition in expanding CrowdStrike’s cloud leadership and redefining the future of data protection.