CRWD Stock: CrowdStrike’s Best Earnings Estimates, Revenue Forecasts Disappoint

CrowdStrike Holdings (CRWD) reported April quarter earnings and revenue that beat analysts’ estimates. CRWD stock fell as growth in a key metric, annual recurring revenue, slowed.


CrowdStrike’s first-quarter earnings rose 84% to 57 cents per share on an adjusted basis. Revenue, including acquisitions, soared 42% to $692.6 million. CrowdStrike stock analysts polled by FactSet had forecast earnings of 51 cents per share on revenue of $677 million for the period ending April 30.

A year earlier, the Sunnyvale, Calif.-based cybersecurity company earned 31 cents per share on revenue of $488 million.

With CrowdStrike, Wall Street is focusing on annual recurring revenue, or ARR. This is a financial measure related to the growth of subscription services. During the first quarter, ARR grew 42% to $2.73 billion, down from 48% in the prior quarter, outpacing views. Analysts had predicted an ARR of $2.711 billion.

CRWD share: forecast for the current quarter

For the current quarter ending July, CrowdStrike forecast revenue of $722 million amid its outlook, beating estimates of $719 million.

CrowdStrike stock fell 11.6% to 141.60 in extended trading in the stock market today. The cybersecurity company announced its earnings after the market closed.

Heading into CrowdStrike’s earnings report, CRWD stock had climbed 46% so far in 2023. CRWD stock had an IBD relative strength rating of just 84 out of the best possible 99, according to IBD Stock Checkup.

The cybersecurity firm uses machine learning, a form of artificial intelligence, in its products. Meanwhile, it uses a specialized database to detect malware on laptops, mobile phones, and other devices that access corporate networks.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


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