George Kurtz, chief executive officer of Crowdstrike.
Photograph by Michael Short/Bloomberg
The security software provider CrowdStrike Holdings
posted better-than-expected quarterly financial results and boosted its full-year outlook, but the stock nonetheless is losing ground in after-hours trading.
There is no obvious reason. Security software providers have generally performed well in the recent earnings period. Even in times of economic stress, companies are willing to invest in protecting their businesses and data. Results announced on Thursday from the identity management software company Okta (ticker: OKTA), which is soaring on the news, underscore the point.
For its fiscal first quarter, ended April 30, CrowdStrike (CRWD) posted revenue of $487.8 million, up 61%, and well ahead of the range of $459.9 million to $465.4 million management had told investors to expect. On a non-GAAP basis, CrowdStrike earned 31 cents a share in the quarter, ahead of the forecast range of 22 to 24 cents a share. Under generally accepted accounting principles, the company lost $31 million, or 14 cents a share.
The company said annual recurring revenue was $1.92 billion, up 61%, while free cash flow was $157.5 million, up 34%.
For the July quarter, CrowdStrike is projecting revenue of $512.7 million to $516.8 million, with non-GAAP profits of 27 to 28 cents a share. That is ahead of the Street consensus forecasts of $509 million in revenue and profits of 24 cents a share.
For the January 2023 fiscal year, CrowdStrike now sees revenue of about $2.2 billion, above the previous range of $2.133 billion to $2.163 billion. It expects profits on an adjusted basis of $1.18 to $1.22 a share, above the previous forecast of $1.03 to $1.13 a share.
CrowdStrike shares, which rallied 7.8% in Thursday’s regular session, were down 3.2% in late trading.
Write to Eric J. Savitz at [email protected]
