CrowdStrike's stock price jumps 24% in after-hours trading following strong quarterly results and an optimistic forecast. The cybersecurity company anticipates total revenue exceeding analysts' expectations and projects strong growth for the full fiscal year. CrowdStrike's impressive financial performance and strategic acquisition position it well for future success.
CrowdStrike's Strong Quarterly Results Drive Stock Surge
( Credit to: Marketwatch )
CrowdStrike Holdings Inc., a leading cybersecurity company, experienced a significant surge in its stock price after delivering strong quarterly results and an optimistic forecast. The company's shares jumped 24% in after-hours trading following the announcement.
In the fourth quarter, CrowdStrike reported a 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 the previous year. On an adjusted basis, the company's earnings per share nearly doubled to 95 cents from 47 cents, surpassing analysts' expectations of 82 cents. Revenue also saw significant growth, increasing to $845.3 million from $637.4 million, beating analysts' estimates of $839.1 million.
CrowdStrike's ending annual recurring revenue (ARR) experienced a 34% increase compared to the previous year, with net new ARR growth accelerating to 27%. The company's Chief Financial Officer, Burt Podbere, stated, "Our achievements in fiscal 2024 represent another high-water mark for CrowdStrike, and we remain relentlessly focused on profitably scaling the business to $10 billion ARR and beyond."
Optimistic Forecast Exceeds Expectations
For the fiscal first quarter, CrowdStrike anticipates total revenue between $902.2 million and $905.8 million, with adjusted earnings per share ranging from 89 cents to 90 cents. This forecast exceeded analysts' expectations, who had predicted revenue of $900 million and earnings of 82 cents per share, according to FactSet.
Looking ahead to the full fiscal year, CrowdStrike projects revenue in the range of $3.925 billion to $3.989 billion, along with adjusted earnings per share between $3.77 and $3.97. The midpoint of the revenue forecast surpassed the consensus estimate of $3.938 billion, while the earnings outlook outperformed the FactSet consensus of $3.76.
Cybersecurity Sector Volatility
The positive stock movement for CrowdStrike in after-hours trading comes after a 5% drop in the regular session. The cybersecurity sector has experienced some volatility recently, with concerns arising after Palo Alto Networks Inc. delivered a downbeat outlook in mid-February and Zscaler Inc.'s recent results were met with a negative stock reaction.
Strategic Acquisition Enhances Cloud-Data Protection Capabilities
Additionally, CrowdStrike announced plans to acquire Flow Security, a move that is expected to enhance its cloud-data protection capabilities. The company aims to expand its cloud leadership by safeguarding data in all stages as it flows through the cloud. CrowdStrike's CEO, George Kurtz, stated, "We are redefining the future of data protection by securing data from code, to application, to device and cloud."
CrowdStrike's Commitment to Growth and Innovation
Overall, CrowdStrike's strong quarterly results, upbeat forecast, and strategic acquisition demonstrate its commitment to growth and innovation in the cybersecurity industry. The company's impressive financial performance and expansion plans position it well for future success.
