By Eric J. Savitz
CrowdStrike Holdings reported better-than-expected financial results and inched up its outlook for the full fiscal year, but the security software company's stock was little changed in late trading.
For the fiscal second quarter ended July 31, the company (ticker: CRWD) posted revenue of $731.6 million, up 37% from a year ago. That was above both the company's guidance range of $717.2 million to $727.4 million and the Wall Street consensus forecast of$724.1 million.
On an adjusted basis, CrowdStrike earned 74 cents a share, ahead of both the company's guidance range of 54 to 57 cents a share and the Street consensus of 56 cents. Under generally accepted accounting principles, the company earned 3 cents a share. Annual recurring revenue was $2.93 billion, up 37%. Free cash flow was $188.7 million, up from $135.8 million in the comparable year-earlier quarter.
For the third quarter, Crowdstrike expects revenue of $775.4 million to $778 million, with adjusted profits of 74 cents a share. The Wall Street consensus had called for $774 million in revenue and 60 cents a share in adjusted profits.
Crowdstrike now sees revenue for the January 2024 fiscal year of $3.03 billion to $3.04 billion, with profits on an adjusted basis of $2.80 to $2.84 a share. The company's previous forecast called for revenue of $3 billion to $3.04 billion, and profits of $2.32 to $2.43 a share.
RBC Capital Markets analyst Matthew Hedberg wrote in a note reacting to the results that "all headline metrics" were ahead of expectations, adding that he was "impressed with the strength in profitability."
CrowdStrike shares were 0.5% higher in late trading at $149.95.
Write to Eric J. Savitz at eric.savitz@barrons.com
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August 30, 2023 17:31 ET (21:31 GMT)
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