How CrowdStrike's Presenting A Difference Earnings?
$CrowdStrike Holdings, Inc.(CRWD)$ s share price surged 15% after hours on Tuesday, as the company reported better-than-expected results for the fourth quarter (ending January 31) and raised its guidance for the next quarter.
Generally Beat Performance
Revenue was $845.3 million, beating the expected $839.96 million. Adjusted EPS was $0.95, surpassing the market expectation of $0.82.
Key indicators grew: the company's annual recurring revenue (ARR) increased year-on-year by 34%, reaching $3.44 billion; in addition, subscription revenue, non-GAAP subscription gross profit and other key indicators all grew compared to the same period last year, and most exceeded market expectations.
Performance guidance raised.
The company expects adjusted EPS for the first quarter of the fiscal year to be between $0.89 and $0.90, higher than the market expectation of $0.82, with revenue between $902.2 million and $905.8 million, higher than the market expectation of $898.8 million.
For the full year, the company expects adjusted EPS to be between $3.77 and $3.97, higher than the market expectation of $3.76; revenue is expected to be between $3.92 billion and $3.989 billion, higher than the market expectation of $3.94 billion.
Business expansion
CrowdStrike will acquire network security startup Flow Security. The deal, primarily paid for in cash, is expected to close in the first quarter for CrowdStrike. The solutions provided by Flow Security are suitable for the data security needs of the cloud, on-site, and external services. The services they offer cover all areas, even for on-site, applications, and SaaS data. The main features of their product include automatic discovery of all data and visualization of the complete data journey, automatic classification of all sensitive data (including personal identity information, protected health information, and payment card information), continuous management and tracking of data security status, and real-time detection and response to data breaches.
"AI + Network Security" is expected to become a new revenue engine for CrowdStrike.
With the acquisition of Flow Security, CrowdStrike will further strengthen its AI network security solutions and is expected to increase new revenue streams. This will help CrowdStrike maintain its leading position in the fiercely competitive network security market.
The Falcon platform is a good example, as a cloud-based endpoint protection platform that uses AI technology to detect and respond to threats. With the power of AI, Falcon can more accurately identify and block complex network attacks, providing more comprehensive protection.
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