CrowdStrike Stock Drops More Than 11% After Less-Than-Perfect Earnings Outlook

Dow Jones2023-06-01

Cybersecurity company beats on quarterly earnings, but annual forecast for adjusted profit lands on low end of Wall Street’s expectations

CrowdStrike Holdings Inc. reported fiscal first-quarter results Wednesday afternoon.CrowdStrike Holdings Inc. reported fiscal first-quarter results Wednesday afternoon.

CrowdStrike Holdings Inc. shares fell in the extended session Wednesday after the cybersecurity company’s forecast failed to wow Wall Street.

CrowdStrike shares dropped more than 11% after hours, following a 1% rise in the regular session to close at $160.13. The software company’s executives forecast adjusted fiscal second-quarter earnings of 54 cents to 57 cents a share on revenue of $717.2 million to $727.4 million, while analysts forecast earnings of 55 cents a share on revenue of $718.6 million, according to analysts surveyed by FactSet.

For the year, the company forecast an adjusted-earnings range of $2.32 to $2.43 a share on revenue of $3 billion to $3.04 billion. Wall Street analysts on average expected $2.33 a share on revenue of $3 billion, according to FactSet.

CrowdStrike reported fiscal first-quarter net income of $491,000, or less than a penny a share, compared with a loss of $31.5 million, or 14 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 57 cents a share, compared with 31 cents a share in the year-ago period. Revenue rose to $692.6 million from $487.8 million in the year-ago quarter.

Analysts expected CrowdStrike to report earnings of 51 cents a share on revenue of $677.4 million, based on the company’s outlook of 50 cents to 51 cents a share on revenue of $674.9 million to $678.2 million.

Annual recurring revenue, or ARR, a software-as-a-service metric that shows how much revenue the company can expect based on subscriptions, grew 42% to $2.73 billion from the year-ago quarter.

As of Wednesday’s close, CrowdStrike’s stock is up 52% year to date, compared with a 9% rise by the S&P 500 index, and a 24% gain for the tech-heavy Nasdaq Composite Index.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Yeahyeah
    2023-06-01
    Yeahyeah
    Good, drop further, let me enter 
Leave a comment
1
1