CrowdStrike Beats on Earnings
CrowdStrike Holdings, a cybersecurity firm based in Sunnyvale, California, reported earnings for the fourth quarter of its fiscal year 2022 that exceeded Wall Street expectations. The company’s adjusted earnings per share (EPS) rose by 57% to 47 cents, beating the consensus estimate of 43 cents, while revenue increased by 48% to $637.4 million, surpassing the projected $625 million.
CrowdStrike’s revenue growth was driven by strong sales of its cloud-based security products, as well as its expanding customer base. The company’s annual recurring revenue (ARR) grew by 48% to $2.56 billion, which also beat analysts’ estimates of $2.515 billion. ARR is a key financial metric that measures the amount of revenue a company is likely to receive from its subscription-based services in the upcoming year.
For the first quarter of fiscal year 2023, CrowdStrike provided revenue guidance of $676.5 million, which was higher than Wall Street’s expectation of $663.3 million. The company’s upbeat forecast for revenue growth was attributed to its strong product offerings and continued demand for its cybersecurity solutions.
Following the earnings report, CrowdStrike’s stock rose by 6.1% to $132.50 in extended trading, building on the 21% gain it had already achieved since the start of 2023.
CrowdStrike uses machine learning and a specialized database to detect malware on a wide range of devices that access corporate networks. The company’s products have gained popularity due to their ability to detect and respond to cyber threats in real time, thereby preventing potential breaches before they occur.
CRWD Stock Price Forecast & Analysis
The average analyst target price for Crowdstrike Holdings Inc over the next 12 months is USD 177.05, with a Strong Buy rating. Stock Target Advisor’s analysis is Neutral based on 2 positive and 2 negative signals. The stock price has increased by +5.75% over the past week, +16.61% over the past month, and decreased by -28.73% over the last year. As of the last closing, the stock price was USD 127.59.