CrowdStrike: Q3 Results Top Estimates, Provides Upbeat Q4 Guidance


This article was originally published on TipRanks.com

CrowdStrike Holdings, Inc. (CRWD) has provided upbeat guidance for the fourth quarter of Fiscal 2022 after the company’s third-quarter results beat analysts’ expectations.

Following the news, shares of the cybersecurity technology company rose 3.5% in Wednesday’s extended trading session.

Results in Detail

CrowdStrike reported adjusted third-quarter earnings of $0.17 per share, which more than doubled from earnings reported in the same quarter last year and topped the consensus estimate of $0.10 per share.

Revenues of $380.1 million surpassed analysts’ expectations of $363.48 million and surged 63% year-over-year on the back of strong subscription revenue.

Segment-wise, while subscription revenue was up 67% year-over-year to $357 million, professional services revenue grew 21.7% to $23 million. Markedly, the company added 1,607 net new subscription customers in the quarter to a total of 14,687 subscription customers as of October 31, 2021, representing 75% year-over-year growth.

Annual Recurring Revenue (ARR) increased 67% year-over-year and stood at $1.51 billion as of October 31, 2021. Notably, net new ARR of $170 million was added in the quarter.

Adjusted subscription gross margin was 79% in the quarter, up 100 basis points year-over-year. (See CrowdStrike stock charts on TipRanks)

CEO Comments

Following the encouraging results, the CEO of CrowdStrike, George Kurtz, commented, “Our outstanding results this quarter demonstrate the flywheel effect of our platform and reflect continued strong customer adoption for our core products in addition to the growing success of our newer product initiatives including identity protection, log management and cloud.”

Guidance

CrowdStrike’s CFO Burt Podbere said, “Given the growth drivers of our business, as well as our exceptional third quarter performance and momentum into the fourth quarter, we are once again raising our guidance for the fiscal year 2022.”

For Fiscal 2022, the company projects revised adjusted EPS in the range of $0.57 to $0.59 per share. Revenue is expected to land between $1,427.1 million and $1,432.9 million.

For the fourth quarter of Fiscal 2022, the company projects revenue in the range of $406.5 million to $412.3 million, versus the consensus estimate of $400 million. Adjusted earnings per share are expected to land between $0.19 and $0.21 versus $0.16 per share estimated by analysts.

Wall Street’s Take

The Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 6 Buys, 2 Holds, and 1 Sell. The average CrowdStrike price target of $314.63 implies 56.14% upside potential to current levels. Shares have increased 42.1% over the past year.

Smart Score

According to TipRanks’ Smart Score system, CrowdStrike gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages. (See Top Smart Score Stocks on TipRanks)

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