CrowdStrike Holdings (CRWD) reported April-quarter profit and revenue that topped analyst estimates. CRWD stock tumbled as growth in a key metric, annual recurring revenue, slowed.
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CrowdStrike earnings for the first quarter rose 84% to 57 cents a share on an adjusted basis. Revenue, including acquisitions, climbed 42% to $692.6 million. CrowdStrike stock analysts polled by FactSet had projected earnings of 51 cents a share on revenue of $677 million for the period ended April 30.
A year earlier, the Sunnyvale, Calif.-based cybersecurity firm earned 31 cents a share on revenue of $488 million.
With CrowdStrike, Wall Street focuses on annual recurring revenue, or ARR. It’s a financial metric tied to subscription services growth. During the first quarter, ARR increased 42% to $2.73 billion, slowing from 48% the previous quarter, edging by views. Analysts had predicted ARR of $2.711 billion.
CRWD Stock: Current Quarter Prediction
For the current quarter ending in July, CrowdStrike predicted revenue of $722 million at the midpoint of its outlook, edging by estimates for $719 million.
CrowdStrike stock tumbled 11.6% to 141.60 in extended trading on the stock market today. The cybersecurity firm reported earnings after the market close.
Heading into the CrowdStrike earnings report, CRWD stock had climbed 46% thus far in 2023. CRWD stock owned an IBD Relative Strength Rating of only 84 out of a best-possible 99, according to IBD Stock Checkup.
The cybersecurity company uses machine learning, a form of artificial intelligence, in its products. Meanwhile, it uses a specialized database to detect malware on laptops, mobile phones and other devices that access corporate networks.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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