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CrowdStrike Wavers; Analysts Laud Cybersecurity Firm's Results

CrowdStrike shares wavered on Wednesday. Wall Street analysts said the cybersecurity provider's fourth-quarter results were strong.

Shares of CrowdStrike Holdings  (CRWD)  wavered on Wednesday after the cybersecurity company on Tuesday posted better-than-expected fiscal-fourth-quarter results and Wall Street analysts lauded the effort.

Shares of the Sunnyvale, Calif., company at last check rose 1.9% to $199.85. The stock has also traded down as much as 1.4% at $193.50.

For the quarter ended Jan. 31, CrowdStrike narrowed its GAAP net loss to 9 cents a share from 14 cents in the year-earlier quarter.

CrowdStrike reported non-GAAP net income of 13 cents a share on revenue of $264.9 million.

Analysts polled by FactSet were expecting fourth-quarter adjusted earnings of 8 cents a share on revenue of $250.6 million. 

Analysts at Jefferies said the results were “a great indicator of how impressive this story is, and we don’t see the cyber tailwinds slowing down soon.”

Jefferies has a buy rating and a price target of $275 on the stock.

Mizuho Securities, which has a buy rating on the stock, said this was another strong quarter for the company, with annual recurring revenue a highlight.

"Unit economics showed significant improvement as CrowdStrike scales," the firm said. "Despite carrying a premium valuation, we believe the shares have more runway."

Mizuho Securities has set a price target of $270 for CrowdStrike.

Analysts at Credit Suisse said CrowdStrike's results highlight its ability “to continue to execute against the longer-term opportunity. Net new annual recurring revenue was meaningfully ahead of expectations."

Bloomberg Intelligence noted that CrowdStrike’s cloud-security momentum keeps building, with customer growth and adoption of add-on products reflecting steady win rates over legacy endpoint peers."

CrowdStrike Chief Executive George Kurtz said in a statement that the company's "go-to-market engine has gained incredible momentum with both marquee enterprises and small businesses." 

Last week, Founder Jim Cramer's senior analyst, Jeff Marks, said that "cybersecurity and digitization are probably the two most important investments in IT spending."

CrowdStrike was founded in 2011. In June 2019 it made its stock-market debut at $34 a share.