Cloud-based cybersecurity defender Cloudstrike (CRWD) reported a fiscal second-quarter loss that was narrower from a year ago and narrower than analysts' forecasts on solid growth in its recurring subscriptions of cloud-based security systems.
The Sunnyvale, Calif.-based company, which the FBI used to assess the Russian hacking of the DNC, posted a non-GAAP net loss of $23.1 million, or 18 cents a share, vs. a loss of $30.4 million, or 69 cents a share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting a loss of 23 cents a share.
Revenue totaled $108.1 million compared with $55.7 million in the second quarter of fiscal 2019, though slightly below the $111.1 million expected by analysts. Subscription revenue was $97.6 million vs. $49.2 million in the year-earlier quarter.
A surge of ransomware attacks against local governments, law enforcement agencies and school systems have seen activity from a Russian based group dubbed Wizard Spider. "It's big-game hunting," according to @Adam_Cyber of @CrowdStrike https://t.co/ih8BPXGkKd via @State_Scoop pic.twitter.com/oCcFTna5Ke— CrowdStrike (@CrowdStrike) September 4, 2019
"Customer growth accelerated as an increasing number of organizations recognize the power of CrowdStrike's cloud-native Falcon platform to effectively stop breaches and simplify their security stack with our single-agent architecture," CEO George Kurtz said in a statement.
For fiscal 2020, Crowdstrike said it expects to post a non-GAAP net loss of between $93.5 million and $97.9 million, or between 62 cents and 65 cents a share, on revenue of between $445.4 million and $451.8 million. Analysts forecast a loss of 71 cents a hare for the fiscal year.
Cloudstrike joined a host of tech-focused IPOs when it kicked off its initial public offering in June at $63.50 a share, well above its IPO price of $34.
Shares of Crowdstrike were down nearly 9% at $79.06 in early trading on Friday.