CrowdStrike Tops Estimates on Strong Subscription Growth

Cloud security company offers upbeat guidance, says annual recurring revenue up 81%.
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CrowdStrike Holdings, Inc.  (CRWD) - Get Report topped estimates for its fiscal third quarter on strong subscription growth for its cloud security offerings.

The company reported revenue for the quarter of $232.5 million and non-GAAP net income of 8 cents a share, vs. $125.1 million and a loss of 7 cents a share in the same period a year earlier.

Wall Street had expected the company to break even on revenue of $213.5 million, based on a FactSet survey of 19 analysts.

The company had guided for a loss of 1 cent a share to break even on Sept. 3. The stock has risen 14.1% since then.

Annual recurring revenue rose 81% year-over-year to $907.4 million as of Oct. 31, with $116.8 million of net new ARR added in the quarter, including $6.8 million from the acquisition of Preempt Security, the company said in a statement.

“CrowdStrike’s robust growth at scale underscores our growing leadership in the Security Cloud category and the immense value we deliver to customers seeking to transform, consolidate and fortify their security posture," said George Kurtz, CrowdStrike’s co-founder and chief executive officer, in the statement.

For the fiscal fourth quarter, CrowdStrike forecast revenue of $245.5 million to $250.5 million and non-GAAP EPS of 8 cents to 9 cents a share. It offered full-year guidance for revenue of $855 million to $860 million and non-GAAP EPS of 21 cents to 22 cents a share for fiscal year 2021.

Shares of CrowdStrike rose $14.38  or 10.1%, to 156.22 in after-hours trading. The stock had fallen 3.8% in the regular session.