CrowdStrike Earnings Beat. Here’s Why CRWD Stock Jumped

CrowdStrike Holdings (CRWD) on Tuesday reported fourth-quarter earnings and revenue that topped analyst estimates. CrowdStrike stock popped as the cybersecurity firm’s fiscal 2025 guidance came in above expectations.


On the stock market today, CrowdStrike stock jumped 15.4% to 343.50 in extended trading. In Tuesday’s regular session, shares fell 5.2%.

CrowdStrike earnings for Q4 rose 102% to 95 cents a share on an adjusted basis. Revenue, including acquisitions, climbed 33% to $845.3 million.

Meanwhile, analysts polled by FactSet had projected earnings of 82 cents a share on revenue of $839 million for the period ended Jan. 31.

A year earlier, the Sunnyvale, Calif.-based firm earned 47 cents a share on revenue of $637.4 million.

CrowdStrike Stock: Focus On Recurring Revenue

With CrowdStrike, Wall Street focuses on annual recurring revenue, or ARR. It’s a key financial metric tied to subscription services growth.

In Q4, ARR increased 34% to $3.44 billion. Analysts had predicted ARR of $3.39 billion.

For fiscal 2025, which starts with the current quarter ending in April, CrowdStrike predicted revenue of $3.957 billion at the midpoint of its outlook vs. estimates for $3.942 billion.

Meanwhile, CrowdStrike announced the acquisition of cloud-computing security firm Flow Security. The deal is expected to close in early 2025. No terms were disclosed.

Heading into the CrowdStrike earnings report, CRWD stock had climbed 22% thus far in 2024. The stock had an IBD Relative Strength Rating of 97 out of a best-possible 99, according to IBD Stock Checkup.

The company uses machine learning, a form of artificial intelligence, in its products. It also 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 artificial intelligence, cybersecurity and cloud computing.


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