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.

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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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