CrowdStrike beats analysts estimate for revenue in the fiscal third quarter

on Dec 11, 2019
Updated: Mar 11, 2020
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  • CrowdStrike beats analysts' estimate for revenue in the fiscal third quarter.
  • The company printed 7 cents of loss per share versus the analysts' forecast of 11 cents per share.
  • The cybersecurity technology business revised its guidance for full-year report.
  • CEO Burt Podbere says the company will break even by the end of fiscal 2021.
  • CrowdStrike's performance in the stock market has remained challenged in 2019.

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The
California based cybersecurity technology company, CrowdStrike, announced its
performance results for the fiscal third quarter last Thursday. Having beaten
the analysts’ estimates for revenue and earnings per share, the stock was seen
trading 3.5% higher later on Thursday.

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Based
on Refinitiv’s data, experts had forecasted the company to print $118.8 million
in revenue in the third quarter. As per the earnings report, however, CrowdStrike
noted a significantly higher $125.1 million in revenue. On the other hand,
analysts had anticipated the
cybersecurity technology business
to record 11 cents of loss per share in
Q3. Although CrowdStrike couldn’t turn it into “profit” per share, the loss
noted was considerably lower at 7 cents per share.

CrowdStrike
Upgraded Its Guidance For Full-Year Following The Q3 Earnings Report

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Following
the optimism of the Q3 earnings report, the company revised its guidance for
fiscal 2020. As per the CrowdStrike spokesman, the company is expecting its
revenue to be capped at $468 million in the full-year report while the loss per
share is expected around nine to eight cents.

CEO Burt Podbere highlighted in his comment on the quarterly report that owing to the rising momentum and upbeat performance, the company can be expected to break even by the end of fiscal 2021. CrowdStrike turned into a publicly-traded company in June. It specializes in providing cybersecurity software (cloud-based) and consulting services to small and medium-sized enterprises.

With
a market cap of $9.86 billion, CrowdStrike’s performance in the stock market
since June has remained challenged. The company’s initial public offering
priced its shares at $58. As of August, the stock was seen trading as high as
$99. This was almost immediately followed by an unstoppable downtrend that
pushed the stock even lower than its IPO price. Share prices were reported to
have printed a year-to-date low of around $45 in November. The stock is
currently exchanging hands at $47.75.

Technology Sector Has Been Under Pressure Due To The U.S-China Trade War

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According
to the stock market analysts, however, CrowdStrike isn’t the only company to
have lost in the technology sector. With the rising trade
tensions between the United States of America and China
, investors have
increasingly been focusing on other market sectors with multiple of CrowdStrike’s
competitors noting losses on sales and revenue front in 2019.

CrowdStrike’s
lockup agreement has expired on December 9th. According to Eric
Suppiger, an analyst at JMP Securities, investors should expect higher
volatility in the stock in the upcoming weeks. In the long run, he added, the
stock is likely to catch an upward trend.  

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