CrowdStrike blows past Wall Street estimates in the fiscal third quarter

CrowdStrike blows past Wall Street estimates in the fiscal third quarter
Written by:
Wajeeh Khan
December 2, 2020
  • CrowdStrike blows past Wall Street estimates in the fiscal third quarter.
  • The cybersecurity firm reports an 81% increase in annual recurring revenue.
  • CrowdStrike forecasts up to £187.35 million of revenue for fiscal Q4.

CrowdStrike Holdings Inc. (NASDAQ: CRWD) published its earnings report for the fiscal third quarter on Wednesday that blew past Wall Street estimates.

CrowdStrike jumped more than 10% in extended trading on Wednesday. The stock is now trading at a per-share price of £119 that represents an over 200% growth on a year to date basis. CrowdStrike had tumbled to £24.68 per share in March. The price action should come in handy if you’re interested in investing in the stock market.

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CrowdStrike’ Q3 financial results versus analysts’ estimates

CrowdStrike reported £18.32 million of loss in the third quarter that translates to 8.23 pence per share. In the comparable quarter of last year, its loss had come in at a higher £26.55 million or 12.71 pence per share.

On an adjusted basis, the cybersecurity technology company earned 5.98 pence per share in Q3 versus the year-ago figure of 5.24 pence of loss per share. In an announcement last month, Malwarebytes said it had joined hands with CrowdStrike for end-to-end enterprise security.

CrowdStrike said that its revenue climbed to £173.89 million in the recent quarter. In the same quarter last year, its revenue was capped at a lower £93.56 million. According to FactSet, experts had forecast the company to post £159.68 million of revenue in Q3. On a per-share basis, they had expected the company break even in the third quarter. As per CEO George Kurtz:

“CrowdStrike delivered a record third quarter with results exceeding our expectations across all boards.”

CrowdStrike’s guidance for the fiscal fourth quarter

For the fiscal fourth quarter, CrowdStrike now forecasts up to £187.35 million of revenue. Its estimate for per-share earnings in Q4 stands at 5.98 pence to 6.73 pence. Analysts, on the other hand, are calling for £173.07 million of revenue and 0.75 pence of earnings per share in the fourth quarter.

At £678.66 million, the Sunnyvale-based company said that its annual recurring revenue saw a massive 81% annualised growth in the recent quarter versus a lower £638.57 million expected. In separate news from the U.S., PVH Corp said on Wednesday that its revenue slid 17.3% in the fiscal third quarter, as the ongoing Coronavirus pandemic weighed on its sales.

CrowdStrike debuted on the Nasdaq Stock Exchange last year in June at a per-share price of £48. At the time of writing, the American cybersecurity technology company is valued at £23.28 billion.