CrowdStrike shares are trading lower after-hours: here's why

CrowdStrike Holdings Inc (NASDAQ: CRWD) said on Tuesday its revenue came in better-than-expected in the fiscal second quarter. Shares of the company, however, fell close to 5.0% in after-hours trading as investors focused on the net loss that widened in Q2.

Financial performance

CrowdStrike reported $57.3 million of net loss for the second quarter that translates to 25 cents per share. In the comparable quarter of last year, its net loss was capped at a significantly lower $29.9 million or 14 cents per share.

On an adjusted basis, the cybersecurity company noted 11 cents of per-share profit. It generated $377.7 million in revenue – a sharp increase from last year’s $199 million. According to FactSet, experts had called for $323 million in revenue and 9 cents of adjusted profit per share.

CEO Kurtz’ remarks

Commenting on the financial update, CEO George Kurtz said:

“The success of our platform strategy and our growing brand leadership have led to a groundswell of customers turning to CrowdStrike as their trusted security platform. Our extensible Falcon platform, purpose-built to leverage the power of the cloud, collecting data once and reusing it many times, is a fundamental cornerstone to building a durable growth business over the long term.”

Other notable figures include a 70% increase in annual recurring revenue to a record $1.34 billion versus $1.30 billion expected. CrowdStrike saw 1,660 net new subscriptions in Q2 – also a record.

Future guidance

For fiscal Q3, CrowdStrike now forecasts 8 to 10 cents of EPS on up to $365.3 million in revenue. In comparison, analysts are calling for 9 cents of per-share earnings on $351 million in revenue.

The Nasdaq-listed firm expects up to $1.41 billion in revenue this year and 43 cents to 49 cents of adjusted EPS – also ahead of the FactSet consensus, as per the earnings press release.