CrowdStrike stock rallies 15% on Q4 earnings report

CrowdStrike Holdings Inc is trading up in extended hours on Tuesday after reporting better-than-expected earnings for its fiscal Q4.

CrowdStrike stock climbs on upbeat guidance

The stock is being rewarded also because $CRWD issued encouraging guidance for the future. The cybersecurity technology company now forecasts its revenue to fall between $902.2 million and $905.8 million in Q4 on up to 90 cents of per-share earnings.

Analysts, in comparison, were at $899 million on 82 cents a share, respectively. Burt Podbere – the chief financial officer of CrowdStrike Holdings said in a press release today:

The Nasdaq-listed firm ended its fourth quarter with $3.44 billion in annual recurring revenue (ARR) – up 34%. $CRWD is now up roughly 40% versus the start of 2024.

CrowdStrike Q4 earnings snapshot

• Earned $53.7 million that translates to 22 cents a share
• Had $47.5 million loss (20 cents a share) a year ago
• Adjusted EPS printed at 95 cents as per the earnings report
• Revenue jumped 33% year-over-year to $845.3 million
• Consensus was 82 cents a share on $840 million in revenue

CrowdStrike improved its subscription gross margin by 300 basis points to 78%, as per the quarterly report. CEO George Kurtz said on Tuesday:

CrowdStrike to buy Flow Security

CrowdStrike Holdings also announced a cash and stock deal to buy Flow Security on Tuesday. What it's paying for the said acquisition, however, is yet to be revealed. According to CEO Kurtz:

$CRWD doubled down on its partnership with Dell Technologies this morning as well. Wall Street currently has a consensus "buy" rating on CrowdStrike shares.

The $72 billion company based out of Austin, Texas does not pay a dividend yield, though.