Earnings Results: CrowdStrike nearly doubles revenue to beat Street estimates

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CrowdStrike CRWD, -3.69% Holdings Inc. topped Wall Street estimates for quarterly results and outlook late Thursday, and the cybersecurity company’s stock flipped between gains and losses in the extended session.

CrowdStrike CRWD, -3.69%  shares, which had been down as much as 6%, were last up 3.3% after hours, following a 3.7% decline in the regular session to close at $52.95. In comparison, the S&P 500 index SPX, +0.15%  closed up 0.2%, the tech-heavy Nasdaq Composite Index COMP, +0.05%  finished up less than 0.1% and the ETFMG Prime Cyber Security ETF HACK, -0.84%  declined 0.9%.

As of the close, CrowdStrike CRWD, -3.69% shares were 55% above their IPO pricing, a far cry from the company’s last earnings report, when shares were 155% above the IPO price back in June.

The company reported a third-quarter loss of $35.5 million, or 17 cents a share, compared with $42.3 million, or 93 cents a share, in the year-ago period. The adjusted loss was 7 cents a share. Revenue rose to $125.1 million from $66.4 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 11 cents a share on revenue of $118.8 million.

“Third-quarter results well exceeded our expectations and CrowdStrike delivered the best quarter yet in company history, with strength in multiple areas of the business including 98% subscription revenue growth and record net new [annual recurring revenue],” said George Kurtz, CrowdStrike co-founder and chief executive, in a statement. “We achieved two significant milestones as ARR grew 97% year-over-year to exceed half a billion dollars and we generated positive cash flow in the quarter.”

ARR is a Software-as-a-Service metric that shows how much revenue the company can expect based upon subscriptions. CrowdStrike reported ARR of $501.7 million for the quarter, while the Street expected $471 million.

CrowdStrike expects an adjusted loss of 9 cents to 8 cents a share on revenue of $135.9 million to $138.6 million in the fourth quarter, and said it was raising its full-year forecast to a loss of 53 cents to 52 cents a share on revenue of $465.2 million to $468 million. Analysts forecast a loss of 11 cents a share on revenue of $127.2 million for the fourth quarter, and a loss of 63 cents a share on revenue of $450.2 million for the year.

Of the 20 analysts who cover CrowdStrike, 12 have overweight or buy ratings, seven have hold ratings, and one has a sell rating, with an average price target of $79.90, according to FactSet data.