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Why CrowdStrike Stock Gained This Morning

By Evan Niu, CFA - Updated Mar 17, 2021 at 9:53PM

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The cybersecurity specialist reports fiscal fourth-quarter earnings and issues rosy guidance for next quarter.

What happened

Shares of CrowdStrike (CRWD -6.30%) gained as much as 6% this morning after the company reported fourth-quarter earnings. The results topped expectations and guidance was strong, but tech stocks are under pressure today. As of 11:55 a.m. EST, CrowdStrike stock had given back all of those gains and was up less than 1%.

So what

Revenue in the fiscal fourth quarter came in at $264.9 million, easily beating the consensus estimate of $250.6 million in sales. That translated into adjusted earnings per share of $0.13, also topping the $0.08 per share in adjusted profits that Wall Street analysts were modeling for. The cybersecurity specialist said annual recurring revenue (ARR) had reached $1.05 billion, while subscription gross margin expanded to 78%.

Green stock chart fluctuating

Image source: Getty Images.

"Our go-to-market engine has gained incredible momentum with both marquee enterprises and small businesses alike as we expand our partner ecosystem and leverage our frictionless sales motion and leading technology to deliver immediate value to our customers," CEO George Kurtz said in a statement. "Combined with strong secular tailwinds, including digital transformation and an unprecedented threat environment, and our expanding technology portfolio, which now includes leading index-free data ingestion capabilities, we believe we are in an ideal position to further extend our leadership in the Security Cloud category we pioneered."

Now what

Guidance for the first quarter of fiscal 2022 calls for revenue in the range of $287.8 million to $292.1 million, compared to the consensus estimate of $268.4 million. That should result in adjusted net income of $10.8 million to $13.9 million, or $0.05 to $0.06 per share. Analysts are forecasting adjusted earnings per share of only $0.04.

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Stocks Mentioned

CrowdStrike Holdings, Inc. Stock Quote
CrowdStrike Holdings, Inc.
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