What happened
Shares of CrowdStrike Holdings (CRWD 2.03%) were up 9.8% as of 11:15 a.m. ET Thursday after the cybersecurity specialist announced strong fiscal second-quarter 2024 results (for the period ended July 31, 2023).
Quarterly revenue climbed 37% year over year, to $731.6 million, translating to its second straight quarter of profitability under generally accepted accounting principles (GAAP) with net income of $8.4 million, or $0.03 per share. On a non-GAAP (adjusted) basis -- which excludes items like stock-based compensation -- CrowdStrike's net income was $180 million, or $0.74 per share. Analysts, on average, were expecting adjusted earnings of only $0.56 per share on revenue of $724.4 million.
So what
CrowdStrike saw solid 37% growth in annual recurring revenue (ARR), to $2.93 billion at the end of the quarter, including $196.2 million of net new ARR added in Q2. The company also generated healthy cash flows; net cash from operations was up 16.6% year over year, to $244.8 million, while free cash flow grew 39% to $188.7 million. Customers continued to expand their adoption of usage of multiple CrowdStrike modules, with 63%, 41%, and 24% adopting five or more, six or more, and seven or more modules, respectively, as of the end of July.
"The AI-powered Falcon platform's native capabilities across our cloud, identity, and next-gen SIEM businesses are unique in the market, in aggregate contributing well over half a billion dollars in ending ARR," stated CrowdStrike CEO George Kurtz. "Our platform strategy sets us apart from the competition, resulting in high win rates as customers rapidly embrace Falcon to consolidate vendors, lower TCO and achieve better security outcomes."
Now what
CrowdStrike also raised its full fiscal-year outlook to call for revenue of $3.03 billion to $3.04 billion (up from $3.0005 billion to $3.0367 billion previously), and adjusted net income per share of $2.80 to $2.84 (up from $2.32 to $2.43 before).
This was a solid beat and raise from CrowdStrike, and the stock is responding in kind.
