CrowdStrike (CRWD 4.48%) stock is seeing big gains in Wednesday's trading. The cybersecurity specialist's share price was up 10% as of 1:45 p.m. ET, according to data from S&P Global Market Intelligence.
After the market closed yesterday, CrowdStrike published results for the third quarter of its current fiscal year. For the quarter, which ended Oct. 31, the business posted non-GAAP (adjusted) earnings per share of $0.82 on revenue of $786 million. Meanwhile, the average analyst estimate had called for the business to report per-share earnings of $0.74 on sales of roughly $777.4 million.
NASDAQ: CRWD
Key Data Points
CrowdStrike's business was strong in Q3
CrowdStrike delivered strong beats with its top- and-bottom-line performance in Q3. Sales climbed roughly 34% year over year in the period, and adjusted earnings per share were up 85% compared to last year's quarter.
Meanwhile, the company signed contracts totaling $223.1 million worth of new annualized recurring revenue (ARR) in the period. The new contracts brought total ARR to $3.15 billion -- a 35% year-over-year increase.
What comes next for CrowdStrike stock?
Along with its recently published Q3 results, CrowdStrike also issued guidance for the current fiscal quarter. The company is targeting sales between $836.6 million and $840 million -- suggesting annual growth of roughly 31.5% at the midpoint of the target. Management is also guiding for adjusted earnings per share to come in between $0.81 and $0.82 -- good for growth of roughly 74% year over year at the midpoint of the target.
For comparison, the average analyst estimate had called for the company to post adjusted earnings per share of $0.78 on revenue of $836.6 million in fiscal Q4.
All in all, Q3 was a very good quarter for the company -- and the Q4 outlook suggests that demand for the company's cybersecurity services will remain strong in the near term.
