Shares of CrowdStrike Holdings (CRWD 2.03%) are up 12.5% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the cybersecurity leader announced strong quarterly results and raised its full-year outlook on Tuesday.

On the former, CrowdStrike revealed that its fiscal third-quarter revenue grew 35% year over year to $786 million, translating to adjusted (non-GAAP) net income of $199.2 million, or $0.82 per share. Analysts, on average, were only expecting earnings of $0.74 per share on revenue of $777 million.

A record quarter on multiple levels

CrowdStrike's annual recurring revenue (ARR) grew 35% year over year to $3.15 billion as of Oct. 31, 2023, including $223.1 million of net new ARR added during the quarter. That makes it the first-ever pure-play cybersecurity stock to exceed the $3 billion recurring revenue mark. CFO Burt Podbere added that CrowdStrike achieved new quarterly records for adjusted operating margin (which expanded seven percentage points year over year to 22%), free cash flow (up 37% to $239 million), and net income.

"Our single platform architecture and unique data advantage unites security and I.T. teams in solving cybersecurity's mission-critical challenges, driving increased win rates and record pipeline," stated CrowdStrike co-founder and CEO George Kurtz. "Customers increasingly trust the AI-native Falcon XDR platform as their cybersecurity consolidator of choice."

What's next for CrowdStrike investors?

Over the longer term, CrowdStrike aims to scale its ARR to at least $10 billion over the next five to seven years. In the meantime, the company raised its full-year guidance to call for revenue of $3.047 billion to $3.05 billion (up from $3.03 billion to $3.04 billion previously) and adjusted net income per share of $2.95 to $2.96 (up from $2.80 to $2.84).

Even with shares of CrowdStrike having more than doubled year to date leading up to its quarterly report this week, this was a straightforward beat-and-raise scenario that even the most bearish investors simply couldn't ignore. Shares of CrowdStrike responded in kind, and I see no reason they can't continue to rally from here.