CrowdStrike Just Couldn’t Get It Together in Q2
CrowdStrike shares pulled back Friday after it reported its fiscal second quarter after the markets closed on Thursday.
When CrowdStrike Holdings Inc. (NASDAQ: CRWD | CRWD Price Prediction) reported its fiscal second-quarter results after the markets closed on Thursday, the cybersecurity firm posted a net loss of $0.18 per share and $108.1 million in revenue. The consensus estimates had called for a net loss of $0.23 per share and $103.58 million in revenue. In the same period of last year, the company said it had a net loss of $0.69 per share and $55.7 million in revenue.
During the latest quarter, total revenue increased 94% year over year, with Subscription revenue making up a majority of this and increasing 98% to $97.6 million.
Annual recurring revenue (ARR) increased 104% year over year to $423.8 million, and $59.2 million was net new ARR added in this quarter.
The company added a record 730 net new subscription customers in the quarter for a total of 3,789. Also, 50% of CrowdStrike’s subscription customers have adopted four or more cloud modules.
Looking ahead to the fiscal third quarter, the company expects to see a net loss per share in the range of $0.12 to $0.11 and revenue between $117.1 million and $119.5 million. Consensus estimates call for a net loss of $0.13 per share and $111.22 million in revenue for the quarter.
George Kurtz, CrowdStrike’s co-founder and CEO, commented:
We delivered a strong second quarter with rapid subscription revenue growth and record net new ARR generated in the quarter. Customer growth accelerated as an increasing number of organizations recognize the power of CrowdStrike’s cloud-native Falcon platform to effectively stop breaches and simplify their security stack with our single-agent architecture. We secured a record number of net new subscription customers in the quarter. In addition, as of July 31, 2019, 50% of our subscription customers had adopted four or more cloud modules, underscoring the continued success of our platform strategy.
Shares of CrowdStrike traded down about 10% to $78.15 on Friday. The 52-week range is $56.00 to $101.88.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
