CrowdStrike Gets An Earnings Shock in Q2

When CrowdStrike Holdings Inc. (NASDAQ: CRWD) reported its fiscal second-quarter results after the markets closed on Thursday, the cybersecurity firm posted $0.03 in earnings per share (EPS) and $199.0 million in revenue. The consensus estimates had called for a net loss of $0.01 per share and $188.54 million in revenue. In the same period of last year, the company said it had a net loss of $0.18 per share and $103.79 million in revenue.

During the latest quarter, total revenue increased 84% year over year, with subscription revenue making up a majority of this and increasing 89% to $184.3 million.

Annual recurring revenue (ARR) increased 87% year over year to $790.6 million, and $104.5 million was net new ARR added in this quarter.

The company added 969 net new subscription customers in the quarter for a total of 7,230. Also, 57% of CrowdStrike’s subscription customers have adopted four or more cloud modules, and 39% have adopted five 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 $0.01 to breakeven earnings and revenue between $210.6 million and $215.0 million. Consensus estimates call for a net loss of $0.05 per share and $195.75 million in revenue for the quarter.

On the books, cash and cash equivalents totaled $1.07 billion at the end of the quarter, versus $264.8 million at the end of the previous fiscal year.

CrowdStrike stock closed Wednesday at $142.07, with a 52-week range of $31.95 to $153.09. The consensus analyst price target is $115.60. Following the announcement, the stock was down about 8% at $130.48 in the after-hours session.

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