CrowdStrike Stock Climbs As Cybersecurity Firm’s Forecast Tops Views

Cybersecurity firm CrowdStrike Holdings (CRWD) swung to a profit during its fiscal 2021 fourth quarter and topped views, while revenue also beat Wall Street estimates. CrowdStrike stock rose in extended trading as full-year 2022 revenue guidance came in ahead of expectations.


Sunnyvale, Calif.-based CrowdStrike earnings came in at an adjusted 13 cents a share, while revenue jumped 74% to $264.9 million, the company said. Analysts had projected CrowdStrike would earn 8 cents on revenue of $250.4 million for the period ended Jan. 31.

A year earlier, the cybersecurity firm lost 2 cents a share on revenue of $152.1 million. Annual recurring revenue increased 75% to $1.05 billion, topping estimates of $1.01 billion.

CrowdStrike stock rose 6% to near 208 in extended trading on the stock market today.

The company said it added 1,480 net new subscription business customers in the quarter, up from 1,186 in the previous quarter.

CrowdStrike Stock: Acquisitions Expand Product Offerings

The cybersecurity firm said it added 1,186 net new subscription customers in the quarter. For its fiscal 2022 first quarter ending in April, CrowdStrike forecast revenue in a range of $287.8 million to $292.1 million. Analysts had projected $267.8 million.

For full-year 2022, CrowdStrike said it expects revenue in a range of $1.31 billion to $1.32 billion, above estimates of $1.22 billion.

Heading into the CrowdStrike earnings report, the cybersecurity stock owned a Relative Strength Rating of 92 out of a best-possible 99. CrowdStrike stock is extended from an entry point of 154, according to IBD MarketSmith analysis.

The company uses machine learning, one form of artificial intelligence, and a specialized database to detect malware on laptops, mobile phones and other devices that access corporate networks. It’s among cybersecurity stocks expected to gain from recent state-sponsored hacking attacks.

CrowdStrike has broadened its offerings through acquisitions. It recently closed the acquisition of Humio for $392 million in cash and stock. Humio sells a cloud-based network monitoring tools.

CrowdStrike closed its acquisition of Preempt Security in September.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


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