CrowdStrike (CRWD.US) stock is trading over 3.5% higher after the cybersecurity company reported better than expected Q4 financial results and upbeat financial outlook.
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Company earned 47 cents per share on $637 million of revenue, while Wall Street expected earnings of 43 cents on $625 million in revenue.
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Subscription revenue grew 48% to $598.3M,
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Annual recurring revenue (ARR), which is a key financial metric tied to subscription services growth rose 48% in Q4 to $2.56 billion, beating analysts' estimates of $2.515 billion.
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New subscriptions rose by 1,873 to a grand total of 23,019, which represents a 41% YoY increase. GAAP subscription gross margin amounted to 75%, slightly lower compared to 76% recorded last year. On an adjusted basis, gross margin dropped to 77% from 79% last year.
Highlights of Crowdstrike latest quarterly report. Source: AlphaStreet
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"CrowdStrike exceeded fairly modest fiscal Q4 expectations," said Deutsche Bank analyst Brad Zelnick in a report. "While the macro environment remains challenging, overachievement in the quarter seems largely attributable to a strong close in January along with increased traction down market, perhaps at the expense of SentinelOne (S)."
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Company expects adjusted fiscal first-quarter earnings of 50 cents to 51 cents a share on revenue of $674.9 million to $678.2 million, while analysts surveyed by FactSet forecast earnings of 42 cents a share on revenue of $663.3 million.
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CrowdStrike forecast 2024 revenue of $2.96 billion-$3.0 1 billion, stronger than the consensus of $2.96 billion.
CrowdStrike (CRWD.US) stock rose sharply in premarket, however buyers clearly struggle to break above key resistance at $134.20, which is marked with previous price reactions, long-term downward trendline and 61.8% Fibonacci retracement of the upward wave launched in March 2020. As long as price sits below this level, another downward impulse may be launched towards recent lows around $90.00 level. Source: xStation5
