CrowdStrike, a leading cybersecurity firm, impressed investors with its standout performance in the third quarter. The company reported a revenue of $786 million and an adjusted profit of 82 cents per share, surpassing analysts’ predictions. Market experts had expected CrowdStrike to report a revenue of $777 million and earnings of 74 cents per share, with annual recurring revenue estimated at $3.1 billion.
Not only did CrowdStrike meet expectations, but it also outperformed its own earlier projections for the quarter. As a result, the company has once again raised its outlook for the full year. It now anticipates revenue to reach approximately $3.05 billion, along with an adjusted profit of $2.95 to $2.96 per share. In the previous quarter, CrowdStrike had forecasted revenue between $3.03 billion and $3.04 billion for the fiscal year 2024, with an adjusted profit in the range of $2.80 to $2.84 per share.
Despite this strong showing, shares of CrowdStrike experienced a slight dip of 2% in after-hours trading. However, it is worth noting that the stock has more than doubled in value over the course of this year, with Tuesday marking a new 52-week high.
One noteworthy highlight is the remarkable growth in annual recurring revenue during the third quarter. With a 35% increase compared to the same period last year, annual recurring revenue reached an impressive $3.15 billion. Notably, $223.1 million of this amount was generated as new revenue in this quarter alone. Burt Podbere, CFO of CrowdStrike, expressed delight with these results and emphasized the company’s ongoing commitment to investing in innovation. Podbere revealed that CrowdStrike has its sights set on achieving $10 billion in annual recurring revenue within the next five to seven years.
Additionally, subscription revenue experienced significant growth, rising by 34% in the third quarter to reach $733.5 million.
Looking ahead to the fourth quarter, CrowdStrike anticipates continued success. The company projects revenue in the range of $836.6 million to $840 million, with anticipated earnings of 81 to 82 cents per share.
The remarkable performance of CrowdStrike in Q3 has undoubtedly showcased its position as a leader in the cybersecurity industry. With an optimistic outlook for the remainder of the year and a robust commitment to innovation, the company is poised for continued success.