CrowdStrike (CRWD) tumbles following Q3 earnings release

CrowdStrike Holdings Inc. (NASDAQ: CRWD) shares plunged in after-hours trading following its fiscal third-quarter 2023 earnings report, which topped earnings and revenue estimates.

CrowdStrike shares have tumbled 18% to $112.77 following the earnings release.

The cybersecurity firm reported adjusted earnings of $0.40 per share, $0.08 better than the analyst estimate of $0.32, while revenue for the quarter came in at $580.9 million versus the consensus estimate of $575.16 million.

"CrowdStrike delivered robust growth at scale, strong retention rates, growing module adoption, record net new ARR from emerging products and a record number of customers contributing at least $1 million to net new ARR," commented George Kurtz, CrowdStrike's co-founder and chief executive officer.

Subscription revenue was $547.4 million, a 53% increase, compared to $357.0 million in the third quarter of fiscal 2022. Meanwhile, Annual Recurring Revenue (ARR) increased 54% year-over-year to $2.34 billion, of which $198.1 million was net new ARR added in the quarter.

However, the company said total net new ARR was below its expectations "as increased macroeconomic headwinds elongated sales cycles with smaller customers and caused some larger customers to pursue multi-phase subscription start dates, which delays ARR recognition until future quarters."

Looking ahead, the company sees Q4 adjusted earnings per share between $0.42 and $0.45, versus the consensus of $0.34, with revenue between $619.1 and $628.2 million, below the consensus of $632.84 million.

For FY2023, CrwodStrike sees adjusted earnings per share from $1.49 to $1.52, versus the consensus of $1.32, with revenue of $2.223 to $2.232 billion, versus the consensus of $2.23 billion.

By Sam Boughedda

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